Editor's note:This article is based on our recent online event, "Modern ERP Transformation," co-hosted by the editorial teams of CFO Dive and its sister publicationCFO.com. The full expert panel discussioncan be viewed here。

For many Chief Financial Officers (CFOs), ERP projects—whether deploying a new enterprise resource planning system or upgrading an existing one—are a major undertaking. Finance leaders need to collaborate across teams to select the right platform and vendor, negotiate contracts that limit liability, and migrate to cloud systems without disrupting business operations. This process is challenging, especially when trying to realize the ambitious visions promised by AI and digital transformation, often facing a clash between "ideals and reality."

Adding to the complexity, some growing companies are forced to switch ERP platforms or upgrade to more powerful systems because their legacy systems have hit performance limits, making the transformation even more urgent. Tim Naddy, Vice President of Finance for the Savannah Bananas, compared this switch to flying a plane in need of repair: "You're sitting on the plane, there's duct tape on the wing, and the plane is still flying, right?" he said during the "Modern ERP Transformation" event hosted by CFO Dive and CFO.com last week. "You have to figure out, 'Okay, what part of the plane is falling off, and how do we keep this plane moving forward?'"

Here are four "do's and don'ts" shared by ERP experts at the event for CFOs and other finance leaders to consider when leading an ERP transformation or implementation project.

1. Do: Nail down thorny issues before signing

This may seem obvious, but companies and finance leaders eager for a quick fix should carefully leverage their bargaining power before signing any agreement. Marcus Harris, a partner at Taft Stettinius & Hollister who specializes in drafting and negotiating software licenses and agreements for enterprise software, said during the panel: "As a customer, you will never have more leverage than you do when negotiating before signing. You have to use it wisely." He cautioned that system vendors sometimes try to create a "false sense of urgency" by pressuring you to sign quickly due to quarter-end or year-end sales pressure. Rather than rushing, take time to engage with multiple vendors and keep your final choice under wraps. Also, be sure to review legal terms in the contract, such as liability and warranty clauses. If you fail to secure concessions on these issues upfront, you could face significant legal costs later if the ERP system has problems.

2. Do: Reconsider the "one-size-fits-all" ERP model

Historically, many ERP vendors, regardless of whether they served small, mid-sized, or large enterprises, offered the same massive, expensive systems that could cost millions of dollars and were often unaffordable for smaller businesses. But that is changing, partly due to the rise of AI and other new technology tools. Joe Locandro, Executive Vice President and Chief Information Officer at Rimini Street (which provides ERP software support services), advised companies seeking a new ERP system or upgrade to avoid viewing ERP as a single monolithic platform, but rather as a system that can be assembled as needed. "Have a 'composable' mindset, meaning technology and processes are discrete, so you can have a best-in-class accounts payable module, a best-in-class sales automation module... because that will accelerate time to market," he said.

3. Do: Strengthen collaboration to withstand ERP disruptions

According to Britta Simms, global head of enterprise platform security at consulting firm Accenture, more mature and highly regulated industries have done a better job of ensuring CFOs, Chief Information Security Officers (CISOs), and Chief Information Officers (CIOs) work together on cybersecurity. "But one clear gap we see, especially in digital transformation or ERP modernization projects, is a lack of sufficient collaboration between the CFO and the CISO's office to ensure we identify: What security controls does the ERP platform we are migrating to need? Do they align with our organizational standards?" Simms said.

Michael La Marca, a partner at Hunton Andrews Kurth, noted that when a cyber incident occurs, the security team may handle the actions needed to contain the impact, but many other issues need to be addressed. CFOs and their companies can strengthen collaborative response by developing a multi-functional incident response plan (tested annually) and a business continuity plan (also tested to identify common failure points and areas for improvement). "You don't want to be scrambling when something happens," La Marca said.

4. Don't: Assume you must install an ERP system

Given the rapid pace of technological change, delaying a major ERP upgrade or even a new ERP deployment can be reasonable. Michael Perica, Executive Vice President and CFO at Rimini Street, said that in some cases, his company has begun discussing pausing ERP projects given the next-generation tools and technologies that are reshaping what's possible. Additionally, it's possible not to implement an ERP project at all. "Don't think you have to do it," Perica said. "Through this alternative path, these next-generation technologies, you can reach the future more economically, efficiently, and cheaply without going through a major system upgrade."