ERP Implementation: Get a Handle on Implementation Costs
Thursday, May 6, 2010
Posted by: Boomer Consulting, Inc.
As a sales consultant at Maconomy, I demonstrate to CFOs how Maconomy’s solutions make project intensive organizations more efficient, agile, and most importantly, profitable. Each CFO I speak with has an appreciation for the significant risk that an organization takes on when it chooses to move forward with an ERP project. The goal of any CFO is to provide short payback times due to fast implementation, a predictable outcome and a smooth transition when going live.
When Maconomy presents our implementation service estimate to our prospective clients, it is not uncommon for a CFO to question our ability to deliver a complete solution for a fraction of the price our competitors have quoted (e.g. SAP, Oracle and Thomson). The CFOs we speak with wonder if the estimate Maconomy presents in the sales phase will look anything like the post project actual. If it does, what is our secret?
A recent report by industry analyst, Nucleus Research, notes that 95% of Maconomy’s customers were able to successfully achieve a full ROI within 24 months of going live on our solutions. 77% of all Maconomy projects are on-time and on-budget. Nucleus notes that companies that went over budget often did so because they installed additional modules. (1)
Maconomy’s ability to offer feature rich ERP solutions with shorter implementation times and lower deployment costs is the direct result of two critical factors in our approach to the marketplace:
1) Pre-configured Industry Specific Solutions
Twenty years ago, Maconomy began offering ERP solutions exclusively for professional service organizations. In an effort to shorten our delivery times and win more customers, we prudently chose to focus our marketing and development efforts on only select industries under the professional services umbrella (marketing/communications, consulting and accounting). As a result, Maconomy now has deep industry specific toolkits, workflows, templates and reports. Our pre-configured industry specific solutions can work nearly out of the box with limited configuration during deployment, if desired. Additionally, Maconomy’s consultants have solid industry expertise. Maconomy’s industry specific approach translates into spending fewer internal resources and lower consulting fees, which ultimately yields lower risk projects with a faster and more significant ROI achieved.
2) Maconomy’s M-SIM Implementation Methodology
The Maconomy Solution Implementation Method (M-SIM) is a proven set of methods and tools that guarantees all customers a fast, smooth and cost-effective implementation of Maconomy. M-SIM represents accumulated experience from Maconomy’s successful implementations in Professional Services Organizations (PSOs) over the last 20 years. The M-SIM Process Model is inspired by the Prince2 and PMP project management methods and illustrates all the processes and components required in a Maconomy implementation.
The model is fully scalable to fit individual customer projects of any size and type, and all Maconomy consultants and project managers worldwide are thoroughly trained in applying the methodology. This rigid best-practice methodology ensures that risks are identified and managed appropriately, and objectives and benefits are achieved within budget, within time and to the required quality.
Choose an ERP vendor with a positive track record
When evaluating an ERP vendor, it’s critical to mitigate risk through the selection of a vendor that has made a serious investment in your industry, has a proven software deployment methodology and is open to sharing ROI metrics from past projects. An ERP project can make or break a CFO. The best way to set your firm up for success is by choosing a vendor that has a solid track record implementing its solutions on schedule and within the projected budget. The ROI will speak for itself.
1 - Nucleus Research, Real ROI Report, 2008