Choosing the Right ERP: A CFO & CIO’s Guide to Making the Right Move (and Avoiding the Wrong One)

By Transform and Grow

An Enterprise Resource Planning (ERP) system is more than just a back-office platform — it is the digital backbone of your organisation. It is also often one of the most important technology investments and implementations that an organisation makes.

Despite the promise of streamlined operations and better decision-making, ERP projects frequently fail to deliver expected outcomes. Studies show that over 50% of ERP implementations underperform, often due to misalignment between business needs and system capabilities.

As a consulting firm with experience across hundreds of ERP projects, we’ve seen what works — and more importantly, what doesn’t. This article outlines what every CFO and CIO should know before selecting a new ERP system.

Common Mistakes CFOs and CIOs Make When Selecting an ERP

1. Starting with Technology Instead of Strategy

Too many organisations jump into product demos or RFPs before defining their business strategy and transformation goals.

• Begin with a clear understanding of your business objectives and future operating model.

  Ensure your ERP selection is aligned to those long-term goals, not just current-state gaps.

  
  

2. Underestimating Process Complexity

An ERP cannot fix broken or undocumented processes.

• Conduct a comprehensive fit-gap and process mapping exercise before vendor selection.

  Clean, standardised processes reduce implementation complexity and increase adoption.

  
  

3. Excluding Key Stakeholders from the Start

Decisions driven only by IT or Finance can overlook operational realities and cross-functional dependencies.

• Involve leaders from Operations, Procurement, Sales, and other critical departments.

  Cross-functional input ensures the system meets both strategic and day-to-day requirements and enhances cross business outcomes.

  
  

4. Treating ERP as a Plug-and-Play Tool

No ERP system works straight “out of the box.”

• Every system requires configuration, change management, and training tailored to your environment.

  Be prepared to invest in business readiness — not just technology readiness.

  
  

5. Choosing Based on Brand Recognition

Big-name vendors aren’t always the best fit for your size, complexity, or industry.

• Use a structured, vendor-neutral evaluation to assess capability, scalability, and total cost of ownership.

  Avoid being influenced by marketing or peer pressure; focus on your specific business case.

  
  

6. Ignoring Integration and Data Migration

Your ERP is only as effective as the data it runs on and the systems it integrates with.

• Build a data cleansing and migration plan early in the project lifecycle.

• Ensure seamless integration and evaluate compatibility with your CRM, reporting, supply chain, and other core systems.

  
  

7. Underbudgeting for Post-Go-Live Support

ERP transformation continues well after go-live.

• Plan for optimisation, user training, and system tuning during the first 6–12 months post-deployment.

  Allocate budget and resources for continuous improvement, not just implementation.

  
  

Best Practices for Selecting the Right ERP

• Define a Business-Led Strategy: Start with your growth plan and transformation goals, not just software requirements.

• Map Current Processes and Pain Points: Understand what’s working, what’s broken, and what can be standardised.

• Develop a Requirements Matrix: Document your must-haves across Finance, Operations, Technology, and Compliance.

• Conduct an Independent Vendor Evaluation: Objectively assess functionality, integration, flexibility, and vendor roadmap.

• Plan for Change Management: Ensure users are engaged, trained, and supported throughout the change journey.

• Secure Executive Sponsorship: Successful projects have consistent leadership alignment and visible support from the top.

  
  

Final Thoughts

ERP selection is a major business strategic investment — not just an IT decision.

The right ERP can help you:

• Drive operational efficiency

• Improve financial visibility

• Enable real-time, data-driven decision-making

• Scale sustainably and profitably

• Augment organisational talent and increase productivity

  
  

The wrong ERP? It can cost millions, delay growth, and frustrate users across the organisation.

At Transform and Grow, we help CFOs and CIOs make informed ERP decisions — with vendor-agnostic advice, deep finance and technology expertise, and a clear focus on business outcomes.

Let’s ensure your ERP journey sets your business up for growth.

📞 Book a 30-minute Discovery Call: 🌐 Visit: www.transformandgrow.com.au