Choosing an ERP: SAP S/4HANA, Microsoft Dynamics, Oracle, Infor, open source

Who owns this decision

CFO is owner. CIO, COO, sales and production leaders in the steering group. Board as approver.

Key criteria to weight

• Sector fit and standard processes

  An ERP that covers 80% as standard is 5x cheaper than one with 50% custom code.

• Cloud model

  RISE with SAP, GROW with SAP, public-cloud editions, hyperscaler hosting differ on sovereignty and TCO.

• Greenfield vs brownfield migration

  Greenfield = process reset (slower, cleaner). Brownfield = lift-and-shift (faster, technical debt remains).

• Integration with existing stack

  CRM, HRIS, MES, PLM, BI. Connector library and API maturity.

• TCO 10 years and implementation risk

  Not just licence but change management, training, sunset of old systems.

• EU data residency and sovereign options

  Banks, insurers, KRITIS industries often need sovereign hosting.

Step-by-step decision flow

1. 1

   Mandate and strategy

   Why now? Is S/4 migration mandatory?

2. 2

   Vendor longlist

   SAP S/4HANA, Microsoft Dynamics 365 F&O, Oracle Fusion ERP Cloud, Infor CloudSuite, Workday Financials, open source for smaller mid-market.

3. 3

   Detail evaluation

   Sector fit, implementation partners, references, cloud model, sovereignty, exit strategy.

4. 4

   Implementation partner selection

   Top partners, DACH specialists. Partner selection is its own decision.

5. 5

   Memo, pilot, board approval

   Decision memo plus 18-36 month implementation plan plus 10-year TCO.

Compliance note

GDPR, NIS2 Art. 21, DORA Art. 28-30 where applicable. GoBD, SAF-T, B2B e-invoicing 2025-2028, retention 6-10 years.

Common pitfalls

• !ERP standard is customised instead of the process. A custom-code graveyard emerges.
• !Implementation partner is selected too quickly.
• !TCO underestimated: sunset of old systems missing from the business case.
• !Sovereignty and exit strategy missing.

FAQ