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ERP SOFTWARE SIMPLIFIED

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ERP Software Selection Simplified

The phrase "ERP software selection simplified" can sound like an oxymoron because ERP selection is often complex, time-consuming, and high-stakes—the opposite of “simple.” Choosing the right ERP involves evaluating business processes, technical requirements, scalability, budget, vendor fit, and more.

However, this apparent contradiction can be reconciled when the selection process is guided by:

  • A proven methodology,

  • Expert consulting,

  • Clear business objectives,

  • And a narrowed list of right-fit Tier and vertical/horizontal options.

So, while ERP selection is inherently complex, it can be simplified with the right approach.


ERP Software Tiers

To help simplify the hundreds of choices available, ERP software is grouped into tiers based on company size and complexity. Tier 1 is for large global enterprises, Tier 2 suits mid-sized companies with industry needs, and Tier 3 is for small businesses with basic requirements.

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Tier 1 ERP

  • Designed for large, global enterprises

  • Handles complex operations, multi-site, multi-currency, multi-language

  • Highly customizable and scalable

  • Longer, more expensive implementations

  • Examples: SAP S/4HANA, Oracle Fusion, Microsoft Dynamics 365 F&O


Tier 2 ERP

  • Built for mid-sized companies, often with multiple locations

  • Offers strong industry functionality with moderate customization

  • Can be horizontal (general use) or vertical (industry-specific)

  • Faster and more affordable than Tier 1

  • Examples: SAP Business One, Acumatica, NetSuite, Infor SyteLine


Tier 3 ERP

  • Designed for small businesses or startups

  • Focuses on basic functions like accounting, invoicing, and inventory

  • Mostly horizontal, sometimes niche vertical versions exist

  • Easy to implement, low cost

  • Examples: QuickBooks, Zoho Books, Xero

ERP Software Tiers: Horizontal vs. Vertical

Tier 1 ERPs are horizontally architected, giving them broad flexibility and scalability. They become vertical through add-ons, configurations, and industry templates—especially useful for regulated or complex verticals.

Tier 1

Tier 2

Tier 3

Tier 2 ERP systems are either horizontal or vertical. Horizontal ERPs, such as Acumatica and SAP Business One, offer broad, flexible functionality across various industries and typically require customization. In contrast, vertical ERPs like Aptean and SyteLine are built for specific industries, featuring preconfigured features that allow for faster implementation and less customization.

Tier 3 ERP systems are typically horizontal and limited.

Filling the Gaps: 3rd Party Add-Ons

A Tier 2 horizontal ERP system can meet approximately 80% of your requirements, and for certain companies, it may meet 100%. The idea behind horizontal ERP systems is to use third-party add-ons, often referred to as bolt-ons, to enhance a general-purpose ERP solution. This enables the system to cater to industry-specific needs or provide features that the core system lacks.

Common Gap Areas Filled by Add-ons

  • Advanced manufacturing (APS, MES, QMS)

  • Field service management

  • EDI integration

  • Warehouse Management Systems (WMS)

  • E-commerce and CRM enhancements

  • Complex project/job costing

  • Industry-specific compliance (e.g., FDA, ITAR, CMMC)

3rd party add ons

Advantages

  • Faster time-to-value than building customizations

  • Leverage proven industry solutions

  • Flexibility and scalability

  • Lower upfront development costs

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Risks

  • Integration complexity

  • Version compatibility and maintenance

  • Vendor reliability and support concerns

  • Data silos if not well-integrated

ERP Software Quick Reference Charts

Situation
Best ERP Fit
Approximate Users*
Affordable, straightforward ERP
SAP Business One
80,000+
Looking for modern cloud ERP with manufacturing
Acumatica
14,000+
Multi-site, multi-entity with global scope
NetSuite
30,000+
Deep manufacturing (APS, job costing, etc.)
Infor CSI (SyteLine)
5,000+
Strong Microsoft shop with light MFG needs
Business Central
45,000+

* Approximate users are classified as total companies using the software, not individual users at companies.

Feature / ERP System
Acumatica
Dynamics 365 BC
NetSuite
Infor SyteLine
SAP Business One
Deployment
Cloud / Hybrid
Cloud / On-prem / Hybrid
Cloud-only
Cloud / On-prem / Hybrid
Cloud / On-prem
Licensing Model
Resource-based
Named / Device-based
Named user (subscription)
Named user (subscription)
Named user (subscription)
Core Strength
Manufacturing & Distribution
Financials & Integration
Multi-entity / Scalability
Advanced Manufacturing
Finance + Light Manufacturing
Manufacturing Features
Strong (MRP, BOM, WIP, Routing)
Moderate (via 3rd-party ISVs)
Moderate (via add-ons)
Very Strong (APS, MRP, Shop Floor)
Moderate (core BOM & MRP)
Financial Management
Strong
Very Strong
Very Strong
Strong
Strong
Multi-Entity / Multi-Currency
Yes
Yes (with add-ons)
Yes (native)
Yes
Yes
Customization / Extensibility
Very High (xRP platform)
High (Power Platform, AL)
Moderate
High
Moderate
Reporting & Dashboards
Embedded BI + Power BI
Power BI, Jet Reports
Native analytics + SuiteAnalytics
ION + Birst
Crystal Reports, SAP Analytics
User Experience (UI/UX)
Modern, responsive, web-based
Clean, MS-style, role-based
Mature but dated interface
Functional, somewhat dated
Simple, older interface
Implementation Time
3–12 months
3–12 months
6–12 months
6–12 months
3–12 months
Typical Company Size
10–500+ employees
10–250 employees
50–1000+ employees
50–500+ employees
10–200 employees

Take the Guesswork Out of ERP Selection

Let Champion Business Solutions guide you to the right ERP solution—tailored to your industry, your size, and your goals.
Contact us today for a free consultation.

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