ERP Selection Decision Memo Template
After months of RFPs, demos and calls, the decision still has to be sold to people who saw none of it. This memo template puts the recommendation, the evidence, the cost and the risks on two pages so executives can approve with confidence.
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ERP Selection Decision Memo Template
Decision Memo: ERP Platform Selection
Company: Acme Precision Ltd Date: 2027-03-15 From: ERP Steering Committee To: Executive Leadership Team and Board
1. Recommendation
We recommend Vendor B, Product X Manufacturing Edition, implemented by Partner P (regional, 40 consultants), subject to the conditions in section 6. The recommended option scored 82 out of 100 against 76 out of 100 for Vendor A in the weighted evaluation.
2. Why now
Describe the business trigger in two or three sentences: end of vendor support, audit findings, growth plans, a compliance requirement or a failed upgrade. State what happens if no decision is taken.
3. Options considered
| Option | Weighted score | Five year cost | Main strength | Main concern |
|---|---|---|---|---|
| Vendor B, Product X Manufacturing Edition | 82 out of 100 | USD 4.2 million including 15 percent contingency | Fit to core processes | Dependence on partner capacity |
| Vendor A | 76 out of 100 | |||
| Stay and upgrade current system | Lowest short term cost | Support and skills risk |
4. Cost and timeline
Five year total cost of ownership: USD 4.2 million including 15 percent contingency. Target go live: Q3 2028, phased by plant. Costs cover software, implementation services, infrastructure, internal staff time, training, data migration, support and contingency.
5. Key risks
1. Data quality of item master: cleanse before conversion, owner is Supply Chain. 2. Customisation of legacy quality workflows: re-fit to standard where possible. 3. Key person dependence on two internal experts: backfill and train two deputies.
6. Conditions
Fixed price for the design phase, named consultant team, exit and data return clauses, and a price cap on annual subscription increases.
7. Decision requested
Approve the recommendation, authorise contract negotiation within the budget above, and appoint the executive sponsor for the implementation program.
Approval
Replace the guidance text in section 2 with your own business case. Attach the weighted scoring sheet, reference call summary and cost model as appendices. This is a general format, not legal or financial advice.
Independent review of your ERP recommendation
Optional: an ERP specialist reads your decision memo and points out gaps before it goes to the board.
Optional. The tool and every export work without this. No spam.
How to use the template
Fill in the vendor, partner, scores, cost and timeline. Write the reason for the project in section 2 in your own words. Edit the risks and conditions to reflect your negotiation. Export to Word and attach the appendices: scoring matrix, total cost model, reference summary and the draft contract position. Keep the memo itself to two pages, because executives read the front page and look up details only when needed.
- Lead with the recommendation, not the history
- Show the runner up and the do nothing option
- Put the five year cost, not only licence cost
- Make conditions explicit
What executives want to see
Boards and CFOs ask four questions: what are we buying, what does it cost in total, what could go wrong, and what happens if we do nothing. The memo answers each in one section. It also names the people accountable. Avoid vendor marketing language and avoid unexplained scores; refer to the appendix for how weights were set before the RFP was issued.
Presenting cost honestly
Quote the full five year cost including internal staff time, data migration, training, infrastructure and contingency. A memo that shows only software fees will be challenged later when services and internal costs arrive. Show the contingency as a visible line, commonly 10 to 20 percent for ERP programs, and say what is excluded, such as major process redesign or acquisitions.
Common mistakes
Memos fail when they bury the recommendation, hide dissenting views, or ask for approval without conditions. Note any committee member who disagreed and why. Conditions such as named consultants, fixed price design phase and exit rights are far easier to obtain before the board has publicly approved a preferred vendor than after.
Frequently Asked Questions
How long should an ERP decision memo be?
Two pages plus appendices. The first page carries the recommendation, cost and timeline. The second covers options, risks and conditions. Put scoring detail, reference notes and the cost model in appendices.
Should I include the losing vendors?
Yes, at least the runner up and the do nothing or upgrade option. Executives want to see that alternatives were compared, and it supports your negotiation position if the preferred vendor is told a credible alternative exists.
Who should sign the memo?
The steering committee chair, the CFO and the executive sponsor at a minimum. Follow your own delegation of authority for the contract value. Board approval may be needed above a threshold.
Can the memo recommend conditional approval?
It should. Approving subject to contract terms, such as price caps, named resources and exit provisions, gives your negotiators authority to walk away if the vendor refuses those conditions.
If you want a technical sanity check on the integration, data conversion and AI readiness claims in your recommendation, Netray can review those sections.
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