Leading edge

Many companies initially believe they can handle complex ERP implementations internally. After all, who knows their business better? Grant du Preez of Ignition Transformation looks at what to consider before deciding to go it alone: and he’s a guy who’s seen all the elephant-traps. He advises:  Don’t underestimate how complicated it will be Enterprise Resource Planning implementations are challenging under normal circumstances. When layered onto major business transformations like carve-outs or mergers, they become exponentially more complex. These scenarios introduce unique challenges, such as: · Multiple legacy systems that must be harmonised · Interdependent business processes needing careful redesign · Data migration requiring deep technical expertise · Compressed timelines driven by business imperatives · Organisational resistance amid broader change And all that is needed simultaneously… At best you might see missed business opportunities if you can’t make the speed: at worst, you’ll spend too much or possibly even see a failed implementation. Remember Transition Service Agreements (TSAs) are real rules TSAs present some of the most significant challenges during carve-outs and acquisitions. These agreements typically impose strict and legally-binding deadlines for transitioning from parent company systems. There are substantial financial penalties for delays. Hard cash. To work within TSAs, you will need: · Proven strategies for meeting TSA deadlines · Templates for identifying and prioritising critical path items · Tactics for negotiating more favourable terms when necessary · Experience balancing short-term TSA requirements with long-term system needs It’s a Matterhorn-steep learning curve if you haven’t done it before. Make sure you have just one source of truth During business transformations, competing narratives inevitably emerge. Typically, there are strands on requirements, data structures, and implementation approaches. It soon becomes 3D chess. You will need to establish what we call a "single source of truth" – authoritative references for decisions that prevent revisiting settled issues. This includes: · Documented design decisions with clear ownership · Master data governance frameworks · Process models validated by business owners · Requirements traceability matrices Without this discipline, projects often circle Heathrow, cycling through the same decisions repeatedly, wasting valuable time and resources. You need to know what’s going on You will need complete transparency across all aspects of an ERP programme. Every day, you have to be in a position to give your stakeholders an unvarnished view of: · Project status against critical milestones · Resource allocation and utilisation · Emerging risks and mitigation strategies · Budget consumption and projections This transparency creates accountability and enables early intervention when issues arise. But it can’t be a hefty administrative burden that slows progress. Get the top corridor on board You will need to secure the right level of commitment from organisational leadership and key stakeholders. You will have to be clear about the specific involvement needed at different stages. Most importantly, you will need to be listened-to when you communicate these needs to busy executives. Executive steering committees, dedicated business process owners and carefully structured sign-off procedures will help ensure decisions are made by the right people at the right time. Without this orchestration, ERP implementations often stall waiting for critical decisions or proceed with insufficient business input. Remember DIY may only LOOK like the cheaper option Whilst engaging experienced consultants requires investment, the return is substantial. Looking at dozens of implementations we've led or observed, those with experienced consultants consistently: · Complete on time or with minimal delays · Stay closer to budgeted costs · Deliver more of the promised business benefits · Create less disruption to ongoing operations Organisations embarking on ERP transformations during carve-outs, mergers, or other significant business changes face a choice: invest in experienced guidance upfront or pay far more in delays, overruns, and missed opportunities later. DIY-er, beware!

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Thanks to our good friends at Future Processing for inviting us to make a guest appearance! On their blog, I've shared some ideas about what to consider in order to get best-fit suppliers: https://www.future-processing.com/blog/selecting-a-supplier-natural-selection/

IT's supplier relationship need to stop using the master-servant model. Partnership gets more done - and to a much higher standard.

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