This is perhaps the phase that is least considered when evaluating proposals and it is one of the most important for a successful software deployment. As we discussed above with regard to budgets and costs, the implementation of an ERP can have a number of variables in its sizing and these are important factors to take into consideration.
As an example, consultants must balance the sizing of a project in sufficient detail in order to understand its scope and ensure your needs are met, while not over investing time in preparing the proposal for an opportunity that they are unsure they will win. “Standardizing” and not investing sufficient time to understand your business and your needs introduces risk which can translate in undersizing the project that can result in a project that either doesn’t meet your needs, over costs or in the worst case, a failed project.
In order to reduce this risk we recommend one of two options. The first is to negotiate with the implementor an initial analysis phase, paid, against you as the client receive a detailed budget where you ensured to have with a well defined scope. The second option, which in our experience is the best choice, is to apply an Agile Methodology like SCRUM.
SCRUM naturally integrates uncertainty into its methodology, thereby reducing risk. Even though there is no “fixed price,” it does deliver a measurable product in a short period of time – usually ever one to two weeks. It also allows to be able to make small adjustments and reprioritize of partial or final products each week. Also, the client is able to stop the project whenever she wants, since every week or period there is a usable product as a result. To learn more about this methodology we recommend the book by Jeffery Sutherland “How to do twice the work in half the time”
One of the biggest issues in the implementation phase is to NOT take into account the “integration.”
You may ask yourself, what is integration?
It is the change in culture and in business practices that allow you to get the most out of the tool – this is where many implementations fall short. In fact, we often recommend a “revisit” with clients several months after the go live in order to evaluate how the system has been adopted and if there are any opportunities to improve its use.
You can choose an excellent software solution paired with a poor implementation and end up with a failed project… or you can choose a “regular” software solution with an excellent implementation and have a successful project. It is the combination of a software solution that meets your needs with an excellent implementor that walks by your side during the project that ensures success.
Well if you have reached this point, we hope you have a better idea of the elements you should study and consider in selecting an ERP. To summarize, we have seen the importance in defining your requirements and functionality that you will need to evaluate in the solution you choose. To achieve this, you will need to have a clear understanding of your processes and what are your paint points in your company. This is the equivalent to having a roadmap.
With your destination well identified, you can begin to look for options in the market and begin to evaluate functionality, architecture, licensing and services that are offered by each provider or solution. With regard to architecture remember to evaluate your in-house technical capabilities and your business model, geographical distribution and of staff, and available telecom services where you are located. As far as licensing consider if it will be a traditional software license or subscription, evaluate each option with regard to your business operations, needs, and budget. And for services, evaluate what you will need and who will be your supplier for each during the different phases of the project and especially once you are live.
As we discussed above, even though you may be tempted to take into account the cost as the most important factor, resist the temptation. This will certainly be one of the most important factors to evaluate and to carefully consider, but not the only one. Take into account the cost of the license or how the software is purchased, its structure. These can be complex at times, so be sure to take the time to build a good spreadsheet to model the costs taking into account startup costs, operation, periodic outlays (monthly, semester, annually), and software updates. Also consider the implementation costs, external specialists and other services or capabilities that you may need to contract. Finally, consider your internal and indirect costs that could affected by the complexity in the software you choose as well as by the consultant team you contract. Again, don’t fall into the trap that just because its software that others use, that it is the right solution for you.
Lastly, don’t forget to consider who will be your partner during this adventure. You should not underestimate the implementation of an ERP, they are complicated by their very nature and whoever your services partner is and will accompany you is key. It is better to have a good implementing partner with a regular software solution than to have great software with partner that has limited experience or capability. Also, remember the importance of integration. It is one of the most important elements to the success of any corporate project, where you are able to change business culture, behavior and have your staff truly adopt the new tool. If your consultant does not talk to you about integration and the organizational and human aspect, make sure you take into account, as it may very well be the key to the success of your project.
If you made it to this point in the series, congratulations! You have demonstrated an honest interest in the success of your project and your company. If we can help you in any way and this article made sense to you, please do let us know. You can contact us at [email protected]
