While most ERP buyers spend significant time analyzing the functional differences between competing products, they seem to spend very little time scrutinizing how each product will be implemented. Also, most ERP systems now leverage cloud technology, AI and advanced analytics, success still depends on how the implementation is managed.
Often buyers assume that all vendors implement systems the same way and simply compare total estimates to make their solution selection. That assumption is a costly mistake – and one of the primary reasons many ERP projects fail to deliver their intended ROI.
Below are three reasons why evaluating a vendor’s implementation approach deserves just as much attention as evaluating the ERP product itself:
1. ERP Projects are Change Management Projects – Not Just a Technology UpdateToday’s ERP projects are part of broader digital transformation initiatives, requiring organizational change management and adoption of AI-enabled features. At their core though, ERP projects are fundamentally people-driven change management projects intended to improve business capabilities.
True success requires aligning people, process and technology solution elements. Just throwing your users the keys to a new technology product will not spontaneously result in the business improvement desired. Doing so will just result in one more underutilized system.
A more comprehensive implementation approach should include:
Even with automation, most effort remains people focused. Today, clarity on roles and leveraging managed services is critical for distributed teams.
2. Most ERP Costs Come from People, Not TechnologyWhile enterprise applications differ in functionality and architecture, the core implementation tasks are largely the same across solutions — when handled by capable providers.
These tasks include:
In fact, (50-70%) is made up of people-driven tasks that are entirely independent of the particular ERP product selected. Skipping, compressing or underestimating this work may reduce initial costs, but significantly increases long-term risk.
3. There is No Such Thing as a Standard ERP ProjectRegardless of claims to the contrary, there is no such thing as a static, repeatable, “standard” ERP project. While there are similarities and best practices that can be applied, every project differs on both a business and a human level.
Each organization varies in:
On a human level, every project sponsor, project manager and key stakeholder’s temperament, familiarity with ERP solutions, skill set, aptitude and expectations differ, along with the organization’s collective willingness and capacity to change.
Considering all these factors, it highlights the need for well-defined and understood expectations on the implementation approach upfront.
As they say in both sports and business, execution is what really drives whether you achieve your objectives. Consequently, focusing on how your new ERP will be implemented is as important as what ERP product you choose. Not all vendor implementation proposals are the same. Make sure you connect with a vendor that provides the right ERP advisory to know what you are getting and not getting.
Become an informed buyer to assess the fit of both product and implementation approach in order to select the right ERP solution for your organization.
To learn more about modernizing your ERP, getting a project back on track or setting your business up for sustainable growth, schedule your complimentary ERP consultation.
