The success of an ERP project depends more on the implementation approach than on the software alone. While buyers focus on comparing software features, they often neglect to scrutinize vendors' differing implementation methodologies. ERP projects are fundamentally change management initiatives requiring stakeholder engagement and training. The tasks of implementation like requirements analysis and testing are people-driven and account for most of the effort and cost. No two ERP projects are the same due to differing business needs and human factors among companies and project teams. Buyers should thoroughly review and understand each vendor's proposed implementation approach to ensure it will adequately support the organization's goals.

1. 's
ISSUES & INSIGHTS
What Contributes More to the Success of an ERP Project: The
Right Software or The Right Implementation Approach?
By Tim Hourigan, Microsoft Dynamics and
IT Practice Lead, Armanino McKenna
While almost all ERP buyers spend a great
deal of time analyzing the functional dif-
ferences between competing products, they
seem to spend very little time scrutinizing
how each product will be implemented. Of-
ten buyers just assume that all vendor im-
plementation approaches are the same and
simply compare total estimates to make their
solution selection. This is a big mistake and
a common reason why so many ERP projects is made up of people-driven tasks that are manager and key stakeholder’s tempera-
under deliver on their intended ROI. entirely independent of the particular ERP ment, familiarity with ERP solutions, skill
product selected. These tasks include proj- set, aptitude and expectations differ, along
For the success of your ERP project, here are ect management, requirements analysis, so- with the organization’s collective willing-
three reasons why you should spend more lution design, data migration, user training, ness and capacity to change. Considering
time carefully analyzing competing ERP user acceptance testing, go-live deployment all these factors, it highlights the need for
vendor implementation approaches: planning, and general Q&A support through- well-defined and understood expectations on
out the project. the implementation approach upfront. It also
1. ERP Projects are Change Management warrants spending the time needed to review
Projects - Not Technology Installs That said, you should know that for sales each vendor’s implementation approach and
At their core, ERP projects are fundamen- reasons vendors purposely make very dif- assumptions to ensure their “standard” ap-
tally people-driven change management ferent assumptions in their proposals about proach really does meet your needs.
projects intended to improve business ca- how much support they will provide for each
pabilities. Business capabilities comprised task. If the provider is silent on a task or has a Summary
of people, process and technology solution lower estimate than others, rest assured they As they say in both sports and business, ex-
elements. Just throwing your users the keys are assuming you will do it or do more of it ecution is what really drives whether you
to a new technology product will not sponta- as needed. That can all be fine, but just know achieve your objectives. Consequently, fo-
neously result in the business improvement what you are signing up for. So, while all cusing on how your new ERP will be imple-
desired. Doing so will just result in one more vendor implementation approaches should mented is as important as what ERP product
under utilized system. A more comprehen- be the same and the actual work effort will you choose. Not all vendor implementation
sive implementation approach that includes end up near the same, you should know they proposals are the same. Make sure you know
stakeholder engagement and knowledge are never bid the same. what you are getting and not getting. Be-
transfer will enable high user adoption and come an informed buyer to assess the fit of
proficiency, feature utilization and post go- 3. There is No Such Thing as a Standard both product and implementation approach
live self-sufficient solution operation. ERP Project in order to select the right ERP solution for
Regardless of claims to the contrary, there is your organization.
2. People-Driven Implementation Tasks no such thing as a static, repeatable, “stan-
are The Highest Cost Driver dard” ERP project. While there are similari- This article was first published in MSDy-
Arguably, the required tasks and work effort ties and best practices that can be applied, namicsWorld.com on October 12, 2010
of implementing any ERP solution success- every project differs on both a business and
fully are nearly the same for any leading a human level. On the business level, every For questions or com-
product when deployed by a competent ven- company’s specific needs, stage of growth, ments regarding this ar-
dor. Indeed, the required work is unavoid- pace of change and circumstances differ ticle, contact Tim Hourig-
able; there are no real short-cuts without in- even within the same industry segment (just an at 925.790.2837 or by
creasing project delivery risk. It is also true as their business strategies differ). On a hu- email at Tim.Hourigan@
that the vast majority of this work (50-66%) man level, every project sponsor, project amllp.com.
© 2010 Armanino McKenna LLP. All Rights Reserved.