ERP Implementation Trends: Fast and Cheap
Updated: Sep 13
What About Right?
In this article, we cover:
Look, we know you want to get your ERP system up and running as fast and cheap as possible. Who doesn't? Offering packaged ERP implementations that allow for a fast and speedy approach is the trend with most SMB ERP solutions these days. You've heard the horror stories of ERP implementations that take forever and cost a fortune. But is that really the best way to go for your business?
We're not here to bash the "land and expand" approach to ERP implementations. That's the end game, right? In fact, it can be a wonderful thing for you, our valued client. But we also want you to be fully aware of what you're getting into and what you're missing out on.
Packaged ERP Implementation – what you get
There are three main types of ERP implementations:
Custom or the traditional ERP implementation approach
A Packaged ERP approach
Hybrid
A packaged ERP implementation is a predefined and standardized approach to deploying an ERP system, usually offered by the vendor or a partner/VAR (value added reseller). It typically involves a fixed scope, timeline, and budget, based on a set of assumptions and best practices.
A packaged ERP implementation may include some or all the following elements:
A preconfigured ERP solution that covers the most common business processes and scenarios for a specific industry or domain.
A predefined project plan that outlines the tasks, roles, responsibilities, and deliverables for each phase of the implementation. That includes a fixed timeline.
A fixed price quote that covers the software licenses, hardware, consulting, training, and support services required for the implementation.
A limited amount of testing and data migration
A standard methodology and toolkit that includes templates, checklists, documentation, and tools to facilitate the implementation process.
Benefits to this ERP implementation approach
A packaged ERP implementation can offer some great benefits for your organization. These are especially true if you have experience with ERP implementations in house. A few of those benefits are:
Faster and easier deployment, as the ERP solution is already configured and ready to use.
Reduced complexity means lower risk and uncertainty, as the project scope, timeline, and budget are clearly defined and agreed upon upfront.
Higher quality and reliability, as the ERP solution is based on proven practices and tested configurations, with less room for errors and issues.
Greater efficiency and productivity, as the project team and the users can focus on the core business processes and functions.
You and your team will be guided by ERP professionals rather than your team taking the lead.
Limitations to this ERP implementation approach
However, a packaged ERP implementation also has some limitations and challenges. It doesn’t mean this is bad. You just need to be very aware or else you’ll end up with higher fees and delays to your project. Some of those limitations are:
A limited scope and potential of the ERP project, as the business must conform to the limitations and constraints of the software. The approach may not allow for full optimization and therefore miss your unique processes and goals.
Typically, no customization or integrations are included.
More dependence and alignment, as the business must follow the vendor's or partner's standards and guidelines.
Less ownership and involvement, as the business may have less control and input over the implementation process and outcomes. This one is a blessing and a curse.
Change management is typically not included or considered.
Training may be limited to recorded events and less tailored to your specific needs.
Your team may have to carry more of the load during testing and data migration with minimal guidance.
Is a Packaged ERP Approach Right for you?
The answer is maybe. Many companies can be wildly successful following a packaged ERP approach with the right partner. A packaged ERP implementation is right for you if:
You have standard or common business processes that does not require customization or integration with other systems.
You want to minimize the risk, cost, and duration of the ERP project by following a predefined and structured methodology.
You are satisfied with the features and functionalities of the ERP software and do not need to add or modify them significantly. More importantly, your team is equipped to stay away from “how we’ve always done it.”
You trust the vendor or partner to provide adequate support and guidance throughout the implementation and beyond.
However, a packaged ERP implementation may not be suitable for you if:
You have unique or complex business processes that require extensive customization or integration with other systems.
You want to have more control and flexibility over the ERP project and tailor it to your specific needs and goals.
You need to enhance or extend the ERP software with additional features and functionalities that are not available or compatible with the package.
You do not have a good relationship or communication with the vendor or partner, or you have doubts about their competence or reliability.
You have significant change management needs, and you know your team will need added help to be successful.
Do Your Homework
If you decide to pursue a packaged ERP implementation, you should:
Do your research and compare different ERP packages and vendors or partners in terms of features, functionality, cost, reputation, and customer satisfaction. Make sure you are comparing apples to apples as there are many variations between packages.
Choose an ERP package and vendor or partner that aligns with your business needs and goals, and that provides sufficient support and guarantees throughout the project and beyond.
Prepare your team and resources for the ERP project and assign clear roles and responsibilities to ensure smooth collaboration and communication.
Follow the implementation plan and timeline provided by the vendor or partner and monitor the progress and quality of the project regularly.
Test and validate the ERP software before going live and provide feedback and suggestions for improvement to the vendor or partner.
Train your staff and users on how to use the ERP software effectively and efficiently and provide them with ongoing support and assistance.
Evaluate the results and outcomes of the ERP project and measure the return on investment and the impact on your business performance and productivity.
Summary
A packaged ERP implementation can offer benefits such as simplicity, speed, and reliability, but it can also pose challenges such as rigidity, limitations, and dependency. Whether a packaged ERP implementation is right for you depends on your business requirements, preferences, and expectations. You should weigh the pros and cons carefully and consult with an expert before deciding.
Next Steps
A packaged ERP implementation is not a one-size-fits-all solution. It may not meet all your specific needs or expectations, and it may require you to compromise on some of your existing processes or systems. That's why you need a trusted partner who can provide you with independent advice, customized solutions, and ongoing support throughout the project lifecycle. Elliott Clark Consulting can supplement your ERP value-added reseller (VAR) by offering the following services:
Independent advice: We can help you assess your readiness for a packaged ERP implementation, identify the gaps and risks, and recommend the best approach and strategy for your situation. We can also help you negotiate with the ERP vendor and the VAR and ensure that you get the best value and quality for your investment. In full transparency, we do offer Microsoft Dynamics implementation services but also have independent consulting services.
Change management services: We can help you plan and execute a smooth transition to your packaged ERP system and minimize the impact on your business operations and employees. We can also help you communicate and engage with your stakeholders and address any issues or concerns that may arise during the change process. This will help better ensure greater adoption.
Project Governance: We can help you manage and monitor the project progress and provide you with timely and accurate reports and feedback.
If you are considering a packaged ERP implementation, contact us today to see how we can help you achieve your goals.
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