Once a company is well familiarized with what a general ERP Solution can achieve, then the second step is for business leaders to answer questions that define the goals and objective of looking for ERP in the first place. In other words, what change exactly is it that an ERP Solution is expected to bring about in that particular company?

The third step to take is to formulate a list of the ERP vendors that sell a software product capable of solving the problems raised when answering the questions about goals and objectives. After that step is completed, then it is time to invite those vendors to demonstrate their software. Demos are crucial. By identifying the best and the worst vendors, they help companies save time and labor throughout the selection process. Demos also pinpoint the way a specific ERP Solution will work after implementation. This aids business leaders in fairly assessing the different Solutions.

It is important here to keep in mind the possibility that no perfect ERP Solution -as is- may exist. In that case, customization will be required. Therefore, the fourth step is to find out which vendors are most likely to assist with this process. So, from the list of vendors whose demos were most appropriate -which will put in the work necessary for a company to have its precise needs fully met?

Some of the customization has to do with industry-specific problems. To have these needs taken care of, ERP vendors offer specially tailored application sets to take care of each vertical segment's needs. Customization work to satisfy each and every customer will still have to be done, but packaged applications do target such industries as: retail, media, utilities, high-tech, public sector, higher education and banking. Furthermore, ERP vendors have even tailored applications to tackle the individual concerns within the broad manufacturing area, which range from consumer products to construction to HVAC to aerospace and defense companies.

Not all experts agree that customization is a great thing. According to these Solution experts, there are a number of arguments to be made for minimizing customization, or at least waiting for some time to pass after implementation before trying out specialized software. It is very easy for ERP vendors to tell a company about the benefits of intense software customization.

However, it has to be noted that businesses that have never used a centralized ERP software suite before may not immediately know what parts of the system should be customized. Thus, there is no reason to rush into customization; time spent with a regular system will save money at the outset and later on be able to indicate where specialization is appropriate.

Another reason customization is not always viewed as the grand remedy to all business ills is because ERP Solutions are meant to effect change. That is how they improve business' operations. And, in order for an ERP Solution to effect the most positive change, business practices must be altered to fit within the framework of what the ERP pledges. To specialize and customize an enterprise resource planning software solution so much that the fundamental patterns of a company's day-to-day operations carry on exactly as before, might very well end up proving that an ERP Solution implementation has been a waste of time and resources.

ERP Solutions are now also being offered as on-demand or software-as-a-service (SaaS) solutions. Remotely-hosted software processes are considered to be the standard of the future, with limitations on computing power removed and software updates instantaneous and simple. These solutions are hosted by a third party, so there's no software to install. In its place, users access the ERP applications via a Web connection.