ERP Requirements Checklist for Evaluating ERP Software

This article will help your business create a strategy to identify the ideal ERP software that aligns with specific business needs and considerations for selecting the most suitable ERP system.

Erin Dominguez

Introduction to ERP Requirements Checklist

At the center of businesses, we see pivotal business data and software solutions essential for daily operations and achieving long-term objectives. Enterprise Resource Planning (ERP) software is a cloud ERP system that digitally transforms your company in order to meet day-to-day goals and long-term business goals, acting as a core ERP system.


ERP software saves you time and money. Creating an ERP requirements checklist helps your business select the right ERP project and ensure the success of your ERP implementation by focusing on specific business needs and core business considerations for choosing an ERP system.

What is ERP Software?

Enterprise Resource Planning (ERP) software is an extremely complex and robust software system that touches a high percentage of your business. From cloud ERP to on-premises ERP, these ERP software systems encompass the majority of a company’s operations from commerce, HR, analytics, supply chain, commercial sales, and much more. A true ERP requirement gathering outline, or ERP requirements list, is the first step in selecting the right ERP vendor and software.


Selecting the right ERP software can elevate your business processes, create efficiencies, eliminate inefficiencies, streamline internal communication, and ultimately provide better business outcomes and client relations through enhanced operations. Your ERP system will be the heart of your company, centralizing many of your most valuable tools and integrating them with current systems to ensure your ERP adds significant value.

Putting People First in Your ERP Requirements Gathering Process

An ERP system does not succeed unless you have a robust solution and a strong team. Your ERP software requirements begin with the people who have the most at stake – also known as your project stakeholders. The team of people evaluating various ERP systems (i.e. Finance or Supply Chain Management) must be the key drivers in the decision-making and selection process.


It’s crucial to define requirements clearly and ensure that stakeholders, pain points, and their input are relevant in the decision-making process, as well as a clear list of requirements and direction on how this ERP will come into play in the future. The people selected to make these decisions should consist of an executive stakeholder. Still, it is just as important to include subject matter experts and keep in mind those who will be utilizing the system daily, also known as system users.


These system users will give you clear insight into the feasibility of how that new ERP solution might integrate into their current work process and what is consumable for them.

How to Identify Stakeholders for an ERP Implementation

Learn how to identify stakeholders for your upcoming ERP implementation.

Ensuring Participation & Prioritization

Inviting the right subject matter experts and stakeholders to meetings is crucial for prioritizing ERP system requirements. It’s also vital that your team engages with buy-in and active participation while planning. This involves making a critical requirements list of must-haves during the ERP selection process. 


The selected people will be responsible for participating and actively listening to the issues system users are calling out. Key requirements must be prioritized by each individual department, creating a combined requirement list of must-haves for the ERP selection process. As a team, you can compile all requirements that fit everyone’s needs, including the list of business requirements for the new ERP solution, and cross-reference them to create a combined list of must-haves.


These prioritizations should stem from performance initiatives, operational impact, and interoperability. Immediately look at the biggest pain points within your organization. Outline the biggest problems and then get an understanding of how timely those can be solved with that specific ERP solution. Does this impact your prioritization? How could this align with other issues that have been outlined that aren’t considered a large issue?


Once you have a strong understanding of those issues you will be able to easily identify what components of an ERP solution are going to be most beneficial to your business.

Tackling ERP System Process Improvements

In the corporate world, there are many times when employees run from the word automation in fear of layoffs or the ability to replace a human with a machine. In reality – automation facilitated by a strong, integrated ERP solution allows employees to focus on more impactful work. A strong ERP solution allows companies to improve business reporting, create efficient customer interactions, eliminate administrative overhead, enhance scheduling/planning, and lastly, evolve your company as technology does.


A strong ERP solution will integrate with existing systems, such as your CRM, eCommerce, business intelligence, and other business applications. By integrating these new systems, you are setting up your organization to be more cost-efficient, have data accuracy, create better workflows, and improve the overall lives of your employees. You can not only meet customer and employee expectations but exceed them by streamlining your departments for cohesive collaboration.


This type of ERP implementation meets and exceeds customer and employee expectations by evolving your company as technology advances.

Business ERP Functionality Considerations

Finance Considerations

One of the strongest champions of selecting an ERP system is the finance department in a company. ERP systems can save tremendous time by improving invoicing, budgeting, and payroll processes as part of ERP software modules. These systems enable your organization to manage financial data through automation and reduction of human error and inaccurate finance reporting. An ERP system can also enhance customer experiences through AI recommendations and reporting. Ensuring you choose the system that best fits your financial planning and reporting needs. Below are some core functions to consider:

Human Resources Considerations

Employee data is at the heart of any HR department. Onboarding with a company can make or break an employee’s experience. Through a cohesive system, you enable your HR department to interact with your other business functions through onboarding, management, payroll and compensation, recruiting, and also training.


The ERP you select should make HR functions more efficient and interact easily across all core business functions. Considering the software provider’s ability to meet these needs is vital. Below are some core functions to consider:

Manufacturing Considerations

Selecting the right ERP offers visibility into the end-to-end daily processes of manufacturing, customer fulfillment, and resource management. An ERP system can provide insight into your production activity, inventory, purchasing data, and much more. This solution will help you optimize performance and employee resources within your manufacturing operations, factoring in hardware requirements and the ability to manage manufacturing regulations. Below are some core functions to consider:

Supply Chain Considerations

ERPs will create a strong automated process for your procurement, distribution, and resource management. It’s important to factor in the ability to automate tedious tasks and allow employees to operate at higher productivity levels in an ERP. Questions like “Is the data entered centrally located and easily accessible?” and “Do you have live data visibility?” become essential in gathering requirements for a complete ERP. Can you see supply, manufacturing, and employee output data all in one place? Below are some core functions to consider:

Customer Relationship Considerations

Automated marketing tools allow businesses to manage their website clicks, hits, and demo requests into one cohesive system. From the moment a customer clicks on your website and enters lead information, that data can migrate to your centralized ERP to be further worked on and transformed into a customer. An ERP will allow you to streamline your sales process from start to finish and then easily hand that customer off to finance and project management. Below are some ERP functions to consider:

Incorporating these considerations into the selection process ensures that the potential ERP system aligns with the business requirements for the ERP and is available for an ERP system that can meet and exceed the needs of your organization. ERP uses and functionality should be thoroughly evaluated to ensure they meet the diverse needs of your business sectors.

Ensuring Organizational Readiness

If your business is looking to grow beyond a legacy ERP system, is struggling with systems that are no longer keeping up with growth, or isn’t meeting your customers where you need, an ERP solution needs to be a consideration. As technology changes, so should your business. Meet the customers where you want, keep your employees happy, and continue to grow your business as you meet your transformational strategies. If your business is considering what is next in your modern workplace, schedule a demo with Avantiico’s team today!

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