Implementing an ERP system is one of the most extensive change journeys a company can embark on. Often, the focus is mainly on the technical choices, but the vast majority of the project's success or failure is determined by an understanding of the company's processes, data and willingness to change. It's the preliminary analysis and preparation that determine whether the ERP project becomes an organisational uplift – or a resource-heavy failure.
An ERP project is often amongst the most business-critical, complex and high-risk initiatives a company can embark on. For the CFO and IT director, it's not just about choosing a new system – but about ensuring the company's long-term efficiency, compliance and innovation. And here, the preliminary analysis is the fundamental exercise that creates overview, minimises risk and paves the way for value creation. In this article, we break down the preliminary analysis and look at how it can form the foundation for your upcoming ERP project as well.
Why a preliminary analysis at all?
The first thing we need to look at is why there's a need for a preliminary analysis at all. And here, it's important that you as a company are aware of your starting point.
The need to replace or develop the company's ERP system rarely arises out of the blue. For many companies, it's a burning platform that brings the need into play. Often, your company has outgrown its current system, the platform is technologically outdated, or you're facing new compliance requirements, not least from the latest accounting legislation.
It's crucial to understand that an ERP project rarely stands alone. The ERP system isn't just another IT project – it's the heart of the entire company and must function as an integrated hub for processes, data and decision support across the whole organisation. Instead of focusing on one isolated replacement, you should therefore consider your entire ERP landscape and the interplay the ERP has with other IT and business systems. Otherwise, you risk investing money and resources in a "new house" without having addressed that the ground might be sloping or encroaching on the foundations of other critical systems.
A company may, for example, have got sufficient value from its old system for many years, but recent growth or increased complexity in the business suddenly reveals processes that can no longer be supported, or data handling that doesn't meet current requirements. These realisations are the beginning of the preliminary analysis – and often also the insight into why the project cannot be isolated from the rest of the company's strategy and day-to-day operations.
What is the value in a preliminary analysis?
The preliminary analysis is the company's systematic validation of opportunities and risks – and this is where you can explore whether the ambition and your preferred system choice actually match your company's needs.
Specifically, the preliminary analysis equips the company to go to market and meet suppliers with a clear picture of its own needs, complexity and ambitions. It strengthens the company's negotiating position, sharpens the requirement specification and makes the supplier's offer far more concrete and realistic. At the same time, the preliminary analysis ensures that the project doesn't end up as an isolated IT exercise, but links to the company's overall strategy and processes.
ERP projects are notoriously high-risk and resource-intensive. The preliminary analysis therefore functions as risk mitigation: the more design choices, scenarios and process dependencies that are uncovered early on, the lower the risk of the project drifting off course along the way. A well-structured preliminary analysis ensures that the project doesn't just succeed at "go-live" – but also generates real business value over time.
How the preliminary analysis helps address the four biggest challenges in ERP projects
1. Underestimating complexity
A thorough preliminary analysis provides an overview of all business processes, data flows and involved employees. It thereby uncovers both hidden dependencies and new opportunities for digital business development, so the project is elevated from firefighting to strategic development.
2. Resource and competence shortages
The preliminary analysis makes it clear which resources and competencies the project requires – and where the company lacks capacity. It creates the basis for realistic planning and prioritisation, including the need to free up key employees or bring in external expertise from the start.
3. Lack of top management support and anchoring
A preliminary analysis ensures that top management and key functions are involved early on. It creates the necessary organisational ownership, so the project is anchored as a strategic initiative, not just as an isolated IT project.
4. A too narrow preliminary analysis and weak governance
A solid preliminary analysis encompasses the entire company: It uncovers integration requirements, risks and governance needs, so the management becomes holistic. This reduces the likelihood of costly surprises along the way in the project.
What does a good preliminary analysis contain?
A good preliminary analysis is far more than technical preparatory work – it's the documented foundation on which the ERP project itself must be built. The best preliminary analyses always start from the company's overall ambition and objectives: Why should the ERP replacement happen? What business value should the project realise? How willing are we to take risks, and what alternatives exist?
The key elements in a solid preliminary analysis are typically:
- Ambition and objective:
Clarity about the project's "why" and the business goals the ERP solution should support.
- Framework for the project:
Description of how the ERP implementation should be positioned in relation to the company's wider strategy, finance and IT landscape, including expectations for governance, resources and project portfolio.
- Analysis of current state and desired future:
Overview of the existing system architecture, processes and data flows – and a concrete mapping of the areas where change is required.
- Module usage and data model:
Review of which ERP modules should be implemented, and how they are anchored in the company's process and data models.
- Involement and governance:
Identification and involvement of key people internally (finance, IT, sales management etc.) as well as clarity about external support and roles. Want to hear more about the ERP preliminary analysis? We've released a podcast where you can learn much more about the importance of good preparation for the ERP project in 25 minutes. Scan the QR code with your camera and listen in.
- Risk management and communication:
Assessment of critical risks and definition of governance principles, feedback loops and communication lines – both for the project itself and the subsequent benefits reporting.
But it doesn't end here: The preliminary analysis must be able to be translated, communicated and taken into the entire organisation – not just shared amongst management or the project group. The more systematic and well-documented it is, the easier it becomes to communicate the vision, goals and efforts – and get the whole company on board.

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