[CaptainCrunch]

That's a pretty common story especially with organizations that make a leap into the tier one ERP's like Oracle or SAP or even JDE.

A lot of the overage comes from the fact that most companies don't really have an understanding of what they're looking at except its spelled ERP and it becomes a dream factory.


From a venders perspective due diligence really means making an honest assesment if there solution is the best fit for the client. Having a key understanding of the current pain points, current business processes, and the future state requirements.

From a customer perspective its understanding the same as above and having a key list of future requirements that are vital and that are dream state.

We walk away from more deals then I can talk about because our solutions while workable would be made workable by more customization then another solution.

beware of the ERP vender who's answer to everything is absolutely our system can handle it. If that's the answer then you have to understand what's out of the box and what's customized (ie screens). If you do a good job of selecting an ERP then customization shouldn't be the major part of the project costs.

Its also important to set and lock a proper scope for the project. Too many times things go out of control because of scope creep. when you decide on the system and decide on your requirements make sure that you get a fairly bullet proof statement of work, and that the Implementation and project plan are broken down by phases and work done during the phases.

As well beware of the vendor that wants to charge you for the implementation up front, you lose a big time control tool if you do that. For the most part the tier two or mid level ERP vendors will charge on a monthly basis based around work done. Its easier if you pay up front for the implementation for the vendor to run out of time because they've underquoted to get the business and to come back for more time and money.

Make sure on your side of the fence that you have a strong personality as your project manager who ensures that the internal time lines for things like data conversions and testing is completed. A lot of times scope creep happens when an organization agrees to do something (ie reviewing data for errors) and then at the last minute doesn't do it, it not only throws off the project time line, but the vender is more then happy to step in and do it at an extra cost.

Define a hard go no go date for go live. Costs will accelerate if you fall behind near the end of the project or if you add to the scope. Also if you suddenly have a implementation where they flood you with consultants and programmers and business analysts your costs are going to be tough to control.

Just some thoughts.

As an add on to dutch's post, don't be afraid to walk away or threaten to walk away if things spiral.