The ERP Requirement Checklist talks about the considerations while choosing a business management system for your business. This Blog will help you choose the system that will benefit your business the most.

Choosing the right ERP system is of utmost importance, as it can bring order to chaos by integrating and automating the business processes in the organization. With greater financial and operational visibility, the business could highly improve its performance and overall productivity.

Due diligence and mapping out the business requirements well in advance are of pivotal importance to find out the right business solution.  

What is ERP and How Does it Benefit the Business?

ERP stands for Enterprise Resource Planning; this software integrates the core business functions in an organization, it uses a shared database to support and connect different business activities. ERP streamlines and automates different functions in the organization like

ERP helps businesses by providing a single source of real-time information that facilitates effective decision-making and helps in automating processes. ERP has dashboards and other reporting tools that provide a real-time view of data and information from across the organization.

What are the Deployment Methods of ERP?

Wondering how ERPs can be deployed, there are two methods on-cloud and on-premises. Cloud-based ERP solutions are those ERPs deployed on Vendor’s Cloud and have lower upfront costs because there is no need to install hardware. Businesses can access ERP through the internet through any device PC, Mobile, or Tablet on a browser, and these solutions are generally provided on a subscription model and an approach known as Software-as-a-Service (SaaS). Cloud-based implementation is also quicker and easier than on-premises implementation. Even the software updates are automatically provided by the provider with periodic new releases.

On the other hand, on-premises ERP implementation takes more time to deploy and is an expensive option as there is a need for hardware device installation at the company’s server. The responsibility of maintaining and upgrading the system lies with the company only. This type of ERP implementation is suitable for companies that want to keep their data on their server and have significant IT resources available. Companies that opt for on-premises deployment generally pay a large licensing fee at the time of the purchase along with ongoing maintenance fees.

ERP Purchase Considerations

To meet your business goals, there is more than choosing the software and tools for your business. Deciding to choose an ERP for your business is an important decision and so is choosing the right vendor who would implement the system. There are important considerations to be met before making the final choice of ERP.

Business Future

An ERP implementation will revolutionize how you do business. It will revamp the whole business model and there shall be no going back to your legacy system. It is important to have a checklist of your business requirements, how many users will be working on the ERP system, and what you can achieve with it as the future of the business and business goals will be dependent on how effectively the ERP system will perform.

Business Requirements

An ERP can cover and support any business requirement rather the system will have the capability of supporting all the business requirements. It is suggested to understand, analyze, and decide what business requirements are critically important and needs to be dealt with on priority once the ERP system is implemented.

System Usage

While an ERP system can solve all your business problems, and can provide your business with a centralized database, automated processes, and business function integration but still it can fail if your workforce does not adapt to the new system in place. It is important to figure out what all users will use the ERP system and they should be qualified enough to use the system and properly trained.

Budget

If you have decided to choose an ERP system for your business, the next move should be deciding how much you are ready to invest in the new system. You should choose a system or the vendors that falls within your budgeted range.

Deployment

If you are extremely cautious about your data, on-premises implementation is meant for you. Though it should be an expensive option and would involve investing heavily in hardware and infrastructure, you shall have your data running on your company’s server. Another option would be to implement ERP on the vendor’s cloud which gives the company an option of using the system as Software-as-a-Service (SaaS). The company can access the system through an internet browser via any device PC, Mobile, or Tablet. On-cloud implementation is offered usually on a subscription model and there is no need to install any hardware. Another option is to choose a hybrid model which is a mix of both on-cloud and on-premises deployment.

Vendor

Every business requirement is unique and needs a vendor that specializes in your industry. The ERP vendor should have the solution to your business requirement and post-implementation should support you in case you need any assistance.

Partner Vendor Ecosystem

Choose an ERP vendor that has a strong Partner Vendor Ecosystem. If you are choosing an ERP Vendor that does not have a robust Partner Vendor Ecosystem the post -implementation support would be expensive as the resources available in the market will be less and they will dictate their prices.

Software Selection

Your business might have certain business requirements when choosing the ERP system, but the business requirement might change in the future. While shopping for an ERP System for your business look for a solution that is scalable and can meet future business requirements as well.

Add-ons

While selecting an ERP solution for your company, check if the solution could integrate with a third-party application that your current legacy system uses or might use in the future. With the integration feature of the ERP system with your current legacy system, you could save a huge cost of investment.

ERP Requirements Checklist

Let’s learn how to pick the ERP that suits you best

The checklist below offers an exhaustive requirements checklist of things to consider when shopping for an ERP. It's designed to be customizable and to act as a starting point to guide your software evaluation and selection process.

Core functional requirements

Confirm the ERP covers essential business processes and provides the visibility and control needed to run operations effectively.

• Financial Management: Ensure your enterprise resource planning system provides tools for budgeting, forecasting, and financial reporting to keep your finances in check.
• Inventory Management: Look for ERP modules that help you track stock levels, manage supply chain management, and reduce carrying costs.
• Order Processing: Select software that uses automation for sales orders, invoicing, and payables/receivables to streamline workflows.
• Human Resources Management: Your ERP system should include tools for payroll, benefits, and employee data management.
• Compliance and Risk Management: Make sure it offers modules for tracking compliance with industry regulations.
• Project Management: Choose ERP software with dashboards to monitor metrics, timelines, and milestones.
• Reporting and Analytics: Access to real-time data, business intelligence, and customizable dashboards helps decision-making.
• Supply Chain Management: Ensure it includes capabilities to manage procurement, logistics, and order management efficiently.
• Integration Capabilities: Look for ERP integrations with CRM, Microsoft, or accounting systems like the general ledger.

Technical and integration requirements

Evaluate deployment model, connectivity, performance, and flexibility to ensure the ERP fits your current stack and future growth.

• Cloud vs. On-Premises Deployment: Decide if you need a cloud-based ERP for flexibility or an on-premise ERP for control.
• Scalability: Ensure the ERP system adapts to growth and upgrades.
• API Availability: Look for ERP software that offer APIs for easy connectivity with your existing systems.
• Data Security: Verify that the software provides robust encryption and security protocols to protect sensitive financial data.
• User Access Controls: Ensure it allows you to set different access levels for users to maintain data integrity and security.
• Mobile Access: Check if the ERP offers mobile applications so your team can access data on the go.
• Customization Options: Look for software that lets you tailor workflows and reports to fit your specific processes.
• ERP Software Integrations: Ensure it can connect with other essential tools like CRM, HR, and accounting software to enhance functionality.
• System Performance: Make sure the ERP can handle your data load and transaction volume without lagging.

Security and compliance requirements

Confirm the ERP meets regulatory obligations and incorporates strong controls to safeguard data and ensure accountability.

• Data Encryption: Ensure your ERP solution encrypts data both in transit and at rest to protect sensitive information.
• Regulatory Compliance: Verify that the software meets standards like GDPR, HIPAA, or ISO, depending on your industry needs.
• Access Controls: Make sure you can set granular access permissions to control who can view or edit specific data.
• Audit Trails: Look for features that log all user activities for accountability and easy tracking of changes.
• Regular Security Updates: Ensure the vendor provides frequent updates to fix vulnerabilities and improve security measures.
• Two-Factor Authentication: Implement two-factor authentication to add an extra layer of security for user logins.
• User Training: Ensure there are resources available to train your team on best practices for maintaining security within the system.

Vendor support and implementation requirements

Assess the partner’s ability to onboard, train, support, and guide change to deliver a smooth, on-time implementation.

• Onboarding Process: Ensure the vendor provides a structured onboarding process to help your team get up and running quickly.
• Support Service Level Agreements (SLAs): Check for support SLAs that guarantee response times and issue resolution to avoid downtime.
• Training Resources: Look for comprehensive training materials or programs that help your team effectively use the ERP system.
• Upgrade and Update Policies: Understand the vendor's policies on software upgrades and updates to ensure your system remains current.
• Implementation Timeline: Confirm that the vendor provides a realistic and detailed implementation timeline to manage expectations.
• Change Management Support: Check if the vendor offers ERP software implementation support to help your team adjust to new processes.
• Post-Implementation Review: Look for vendors who offer a post-implementation review to assess how well the system meets your needs.

User experience and change management

Prioritize usability, accessibility, and communication to drive adoption and sustain outcomes across the organization.

• Intuitive Interface: Ensure the ERP software has a user-friendly interface that minimizes the learning curve for your team.
• Accessibility: Check that the system is accessible to all users, including those with disabilities, to ensure inclusivity.
• Mobile and Remote Access: Look for ERP solutions that offer mobile apps or remote access, allowing your team to work flexibly.
• Training Tools: Make sure the software includes interactive training tools to help users become proficient quickly.
• Change Communication Plan: Ensure there's a plan for communicating changes and updates to the system to keep everyone informed.

Top ERP Trends in 2026: How CIOs & IT Leaders Can Stay Ahead

2026 is shaping up to be a game-changer for enterprise technology. CIOs and IT leaders are under pressure to deliver more agility, automation, and intelligence, all while managing tighter budgets and evolving compliance demands.

Traditional ERP systems struggle to keep pace with these expectations. As business models shift and teams become more distributed, organizations need ERP that doesn’t just track data but predicts, automates, and adapts.

That’s where Modern ERPs are the need of the hour moving forward to help businesses move faster and smarter.

2026 ERP Trends

How Dynamics Square Is Helping Customers Succeed with Dynamics 365

At Dynamics Square, we don’t just implement ERP, we aim to empower your entire digital transformation journey. As a leading Microsoft Dynamics 365 partner across the APAC region, we help businesses:

• Identify the right Dynamics 365 modules for their industry
• Execute smooth implementation and migration from legacy systems
• Optimize operations through customization, integration, and automation
• Provide ongoing support and innovation consulting

Whether you’re adopting Dynamics 365 for the first time or looking to unlock its full potential, Dynamics Square is your strategic partner for building a smarter, future-ready enterprise.

Ready to embrace the next era of ERP? Let’s streamline, scale, and succeed together. Reach out to us for consultation.

Why Partner with Dynamics Square for Microsoft Dynamics 365 Excellence in Australia?

We think of other Microsoft partners as collaborative competitors. We’re all working together to beat the head-to-head competition happening at the software and platform level. But partner companies are all different. We each have a style and areas of expertise, and at the end of the day, it comes down to finding the best fit for the customers, the right industry expertise, or a common geography.

Businesses need a partner who is strategic, proactive, industry-savvy, and future-focused, not just technically competent. Here are some of the key wow factors as to how Dynamics Square stands out:

• Strategic Business Advisor, Not Just Technical Implementer
• Proven Track Record in Driving Transformation, Not Just Deployment
• Ability to Innovate with Microsoft’s Ecosystem
• Phased Deployment Approach
• Risk Anticipation and Contingency Planning
• Transparent Co-Creation and Governance
• Innovation Partnership Beyond Go-Live

As trusted by Microsoft to deliver innovation and excellence, our solutions are built on a foundation of agility, security, and scalability. Dynamics Square is highly instrumental and at the forefront for accelerating organizational agility. Even with the best technology, choosing the wrong ERP implementation partner can compromise strategy, innovation, and operational efficiency. Businesses need a partner who is strategic, proactive, industry-savvy, and future-focused, not just technically competent.

Need for Prioritization Across ERP Requirements

A well-thought-out ERP requirements checklist can be a game-changer. To make the most of your checklist, consider turning it into an evaluation matrix. This helps prioritize features based on their importance and impact. You need to plan for both immediate functionality and future scalability.

ERP Requirements Evaluation Matrix