What Should You Expect When Choosing An ERP? Lessons, Mistakes, And Tips

The journey to selecting ERP software often begins with the hope of a quick solution, yet many businesses quickly realize it is a significant undertaking. What appears to be a technical decision actually involves much more: managing team expectations, navigating vendor discussions, and preparing your entire organization for fundamental change. This is not just a software choice; it is a strategic move that impacts every aspect of your business.

This process affects every part of your business. Learning from others who’ve been through it can save you time and stress. This guide shares real-world insights and tips to help you evaluate ERP systems with confidence and avoid common mistakes.

ERP selection is a big investment in time and money. Even well-planned evaluations can run into surprises. Here are some challenges to watch out for and tips to avoid them:

Demos can be misleading

ERP demos often showcase ideal workflows, but they don’t always reflect real-world use. A smooth demo can hide issues like complex integrations or data migration challenges. In a LinkedIn poll, 56% of professionals said demos didn’t show how the system would actually work for them. This gap between demonstration and reality highlights the importance of looking beyond the surface.

Tip: Provide vendors with examples of your actual workflows and request a customized demo using your data. This will give you a better sense of how the system will handle your unique needs.

There are hidden costs of customization

Customizing an ERP to meet your needs can come with unexpected expenses. The initial quote might not include these costs, and customizations can delay implementation or create problems with future updates. According to Panorama Consulting Group's 2025 ERP Report, additional technology, project staffing, and expanded project scope are key reasons for budget overruns. In fact, only 53.5% of organizations managed to stay within their expected budget.

Tip: Clarify what is included in the standard package and ask for a detailed breakdown of additional customization costs. Discuss with your vendor how updates will impact customizations to avoid surprises later.

The truth about AI in ERP systems

There is a lot of excitement around AI in the ERP space, but it is important to separate fact from fiction as you evaluate your options. Many buyers attend trade shows or meetings expecting cutting-edge AI features, and vendors are quick to claim that they offer AI solutions. In reality, most of what is marketed as AI is actually advanced automation or workflow tools, not genuine artificial intelligence. This misconception can lead to disappointment and a lack of trust if you expect capabilities that simply do not exist in most systems today.

"The ERP market is evolving, but true AI applications are still rare," says James Balestrieri, Senior VP of Sales for ECI. "For example, our AI BOM Builder stands out as a real AI-powered tool in the manufacturing industry. It uses image recognition to generate a first draft of a bill of materials directly from a photo. This is something few, if any, other ERP providers can offer.

Tip: When you hear AI claims from vendors, ask them detailed questions about how the “AI” actually works and whether it is truly harnessing artificial intelligence or simply automating routine processes. Check out our "AI vs Automation" blog post to learn more.

It will take more time than you initially expect

Evaluating an ERP system is a collaborative effort. It requires input from team members across various departments to ensure the system meets the company's unique needs. Employees will need to actively participate in activities like attending software demos, providing feedback, and helping with data migration. Balancing these responsibilities with their regular day-to-day tasks can make time management a challenge.

As Ben Potter, ECI's Senior Vice President of Professional Services, says, "An ERP is a foundational system that supports how efficiently customers can run their business. Despite the system’s importance, many customers are initially surprised by the undertaking that this effort presents." He adds that a recent trend is for companies to underestimate the time needed for these projects. They "try to fit the implementation effort within their existing schedules, which leads to inefficient and prolonged implementations."

Tip: Build a realistic timeline, allocate specific time for your team to participate in the evaluation, and clearly communicate expectations. Consider adjusting workloads temporarily to prevent burnout.

Change management sneaks up on you

Implementing an ERP isn’t just about new software; it’s about changing how your team works. Resistance to change and low adoption rates can derail a project, which makes the evaluation process critical. During evaluation, it's important to assess how well the software aligns with your team’s workflows, how intuitive it is to use, and how easily employees can adapt to it. Proper change management strategies during the selection phase are essential for long-term success.

Tip: Prioritize change management by involving users early, providing thorough training, and maintaining open communication. Ensure ongoing support is available to address concerns and encourage adoption both during implementation and well beyond it.

Avoid these common pitfalls to make your ERP evaluation smoother:

Don't just focus on price

One of the most frequent mistakes is letting the initial price tag make the decision. A cheaper system might seem like a win, but it can come with higher costs down the line from customizations, poor performance, or the need for a replacement in just a few years. One business leader shared a story about choosing a low-cost ERP, only to find it could not handle their inventory complexity. This led to stockouts and lost sales that far outweighed the initial savings.

Tip: Focus on the total cost of ownership and long-term value, rather than just the initial price. Consider how the system will scale with your business needs.

Involve end-users and leadership early on

End-users, the people who will use the ERP daily, often aren’t involved early enough in the process, yet their insights are critical for selecting a system that truly meets the company’s needs. However, it’s equally important to engage leadership early in the process to ensure alignment with overall business objectives. 

As Balestrieri explains, “Engage leadership in the process early and often. I often see one functional team lead an ERP evaluation. While it may improve their team, it is at the detriment of others. When done right, executive leadership and sponsorship create a balance and align with business goals, not individual team goals. These are also the people who make the tough decisions when the team is not aligned.”

Leaving ERP evaluation solely to senior management, IT, or even one functional team can result in selecting software that may look great on paper but fails to deliver practical value across the organization. Engaging both leadership and end-users early ensures a balanced, strategic approach that meets business-wide needs.

Tip: Involve end-users from the start of the process to ensure the system aligns with their workflows and expectations. Their feedback can prevent costly adjustments post-implementation.

Pay attention to industry-specific needs

Not all ERP systems are created equal. Some are designed for general business use, while others are built to address the specific challenges of industries like manufacturing, residential construction, building supply, distribution, office technology, or field service. The same principle applies to artificial intelligence (AI) features within these systems. While AI offers immense potential, its true value comes from practical, industry-specific applications.

A common mistake is choosing a generic ERP and trying to force it to fit specialized processes, which often leads to extensive, costly customizations or inefficient workarounds. Similarly, adopting generic AI capabilities that are not tailored to your industry's unique needs can create more complexity than benefit. For AI to be effective, it must be practical AI. This means that it is integrated seamlessly and addresses the specific demands of your industry, providing intelligent solutions that truly enhance your operations.

Tip: Choose a vendor experienced in your industry. This ensures that both the ERP system and its integrated AI functionalities are designed to meet your precise requirements, minimizing the need for generic solutions and maximizing practical value.

Here’s how to make the process as smooth as possible:

• Thoroughly evaluate your existing processes before starting the evaluation process. 
  Many businesses often focus on what we perceive as critical processes, overlooking others. This can lead to unexpected issues later. It is important to examine every aspect of your business and assess how a proposed ERP solution will manage all functions, even those that appear straightforward.
• Develop a comprehensive checklist for evaluation. 
  It is important to look at all aspects of your business and evaluate how a proposed product will manage them, even if a function seems obvious. "Too often, an implementation will be halfway completed before an unexpected limitation is found. Building a thorough evaluation checklist of all core processes and functionality needs, which you can objectively apply to each product, will make the process much more successful," said Potter.
• Treat demos like auditions, not just presentations. 
  Do not let vendors stick to their script. Provide them with your real-world business scenarios and ask them to walk through your specific workflows. Ask tough questions. A good vendor will be able to demonstrate how their system handles your unique challenges, not just showcase generic features.
• Budget for training and adoption, not just licenses. 
  The success of your new ERP hinges on your team's ability and willingness to use it effectively. Allocate budget to training, change management initiatives, and ongoing support. Investing in your people is just as important as investing in the software itself.
• Look for a partner, not just a provider.
  Your ERP vendor should be a long-term partner invested in your success. Evaluate their customer support, their implementation process, and their company culture. A great way to test this is by asking, "What would you do if you were in my shoes?" A reliable vendor will understand your business objectives and offer valuable, aligned solutions. If their answers seem superficial or don't meet your needs, it's a clear sign that they may not fully understand your unique challenges. Select an ERP vendor that understands your industry and serves as a trusted advisor, dedicated to helping you achieve your business objectives.

Choosing an ERP doesn’t have to be overwhelming. By learning from others’ experiences, planning carefully, and focusing on long-term value, you can select a system that supports your business growth.

Remember: Look beyond the demo, involve your team early, and account for change management. With the right approach, your ERP can drive success for years to come.