Understanding business needs is critical in the ERP system selection process because it ensures that the chosen system aligns with the operational, financial, and strategic requirements of the business. A thorough analysis of these needs helps in identifying the specific features and functionalities the ERP system must have to support the business’s unique workflows, improve efficiency, and drive strategic decisions. Engaging stakeholders across different departments allows for a comprehensive view, ensuring the selected ERP system addresses the core requirements of the entire organisation.