Choosing an ERP system is a big step for any business. The right solution can have an indelible impact on how smoothly a company runs and grows. But with so many ERP vendors and options to pick from, each promising to boost efficiency, consolidate workflows, save money, and improve visibility, the real question for businesses is: Which one best fits our unique needs? This guide breaks down the ERP evaluation process and provides a free template to help you stay organized and confident about your final decision.
What Is an ERP Evaluation?
Think of an ERP evaluation as a roadmap for choosing the best system for a company’s needs. It’s a way to compare different platforms that acknowledges what matters most to each business. That means looking closely at such factors as day-to-day usability, deeper functionality, the underlying technology, the total value a system delivers, and the risks it helps avoid. Clarifying these points in advance makes it easier to weigh options, identify a solution that will scale with business growth, and minimize the chances of encountering implementation issues.
How to Select the Right ERP
Finding the right ERP system starts with pulling together a solid project team for evaluation and, ultimately, implementation. This group determines the business’s needs, tracks how things currently work, and sets priorities for what the new system should address. Soliciting input from all company departments brings valuable viewpoints to the table.
ERP Evaluation Selection Criteria
To make a smart choice, it helps to keep the ERP system comparison focused on a few core areas. The following categories come up in nearly every ERP selection project—and for good reason.
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Productivity and usability:
Start by looking at the quality of user experience reported for each system. Is the system easy to navigate? Can users customize it to their own needs? The more intuitive the platform, the faster users can get up to speed. Look for features like role-based dashboards, mobile access, and self-service reporting. These often-overlooked elements can make a big difference when viewed through the prism of daily operations.
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Functionality:
Make sure the ERP system includes modules that cover the business processes that will matter most to you, such as CRM, inventory management, or supply chain management. The more complete the toolkit, the better it can support the company’s evolving business model. Systems built with a modular design offer flexibility to add more features as needs grow. It’s also worth checking out potential ERP systems’ industry-specific capabilities and determining how well the systems can handle both core processes and less common workflows, particularly industry-specific ones.
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Technology:
Check out each system’s technological foundation. Is it natively built for the cloud? Cloud-based ERP systems are particularly popular because they offer lower up-front costs, greater scalability, and real-time data access from anywhere, at any time. According to Fortune Business Insights, the global cloud ERP market is expected to grow from $57 billion in 2024 to $181 billion by 2032.
Additional considerations when evaluating ERP systems include ease of scalability and integration with existing tools and platforms. Flexible technology can keep things running smoothly as companies evolve and grow. Pay attention to how frequently the software is updated and whether the vendor provides support for integrations or open APIs. These factors can impact long-term compatibility and ease of customization.
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Value:
Look beyond the initial system price and factor in implementation costs and ongoing expenses. The goal here is to achieve the best return on investment. Also consider the potential savings derived from automating manual work, reducing errors, and improving decision-making. A system that delivers sharper insights and greater agility can provide value that far exceeds direct financial savings.
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Risk:
Every system comes with trade-offs. For example, a highly customizable solution might take longer to implement, while a lower-cost solution might not provide sufficiently advanced reporting tools. Evaluate potential risks pertaining to vendor stability, data security, and compliance. Understanding challenges early on can eliminate headaches later. Evaluate how the ERP system handles data backups, disaster recovery, and user access controls. It’s also important to review each vendor’s reputation for ongoing support and how it handles upgrades.
Download Free ERP Evaluation Template
Evaluation templates and checklists present an effective way to make the ERP selection process easier. They make it possible to compare systems using the criteria outlined above, and they help teams stay on track by making sure no important detail in the process gets overlooked. Here’s a free downloadable ERP evaluation template(opens in a new tab) to help organize your selection process.
Choose the Right ERP. Choose NetSuite.
NetSuite ERP ticks many boxes for growing companies because it brings together a wide range of business functions—financials, inventory, CRM, procurement, supply chain, and more—into one cloud-based system. That’s important for two broad reasons: less time spent managing disconnected tools, and more time focusing on what matters. And because NetSuite ERP is built for the cloud, deployment is faster, up-front costs are lower, and updates happen automatically in the background, without disruption or the need for IT assistance.
For companies on the rise, scalability is a key asset, especially as they launch into new regions. NetSuite supports multiple subsidiaries and currencies right out of the box. Real-time dashboards and customizable reports make it easier for teams to get a clear view of performance throughout the business. And with a large ecosystem of integrations and industry-specific modules, NetSuite ERP can flex and adapt without adding complexity.
ERP selection doesn’t have to feel overwhelming. With the right approach and a clear set of criteria, a company can make a well-conceived choice that aligns with its business goals and helps teams work more effectively. Access to a detailed ERP evaluation template can guide this process, so companies feel confident about where they’re headed.
