The first phase of ERP consulting is the development of requirements in preparation for the actual selection process. This phase determines success or additional costs - avoidable if a few rules are consistently adhered to.
Short answer
A successful ERP selection process follows a 3-point procedure model: ACTUAL assessment, TARGET concept and consolidation in the specifications. The most common mistake in DACH SMEs: Point 2 is skipped in favor of short-term symptom elimination. The Trovarit study "ERP in practice 2024/25" (n > 1,700 user companies DACH) shows: The software itself is rated well with an average score of 1.80 - the provider service, on the other hand, is only rated at 1.96, with a downward trend. Success is decided where people, processes and responsibility come together.
The ERP selection process - opportunity and risk in equal measure
The development of a target concept with the requirements for your own company can be described as a 3-point process model.
As-is assessment of the systems currently installed in the company, the associated process support and the connections to third-party systems or interfaces that must also be operated in the future.
Target concept for the organizational model, the process landscape and the customer requirements that are to be met. This includes strategic considerations of the corporate strategy, which significantly shape the derived IT strategy. Customer requirements that are not yet met or are only met with a great deal of manual effort are also part of the considerations for the design of new ERP software or a new IT strategy.
Consolidating the requirements of the various business areas, financial accounting, controlling, individual departments and users into one overall document: the requirements specification. An important milestone in an ERP project.
Fig. 1 - The three phases of ERP selection.
In IT management, point 2 is often underestimated or neglected because the calls from users are too focused on eliminating deficiencies in current use. These include system breaks in process flows - the transfer of IT information to paper and back to IT, duplicate entries because programs do not communicate with each other, and the use of spreadsheets to map processes and content.
Why is that?
For the first time, examining your own business processes and optimizing them has nothing to do with an ERP selection. ERP software does not solve process problems - it only mercilessly exposes them during the implementation phase. Especially in times of full order books, the focus is rarely on optimizing processes.
Revising business processes is a permanent task and is carried out in many companies as part of CIP initiatives. As part of a planned ERP implementation, however, it is urgently necessary to discuss this process optimization before the introduction and to implement it where possible. This also applies to master data qualifications. If master data is only cleansed at the same time as the implementation, the schedule will be disrupted because the implementation will take longer and/or unqualified data will flow into the new system.
A structured approach to software selection is a basic prerequisite for reducing risks in the implementation phase. It does not matter whether it is a CRM, ERP, DMS or WMS system.
With regard to point 1, the as-is assessment, it should be noted that analysis tools are available today that enable the company's existing data to be used for process mapping, thus radically shortening the as-is assessment. What used to have to be painstakingly obtained through interviews, rounds of questions and workshops can now be obtained through data analysis - now often supported by AI. This technology is known as process mining or data analysis. The use of these tools can reduce the duration of the as-is analysis by more than 50%. This means that an ERP project can be implemented faster and realize its ROI sooner. The evaluation quality is also higher because the analyst builds on data and not on memories from conversations.
The role of the project manager
The project manager has to meet a wide range of requirements when selecting software. He or she must have the social skills to lead a team and work with this team to achieve results. The project manager must know the company and have the necessary authority to manage a project. This means that he or she must be able to decide on the working hours of employees who are not originally under his or her responsibility but are temporarily assigned to a project group. It is precisely at this point that problems often arise because there is not unlimited time available for project work and day-to-day business has to be done.
The project manager therefore needs the trust of the project sponsors and the team in order to make the ERP selection process as efficient as possible.
The role of the employees in the selection team
A competent, qualified team is needed to carry out an ERP selection project. This is not always easy in practice. On the one hand, all specialist departments should be represented, and on the other, the team members must have the necessary qualifications to work on solutions as part of a team. They should:
Have time for the project work
be accepted in their department in order to represent it effectively
know and understand the procedures and processes of their business unit
Be able to communicate and clearly formulate requirements
be a team player
have a certain affinity for ERP or an understanding of the possibilities of modern ERP software
This is not always easy. Nevertheless, the effort is worth it: this team usually also accompanies the selected software through the implementation phase.
Fig. 2 - User satisfaction with ERP solutions in the DACH region 2024/25.
The message behind these figures is clear: ERP software itself is rarely the bottleneck for SMEs in the DACH region. Where user satisfaction falls, it is the connection between people, processes and systems - precisely the area that a competent selection team shapes in the early phase.
Where are the risks?
A decisive factor is the composition of the team in the ERP selection process. With the wrong composition, there is a risk that the specialist areas will be inadequately represented and will hardly be reflected in the specifications.
Another risk factor is that the requirements for a new ERP system are dealt with in too much detail or too generously in the as-is assessment. The description of the smallest process with enormous detail leads to the new system only being able to map these details through adaptation programming. An overly generous process description, on the other hand, means that important requirements are not taken into account in the specifications.
Both of these things usually only become apparent during implementation - and lead to a changed project. Such corrections are the most common reason why projects do not meet the planned time or budget. If you are unsure at this point, external ERP consulting can offer support.
If the three points are worked through consistently and the existing data and processes are analyzed by a dedicated, competent team, the risks of an ERP selection process and the subsequent implementation become transparent and manageable.
Summary
The basis for a successful ERP implementation is a successful ERP selection process.
This requires a structured approach based on a simple 3-point plan.
Staffing the project team with qualified, committed employees from the functional areas is a key success factor.
Current figures from the DACH region (Trovarit "ERP in Practice 2024/25") confirm this: Software is rarely the bottleneck. The decisive factor is the connection between people, processes and systems.
Frequently Asked Questions About the ERP Selection Process
Developing a target vision—that is, determining what the organization, processes, and customer requirements should look like in the future. In the DACH region’s SME sector, this step is often skipped in favor of a pure current-state analysis. As a result, the workload shifts to the ERP implementation phase, where resolving issues becomes significantly more expensive.
A well-founded ERP selection process, from the initial assessment of the current state to the signing of the contract, typically takes six to nine months. The use of data-driven analysis tools such as process mining can shorten the current state assessment by more than 50%. Anyone who compresses the selection process to less than six months risks a superficial evaluation—and thus an expensive correction during the implementation phase.
A representative from each affected department—typically sales, purchasing, production, logistics, financial accounting, controlling, and IT. Team members must be familiar with their processes, be given time off for project work, and be accepted within their department. Typically, the same team then leads the project through implementation.
The requirements specification describes, from the user company’s perspective, what the new ERP system must deliver—requirements, processes, and interfaces. The functional specification describes, from the vendor’s perspective, how these requirements are technically implemented. The requirements specification is developed during the selection process, while the functional specification is created only after the contract is signed, during the implementation phase.
Not necessarily—but most mid-sized companies underestimate the effort and complexity involved. External consultants provide market insight, help avoid typical mistakes in requirements analysis, and can act as neutral mediators between business units and vendors. Independence from the vendor is crucial—a consulting firm that later sells implementation services itself has a conflict of interest.
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