case studies
Case Study: ERP System Selection for a Mid-Sized Manufacturer
Noel DCosta
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After two decades in ERP and AI advisory, I thought I had seen it all, until a mid-size manufacturing company in Poland nearly signed off on the wrong ERP system selection that would have cost them an extra $1.2 million. Leadership was overwhelmed by vendor sales talk, the internal politics, and a stack of “must-haves” that looked more like a wish list than real requirements.
That’s when I stepped in. I simplified the ERP selection process, introduced structured evaluation criteria, brought in the right stakeholders, asked them their pain points, and reminded them that ERP selection isn’t a contest, it’s a governance and risk management decision.
We moved beyond demo theatrics and focused on board-level alignment, cost control, and transparency. Tools like a risk assessment matrix and project planning frameworks gave leadership the clarity they were missing.
The result was a confident ERP choice that balanced technical fit with long-term business resilience, avoided an expensive mistake, and the bonus was they got all of this done in three months flat.
Choosing an ERP system is less about the software features and more about whether it fits the way your business actually operates day to day. If leadership does not align early on priorities like cost, scalability, and risk, the selection process drifts into endless debates with no clear decision.
Client: Mid-Size Manufacturer in Poland
The client was a medium size manufacturing company based in Poland with revenues just under $400 million. They had expanded quickly, but the ERP systems had not kept pace.
Finance, warehouse, and production each ran on separate platforms, and the level of integration was very limited. As a result, reporting became slow and often unreliable. Departments had no choice but to create manual workarounds just to keep operations running.
I remember thinking that it was almost predictable, because this kind of fragmentation is common, but it was still surprising how much time was wasted. The board grew frustrated and made their position clear. They said they could not wait another year for a modern ERP system.
When I spent more time with leadership, the hidden pressures began to surface. It looked something like this:
Systems: Legacy ERP platforms, poor integration, and functional silos that made daily work inefficient.
Board: Pressure to act quickly, with almost no tolerance for further delays.
Leadership: CIO pushing for cloud capability, CFO pushing hard on cost control, and COO insisting that operational stability came first.
Vendors: Aggressive tactics, quarter-end discounts, and so-called limited time deals, which made proper vendor evaluation even harder.
This created a risky decision environment. Perhaps not unusual, but still more complicated than most cases I had worked on. There was pressure everywhere, from inside and outside.
My role was to reduce that noise. I applied structured ERP system selection steps and a practical risk assessment process. These gave the leadership team clearer facts to work with. It was not always smooth, but it gave them confidence to decide with governance and long-term resilience in mind.
ERP System Selection Challenges and Solutions
| Common Problem | Impact | How to Fix It |
|---|---|---|
| Jumping straight into vendor demos | Teams get distracted by flashy features and lose focus on core processes. | Document process flows first and run demos with your real data. |
| Unclear requirements from leadership | Conflicting priorities drag decisions and widen the scope. | Lock must-have and should-have lists, then get executive approval. |
| No five-year cost model | Hidden costs appear later and strain budgets after go-live. | Create a TCO view covering licenses, escalators, integrations, and support. |
| Integration blind spots | Interfaces discovered late cause delays and ballooning costs. | Map all systems and validate with a small proof of concept. |
| Internal politics and bias | Decisions stall and choices lean on opinion over facts. | Use weighted scorecards and role-specific criteria for balanced evaluation. |
The Pain Point Beneath the Pain Point
The first thing the client told me was that there were simply too many ERP options. On the surface, that sounded like the obvious problem. Yet after some conversations, I began to see that the real pain was not about the number of systems. It was about the lack of clarity in how decisions were being made.
The leadership team was stuck in a cycle of disagreement. The CIO kept stressing scalability and future readiness. The CFO was almost entirely focused on cost control and feared another budget blowout.
The COO wanted operational stability and believed disruption could harm production. Each of these priorities made sense on its own, but together they created a standstill. Perhaps this is common in ERP system selection, yet the intensity felt sharper in this case.
On top of that, no one had hard data. There were only polished vendor slide decks with big promises. The company had no detailed model for total cost of ownership. I think this gap is one of the main reasons why many projects collapse during ERP implementation.
Staff, meanwhile, were running out of patience. They had been dragged into countless demos. Some weeks included three or four sessions, often without a clear evaluation framework.
After a while, vendors started to blend together. One manager admitted quietly that he no longer remembered which product offered which feature. That was the point where I noticed how decision fatigue had set in.
The real pain points looked like this:
Conflicting priorities: Cost versus scalability versus disruption risk.
No reliable numbers: Only vendor presentations, no structured cost models.
Staff burnout: Endless demos with no structure or clear criteria.
Decision fatigue: A growing temptation to choose quickly just to get it over with.
To break the cycle, I slowed the process. I applied structured evaluation criteria and a practical risk assessment approach. Perhaps it was not a perfect solution, but it was enough to help the leadership team step back from the noise. They began to see the facts more clearly, and that was when progress started to happen.
Why did this Mid-Sized Manufacturer Bring Me In
The company did not ask me to come in because they lacked ERP knowledge. In fact, they already had too much information. Every vendor had given them slide decks, feature comparisons, and glossy roadmaps. What they lacked was clarity.
They needed something different. They wanted someone who could take technical details and translate them into clear boardroom language. I have done this many times, and I think it is often the missing link in ERP system selection.
They also needed someone to push back against vendor pressure. Sales teams were using quarter-end deadlines, special offers, and fear-based tactics to drive decisions. Neutralizing those tactics is part of the work, and in my view it is as important as building project planning discipline.
Finally, they wanted experience. Someone who had seen ERP failures and could spot red flags early, before they became expensive problems.
The reasons they asked me in can be summed up as:
Translation: Turning technical ERP detail into language the board could act on.
Neutralization: Reducing vendor influence and resisting sales-driven shortcuts.
Prevention: Drawing on past failures to anticipate and avoid mistakes.
Perhaps the value here is simple. They did not need more data. They needed a guide who could make sense of it, someone who had seen both success and failure, and someone who could steady the process when the pressure rose.
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My Approach Towards the ERP System Selection
When I was asked to lead this ERP selection, I decided early that the usual vendor playbook would not help.
Too many companies fall into the same trap. They gather long feature lists, run generic demos, and end up with software that looks good on paper but fails in execution.
My approach followed a different rhythm, broken into phases that addressed the risks vendors avoid discussing.
Phase 1 – Requirements the Vendors Never Ask About
Most companies focus on modules and functions. I looked deeper. I asked where integration would matter most, because legacy systems never disappear overnight.
I also raised questions about vendor lock-in, such as penalties and future migration costs, which no sales team puts on the first slide. Finally, I checked organizational readiness. Sometimes the real barrier to ERP is not the technology but the fact that the business processes themselves are not standardized.
For example, during workshops I uncovered that the client’s inventory practices were inconsistent across different sites. Some locations tracked raw materials in spreadsheets, while others used local databases. That gap alone could have turned into chaos during ERP implementation. By flagging it early, leadership saw that system selection had to go hand in hand with process alignment.
Phase 2 – Forcing Vendors to Play by Our Rules
Vendors love to show polished scenarios, but those rarely match real operations. I built a scripted demo day. Each vendor had to walk through the same core workflows, such as order-to-cash and production planning, using the client’s data. No one was allowed to cherry-pick scenarios.
Some vendors resisted. They said it was unusual. I held firm. In the end, the client saw side-by-side comparisons, and for the first time, the differences were clear. What looked similar in glossy brochures felt very different in practice.
Phase 3 – Surfacing Hidden Costs
Price tags can be misleading. I built a five-year total cost of ownership model. It included things most teams overlook.
Annual escalation clauses that raise fees quietly year after year.
Resource backfill costs, since ERP projects pull staff away from their day jobs.
Hypercare support after go-live, which often costs two to three times more than vendors initially quote.
When the numbers came together, one “mid-tier” option showed a hidden $500,000 cost increase after year three. Without that model, the client would have chosen it. This exercise reminded me why ERP cost transparency is so critical.
Phase 4 – Neutralizing Internal Bias
Even with data, bias creeps in. The CIO leaned toward the cloud-first vendor. The CFO leaned toward the lowest upfront price. The COO leaned toward stability.
To balance this, I ran structured voting sessions separately. Then we compared results, highlighting where personal bias outweighed facts.
By grounding decisions in structured scoring, it became harder to say “this one feels better” without evidence. Perhaps it felt a little uncomfortable for some, but it kept the process honest.
Phase 5 – Board Alignment and Decision
In the end, I summarized everything into a one-page executive dashboard. It had a scorecard, cost ranges, and a risk heatmap. No jargon, no long reports.
The board discussion lasted less than an hour. Within 45 minutes, the leadership aligned and made the decision. They left the room confident, not because they had more data, but because the data was structured and transparent.
Looking back, I think the value of this approach was in stripping away noise. By focusing on what vendors avoid, surfacing hidden costs, and forcing decisions into a structured process, the company avoided an expensive mistake.
More importantly, they gained clarity and alignment at the top, which in many cases is harder to achieve than choosing the software itself.
My Approach Towards the ERP System Selection
| Step | Purpose | Outcome |
|---|---|---|
| Define Business Objectives | Clarify what the ERP should solve, cost control, compliance, scalability. | Alignment between leadership and operations on key goals. |
| Map Current Processes | Document workflows, pain points, and dependencies. | Baseline for assessing fit against ERP capabilities. |
| Shortlist Vendors | Narrow down the market to realistic options that meet requirements. | Focused evaluation effort with relevant candidates only. |
| Run Fit-Gap Analysis | Compare vendor functionality against business needs. | Clear view of customizations, risks, and integration needs. |
| Model Total Cost of Ownership | Include licenses, implementation, training, and 5-year support. | Financial clarity for budgeting and board approvals. |
| Conduct Reference Checks | Talk to peers in similar industries using the same ERP. | First-hand insights into vendor performance and challenges. |
The Outcome of the ERP System Selection
The project reached its outcome faster than most expected. Within just twelve weeks, the company had selected their ERP platform.
That timeline mattered, because every week of delay added frustration and more vendor pressure. By working with a structured process, leadership could act with clarity rather than hesitation.
One of the most tangible wins was financial. The team avoided $1.2 million in overspend by stripping out modules that added no real business value and by rejecting inflated premium bundles that vendors framed as essential.
I remember how relieved the CFO looked when the cost model showed the savings in black and white. That relief carried over to the rest of the leadership team as well.
The other benefit was less about money and more about alignment. Decision fatigue eased once the comparisons were put into structured terms. Suddenly, people were not trapped in endless debates.
They had numbers, risk assessments, and clear priorities. This made the project kick-off more straightforward, because expectations of costs and risks were agreed upon before implementation began.
ERP chosen in twelve weeks.
$1.2 million overspend avoided.
Decision fatigue lifted, team aligned.
Vendor deadlines neutralized, buying on client terms.
Perhaps most importantly, the board no longer felt boxed in by vendor timelines. Aggressive end-of-quarter offers had no weight. The client purchased on their terms, not on the vendor’s.
That shift in control, often overlooked, set the foundation for a stronger ERP implementation journey. It was not just about picking software. It was about starting clean, with clarity and confidence.
"Noel didn’t just help us pick an ERP. He gave us a way to cut through politics, see the hidden costs, and make a board-level decision with clarity. In 12 weeks we saved over a million dollars and avoided a decade-long mistake.”
Lessons for Other Executives for ERP System Selection
1. Start With Your Own Processes
One of the first lessons I always share with executives is to resist the urge to start with vendor demos. It may feel efficient, but in practice it clouds judgment.
The real work begins with mapping your own business processes and workflows. Only then can you evaluate if an ERP system can truly fit the way your company operates.
I once watched a leadership team spend weeks on polished demos, only to realize later that half their critical processes were not even addressed.
2. The Illusion of Discounts
Another insight that often surprises people is the truth about vendor discounts. Quarter-end or year-end “specials” are usually designed to push decisions under pressure.
The actual savings lie elsewhere, in cutting modules that nobody will use or challenging inflated premium bundles. For example, in this project the client avoided $1.2M in unnecessary spend.
That was not because of a discount, but because we removed modules that did not add value.
3. Treat ERP as a Board-Level Decision
ERP selection also needs to be treated as a board-level business transformation, not just an IT project. The decision impacts finance, supply chain, operations, and even the future cost of ownership.
It is a shift that requires alignment at the top. Without that, politics can take over and the choice can drift toward what feels safest instead of what is best. Neutral facilitation matters here. It balances conflicting views and prevents biases from derailing the process.
4. Key Lessons in Practice
Begin with your processes, not vendor presentations.
Vendor discounts are pressure tactics, not genuine savings.
ERP selection is a strategic board decision.
Neutral facilitation reduces political risk.
Executives who want to avoid these pitfalls should look at real examples of ERP transformation. It is equally valuable to study ERP implementation failures and how they unfold in practice. I think the takeaway is clear.
Slowing down at the start, even if it feels uncomfortable, often saves both money and credibility later. If you want to go deeper, my guide on ERP system selection breaks down the hidden traps that most teams never see until it is too late.
Lessons for Other Executives
| Lesson | Why It Matters | Practical Takeaway |
|---|---|---|
| Do not rush the decision | Quick choices often overlook hidden costs and integration risks. | Build in extra time for evaluation and peer references. |
| Get real numbers, not just slide decks | Vendor marketing can hide long-term expenses and support gaps. | Develop a total cost model with 5–7 year visibility. |
| Balance leadership priorities | Conflicts between cost, scalability, and disruption can stall progress. | Facilitate structured workshops to align on trade-offs early. |
| Protect your staff from fatigue | Too many demos without structure can drain morale and skew feedback. | Standardize evaluation criteria and rotate demo participants. |
| Keep the board engaged | Late-stage surprises lead to resistance and delayed approvals. | Provide concise updates and involve directors in checkpoint reviews. |
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If you have any questions, or want to discuss a situation you have in your ERP Implementation, please don't hesitate to reach out!
Questions You Might Have...
1. How should a mid-size manufacturer start ERP system selection without overcomplicating it?
The best starting point is not product demos. Those tend to distract leadership with features that may never be used. Instead, map core business processes like order-to-cash, production scheduling, inventory management, and supplier payments.
Once these are written down and agreed, the ERP evaluation can focus on how each system supports them.
I remember a client who began with flashy demos and lost months before realizing half of what they saw had little relevance. By contrast, when another team started with process mapping, the evaluation took less time and felt less political.
The practical sequence should be: define process gaps, create use cases, then invite vendors. It feels slower at first, but it usually saves budget and avoids waste.
2. What belongs in a five-year total cost of ownership model for ERP?
Executives often underestimate costs because vendors rarely highlight them. A proper TCO needs to include software licensing, user growth, annual maintenance, integrations, data migration, testing, and hypercare.
Implementation services are obvious, but items like training backfill or non-production environments often get missed.
When you add those hidden costs, the numbers can look higher, but at least they are real. In one case, I saw a team approve a system based only on license fees, and by year two the budget had already doubled.
A careful TCO also forces a conversation about contract escalators and service renewals. It might feel like extra work, but without it, the board gets surprised later.
3. How do we structure vendor evaluation so comparisons are fair?
Vendors prefer to show what they do best. That usually hides weaknesses. A better method is to script identical scenarios using the company’s own data. Each vendor must follow the same workflow, with the same time limits, and answer the same questions. This is what I usually do, to reduce the risk.
The scoring should be weighted by business priorities, not vendor presentations. One manufacturing team asked each vendor to process a complex return order, including credit issuance.
That test revealed real differences in usability. Without that, the demos would have looked almost identical. The extra discipline creates friction, yes, but it reduces the influence of personalities and makes the final decision more defensible in front of the board.
4. How can we prevent scope creep during ERP selection and implementation?
Scope creep usually starts with small exceptions that no one wants to challenge. To prevent this, separate must-have requirements from optional items, and document the link between each feature and measurable business value.
Another practice that helps is a formal change board. Any new request needs to show either risk reduction or financial return.
I once saw a team approve every request until the timeline doubled. By the time the CFO stepped in, the budget was already blown. It is not about being rigid, but about being clear that every additional feature competes with core go-live readiness. Leaders need to reinforce that message consistently.
5. What risks should a board see before approving an ERP decision?
ERP is not just an IT project. It touches finance, operations, and compliance, so risks need to be made visible at the board level. The most common risks I’ve seen include data migration failure, poor integration with existing systems, and uneven process adoption across sites. Vendor lock-in is another long-term risk that gets ignored until upgrades come due.
Boards often want a single-page heatmap that classifies risks by probability and impact. I have seen those summaries shift the conversation, because without them executives sometimes assume ERP is only about licenses and timelines. A transparent view forces accountability. Some risks can be mitigated, others only monitored, but either way the board should sign off knowingly.
6. How do we handle vendor pressure and end-of-quarter discounts?
Discounts can be persuasive, but they often create rushed decisions. The real savings come from eliminating unnecessary modules or avoiding over-licensing. A ten percent discount looks attractive until you realize half the functionality is unused.
I usually advise teams to pause whenever discounts are tied to a short deadline. In some cases, delaying by a quarter did not change the final discount. Vendors rarely walk away from a committed buyer. Pressure tactics should be called out directly. If the deal still holds after scrutiny, then the business has made a cleaner decision without artificial urgency.
7. What are signs that our organization is not ready for ERP yet?
Some organizations try to buy systems before cleaning their own house. Signs of poor readiness include inconsistent inventory practices, duplicate master data, missing ownership for processes, or weak executive sponsorship.
I recall one team that tried to implement ERP while still arguing about who owned the chart of accounts. The project stalled immediately. ERP works best when roles are clear, data is reasonably clean, and there is visible top-level commitment. Without those, the system will only automate confusion. It is sometimes better to delay selection by six months and build readiness first.
8. How should we approach data migration strategy during selection?
Data migration is usually underestimated. Dirty data can break cutover plans. The right approach is to decide early who owns each master data set, reconcile duplicates, and budget for repeated test loads.
In one project, the team only realized during final testing that vendor names were inconsistent across plants. That single issue delayed go-live by weeks. If migration is planned in phases, with dry-run cutovers months before go-live, the surprises are fewer. It may feel heavy to budget for multiple iterations, but it saves panic at the end. Data should be seen as a separate workstream, not a side task of ERP.
9. Which KPIs prove ERP value after go-live, and how do we track them?
Measuring success only with “system went live” is shallow. Real value is in business KPIs such as schedule adherence, inventory turns, and days sales outstanding. These should be baselined before ERP and then tracked monthly after go-live.
I have seen dashboards filled with dozens of KPIs that no one reads. In practice, three to five well-chosen measures are more powerful. For manufacturing, order cycle time and material availability are common choices. For finance, closing cycle time is usually key. Tracking them consistently demonstrates whether the system drives measurable improvement or only added cost.
10. Why does a clean core matter during ERP selection and customization choices?
A clean core means fewer customizations and closer alignment with vendor standards. This matters because every customization adds upgrade complexity and long-term technical debt.
Some leaders argue that tailoring ERP to existing processes is safer. However, I have seen those choices create years of upgrade delays. A balanced approach works better.
Configure where possible, extend only when there is a clear return, and retire low-value legacy bolt-ons. Clean core principles keep the system maintainable and give the business more agility in the future. It is not always easy, but the cost of ignoring it is harder to carry later.
A Clear Process That Puts You Back in Control
1. We Talk First
You tell me what’s going on… where you’re stuck, what decision is coming up, or what’s keeping you awake at night. No long forms. Just a real conversation.
→ Why? Because the fastest way to clarity is having someone actually listen, not handing you a generic checklist.
2. I Break It Down
I’ll cut through the noise, show you what’s important for you, and lay out your best options in plain language.
→ Why? So you won’t get lost in technical jargon or vendor sales talk. You just see the clear path forward.
3. We Tackle It Together
If you bring me in for a project or retainer, I’ll roll up my sleeves with you, checking vendors, reviewing contracts, spotting risks before they turn into disasters.
→ Why? Because decisions this big aren’t made in a vacuum. Having an extra set of experienced eyes protects you from costly mistakes.
4. You Move Ahead With Confidence
By the end, you’ll know the decision is sound, your risks are covered, and your business won’t be impacted by an expensive mistake.
→ Why? Because peace of mind is worth more than “figuring it out later”. This lets you get back to running your business.
See How I Make Your ERP and AI System Selection or Implementation right for you.
ERP & AI System Selection – Identify and choose the right ERP or AI-enabled platform to fit your business needs.
Project Support & Recovery – Keep your project on track or bring failing implementations back under control.
ERP Modernization – Transform existing ERP systems to modern, efficient, and scalable ERP environments.
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