Consultant ERP deployment: 70% of the projects in trouble, where is the right direction?

This article Lac Viet Computing will help you understand the nature of consulting services, ERP implementation, process implementation, costs, benefits, and choosing the right partner.

1. Consulting and implementing what is ERP?

1.1. Properly understand about consultant ERP deployment

Consultant ERP deployment can understand in a simple way is service with the business from the stage of assessment of the current situation, design a solution until the ERP system stable operation in practice. The focus of counseling is not located in the software, which is located in the enterprise organization operation, data management, and decision-making.

In fact, many businesses often confuse the three following concepts:

Firstly, selling ERP software. This activity is to provide license to use software and the functions available. Unit of sale software focused on introducing features, module, price copyright. However, if you just stop at the “purchased software” business is very easy to fall into the situation that the system but do not know how to use how to properly with internal processes.

Monday, self development, ERP, internal. Some businesses have IT team or personnel knowledgeable, professional and decided to implement ERP to save costs. How this can fit small business, simple process. However, with business medium and large scale, this model potential risks because of the lack of implementation experience and overall ease of wrong right from the stage of design process.

Tuesday, consulting and implementing ERP for the business. This is how to approach it more secure. The consultant role as “the architect operate” business help:

• Clearly see yourself is how
• Identify core issues need ERP solved
• Design, ERP solution suitable to particular sector, scale, development goals

Practical example:

Two businesses, which use the same ERP software. Business A has the consultant ERP deployment companion from the beginning, standardized process before putting the system into operation, user training according to job role. After 6 months, ERP becomes the tool management center.

Meanwhile, company B just buy the software and deployment. The process is not yet clear, each department understand ERP in a different way, leading to data inconsistency and system gradually neglected. The difference lies not in the software, which is located in the deploy.

1.2. Why business should not deploy ERP “alone”?

ERP is not merely a technological system. In essence, ERP implementation is a project restructuring operated business, direct impact on people, process and how the decisions of the leader board.

When implementing ERP without consulting basically, enterprises often encounter three major risks:

• Firstly, the process is not clear guide to ERP does not promote value. If the business is not yet standardized process that took ERP in use, the system will properly reflect the confusion out there. As a result, each department in such a way, data inconsistencies, reports are not reliable.
• Monday, user resistance not willing to change.
  According to the study of Panorama Consulting Groupmore than 50% of ERP projects is difficult due to human factors and change management, not by technology. When employees do not understand ERP help for their work, the system is very easy to use deal or ignored.
• Tuesday, long project, exceeding the budget. Gartner report shows that many ERP project is behind schedule or incurred costs due to the lack of an implementation plan clearly, control the project scope. The “how to, where is set at that” makes business spending extra time, cost, and business opportunities.

Therefore, consulting, ERP implementation is not the cost incurred, which is the investment to help businesses reduce risk, optimize efficiency, ensure ERP actually create value in the operation.

2. The role of the consultant ERP deployment in project

In a project ERP consultant ERP deployment not only play the role of “make request”, which is a partner with the business in the organization of the operator. The largest value that consultants bring not located in the system configuration, which is located in helping business understand where need to change what and deploy ERP how to create realistic effects.

2.1. The survey reviews the current state of operation

The first step is a step determinative of consulting and implementing ERP is a comprehensive survey the current state of the business. Instead of looking at ERP from software perspective, the consultant will approach from an operational point of view.

Specific activity surveys typically focus on three main contents:

• Organizational model: the business division, departments, responsibilities, powers, threading approval.
• Business process: the way the work is done fact, not only is the process “on paper”.
• Data management: data are located where there is a duplicate or not, the level of accuracy in a timely manner.

Through the survey, the consultant will indicate the “congestion” in the admin, for example:

• Purchase process lasted so many levels browser, but does not remove responsibility.
• Data inventory between warehouse and accounting does not match the projection of each month.
• Management reports depends on Excel personal lack of consistency.

The actual value of this step is to help businesses clearly see the problem by yourself, instead of implementing ERP based on gut feeling or experience discrete.

2.2. Advice standardized, re-design process

After understanding the current status, role next of consultant ERP deployment is standardized and re-design operating procedures, to ensure that ERP is built on a platform administrator reasonable.

The important point here is: standardized but not stereotyped. ERP has the usual good governance (best practice), but every business has its own peculiarities of industry, scale and culture management. A unit of a good consultant will know how to balance between norms and reality.

The classic example is the purchase process – inventory – accounting:

• Standardized flow from purchase request, approval, order, goods receipt to acknowledge the debt.
• Remove the intermediate steps do not create value, but still ensure risk control.
• Clearly define what data arise where, who is responsible for updates.

Value bring to a business is not just “draw back process”, which is:

• Reduction depends on the person.
• To increase transparency, the ability to control.
• Create platforms for ERP smooth operation sustainable.

2.3. Choose ERP solution suitable

One of the common mistakes of business is that ERP as many features, the more expensive the better. In fact, ERP be effective only when consistent with the needs, capacity, current operation of the business.

The role of consultant ERP deployment at this stage is to help business:

• Clearly define the target ERP implementation in stages.
• Choose the solution required modules, avoid investment.
• Assess the level of readiness of team and system data.

For example:

• Phase 1 focuses on the analysis of the core such as accounting, purchasing, warehouse.
• Phase 2 expansion to production, sales, supply chain management.
• Stage 3 advanced report analysis strategic management.

2.4. Companion, deployment, and transfer

ERP is only really successful when going into the operating stability, which are used daily. Therefore, the role of the consultant ERP deployment does not stop in the system configuration, which lasts throughout the project life cycle.

At this stage, the consultant will:

• Manage the schedule, scope, risk projects in order to avoid delay term or arise out of control.
• Coordination between departments to ensure data and process consistency.
• User training according to job role, not training, spreading.

After Go-Live consultants to continue to support business:

• Handle the problems that arise in actual operation.
• Adjust the system in accordance with the changed business.
• Help business step by step dig deeper value of ERP.

From the perspective of operation management, this is the core value of the consultant ERP deployment: help ERP become management tools, really, not a technology project formalistic.

3. Practical benefits when using the service consultant ERP deployment

From the perspective of operation management, ERP only really valuable when it is properly implemented and used effectively in daily activities. Practice shows that a lot of businesses invest ERP with great expectations, but the result brings disproportionate a major cause lies not in software but in how to implement it. This is why consulting services, ERP implementation brings the benefits clearly measurable.

3.1. Reduce the risk of failure of ERP projects

ERP is one of those projects with high level of risk in business as related at the same time to process, data, and people. If deployed, teen, orientation and experience, the ability to project not reach the initial target is very large.

According to the annual report of Panorama Consulting Group, the majority of ERP project experience problems related to the excess of the budget, behind schedule or doesn't bring value as expected, in that the main cause comes from the lack of change management, lack of consultation deployment professional.

Gartner also pointed out that ERP is not technology project alone, which is a project operated switch. Businesses do not have the roadmap for a clear and partners matching advice will be very easy to fail right from the early stages.

The role of consultant ERP implementation is here:

• Help business determine the right scope of the project right from the start.
• Given itinerary in accordance with the level of readiness of the organization.
• Control risks in each stage of deployment.

The actual value that the business receives is significantly reduced risk “investment, but can not be used” at the same time avoid having to redo the system after a short time operating.

3.2. Optimal investment cost ERP

A common misconception is to hire a consultant implementing ERP will increase the project cost. In fact, advise properly helps business save on the overall cost throughout the life cycle ERP.

Consultant ERP deployment will support business:

• Invest in the right module, right time, avoid buying excess function is not used.
• Divergence deployed in stages, in accordance with the budget and organizational capacity.
• Limit the costs incurred due to changes require continuous or have to edit the system after Go-Live.

From a financial perspective – commissioning, consulting and implementing ERP helps businesses:

• Better control of the total investment.
• Shorten the payback time (ROI).
• Avoid wasting resources on items not create business value.

3.3. ERP operations – create real value for the business

ERP only really make sense when used as a management tool for the center, rather than a software only to enter data.

When the consultant ERP deployment companion, the business can exploit the core values following:

• Data governance focus: data, sales, purchase, inventory, finance related information, and reduce discrepancies, duplicate.
• A decision fast more accurate: the report is updated in real time, helps leaders understand the operational situation without waiting for general craft.
• Increased productivity, reduced dependent individuals: the process is standardized, the work no longer depends on the experience of a few key individuals.

From an operational point of view, this is the largest value of consulting ERP implementation: variable ERP platform management really supports sustainable growth, rather than just a project, IT is often not the case.

4. When business should hire a consultant ERP deployment?

Not every enterprise should also consultant ERP deployment in the same level, but in the case below, the has consultant companion almost as determinants of success.

• Business first ERP implementation: When there is no experience, business is very easy to choose the wrong solution, deploying the wrong way or unrealistic expectations. Consulting and implementing ERP helps business go in the right direction right from the start.
• Business has been implementing ERP but no success: Many businesses fall into the status of “have ERP but not used”, the data do not trust, employees back to Excel. In this case, advice, help to revise the entire pattern deployment, determine the cause of failure and rebuild route more suitable.
• Business scale, multi-branch or corporation model: When the scale increases, the management of the craft or fragmentation will no longer fit. Consultant ERP deployment help standardize management, ensuring data consistency between units and support centralized control.
• Business need standardized management to sustainable development: With the business is in a stage of transition from management based on human to based management system, consulting and implementing ERP acts as a “platform” to help transition takes place safe and efficient.

In the perspective of governance operate, it can be stated that: consulting, ERP implementation is not just for big business, which for enterprises want to deploy ERP earnest create real value.

5. Selection criteria the consultant ERP deployment credits

Choosing the right consultant ERP deployment can directly affect the level of success of the entire project. From the perspective of operation management, this is not a decision of a technical nature, which is a strategic decision, because ERP will the long term impact to the business management, control and development.

5.1. Experience practical implementations by industry

ERP is not a solution, “a mold used for all”. Every industry there are particular operating separate from the work flow, controlling costs to reporting requirements.

A consultant implementing ERP prestigious need to have:

• Experience practical implementation in industry similarities.
• Understand the common problems that businesses in the industry frequently.
• The ability to offer solutions, proven, rather than just based on theory.

For example:

• Manufacturing enterprises need advice about production planning norms and the price.
• Business, commercial, retail, need to better control inventory, cash flow and debt.
• Business service focus on contract management, revenue, efficient personnel.

Enterprise value received when choosing the right consulting by industry is to shorten the deployment time, reduces edit arise and increase the likelihood of ERP to go into actual operation.

5.2. Understand operator – not only understand the software

A common mistake when choosing the partner for ERP is highly capable of demonstration software, but lightly advisory capacity to operate.

Consultant ERP deployment prestigious need:

• Understand how business operates in practice, not just on process paper.
• Know asking the right questions about the management objective, points of congestion and operational risk.
• Have the ability to advise change the way of work, not only manual system.

ERP is just a tool. If the advice to focus only on the configuration software that does not solve the problem operate the business shall:

• Have the system but the data is not reliable.
• Staff use of the deal.
• The leader still has to make the decision based on the report manually.

5.3. Methods implement clear, transparent

A consultant ERP deployment professional always have the deployment method clear, standardized, transparent right from the start.

Businesses should prioritize the unit:

• Articulate each stage of deployment, objectives and outputs.
• Plan, schedule management, scope and risks.
• Transparency about costs, avoid developments.

According to practical experience, the ERP project failure is often not because the technology is weak, but because:

• Project scope change constantly.
• There is no criteria for evaluating the success is clear.
• Lack of a mechanism to control the progress and responsibility.

The actual value of the deployment method clearly is to help business owners control ERP project, instead of being swept according to the progress of the supplier.

5.4. Have advisory capacity, long-term, not “all sales are final”

ERP does not end when Go-Live. In fact, the period after Go-Live is the time ERP start creating value, if it is properly harnessed.

A consultant implementing ERP prestigious need to have the capacity:

• Business support stable operation after deployment.
• Companion optimal system when business models change.
• Expansion consultants, ERP under each stage of development.

This factor is expressed most clearly the difference between unit selling software and consulting partner implementing ERP real.

6. Solution consulting & ERP implementation along SureERP of Vietnam

6.1. SureERP – ERP Solution for comprehensive enterprises

SureERP is ERP solution due to company shares Information included with the application, which is designed based on the actual management of the business in Vietnam. Instead of focusing too much on technical terms, SureERP aims to help businesses effectively manage, easy to apply in operating daily.

SureERP meet good for many type of business:

• Business commercial distribution.
• Manufacturing enterprises.
• Business services, retail.
• Business multi-branch model conglomerate.

The system allows administrators throughout the core business as:

• Sales, purchase, inventory.
• Manufacturer, price.
• Finance and accounting administrator.
• Personnel – salaries.

SureERP with built-oriented comprehensive, flexible, friendly help businesses easily extended according to each stage of development, instead of having to change the system when the scale increases.

6.2. Value when consulting ERP implementation along Lac

Difference when choosing consultant ERP deployment along Lac Viet lies not only in software SureERP, which is located in the approach deployed abreast real operating enterprise.

Specific business get the following values:

• Firstly, the advice based on practical operation. Our team of consultants of the Lac approach ERP project from the perspective of management, helps enterprises standardize the process, but still fit in with the way current, avoid the “shock” change for the organization.
• Monday, the roadmap for a clear, limited risk. The project is divided in stages, there are target – specific results, help businesses better control the cost, schedule and investment efficiency.
• Tuesday, companion long after deployment. Vietnam does not stop at Go-Live that continue to support optimized business system, expanding module, advanced power management when the business development.

From the perspective of governance operate, can see that choosing the right consultant implementing ERP solutions and fit as SureERP is platform that helps businesses transform governance in a safe, efficient and sustainable.