Questions to Ask Before Choosing an ERP System: Key Considerations for Successful Implementation

Choosing an ERP system is a big step, and your decisions now can shape your company’s future. Maybe you’ve heard stories of projects running over budget or systems that didn’t fit the team’s needs. Avoiding these mistakes starts with asking the right questions up front.

The key to a successful ERP selection is knowing what to ask before you commit. The questions you bring to the table will help uncover gaps, clarify your requirements, and steer you toward a solution that truly works for your business.

In this article, you’ll learn the most important questions to ask and why they matter. With these practical tips, you’ll feel ready to move forward with confidence and choose an ERP system that fits your goals.

Key Takeaways

• Ask clear questions to match ERP features with your needs
• Check integration, cost, and vendor reliability
• Plan for growth, security, and smooth user adoption

Step 1 – Define Your Business And ERP Objectives

Your ERP system is a major investment. To avoid wasted resources, you need a clear sense of what your business does, where you want to go next, and which ERP functions matter most to your day-to-day work.

Align ERP Selection With Core Business Processes And Growth Targets

Start by mapping out your main business processes. Identify what your company does best, what makes it different, and what goals you want to reach in the next two to five years.

This is the time to get input from all major departments. Talk to accounting, inventory, production, customer service, and sales. Learn what slows them down and what improvements could bring the most benefit.

If you plan to expand into new markets, increase your sales volume, or offer new products, make sure your ERP can scale to meet those goals. Ask yourself if the system you choose will handle more transactions, extra inventory, or new compliance needs.

Look for ways the ERP can automate manual steps and cut out duplicate work. Document any specific reporting, forecasting, or integration needs that will help your business grow. For more practical guidance on goal setting, see these 10 tips for choosing the right ERP.

Identify Must-Have Features Versus Nice-To-Have Capabilities Based On Operational Needs

Make a list of features you need in order to run your business every day. List these as your “must-haves.” These might include inventory tracking, order management, financial reporting, or compliance tools.

Next, write down features that would be helpful, but are not deal breakers. These can include mobile access, extra dashboards, or certain customizations. These are your “nice-to-have” features.

Discuss your lists with your team and get their feedback. If certain departments need functions like advanced analytics or third-party integrations, mark those as priority items.

To avoid paying for tools you won’t use, look at how each ERP option matches your must-have list. For more detail on deciding between core and optional features, check out these 30 essential questions to ask when selecting an ERP vendor.

Step 2 – Assess Current Systems And Integration Requirements

You need to look at your existing business applications and data flows to see how an ERP will fit in. This step helps prevent gaps in functionality and reduces risks during implementation.

Inventory Existing Software, Databases, And Workflows The ERP Must Replace Or Integrate

Start by listing all current software, tools, and databases your business uses for daily tasks. Include systems for accounting, inventory management, human resources, and customer relationship management.

Map out the workflows each tool supports. For example, note if your accounting team relies on spreadsheets or if sales data is stored in a separate cloud app. After making this list, identify which of these systems the new ERP needs to replace, fully integrate with, or leave untouched.

A table can help you organize this information:

Current System	Function	Replace or Integrate?	Notes
QuickBooks	Accounting	Replace	Manual data exports
Salesforce	CRM	Integrate	Cloud-based API available
Custom Access DB	Inventory tracking	Replace	Legacy data: migrate

This exercise creates a clear picture, so you avoid missing vital processes during your move to a new ERP system.

Evaluate Compatibility With Legacy Systems And Third-Party Applications

Examine which parts of your technology stack need to stay, such as custom reporting tools or old hardware that can’t be replaced. Review the ERP’s integration capabilities thoroughly. Ask vendors if their system supports your must-have third-party applications or custom tools.

Look out for standard integration features like REST or SOAP APIs, as well as available connectors for leading platforms. Check if you’ll need extra middleware or a custom solution to link systems. Standardized integrations usually make updates and support much easier over time.

Interview your IT staff or an external consultant. Get their opinion on possible “pain points” that might slow down integration or cause errors. Document these risks so you can have direct conversations with potential vendors about their solutions.

Mandry Insight: Map ERP Requirements To Industry-Specific Compliance Or Security Standards

Before choosing an ERP, ensure it can support industry regulations and security needs your business must follow. For example, healthcare providers often need HIPAA compliance, while manufacturers may face strict export controls.

Identify data flows that involve sensitive or regulated information. Make sure your ERP can protect this data, both when stored and during transfers between systems. Ask vendors for compliance certifications or proof of their security measures.

If you’re in finance, check if the ERP offers proper access controls, audit trails, and encryption to meet regulatory standards. Involve your compliance officer or legal partner to spot hidden requirements. This careful review will help you choose a system that fits your business now and in the future.

Step 3 – Evaluate Total Cost Of Ownership And ROI

To make a smart ERP choice, you need to understand where your money goes and what you will get in return. Carefully figure out both upfront and ongoing costs, and look for process improvements or savings that make the investment worthwhile.

Calculate Upfront Costs For Licensing, Implementation, And Customization

Start by listing all upfront costs, not just the first invoice. These may include software license fees, hardware upgrades, consulting, and charges for implementation partners. Many systems also require extra fees for initial setup, data migration, or API connections to other business software.

Customization can be a large hidden cost. Changes to fit your company’s needs often lead to extra development time or work from the vendor. Make sure all these expenses are listed in your budget before you sign any contract.

Create a simple table to compare vendors:

Expense Type	Vendor A	Vendor B	Vendor C
Licensing Fees	$X	$Y	$Z
Implementation	$X	$Y	$Z
Customization	$X	$Y	$Z
Data Migration	$X	$Y	$Z

Getting a full view of upfront costs will help you avoid surprises and pick a solution that fits your budget. For more info, see this TCO breakdown for ERP systems.

Project Long-Term Savings From Process Automation Or Reduced IT Overhead

After initial costs, ask how the ERP system will save your team time or money over the years. Look at process automation. The right ERP can reduce manual data entry, lower human error, and free employees to focus on more important work.

Check if you can reduce IT support costs. Many cloud ERP systems do not require as many in-house servers or dedicated IT staff. This can lower your monthly expenses.

Talk to vendors for examples of hard savings and how long it took real customers to see benefits. Estimate return on investment by comparing projected savings with total costs over time. According to NetSuite’s guide to ERP selection, ROI can take longer with ERP than with smaller tools. Use real-world numbers whenever possible.

Budget For Ongoing Maintenance, Upgrades, And User Training

Factor in ongoing costs before you choose a system. Most ERPs need regular maintenance, system updates, and support contracts. These can include monthly fees, annual renewals, or charges for new features.

Don’t forget user training. You’ll likely need to train current staff and any new hires. Some vendors offer training with their package; others charge extra. Regular upgrades may also mean repeat training as features change.

Ask vendors for a full schedule of their support and upgrade fees. Make a list of required training sessions and expected costs. This helps prevent budget overruns and keeps your ERP running smoothly. Read more about calculating ongoing ERP total cost of ownership before making any commitments.

Step 4 – Analyze Deployment Models And Vendor Options

Choosing how you deploy an ERP system and selecting the right vendor will affect your team, budget, and long-term operations. Deployment methods have different pros and cons, while vendors offer varying levels of support, reliability, and scalability.

Compare Cloud-Based, On-Premises, And Hybrid ERP Deployment Scenarios

You’ll need to decide if a cloud, on-premises, or hybrid ERP is the best fit for your company. Cloud-based ERP is managed online, usually as a subscription, and gives you access from anywhere. It reduces IT maintenance but may offer less control over upgrades or sensitive data.

On-premises ERP means you host the software on your own servers. This gives you full data control and often makes it easier to integrate with existing systems. However, this option needs a bigger upfront investment and ongoing IT support.

Hybrid ERP lets you mix both options. Some functions can run in the cloud, while others stay on-site. Hybrid may help if you need flexibility or want to move slowly toward full cloud-based systems. To learn more about deployment types and their advantages, check out this guide to ERP deployment options.

Assess Vendor Reliability, Support SLAs, And Scalability Guarantees

Not every vendor will be equally reliable or able to support your needs as you grow. Before you decide, ask vendors about their past performance, service level agreements (SLAs), and what kinds of uptime or response time they guarantee.

Look for vendors that provide clear SLAs covering support hours, response times, and regular system updates. Ask about their track record supporting companies like yours and how they handle upgrades or fixes.

Scalability is key if you plan to expand. Find out if the system can handle higher volumes of data or more users later on. Review how the vendor has scaled for other businesses and get specifics on any costs involved. For a deeper dive, see the top questions to ask ERP vendors.

Mandry Insight: Coordinate Vendor Evaluations With Managed Service Providers For Unbiased Insights

It can be hard to get a true comparison between ERP vendors. Working with a managed service provider (MSP) adds an independent perspective. They help you review vendor claims and demos to see if the promises match your requirements.

An MSP can create checklists for evaluating reliability, security, and support quality. They also help you ask smart questions about integration and data migration. This keeps vendors accountable and reduces the risk of surprises after you sign a contract.

MSPs have hands-on experience with different ERP platforms and understand which vendors deliver on their promises. By coordinating with them, you can filter out biased sales pitches and decide with more confidence.

Step 5 – Prioritize Security And Compliance In ERP Design

Security and compliance in ERP systems protect your company’s data and reputation. It is important to choose solutions that provide the right protections, follow regulations, and can be managed by your security team.

Verify Encryption, Access Controls, And Audit Trails Meet Regulatory Requirements

You need to make sure all sensitive data within your ERP is encrypted, both while it’s stored and when it travels across your network. Strong access controls help you decide who can see and change information, so restrict user roles and permissions to only what is required.

Audit trails are also key for compliance. These trails record who accessed which records, what they did, and when. This makes it easier to investigate issues and prove compliance to regulators.

Different laws like GDPR, HIPAA, and SOX have specific needs. Review each one that affects your business. For more information about evaluating security and compliance in ERP solutions, consider these key questions before choosing an ERP system.

Ensure Vendor Adheres To Industry-Specific Data Protection Standards

Check if your vendor is certified for standards important to your industry, such as ISO 27001 or SOC 2. If you are in healthcare, make sure their platform supports HIPAA compliance. In finance, look for SOX or PCI DSS readiness. Do not accept vague claims; ask for documentation on their certifications and recent security audits.

Clarify exactly how vendors protect data, where they store it, and how they respond to incidents. Ask about their policy for reporting data breaches. This helps protect your business and ensures your ERP does not create compliance gaps.

You can use detailed steps to select and implement an ERP system that covers both technical needs and compliance factors.

Mandry Insight: Integrate ERP Security Monitoring With Existing SOC Services

Integrating your ERP security monitoring with your existing Security Operations Center (SOC) speeds up detection and response to threats. Instead of managing ERP security separately, feed its logs, alerts, and audit trails into the tools your SOC already uses. This reduces gaps and streamlines monitoring for suspicious activity or unauthorized access.

Work with your IT and security teams to make sure ERP alerts are prioritized correctly. Use automated workflows to escalate critical incidents. Regularly test your monitoring setup to spot problems before they become major issues.

A well-integrated ERP solution lets you catch risks early and meet compliance standards without slowing down your business operations. For guidance on ERP and SOC integration, review common questions to ask about ERP integration and compliance.

Step 6 – Plan For User Adoption And Change Management

Switching to a new ERP system affects how your staff works each day. It’s important to prepare by focusing on tailored training, leadership support, and proven frameworks to reduce pushback and boost acceptance.

Develop Role-Based Training Programs For Finance, Operations, And IT Teams

Different teams will use the ERP system in unique ways. Creating role-based training makes learning relevant and practical for each group. For your finance team, focus on features like budgeting, reporting, and compliance tasks. Operations teams need hands-on guidance with workflows, order processing, and supply chain functions. IT should get deeper technical training, including system maintenance, security, and troubleshooting.

Use a mix of interactive sessions, quick reference guides, and live demos. You can make information easy to find by using short video tutorials and searchable help documents. Testing knowledge with short quizzes or practice tasks helps make sure each team is ready before launch. Timely support from trainers during and after training also helps reduce anxiety and mistakes.

Assign Internal Champions To Drive Adoption And Gather Feedback

Choose “internal champions” from each department to act as early adopters and change leaders. These users help explain benefits, answer questions, and motivate coworkers. Champions should be trusted members who communicate well and understand both daily operations and company goals.

Give these leaders extra training so they can handle questions and share updates confidently. Champions are essential for gathering feedback and reporting problems as teams adapt to the new system. Regular meetings keep you updated on concerns and let you adjust training or support quickly. You can also encourage champions to share quick wins and practical tips to help increase buy-in across the company.

Mandry Insight: Leverage Mandry’s Change Management Frameworks To Minimize Resistance

Mandry’s change management approach uses structured frameworks designed to prepare teams for new systems. Start with a clear plan covering communication, leadership involvement, and scheduled training. Identify risks that could slow adoption, such as unclear processes or lack of support.

Mandry’s methods help you deliver updates through multiple channels—town halls, emails, and small group meetings—so no one feels left out. Create quick surveys to spot confusion or frustration early. Use data from feedback to adjust your plan and address issues before they become bigger problems. Consistent follow-up and visible executive support reinforce the change, helping everyone feel more confident in the new ERP system.

Step 7 – Optimize ERP Performance And Scalability

Getting the most from your ERP system means tracking how well it works and making changes as your business grows. It’s also important to have support ready to keep performance high during busy times or as user numbers increase.

Define KPIs To Measure System Efficiency And User Satisfaction Post-Launch

Set up clear key performance indicators (KPIs) that help you see if your ERP is delivering value. Common KPIs include system uptime, processing speed, and how long it takes for users to complete everyday tasks. It’s also smart to measure user satisfaction by checking support tickets, user training completion rates, and feedback from staff.

Create a table to track these KPIs monthly or quarterly. For example:

KPI	Target	Current Value	Status
System Uptime	99.9%	99.8%	Needs Improvement
Order Processing Time	< 3 mins	2.5 mins	On Track
User Satisfaction	85%+	82%	Monitor

Reviewing this data often helps you catch problems early and make needed improvements.

Schedule Quarterly Reviews To Align ERP Functionality With Business Evolution

Schedule quarterly review meetings to see if your ERP matches your current business needs. During each review, look at your workflows, user requests, and any new business goals.

Involve department heads and power users who deal with the ERP every day. Ask what processes are slowing them down or which features don’t work like they should. List needed updates, then rank them based on business priorities.

Quick, structured feedback from these reviews lets you adjust configurations or add integrations before small issues become bigger problems. This approach is recommended in resources like How to Choose an ERP Software Using 10 criteria.

Mandry Insight: Use Managed Services To Handle Peak Loads Or System Tuning

Managed services can keep your ERP stable and fast during peak times or when making updates. These providers handle server monitoring, security patches, and regular maintenance. This means you can avoid slowdowns or outages during busy seasons like year-end or product launches.

You can also use managed services for advice on scaling your ERP or tuning performance settings as your user base grows. Their support teams often have tools and expertise for fine-tuning databases, caching, and network protocols.

This lets your IT team focus on business projects instead of chasing technical issues—helping you get better return on investment and smoother daily operations as suggested by resources like ERP system selection criteria.

Step 8 – Establish ERP Disaster Recovery And Business Continuity Plans

When your ERP system is the center of daily operations, having clear disaster recovery and business continuity strategies is essential. These steps help you recover quickly from unexpected events and maintain access to your most important business functions.

Confirm Vendor’s Failover Capabilities And Data Backup Frequency

Ask your vendor to detail how they handle system failures or outages. You want to know if their systems can automatically switch over—also called failover—to a backup environment without losing data or causing long downtime. Request a report on the last time this failover process was tested.

You should also review the data backup frequency. Does the vendor back up your ERP data every hour, daily, or less often? More frequent backups mean less data is lost if something goes wrong. Ask if full and incremental backups are used, and where those backups are stored (on-site or in the cloud).

These questions help confirm the vendor’s ability to protect your information. To dig deeper into planning, check guides on ERP disaster recovery planning for tips and industry best practices.

Test Recovery Workflows For Critical Modules Like Supply Chain Or Payroll

Disaster recovery isn’t just about having backups. You need to test if you can actually restore essential operations like supply chain tracking or payroll processing during an emergency.

Work with your vendor to set up test runs for these critical modules. Confirm how quickly data can be restored and transactions can resume. Ask how long it takes to get everything working after a disruption, and keep records of real test results.

Be direct about your needs. Request that modules such as inventory, order fulfillment, and time tracking are included in these tests. Follow the lead of organizations that make frequent recovery testing a core part of their business continuity planning.

Mandry Insight: Augment ERP Resilience With Mandry’s Business Continuity Orchestration

Mandry offers business continuity solutions that help you prepare for and recover from ERP downtime. Their orchestration tools are designed to automate the failover process and make recovery faster, so you can minimize disruptions.

With Mandry’s platform, you can track each step of your response plan—from data restoration to workflow checks—using simple dashboards and reports. This approach allows you to practice full-scale failover without putting your live operations at risk.

Mandry also provides expert advice to help you design and update your business continuity plan based on real-world threats and compliance needs. These extra safeguards are useful if your business relies heavily on ERP system uptime.

Final Thoughts / Wrap-Up

Choosing an ERP system isn’t just about features or price. Making the right decision requires you to carefully check vendor backgrounds, prepare for future needs, and have solid support—both during and after rollout.

Validate Vendor References And Case Studies Before Contracting

Before you sign any agreement, check the vendor’s history with similar projects. Ask for specific references, not just generic testimonials. Talk directly to businesses that use the system and request real-world case studies. Find out if they faced issues during or after implementation and how the vendor responded.

List your questions and use video or phone calls to confirm details. Pay attention to how the vendor handled training, support, and unexpected problems.

Look for examples where the ERP was implemented quickly and within budget. Reviewing case studies and customer feedback will help you avoid potential problems later.

Build Flexibility Into Contracts To Accommodate Future Needs

Your business will change as it grows, so your ERP contract should allow for flexibility. Don’t lock yourself into rigid terms. Add clauses for future upgrades, license changes, or additional modules.

Review maintenance and support agreements to make sure they cover changes in your needs. If possible, negotiate the ability to switch deployment models (for example, from on-premise to cloud) should your requirements shift.

Here’s a quick checklist:

• Ask about upgrade policies and associated costs.
• Ensure clear terms for expanding or reducing users.
• Get options for adding integrations with other systems.

Making sure your contract leaves room for growth helps protect your investment in the system.

Partner With Mandry Technology For End-To-End ERP Lifecycle Management

Working with a full-service technology partner like Mandry Technology can simplify each step of your ERP journey. You get help with planning, software selection, implementation, and long-term support—all from one team.

An experienced partner provides ongoing advice and solves technical problems before they become disruptions. Mandry can help create training programs, handle updates, and make sure compliance is maintained through every stage.

With Mandry Technology’s ERP lifecycle management, you stay focused on business goals instead of IT headaches. They work closely with your team to align ERP operations with your company strategy and needs. This approach reduces risk and keeps your system running smoothly as your company evolves.

Frequently Asked Questions

Selecting the right ERP system is a major decision that requires attention to details like business needs, future growth, integration options, overall expenses, system flexibility, and vendor support.

How does the ERP system align with our business processes and objectives?

You need an ERP system that fits the way your company already works or aims to work in the future. Look at how each system supports key tasks like managing inventory, customer relationships, and finances. Make sure the system can solve current pain points and enhance important workflows. Ask vendors for specific examples of how their product has improved efficiency or accuracy for businesses similar to yours.

What scalability options does the ERP solution offer to accommodate future growth?

Growth brings changes in data volume, users, and features you might need later. Assess whether the ERP platform makes it easy to add new users, markets, or products without major upgrades. Cloud-based systems often provide more flexibility for scaling up or down, and you should check for any limits that might restrict expansion. Planning for growth upfront helps you avoid costly system changes down the road, as highlighted by IntelTech’s advice about planning for business expansion.

Can the ERP system integrate seamlessly with our existing software and data ecosystems?

It’s important that your ERP can connect with your current tools, such as accounting software, customer databases, or reporting platforms. Ask if the system uses open APIs, standard integration tools, or supports custom connections. Find out if real-time data syncing is possible and if there are any extra costs or limitations when linking with other apps. For a smooth transition, prioritize ERP solutions designed for easy integration with the systems you already use. More tips are found in this ERP selection guide.

What is the total cost of ownership, including implementation, training, and ongoing support?

Costs go far beyond just the initial price. Consider what you’ll pay for setup, user licenses, training sessions, and continued maintenance. Ask vendors for a clear breakdown of expenses, both upfront and recurring. Be aware of hidden charges for advanced modules, future upgrades, or technical support. Careful budgeting can prevent surprises after purchase, as noted by the Hartman Advisors’ ERP question list.

What customization capabilities are available to tailor the ERP to our specific needs?

You may need to adapt the ERP to your business rules, processes, or reporting requirements. Learn what can be changed out of the box and which customizations require advanced technical work or developer support. Some systems let you make adjustments with simple settings, while others require deeper modification. Always ask about long-term impacts, such as how updates and support are handled for customized installations.

What kind of customer support and maintenance services does the ERP vendor provide?

Fast and reliable help is essential for smooth day-to-day operations. Check the hours of available support, types of service channels (chat, phone, email), and typical response times. Ask if updates, security patches, and system monitoring are included. Also, find out if there are extra fees for premium support packages or faster response times. Reliable customer service from your vendor can make a significant difference in minimizing downtime and solving technical issues quickly.