Common pitfalls when choosing an ERP

Choosing an ERP system is a major investment—but many businesses fall into traps that lead to delays, budget blowouts, or even total failure.

Here are 5 critical mistakes to avoid—backed by data:

1. 💸 Choosing the Cheapest Option

It’s tempting to go with the lowest bidder, but ERP is a long-term strategic investment. ERP implementation costs differ depending on business size.

Here are some things you should know when considering the cost: 

• 📉 47% of organizations experienced cost overruns during ERP implementation, often due to underestimating total costs.
• 🧩 Cheaper systems may lack essential modules like CRM, inventory, or analytics—leading to expensive add-ons later.

👉 Instead: Focus on total cost of ownership (TCO), not just upfront pricing.

2. 🧭 Not Defining Business Needs Clearly

Without a clear roadmap of your goals, processes, and pain points, you risk selecting a system that doesn’t fit. 📊 A comprehensive ERP needs assessment helps align the system with your strategic objectives, improving ROI and reducing rework. 🧠 Businesses that conduct a needs assessment are more likely to avoid unnecessary features and implementation delays. That said, it’s important to involve stakeholders across departments to map workflows and define must-have features.

Choosing the Right ERP System: 5 Key Factors for Long-Term Success

3. 👥 Ignoring User Training & Change Management

People are the key to ERP success. Even the best system fails without user buy-in.

Based on data: 

• 📉 Poor training is a top reason ERP projects fail. In fact, 70% of ERP failures are attributed to inadequate user adoption.
• 📈 Well-trained users improve data accuracy, reduce errors, and increase system ROI.
• 🧑‍🏫 Personalized training by role boosts engagement and speeds up adoption.

👉 Invest in structured training, ongoing support, and change champions.

4. 🛠️ Over-Customizing the System

Custom features may seem helpful—but too much tailoring can backfire.

According to research, 54% of ERP projects exceed budget, and 72% take longer than expected, often due to excessive customization.

While customization is good, overdoing it complicates upgrades and can lock you into a single vendor. But hear this, only 3% of companies use ERP systems with zero customization—yet most benefit from moderate, strategic tweaks.

👉 Recommendation: Stick to native features unless customization delivers clear, measurable value.

5. 🔍 Skipping Vendor Research

Not all ERP vendors are created equal. 🧪 Vendor selection is one of the top predictors of ERP success. Poor vendor fit leads to missed deadlines and unmet expectations.

Some of the best practices in selecting your developer or vendor include checking industry experience, client testimonials, support responsiveness, and upgrade policies.

There are times when businesses skip due diligence, which puts them at risk of choosing a system that doesn’t scale or integrate well.

💡 Want guidance on selecting the right ERP solution?

We’re here to help—without the mistakes.  📩 Send us a DM or visit our website at www.wtmigremo.com!