ERP Evaluation

Do you even need an ERP?

This is the first question in every ERP evaluation I run, and it is a real question. An ERP is a significant commitment of money, time and attention. It is the right answer when the business has outgrown disconnected tools: when inventory, sales, purchasing and finance need to share data in real time, when month-end depends on stitching spreadsheets together, or when growth into new entities or countries is held back by systems.

It is often not the right answer, or not yet, when:

• the main problem is sales visibility, which a well-implemented CRM may solve;
• processes are unclear or disputed, so any system would simply automate the confusion;
• the business is small and stable enough that good accounting software and a few integrations cover the need;
• there is no one internally who can own the system and its data.

I look at your current tools, your pain points, your growth plans and your team's capacity, and give you a straight answer. Sometimes that answer saves a company from a premature ERP project. My article on ERP vs CRM covers one of the most common versions of this question, and CRM consulting is the right route if the problem turns out to be front office rather than operations.

Building a realistic shortlist

If an ERP is the right step, the next risk is a shortlist built on brand recognition or whichever vendor called first. I build the shortlist deliberately, starting from a broad long list and filtering on criteria that genuinely rule options in or out:

• Industry fit: how well the platform handles your core processes, such as manufacturing, projects, distribution or services, without heavy customization.
• Scale and complexity: number of entities, currencies, locations and users, now and in your growth plan.
• Compliance: local tax, e-invoicing and statutory reporting where you operate.
• Hosting and control: cloud, private hosting or open source preferences.
• Ecosystem: availability of capable implementation partners and integrations.
• Internal capability: how much your team can administer and extend the system.

Platforms I regularly evaluate include Zoho, Odoo, ERPNext and Microsoft Dynamics 365, alongside SAP Business One, Oracle NetSuite and others. A good shortlist is usually small: enough to create real comparison, few enough that each option can be tested properly.

Scripted demos instead of sales presentations

A standard vendor demo is designed to impress. It follows the product's strongest path, uses clean sample data and skips the awkward exceptions. Three standard demos later, the options all look capable and the evaluation team is no closer to a decision.

Scripted demos change that. I write a set of end-to-end scenarios based on your own processes, and every shortlisted vendor must walk through the same scenarios. A typical script might include:

• a customer order with special pricing, a credit hold and a partial delivery;
• a purchase with a price difference between order and invoice;
• a production or project job with actual costs compared to budget;
• an intercompany sale and the resulting consolidated report;
• a month-end close task and a key management report.

I share the scripts and sample data with vendors in advance, observe each demo with your team, and record where the product handled a step as standard, with configuration, with a workaround or not at all. That evidence feeds both the scoring and any later gap analysis. Scripts work best when they come from a solid requirement set, which is why evaluation often follows requirements gathering.

Scoring ERP options fairly

The final comparison uses a weighted scoring sheet agreed with your leadership before any demo takes place. Agreeing weights first matters: it prevents the scoring from being adjusted afterwards to fit a favorite.

Each score is backed by a note of the evidence: which demo step, which document, which reference conversation. Where two options score closely, I say so plainly and explain which risks or conditions should decide between them, rather than forcing a false winner. The output is a recommendation your board can follow and challenge. For guidance on reading cost drivers, see ERP implementation cost.

Evaluation, vendor selection and what comes next

ERP evaluation and vendor selection are closely linked but not identical. Evaluation answers which platform, or which type of solution, is right for your business. ERP vendor selection then focuses on choosing the implementation partner and negotiating a sound contract, often through a formal RFP. Some clients need both, others already have one answer and need help with the other.

Independence is what makes the evaluation worth having. Vendors and resellers are paid by the products they sell, and implementation partners naturally prefer platforms they know. I have no product to place and no commission to earn, so I can tell you when the market leader is not right for you, when an open source option makes sense, or when the honest answer is to wait.

After the decision, I can stay involved to keep the project aligned with what the evaluation found, through solution design, implementation oversight and testing. My guide on how to choose an ERP covers the process in more depth, or book a call to talk through your options.