
Published
Author
Most organisations spend quite a lot of time on the process of searching for and evaluating ERP systems. However, fewer spend enough time choosing the right implementation partner. This despite the fact that the choice of partner is actually more important than choosing the most optimal ERP system.
Our mapping of completed ERP system projects (with many years of history in the database) clearly shows that both the success and failure of implementations can be attributed to the presence or absence of experienced and competent individuals. This includes resources from both the customer and the vendor.
Neither reference lists nor project methodology guarantee that the vendor can carry out an implementation with high quality. Instead, we see many examples where project methodology has in fact hindered a smooth project process. A well-developed project model in the hands of a project manager or consultant lacking the right ability and competence is meaningless.
Many of the projects that have encountered insurmountable problems have been conducted according to the vendor's "established" project model and also by consultants who have carried out many similar projects before. Upon reviewing projects, it is surprisingly common to find that projects affected by major problems often showed clear deficiencies from day one.
Statistics also show that it does not matter if the vendor has over 200 consultants. It is still usually a fairly small group of 10-20 individual consultants at the vendor who have the qualifications and abilities required to ensure a successful implementation at the customer. From this perspective, there is no clear advantage in choosing a large partner compared with a small partner. It is still about ensuring the right individuals for the specific project. And this includes both project managers to drive and coordinate the project and the consultants who practically carry out the implementation.
When talking about success and failure, it is rarely about the individual system. Statistics instead show that projects where the customer deliberately chose to exclude the "best" system (according to the requirements specification) in favour of the second-best system but with a very skilled partner, generally lead to more successful implementations. Thus, it is not "the last feature" that determines success, but rather "HOW" the project has been carried out.
A challenge for the customer is that procurement of ERP systems really involves two procurements, i.e. the choice of both system and partner. And making these choices simultaneously is not straightforward. It is not uncommon for the partner initially chosen for the procurement to fail during the process, forcing the customer at a late stage to seek a new partner to be able to complete the procurement. Or the customer being forced to exclude a system from the procurement due to lack of a sufficiently good partner, even though the system has the desired capabilities.
Choosing a partner for implementation has always been an important part of procurement, but it will become increasingly important going forward. In a changing and complex world, competent consultants with a well-developed ability to understand and guide the customer forward are required. And these are qualifications that are not as common as one would wish when it comes to implementation partners.
The motto for customers about to procure and change systems is "Choose the second-best ERP system with the right partner rather than the best ERP system with a worse partner".