Choosing the Right ERP: What Matters and How to Decide

Every business eventually reaches a point where outdated systems, fragmented data, and inefficiencies start slowing down growth. Many turn to ERP systems to unify operations and improve decision-making. But, not all ERPs deliver the expected results, and choosing the wrong one can be as damaging as not having one at all.

ERP selection is not a walk in the park. It is a long-term investment that shapes how your company operates, scales, and competes. With a market full of options, each with different pricing models, customization levels, and promises, it is easy to get lost in the details. Should you opt for NetSuite, SAP 4/HANA, or Odoo? What factors truly matter when making this decision?

This blog will break down the key factors businesses should evaluate, compare two of the leading solutions, and highlight how choosing the right ERP implementation partner can mean the difference between success and setbacks. So, if you are about to invest in an ERP, this is where your decision-making process should begin.

7 Tips to Choose the Right ERP System for Your Business

Selecting an ERP system is a long-term commitment that directly impacts your business performance. With numerous options available, businesses must evaluate solutions for a strong return on investment. While this is not a comprehensive guide, the following key factors will get you started on the right foot.

Define Business Requirements

The foundation of ERP selection lies in clearly defining what the system needs to accomplish. It is not wise to assume that a feature-rich ERP automatically translates to efficiency. Without a structured evaluation of operational priorities, even the most advanced software can fall short.

So, the first step is forming an internal selection team, which consists of stakeholders from different departments such as finance, HR, IT, sales, operations, and procurement. Each department should assess its workflow challenges and data management needs.

Once this input is consolidated, you should create a business requirements document (BRD), which serves as a benchmark to evaluate potential ERP solutions. A well-structured BRD includes:

• Essential features for day-to-day operations.

• Scalability considerations to support future expansion.

• Compliance needs, particularly in industries like healthcare, finance, and manufacturing.

• Expected ROI and performance metrics

Without a clear understanding of business requirements, you risk selecting an ERP solution that either overcomplicates processes with unnecessary features or lacks critical capabilities. This leads to costly workarounds.

Questions You Should Ask:

- Does the ERP system align with my business segment and operational model?
- Can the system support our long-term growth and compliance requirements?

A structured assessment, with the support of an ERP development company, helps you select software that meets your needs, reducing the risk of misalignment and delivering expected results.

Evaluate Industry-specific ERP Features

Not all systems are designed to serve every industry equally. A general ERP may handle finance, HR, and procurement, but its long-term value depends on how well it meets industry-specific needs like compliance, production workflows, and specialized reporting.

For instance, healthcare organizations need ERPs that meet HIPAA compliance, while service-based companies prioritize time tracking, billing automation, and CRM integration. Manufacturers, particularly those in discrete manufacturing, rely on ERP systems for production planning, inventory control, and compliance. Learn more about the key advantages of ERP for discrete manufacturers.

A recent study shows that 48% of businesses require some level of ERP customization, while 10% to 19% need highly specialized solutions. This highlights why ERP development services may be necessary to configure industry-specific workflows.

Questions You Should Ask:

- Does the ERP system provide a consistent, intuitive interface across all modules?
- Can the software be accessed via mobile applications?
- Does the ERP include BI and predictive analytics capabilities?

As companies scale, the ability to add new modules and integrations becomes critical. A well-structured ERP should allow seamless expansion without requiring a complete system overhaul.

Calculate Total Cost of Ownership (TCO) and ROI

The total cost of owning an ERP system depends on the deployment model chosen. On-premises ERP requires businesses to cover hardware, software, and IT infrastructure costs, along with expenses for implementation, customization, security, and future upgrades. There are also ongoing costs for training, maintenance, and support, and the number of users can impact pricing. Since these costs add up quickly, achieving an ROI usually takes longer.

On the other hand, cloud-based ERP works differently. They are hosted and managed by a cloud provider, which reduces or spreads out many of these costs, often leading to lower upfront expenses. All you have to do is pay a subscription fee while the vendor handles security, system updates, and maintenance, making it a more predictable investment. This is a key reason why growing companies prefer cloud ERP, as it often leads to faster ROI and lower overall ownership costs.

Questions You Should Ask:

- What are the upfront and ongoing costs associated with the ERP system?
- How is the software licensed, and what does the pricing structure include?
- What is the expected timeframe for ROI realization?

Ignoring the financial factors can put a strain on your resources. You should carefully assess long-term ROI by considering efficiency gains, labor cost reductions, and revenue impact to ensure that the investment aligns with your strategic goals.

Check System Integration

Integration is a key factor in ERP adoption success. Organizations use various software solutions, such as CRM, eCommerce platforms, payroll systems, and supply chain management tools. If your ERP cannot integrate smoothly with other systems, you may face data inconsistencies, manual workarounds, and reporting challenges.

The best ERP solutions offer pre-built connectors and APIs, allowing different systems to communicate seamlessly and ensuring that data flows correctly across departments. Cloud-based ERP systems are often more integration-friendly. In fact, 53% of organizations use cloud-based ERP, largely because of its ability to connect with other systems more easily. 

As your business grows, you may need to integrate additional third-party applications, and the ERP should be flexible enough to support these changes.

Questions You Should Ask:

- Can the ERP integrate with my existing software ecosystem?
- Does it support real-time data synchronization and API connections?

An ERP system should bring all critical business operations together, preventing data silos and inefficiencies.

Review Support and Training

As discussed earlier, an ERP system is not a one-time investment. It requires ongoing support and training to ensure employees can use it effectively and it runs without issues. Before selecting a vendor, assess the level of support available during setup, daily operations, and future upgrades.

This support level varies with factors like company size, time zones, IT resources, and customization levels. For on-premises ERP, you must consider the cost of downtime if the system goes offline. Cloud-based ERP, however, minimizes this risk since vendors typically guarantee high availability, but you still need to evaluate response times and troubleshooting assistance.

Many vendors offer tiered support plans. Basic packages often include access to knowledge centers with articles, guides, and tutorials, while premium plans provide priority access to live technicians, 24/7 emergency support, and personalized assistance. The right plan depends on how much internal IT expertise a company has and how much hands-on help it will need.

Training is just as important. Your employees should have hands-on sessions, video tutorials, or access to learning resources to help them understand the system.

Questions You Should Ask:

- What levels of support are provided during and after ERP implementation?
- How comprehensive are the training resources?

Without the right support and training, businesses may face delays, inefficiencies, or system disruptions. That’s why it becomes important to check what kind of technical help, response times, and training programs a vendor offers before committing to an ERP system.

Consider ERP Technology Advancements

Unlike the previous times when ERP systems were employed only to manage data, they now incorporate AI, machine learning, IoT, and blockchain to automate processes and provide deeper insights. Businesses should consider how these technologies can improve efficiency and decision-making.

For instance, an AI-powered ERP can analyze patterns and provide predictive insights, helping you anticipate demand, manage inventory, and streamline operations. IoT integration allows you to collect real-time data from connected devices, improving supply chain tracking and equipment monitoring.

Curious about how AI is transforming ERP? Read our latest blog on NetSuite’s AI-powered features.

Similarly, blockchain enhances security by ensuring transparent and tamper-proof transactions, which is particularly useful for industries that require strict compliance.

Questions You Should Ask:

- Does the ERP support AI, IoT, and blockchain technologies?
- Can new technology integrations be added over time?

As systems continue to advance, you need to assess whether an ERP solution supports these modern technologies and allows for future upgrades. Investing in an ERP that keeps up with innovation ensures that your system remains valuable and adaptable to your evolving business needs.

Assess ERP Implementation Strategy

ERP implementation can take anywhere from a few months to over a year, depending on several factors. Cloud-based ERP is typically faster to set up compared to on-premises systems, which require additional infrastructure and IT resources.

The more customized the ERP, the longer it takes to configure, test, and deploy. Data migration is another critical step, as you need to ensure that all existing information is accurate and properly transferred to the new system. A phased implementation approach, where ERP modules are introduced gradually, can help reduce risks and give employees time to adjust.

For a step-by-step approach, download our whitepaper on NetSuite ERP implementation.

Rushing through implementation can result in costly mistakes, data inconsistencies, and resistance from employees. According to NetSuite, businesses that take a structured approach to ERP implementation see 80% fewer disruptions during the transition.

Questions You Should Ask:

- How long will the ERP implementation take?
- Does the software include testing tools to validate deployment?

Taking the time to plan and test before going live ensures that the ERP system runs efficiently from day one, preventing unnecessary delays and errors.

Understanding these key factors provides a solid foundation for evaluating which ERP system aligns best with your business needs. The ERP market offers a range of solutions, each catering to different business sizes and industries.

Among the leading options, NetSuite stands out as an established, full-featured cloud ERP, while Odoo is gaining traction for its modular and highly customizable approach. In the next section, we will compare these two ERP solutions.

Comparing Two Popular ERPs in the Market

A cloud-based ERP solution owned by Oracle, NetSuite is designed to support small to medium-sized businesses across various industries. It offers a unified platform with integrated modules for financials, customer relationship management, inventory, supply chain, and more. Our NetSuite consulting services provide expert guidance on implementation and system optimization.

An open-source ERP platform, Odoo provides a suite of business applications that are highly customizable. With over 30 integrated modules, it caters to businesses of all sizes, offering flexibility and scalability.

Once you have narrowed down your ERP options, working with the right ERP implementation partner can help you identify the best fit for your business and ensure it is set up effectively.

Make the Right Choice with an Expert ERP Partner

Choosing the right ERP system is only half the journey. A successful ERP implementation depends on the right partner. Whether you opt for NetSuite, a full-featured cloud ERP, or Odoo, a flexible, modular solution, or any other ERP available in the market, working with an experienced ERP consulting partner means a smooth adoption, transition, optimized setup, and long-term success.

Choosing an ERP is not just about picking software; rather, it is about finding what works best for your business. The right ERP partner helps you cut through the noise, compare options like NetSuite, Odoo, or others, and make a choice that actually fits your needs. More than that, the ERP services provider guides you through the setup, adoption, and everything in between.

At Closeloop, we specialize in ERP selection, implementation, customization, and support, helping you align the ERP systems with your operational goals. Our certified ERP consultants help you choose the right platform, customize it to your process, and integrate it with your other existing software like CRM, payroll, or eCommerce solutions. We also offer data migration, hands-on training, and ongoing support, ensuring your team can use the system effectively from day one.

But, off-the-shelf ERP solutions don’t always fit every business. While platforms like NetSuite and Odoo offer extensive features, they may not fully align with certain industry-specific requirements. When that happens, a custom-built ERP can be the better choice. As an ERP development company, we design and develop custom ERP solutions from scratch that are personalized to your workflows, industry needs, and long-term goals. Read our blog that highlights the benefits, requirements, and cost considerations of custom ERP solutions.

A fully customized ERP allows you to have precisely the features you need without unnecessary complexities. Whether it is a standalone ERP or an extension of your existing systems, we build solutions that seamlessly fit into your business ecosystem while keeping them scalable for future growth.

With years of experience in ERP services, including custom ERP development, NetSuite consulting services, and Odoo development services, we help you through every step of the ERP journey, right from selection and implementation to long-term optimization.

The right ERP, backed by the right partner, can help you maximize ROI and reduce operational costs to a great extent. Let’s find the best ERP solution for your business together.

Talk to our ERP selection consultants for guidance on ERP selection and implementation. Explore our Odoo and NetSuite consulting services today!