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10 steps to choose the right ERP software for your business

Short Summary: This guide outlines 10 practical steps for selecting and implementing the right ERP system. It covers goal setting, vendor evaluation, stakeholder involvement, data migration, ROI, and best practices to reduce implementation risks and support a successful rollout.

An Enterprise Resource Planning (ERP) system can transform a manufacturing business by centralising operations, improving visibility, and making decisions faster and more accurate. Choosing the right ERP is a major decision. One that affects production, inventory, finance and people.

That’s why this short, jargon‑free guide walks you through 10 practical steps to choose and implement the right ERP for your business.

It will help you understand what matters when selecting software and how to avoid common pitfalls so your rollout is smooth, on time and delivers value.

After reading this you will:

Know how to screen vendors for industry experience and real-world fit;
Have a step‑by‑step checklist to define what your business truly needs from ERP;
Be ready to build leadership, training and communication plans that secure user buy‑in;
Understand the key data migration actions that prevent downtime and data loss;
Be equipped to compare total implementation costs and hidden expenses;
And be able to calculate and justify the expected ROI for a confident procurement decision.

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Overview

Investing in ERP software is a major undertaking for any business. Your choice will impact both your customers and employees, and making the wrong decision is costly, due to the purchase itself and any associated downtime. That’s why it’s important to clearly define what you need your software to achieve, and carefully choose the best fit to suit your goals

1. Identify your goals

The first step to choosing the right ERM system is identifying your business objectives and requirements. The software will have to accommodate employees across all departments, so make sure you’ve spoken to everyone involved in using and implementing it.

There are many elements to consider here, including integration with existing systems and vendors, data cleansing and migration, internal resources, and how many licenses you’ll need. Answering these questions early in the process will help avoid unexpected disruption later on.

2. The ERP vendor must now your industry

When choosing an ERP vendor, make sure they’re familiar with your sector. Have they worked with companies like yours? For how long? How many similar customers do they have?

Arrange a one-on-one demonstration with your prospective vendor to get to know them. Are they asking the right questions about your business and workflow? A knowledgeable vendor will show that their software has the functionality to meet your goals.

Be as specific with your questions as you can and make sure the vendor explains things clearly. By scrutinising the company and its software as closely as possible, you can narrow your options.

Ridder iQ is made by manufacturers, for manufacturers, so the features have been developed to support specific processes in your industry.

3. Consult employees

Buy-in is essential for a smooth ERP implementation, and if your employees feel involved in the project, they can help make it a success.

Changes in workflow can make people uneasy, so communicate with everyone. Listen to their concerns and offer open dialogue. Employees might be reluctant to change, and you’ll need to show them that the move will make their work easier.

Executive-level management should conduct regular reviews of the transition and provide regular updates about where the company is headed

4. Build strong foundations

You don’t want to implement a new system using processes that are already flawed, so make sure you have made any relevant or important operational changes ahead of the transition. For example, you will need to plan how and when to train your employees to use the new system with enough time to address any teething problems.

A new ERP system should help to streamline your operations, but if the right foundations aren’t in place, the transition could cause disruption and downtime.

5. Set up a leadership team

Assign a person or group to lead the ERP project as soon as possible so there’s clear accountability for its progress. This could be a steering committee made up of managers and representatives from every department, or simply a member of the senior leadership team. It will make the transition more efficient and encourage employees to raise any concerns.

6. Research ERP training

When assessing which ERP vendor to choose, consider the training and support they can provide for your team. Is there web-based training or live webinars? Do they offer telephone support or onsite sessions? The quality of support is equally important. Is the team responsive and easy to reach? Do their hours of operation meet your needs? Are they based close by?

7. Assign the right resources

No matter how great the vendor is, the transition to a new ERP system will only go smoothly if you properly allocate resources and manage the capacity of your staff. ERP transitions are susceptible to “project creep” – when the requirements of a project seem to grow uncontrollably without proper monitoring, causing the overall costs to increase.

A good vendor, together with your team, can help with the implementation. Set strict but realistic timelines for implementation, and ensure that progress is regularly communicated.

8. Focus on data migration

Data migration is complex, particularly when many users are involved across multiple sites and systems. Get ahead of this problem as early as you can.

Here’s how to make the data transition smooth:

Develop a data migration strategy and communicate it clearly to stakeholders. Offer details on handling open invoices, accounts and orders.
Determine what data needs to be migrated and verify its accuracy.
Organise your data as much as possible before migrating it.
Determine what data will be archived and let stakeholders know how it can be accessed.
Once transferred, verify the legitimacy of the migrated data.

Some vendors offer data migration support, which can influence your choice of software if you have a lot of data to migrate.

9. Check out testimonials

Reading testimonials from businesses who use the ERP you’re considering will help you make an informed choice. Reach out to people and ask about their experiences of using the software.

Here are some questions you can ask:

Was the ERP smooth to implement?
Was the training thorough?
Is there on-going training available?
How reliable is the software? Is it scalable? Is it user friendly?
Is the vendor support effective?
How committed is the vendor to your success?

Don’t neglect this step. It’s an easy way to find out how compatible the vendor will be with your organisation.

10. Determine your return on investment (ROI)

The final step is to weigh the total cost of investing in new ERP software with the projected benefits. In addition to the vendor costs, make sure to factor in any investments in internal resources, data conversion, infrastructure, hardware, and any other expenses. Undertake this process for each potential vendor so you can compare options.

Some vendors may offer more benefits for the same cost, leading to a stronger ROI. Alternatively, other systems may require your team to be responsible for more aspects of the implementation or data conversion process, leading to hidden costs and a lower ROI.

Use ECI’s handy ROI savings tool to help you track the financial impact of your new ERP software.

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FAQs

How long does a typical ERP implementation take for a company our size?

The implementation time is different for each business and depends more on complexity than a single size metric. Generally speaking you could say that these are typical ranges:

For a small business, with a single site, that has limited modules and has a maximum of 50 users, the implementation time rages between 3-6 months.
For a mid-market, medium size business that has multiple departments, needs moderate integrations and has between 50 to 500 users, implementation usually takes 6-12 months.
For a large enterprise business that has multiple sites, needs heavy integrations and customizations and has 500+ users, the implementation time can tak between 12-24 months.

What’s the best way to evaluate whether a vendor understands our industry?

Ask for case studies and references from companies in your sector, request a tailored demo that addresses your specific workflows, and probe how long they’ve served similar customers. Verify whether their feature set directly supports your core processes rather than requiring heavy customization.

What should a proper data migration strategy include?

Define what data to migrate vs. archive, cleanse and verify data accuracy beforehand, and outline handling of open transactions (invoices/orders). Then, set validation checks post-migration. Make sure to use vendor migration support and test the migration in stages to catch issues early.

When is it better to customise an ERP vs adopt standard processes?

Deciding between out-of-the-box functionality and custom development is a balancing act between speed and competitive advantage. Generally, you should adopt standard processes to benefit from industry best practices, faster implementation, and easier future upgrades. However, customization becomes necessary when a process is a genuine secret sauce for your business or is required for strict regulatory compliance.

To make the right choice, keep these five points in mind:

Opt for standard processes for non-strategic tasks to keep total cost of ownership (TCO) low and upgrades simple.
Only customize when a process provides a unique competitive advantage that standard software cannot replicate.
Prioritize "configuration" (changing settings) over "customization" (writing new code) whenever possible to avoid technical debt.
Ensure any custom code is isolated so it doesn't break when the vendor releases system updates.
Always perform a cost-benefit analysis to confirm the long-term ROI outweighs the increased maintenance and complexity.

How can we secure employee buy-in and effective change management?

Involve end users early. Consult representatives from every impacted team, communicate benefits and timelines openly, and form a steering group or project leadership team to own decisions. Offer training plans and channels for feedback so staff see the move as an enablement, not a disruption.

How do we define clear goals before selecting an ERP?

Start by mapping your business objectives and pain points across departments. Identify must-have features (integrations, reporting, licensing), desired outcomes (efficiency, visibility, scalability), and measurable success criteria (KPIs). Use those to create a prioritized requirements list that you can use to compare vendors and avoid scope creep.