How to choose an ERP for an organisation under 50 people: a practical guide for 2026
Choosing an ERP is one of the most structurally consequential decisions an SME can make. A poor choice becomes an operational burden for 5 to 10 years. A good one — properly deployed — simplifies processes, improves visibility into operations and frees time for higher-value work.
Here is the framework we use in our consulting engagements when guiding organisations through this decision.
Step 1: clarify your actual needs before looking at solutions
The typical instinct is to request demos from several vendors. That’s the wrong sequence: sales teams are excellent at convincing, and you risk being attracted by features that don’t match your real needs.
Start by answering these questions:
- What are the 3 processes that cost the most time or generate the most errors?
- What data do you consolidate manually each month (orders, inventory, invoicing, HR)?
- Which tools do you already use and want to keep (CRM, accounting, e-commerce)?
- What is your realistic capacity to run a deployment project: budget, team availability, internal skills?
Step 2: define the minimal functional scope
An ERP can cover: accounting, purchasing, sales, stock, production, HR, payroll, customer relations. For an organisation under 50 people, covering all of that from day one is rarely the right approach.
Identify the minimum viable scope: what you need from day one to replace your current tools. Everything else can be activated progressively. A modular ERP (Odoo, Dolibarr, Microsoft Business Central) is usually preferable to a monolithic solution for this type of organisation.
Step 3: compare total cost of ownership, not list price
The sticker price of an ERP is rarely the real cost. Calculate:
- Licences or SaaS subscription (per user, per module)
- Implementation and configuration costs (often 3–10× the licence cost in year one)
- User training
- Maintenance, updates, support
- Data migration from existing systems
An open-source ERP like Odoo or Dolibarr may have zero licence cost but a high implementation cost. A SaaS solution like Zoho or Microsoft Business Central has predictable recurring costs but may be more expensive over 5 years.
Classic mistakes to avoid
Over-specifying. Wanting an ERP that does everything from day one extends the project timeline, increases costs and reduces the chances of success. A limited but successful deployment beats an ambitious one that stalls.
Underestimating change management. ERP projects almost never fail for technical reasons — they fail because users don’t adopt the system. Training and accompaniment time is non-negotiable.
Choosing on advertised price. The cheapest option to buy is rarely the cheapest over 3 years. Calculate TCO (Total Cost of Ownership) over 3–5 years for an honest comparison.
Some solutions suited to SMEs in 2026
| Solution | Strengths | To keep in mind |
|---|---|---|
| Odoo | Modular, very complete, large community | Implementation often complex |
| Dolibarr | Open source, simple, French-speaking community | Less suited to complex processes |
| Microsoft Business Central | Office 365 integration, robust | Higher cost, requires Microsoft ecosystem |
| Zoho One | Complete suite, good value | Interface can feel cluttered |
| Pennylane | Accounting + invoicing, simple | Limited to financial functions |
How long does the selection take?
A serious selection process takes 4 to 8 weeks for an SME: 2 weeks of needs definition and scoping, 2 weeks of demos and evaluation, 1 to 2 weeks of negotiation and decision. Going faster significantly increases the risk of a poor fit.
Evaluating ERP options? Share your context with us — we can help frame the decision and avoid the classic pitfalls.