Choosing the right ERP implementation consultant is a decision that can significantly impact the success and efficiency of your business operations. Imagine embarking on a journey to Mount Everest without a reliable guide; similarly, it can feel daunting to implement an ERP system without the right partner. A great ERP consultant not only ensures a smooth transition but also helps unlock the full potential of your system, leading to improved business processes, leaner cost control, and a competitive edge in your industry.
According to a recent study from TechReport, [50%] of initial attempts at ERP implementation result in failure.
ERP Implementation Challenges
Tackling an ERP implementation without an implementation partner can also come with a myriad of challenges, many of which could lead to missed deadlines, high-cost overruns, and an uncomfortable rollout for your teams. Here are a few of the common struggles that come with implementing a new ERP system:
Project Management
From planning, development, deployment, and training, there are multiple phases to an ERP implementation where planning and efficiency are crucial. ERP implementations have a variety of priorities and many stakeholders across business units and departments. That’s why partnering with consultants who are experienced in ERP implementation projects can fully optimize your approach to save you time and help you avoid costly mistakes.
Change Management
Implementing a new ERP system often requires significant changes to existing business processes and workflows. Employees need to adapt to new ways of working, which can be met with resistance. Effective change management strategies are vital to ensure a smooth transition. This involves clear communication about the benefits of the new system, comprehensive training programs, and ongoing support to help employees adjust. Without proper change management, the adoption of the new ERP system can be slow, leading to disruptions in business operations and reduced productivity.
Data Migration
Transferring data from legacy systems to a new ERP system can be a complex task, and it’s challenging to maintain data accuracy and consistency throughout this process. Data cleansing, mapping, and validation processes are required to prevent data loss or corruption. Working with an experienced implementation partner can help manage these tasks effectively and lead your team toward a smooth and error-free data migration process.
Customization and Integration
Every business has unique requirements, and out-of-the-box ERP systems may not fit perfectly. It can be complex to customize the ERP system to meet specific business needs and integrate it with other existing systems (like CRM, Accounting, or HR systems). Customizations and integrations need to be carefully planned and executed to avoid creating issues that could affect system performance and reliability. Instead of trying to figure this part out on your own, you can find the right ERP implementation services that can help tailor your platform for you.
Budget Management
ERP implementations can be costly, involving software licensing, hardware upgrades, consulting fees, and ongoing maintenance. Without proper planning and cost management, expenses can quickly spiral out of control. An experienced ERP implementation provider can help you plan and manage your project budget, helping to proactively balance your functional requirements, budget limitations, and go-live timeline (shoutout to the project management triangle).
User Training and Support
Even the best ERP system is only as good as its users. Ensuring that employees are adequately trained to use the new system is essential for maximizing its benefits. Comprehensive training programs tailored to different user roles and ongoing support can help employees become proficient with the new system.
Risk Management
ERP implementation projects carry inherent risks, such as project delays, technical debt, unplanned integration issues, and resistance to change. Identifying, assessing, and mitigating these risks is critical to the success of the project. Establishing a risk management plan for this endeavor can help you stay proactive should these issues arise.
Scalability and Future-Proofing
As businesses grow and evolve, their ERP systems need to scale and adapt to new requirements. Making sure the chosen ERP system is designed to be agile and scalable so it can accommodate future business needs is crucial. This includes considering potential changes in business processes, technological advancements, and industry trends.
So now the question remains: What’s the best way you can mitigate these challenges?
Key Qualities of an Ideal ERP Implementation Consultant
An experienced ERP implementation consultant can help you overcome the challenges we mentioned and make the project a relatively painless process. However, a lot of considerations come into play when selecting the right experts for your business’s needs.
Experience and Expertise
First and foremost, you need to ensure that the experience and expertise of the potential ERP partner align with the technology you require. Do they have a proven track record for the technology you need? If you’re not sure about what you need, are they knowledgeable enough in ERP solutions to guide you to the right option with value-based analysis? It’s recommended to use past successes (case studies and customer references) to demonstrate the probability of future success (a great ERP implementation experience).
Industry Knowledge
Your business most likely needs a system that’s specifically designed for your industry, not a generic solution that’s only a temporary fix that will need constant upgrades to meet your needs An ERP implementation partner might have a lot of experience in a specific industry, but may not have the expertise to confidently commit to your implementation (without surprise challenges along the way).
Technical Proficiency
You may discover you need customizations or integrations for your system to function as expected; having a partner that is proficient in technical requirements gathering and deployment best practices means you can benefit from their solution-specific expertise. This is also crucial for when you need technical support, as a proficient partner can help you solve user and system issues quickly to avoid unnecessary downtime and lost productivity.
Flexibility
We all know change often happens fast and unexpectedly, this is why flexibility is an essential consideration for an ERP implementation partner. Your chosen partner should be adaptable to your specific needs and responsive to changes throughout the implementation process. A flexible implementation partner will work with you on adaptations in your ERP project while also keeping tasks and timelines on track.
Stakeholder Engagement
An experienced implementation partner will know the importance of prioritizing user experience. With the right stakeholder engagement and an ERP system that is intuitive and user-friendly, you will greatly increase user adoption rates and improve overall utilization of the system (we see this as impacting both user experience and project ROI). Confirm the partner’s approach in collaboration and communication to ensure that you’ll be working with someone who efficiently engages with stakeholders, provides regular updates, and makes project orchestration easy for you.
ERP Implementation Red Flags
When meeting with potential implementation partners, there are a few red flags you need to keep an eye out for. This includes:
Lack of Transparency
Make sure you’re given clear pricing and communication on what deliverables are expected for the potential project. Ensuring this alignment during the early stages will prevent any disconnect further down the process when you’re already fully committed to their services.
Overpromising
Confirm the timeline for the project and what’s guaranteed during that period. If the agreement doesn’t quite sound realistic and the partner’s previous work with clients doesn’t show specific capabilities to what they will need for your implementation, then it’s a good sign they might be overcommitting themselves for your project.
Poor Post-Implementation Support
As we’ve mentioned, the ERP system is only as good as its users. That’s why you must confirm that sufficient support services will be provided post-implementation. Inadequate training commitments will only result in pitfalls within your organization’s long-term efficiency.
Key Takeaways
Overall, it’s very important to consider what budgetary restraints, technical requirements, and software expertise will be necessary to achieve your upcoming implementation goals, and whether or not a consulting firm aligns with those needs.
Seek a preliminary (and free) consultation to discuss your needs and make sure trust is built before commitments are made. Read about their platform, industry, and service experience as well as ask for examples or references to back up those claims. Ask if they outsource any of their work to a third-party, or off-shore developments to a timezone that doesn’t work for you. Most importantly, evaluate if they put in the work to demonstrate competence, organization, focus, and trust.
Choosing the right ERP implementation partner will lead to faster deployment, lower risk of critical systems, and greater return on investment for your organization.
Start Your Implementation Off Right
OSI is here to make the implementation process an easy one. Instead of taking a one-size-fits-all approach, our team performs proper analysis to determine the right system fit for your processes and goals.