How to choose an ERP that supports scalable, connected operations

The right ERP connects functions from Finance, Spend & Governance (FSG), to Workforce Management (WFM), enhancing real-time visibility and enabling AI-driven insights to help organisations scale confidently and make smarter decisions. The wrong ERP, however, can become a roadblock to growth.

Here are the 8 steps for choosing the right ERP for your business:

1. Establish the outcomes the ERP must support

Approach the enterprise resource planning system selection as a major strategic initiative, beginning by clearly defining goals and what success should look like. A new system or upgrading a legacy platform shouldn’t be the end goal; such a view is short-sighted and ignores long-term strategic value.

ERP is an enabler of outcomes aligned to business goals, so the focus should be on defining the specific areas it is expected to support, whether streamlined operations or better governance and decision-making.

Even when replacing a legacy system, focus on why the change is needed, and which activities need improvement. Are there manual tasks that could be automated? Is data fragmented? Map your workflows, identify inefficiencies and bottlenecks, and see where the system’s capabilities can be leveraged to optimise processes.

Identifying constraints, risks, and non-negotiables

Whether explicit or implicit, organisations operate within regulatory frameworks, operational realities, and organisational structures, and the ERP must function within these boundaries. ERP must be resilient against operational risks, particularly in workflows where failure carries serious consequences. In manufacturing, for example, instability or downtime can disrupt core operations and inflict significant damage on margins.

Integration with core systems and support for critical, industry-specific workflows are non-negotiable requirements that determine a solution’s viability.

Establishing constraints, risks, and non-negotiables early helps narrow options and create clear guardrails for evaluating trade-offs when choosing between competing solutions.

2. Document ERP requirements before reviewing solutions

Define enterprise resource planning system requirements grounded in business objectives, pain points, and the outcomes established earlier. Without this clarity, vendor demonstrations can quickly shift focus to features that look appealing but don’t address real needs.

Involve stakeholders across the organisation to ensure requirements reflect the “jobs to be done” for operational users, functional teams, and decision-makers. Capture these in a structured, prioritised checklist that clearly distinguishes what is critical from what is desirable, enabling more focused and objective evaluation.

Defining functional requirements

Functional requirements describe what the system must do to support different departments. While financial management, human resources, and other core elements are obvious starting points, it is important to dig deeper into other capabilities that could prove crucial.

Define requirements around end-to-end process visibility, reporting and data needs across roles, and gaps in cross-departmental proficiencies. Translate problems and desired enhancements into clear, actionable requirements to guide solution evaluation.

Defining non-functional requirements

Non-functional requirements, though not always visible in day-to-day use, are foundational capabilities that underpin ERP operations and ensure reliability over time. These include security, resilience, compliance, scalability, accessibility, and the ability to integrate and perform consistently under varying conditions. Document them with long-term needs in mind so the ERP can support growth and evolving operations without introducing unnecessary risk or disruption.

3. Assess operational alignment and potential gains

Evaluating operational alignment identifies where the system delivers value, where it may disrupt operations, and ensures improvements are prioritised strategically without unnecessary change.

Understanding where change is needed

Some processes are effective as they are, some align with standard ERP workflows, and others are core differentiators that should be preserved. Review key processes and ERP touchpoints to decide which to replace, support, keep independent, or retire.

Conduct impact analysis for each process adjustment, weighing benefits against potential disruption. Assess resource constraints, including ongoing configuration, maintenance, and support requirements. These insights help mitigate risk, reduce complexity and cost, and ensure ERP adoption is practical, sustainable, and strategically aligned.

4. Evaluate integration and data architecture needs

An ERP sits at the centre of the tech infrastructure, connecting finance, people, operations, and external platforms to serve as a single source of truth. Consistent data flow across systems underpins visibility, informed decision-making, and effective governance, while reducing duplication and errors.

Assessing integration capability is therefore essential. This includes understanding how data moves across systems, how integrations are delivered and maintained, whether they are pre-built, partner-supported, or configurable, and how reliable they are in day-to-day workflows. These factors directly affect data quality, operational stability, and total cost of ownership.

Assessing interoperability and extensibility

Assessment should focus on practical interoperability and extensibility, not specific technologies. An effective ERP system integrates seamlessly with existing frameworks while enabling improvements and supporting future goals. Look for modular integration patterns, standards-based APIs, and shared data structures that allow components to be added, updated, or replaced with minimal dependency on core systems.

ERP platforms with loosely coupled integrations and incremental extension capabilities let organisations evolve their system landscape over time. This approach reduces long-term dependency, limits disruption, and ensures the ERP can adapt as business needs and technology priorities change.

5. Review scalability, resilience, and future readiness

ERP systems are a long-term commitment, so it’s essential to evaluate their long-term potential when choosing a platform. Systems optimised solely for current requirements often become constraints as organisations grow. Avoid solutions that lock you into rigid structures or limit future choices. Instead, look for platforms designed to scale with the business, maintain performance under increased load, and remain resilient during peak activity or unexpected challenges.

Cloud-based platforms typically offer greater scalability, often allowing resources to adjust as demand grows, while modular architecture allows new features or industry-specific modules to be added without disrupting core processes.

The system should adapt to new business models and leverage emerging technologies like AI or automation without a full replacement, avoiding tech debt and costly overhauls.

Evaluating product direction and vendor roadmap

• Does the product roadmap align with the organisation’s long-term goals?
• Is the vendor committed to continuous improvement, innovation, and partnership, providing expertise and updates that adapt to industry standards?

These questions are essential, as an ERP’s long-term value depends on a vendor whose vision and commitment to innovation ensure the system remains an enabler rather than a constraint.

Understanding both the system’s inherent scalability and the provider’s commitment to evolution is critical to securing long-term strategic value.

6. Compare ERP options using a structured evaluation framework

Once outcomes, requirements, and constraints are clearly defined, organisations can evaluate ERP options objectively, rather than relying on perception or marketing claims. Use a structured evaluation checklist to ensure all shortlisted systems are assessed consistently against prioritised business and operational criteria, such as integration capability, reporting, and long-term viability.

While scoring models are common, they can oversimplify complex trade-offs, so focus on how well each system meets unique needs and supports future growth, providing insight into strengths, limitations, and potential compromises early in the process.

Shortlisting systems against needs

Clear elimination logic can be applied during shortlisting to remove systems that fail to meet non-negotiable requirements or introduce unacceptable risk. Shortlisting should be directly traceable to defined needs, ensuring decisions remain objective and relevant.

Platforms that meet functional requirements but require heavy customisation, pose implementation risks, or threaten long-term scalability should be carefully reviewed or excluded. Effective shortlisting favours solutions that reduce risk, support long-term stability, and align with the organisation’s long-term vision.

Validating assumptions through demonstrations and references

Instead of generic product walkthroughs, request demonstrations based on real-world scenarios, workflows, and data structures to see how the system performs in practice, not just in idealised circumstances.

Seek evidence, including customer references and insights from companies of similar size, complexity, or regulatory environment. This provides valuable context beyond the sales process, reinforces the system’s capabilities, and reduces uncertainty about its performance.

7. Assess total cost and long-term value

The cost of an enterprise resource planning system is not limited to licence or subscription fees. Implementation, integrations, customisation, ongoing support, and future updates all contribute to the investment.

Systems that appear cheaper upfront may carry hidden costs or risks, eroding long-term value. Evaluating total cost alongside expected benefits over a multi-year horizon (5–7 years) provides a realistic view of ROI and ensures long-term value rather than short-term savings.

Understanding total cost of ownership across the ERP Lifecycle

Total cost of ownership (TCO) includes every direct and indirect cost incurred over the system’s lifespan. For ERP, this typically covers implementation, configuration, and data migration through ongoing subscriptions, maintenance, support, and upgrades. Consider costs for adding users, modules, locations, or new capabilities, along with training, change management, and temporary productivity loss during transitions or disruptions.

Understanding these hidden costs upfront helps avoid overruns and ensures the system remains economically viable as the organisation grows in complexity and scale.

Evaluating value beyond efficiency gains

Beyond operational efficiency, ERP value comes from faster, more confident decision-making across financial forecasting, resource planning, and operations. This is made possible by real-time visibility, accurate data, and role-based insights. At the same time, systems that accommodate business growth, adapt to new models, and minimise downtime reduce financial risk. By extending the tech stack’s lifespan and avoiding costly full replacements, flexible solutions preserve the value of the original investment.

8. Confirm implementation readiness before final selection

Before finalising an enterprise resource planning system, assess whether your company is truly ready to implement it. Digital transformation should align with your team’s capacity to adopt and sustain change, making readiness a key selection criterion that ensures long-term success.

This includes evaluating technical infrastructure, human resources, data preparedness, and regulatory compliance, alongside governance, accountability, and change management capabilities.

Governance, ownership, and decision clarity 

Strong governance is critical to ERP success, providing accountability, decision-making authority, and oversight throughout selection and implementation. The initiative should be led by a senior leader who can remove roadblocks and make difficult trade-off decisions, keeping the initiative aligned with key priorities.

Supported by a defined governance framework, clear ownership across functional teams ensures focus, coordinates stakeholders, manages risks, and prepares the organisation to adopt and sustain change.

Change management and capability building 

Sustained ERP success relies on strong internal capabilities on top of effective change management. Building in-house expertise reduces reliance on external support, while clear onboarding and training enable teams to upskill and use the system confidently. Equally important is a tech partner that stays engaged, providing guidance and practical support throughout the ERP lifecycle.

Common pitfalls when choosing an ERP 

Even with careful planning, organisations can still stumble during ERP selection. Here are some common pitfalls to be mindful of:

1. Not setting clear objectives and requirements

Overlooking or downplaying any business requirement can create misalignment between selection and reality, causing the system to fall short. Teams must be honest and thorough when defining what is needed.

2. Assuming all functions can use the same setup

Different teams may require unique processes or applications. A flexible, composable ERP allows you to adapt, add, or remove modules as your business evolves.

3. Lack of executive buy-in and stakeholder engagement

Insufficient leadership support can limit team participation, leave gaps in evaluation, and lead to challenges during rollout.

4. Choosing brand over fit

A recognised vendor may offer credibility but may not always suit your unique workflows or industry. Prioritise functional fit and relevant industry experience over brand alone.

5. Over-relying on demos or checklists

While essential for evaluation, they rarely show how the ERP performs in real scenarios. Assess practical applicability to your actual processes.

6. Rushing the process

Moving too quickly, skipping steps, or implementing everything at once can leave gaps, create errors, and overwhelm teams. While timelines matter, ERP selection is a critical decision that requires careful evaluation and adoption at a steady, manageable pace.

Importance of choosing the right ERP software

Selecting the right enterprise resource planning software isn’t just a technical decision; it is a strategic one. The right ERP:

1. Aligns systems with operational goals, ensuring workflows and processes directly support objectives and optimise outcomes.
2. Centralises organisational data, providing a single source of truth that enhances visibility, ensures accuracy, and enables cohesive, reliable decision-making across all levels.
3. Standardises processes across departments, aligns teams, and promotes collaboration and consistency.
4. Enables growth and scalability by adapting to planned expansion/market changes.
5. Reduces long-term financial risk by ensuring continued reliable operations, supporting compliance, and preventing inefficiencies and costly system rework.

How OneAdvanced’s composable ERP platform supports connected, future-ready operations

OneAdvanced provides an easy-to-use, composable ERP that centralises finance, procurement, workforce management, governance, and related functions across critical business workflows. By eliminating silos and enabling seamless, accurate reporting, companies gain powerful insights that support smarter, faster decision-making.

Its built-in APIs ensure seamless integration with existing technologies, allowing new modules or systems to connect easily and extend functionality without disrupting core processes. With a modular, composable architecture, organisations can modernise at their own pace, scaling capabilities as their needs evolve rather than undertaking a disruptive full system replacement. Security, access control, and compliance are embedded at platform level. Powered with integrated AI capabilities, the platform delivers practical, valuable intelligence.

Ultimately, OneAdvanced delivers an enterprise-grade ERP solution with a modular, composable architecture that supports growth, regulatory change, and long‑term adaptability, without the hefty price tag. It enables connected operations today while remaining ready for what’s next, with a partnership approach designed to support businesses through every stage of their digital transformation journey.

Learn more about how OneAdvanced can support your organisation’s long-term strategic ambitions.

FAQs 

How does ERP selection influence long-term business success? 

The right ERP connects enterprise data, processes, and teams to improve efficiency, data quality, and decision-making while supporting scalable growth. A poorly chosen system creates inefficiencies, increases operational risk, and becomes a constraint during expansion or transformation, limiting long-term success.

What are the key considerations when selecting an ERP? 

Functional fit, integration, scalability, total cost of ownership, and risk across the system’s lifecycle are critical factors when selecting an ERP. ERP architecture, guided by the organisation’s needs and future goals, is another key consideration. Monolithic ERPs provide simplicity and control, while composable systems support agility, innovation, and long-term growth.

How long does the ERP selection process typically take? 

The ERP selection process can take anywhere from 3 months to over a year, depending on the organisation’s size, complexity, regulatory requirements, and readiness. Being well-prepared with clearly defined priorities and evaluation criteria can significantly streamline the process and reduce delays.

How long does ERP implementation typically take? 

Timelines can vary depending on the system type and company complexity. Monolithic ERP implementations require full system replacement and are often time-consuming, typically taking 12 to 24 months. Composable ERP, in contrast, allows organisations to implement modular components incrementally, enabling faster deployments, quicker benefits realisation, and less disruption to day-to-day operations.

Can ERP requirements evolve after selection? 

ERP requirements can evolve after selection, but what matters is how they are managed. Controlled evolution, through systematic review and prioritisation of new requirements, ensures changes align with business goals and avoid unnecessary complexity, enabling adaptation to new needs or growth. Unmanaged scope changes, in contrast, can cause delays, higher costs, and implementation risks.