ERP Selection Framework.
A decision framework for mid-market finance leaders evaluating ERP platforms — covering criteria definition, vendor assessment, implementation risk, and total cost of ownership. Vendor-agnostic until the final stage.
The problem with most ERP selection processes.
Most ERP selection processes are vendor-led from the first conversation. The RFP goes out before requirements are defined with rigour, the demo is built around vendor strengths rather than business needs, and the decision is made on presentation quality rather than implementation suitability.
Requirements defined too late
Organisations that write requirements after shortlisting vendors inevitably define requirements in the language of the platforms they have already seen. The selection is de facto made before the process is complete.
TCO systematically underestimated
Licence cost is the figure organisations focus on. Implementation cost, integration cost, training cost, internal resource cost, and ongoing maintenance cost are typically underestimated by a factor of two to three in the business case.
Partner quality not assessed
The ERP platform and the implementation partner are not the same decision. A well-implemented mid-tier platform outperforms a poorly implemented tier-one platform in every measurable dimension. Most organisations assess platforms; few assess partners with equal rigour.
A six-stage selection process.
Define requirements before shortlisting
Document functional requirements by business process, technical requirements by integration and architecture, and non-functional requirements by compliance and governance. Score each requirement by business priority before any vendor is engaged. This is the step most organisations skip.
Define your evaluation criteria
Platform capabilities; implementation partner depth; total cost of ownership (three-year model); AI roadmap maturity; integration architecture; vendor and partner stability. Weight each criterion before you score. Do not weight after scoring — it introduces bias toward the vendor you have already decided on.
Structured demonstration
Require all shortlisted vendors to demonstrate the same scenarios — drawn from your requirements, not their standard demo script. Scenario-based evaluation reveals capability gaps that standard demonstrations conceal. Require demonstrations of your edge cases, not their showcase features.
Reference customer conversations
Speak directly to at least three reference customers — not customers selected by the vendor, but customers you identify independently. Ask specifically about implementation quality, post-go-live support, and what they would do differently. The vendor's selected references will be positive.
Total cost of ownership model
Build a three-year TCO model covering: licence, implementation, integration, training, internal resource, and ongoing support. Require vendors and partners to provide written cost estimates before contract. The gap between estimate and actual is where most ERP programmes go over budget.
Contract and implementation planning
Before signing, agree: scope definition and change management process, go-live timeline with milestones and acceptance criteria, escalation protocol, support model post go-live, and the governance structure for the programme. Do not sign a contract that does not include these elements.
When to choose Sage Intacct vs. Sage X3.
Sage Intacct is typically the right choice when:
- The business is primarily services, SaaS, or NFP
- Multi-entity consolidation is a primary requirement
- Revenue recognition complexity is a pain point
- Real-time financial visibility is a board-level priority
- The organisation is scaling and adding entities rapidly
- AI-augmented FP&A is a near-term objective
Sage X3 is typically the right choice when:
- The business is manufacturing, distribution, or food and beverage
- Inventory management and production costing are core requirements
- Supply chain complexity is inseparable from finance complexity
- Document automation at high volume is a priority (X3CloudDocs)
- Multi-site, multi-legislation operations are in scope
- Batch traceability or shelf-life management is required
Use the framework before the first vendor conversation.
The full ERP Selection Framework — including the requirements template, evaluation criteria matrix, TCO model, and reference customer question guide — is available on request.