Mongolia has moved into democracy with a booming economy over the past 20 years. ERP is obviously large business in the global market but it is pretty new in Mongolia. However ERP is not recognized well, it already has high demand through the market. Accordingly, this study aims to determine ERP market environment in Mongolia. The study uses qualitative analysis methodology to identify market demand, competition and company’s current software usage. Data was collected by hardcopy of survey questionnaires from 100 Mongolian enterprises and involved higher position of employees. Total 100 copies of questionnaires were dispatched and all of them were collected. The study finds that 27% of total companies are planning to change their current software. Moreover, 56% of total companies heard about ERP before but 30% of total companies have well knowledge about ERP. It shows that ERP is not popular in the market of Mongolia. Even market has less information about this solution; companies need ERP system to strengthen their competitiveness and to improve the company’s process flow.