• Best Cloud ERP

    Several Solutions To Reduce Erp Implementation Expenses And Reduce Threats

    Traditional ERP Implementations
    Traditional ERP implementations are extremely risky, for the partner deploying them as well as the customer. For this reason no one offers the elusive fixed fee. The potential risks are just too much.
    That old Dynamics NAV project costs were high because legacy methods are costly. The standard implementation follows many phases originally put down by Microsoft in a waterfall project framework. Waterfall project management is proven to be costlier as opposed to modern "agile" approach, which is according to LEAN techniques.
    The approach that has been utilised by virtually everyone since ERP has been in existence would be to bill "Time and Material." Which means customers buy enough time spent by consultants, nomatter just how or bad these are. This moves the risk from your implentor towards the customer almost entirely.
    In fact you can still find massive risks for that partner with these waterfall projects. I've seen Most all cases where partners were sued or threatened when these projects go very badly.
    I began thinking of how we had to change this seeing a LinkedIn post that shared articles on why "Time and Material Billing is Unethical." I had been really struck with the arguments. The article author asked an issue that we think summed it fantastically well:
    If a restaurant charged you for your some time to material it latched onto cook your steak, would you feel?
    This probably sparked my first real opinion of how you can~the way to~tips on how to~the best way to~ways to stop as being a serious amounts of material business.
    ERP Pricing is incredibly unpredictable
    Among the first videos i uploaded to YouTube was my explanation of why traditional costing of ERP implementations was outrageously inaccurate. I've spent the years since figuring out methods to remove that inaccuracy.
    Obviously the simplest way to give accurate estimates would have been to be fixed fee. The thing is that traditional approach can be so dangerous for the partner. It makes it truly scary to offer a fixed fee. if you do not do it properly, you're in a lots of trouble. We have worked hard to develop an approach that we think is exclusive.
    Applying LEAN Thinking to ERP Implementations
    There is a movement to apply LEAN thinking to service activities. Generally, LEAN is all about removing waste coming from a physical product, however it can be applied to projects too.
    I developed my very own variations of waste in ERP projects.
    First - there is time spent through the wrong resource.
    That is typically when someone who is too expensive does something that someone that pays much less are capable of doing, or are able to do it faster.
    Second - you'll find unnecessary steps
    I find this occurs when folks perform steps to "cover their butts." A lot of project management falls into this. What's more, it occurs consultants (compensated on hours billed) push unnecessary work.
    Third - you can find wasted tasks
    Sometimes customers might like to do items that we, as ERP consultants, know won't work. Inside a traditional implementation we've no economic motivation to stop it.
    Lastly - there is a "bleed" of knowledge
    This is usually about the customer. Typically it's if the customer doesn't remember their training as they do not spend time in it enough.

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    Why ERP Implementations Need to Change!
    When we started doing cloud based ERP implementations with Microsoft Dynamics NAV it was common for clients to pay $100,000 for that software and pay $200,000 because of their implementation.
    As soon as you enter the arena of the cloud, where Microsoft Business Central is $100 a month per user, things change. It's hart to share with a client they will spend $2000 monthly for software but still pay $200,000 for implementation.
    Therefore we did what our customers do. We set a price we thought industry would support, so we worked backwards to manipulate our internal costs making money doing that. Our industry is manufacturers. They need to estimate a price, after which stay with it. They can't go to their customer and say "we should bill you more because we were inefficient inside our production process." They might close shop over night.
    The modern procedure for ERP implentations.
    I'm really a manufacturing expert compared to a technology expert. Few suppliers think when it comes to projects with project managers (Engineer to get is the exception). They generally think with regards to operations managers and standard work instructions.
    I applied this thinking to ERP projects. It may help that every we all do is implement ERP for companies.
    Here's include the main steps that helped us dramatically lessen the risk (and charges) of ERP projects.
    We just do one form of projectFocusing exclusively on manufacturing, as well as in small facilities, resulted in we will refine and obtain better each and every project. We look on the process as being a repetitive, repetable process. This kind of gets reduce the beforehand form of the work plan etc. The work management goes away completely, and that we reduce that waste enormously.
    We offset easy but tedious attempt to the customerWhen a $200 per hour consultant does what comes from a clerical task, that is certainly waste. We train the customers to perform a number of the tedious tasks. Apparently these are also greater created by the consumer. Business Central is really a lots of this easier given it has great tools for end users to accomplish tasks that used to be hard. There's 2 of these in particular which are key: Reports and knowledge Loading
    We train people to edit formsCustomers understand what they need their invoice to look like. They know where they desire the payment date on their own PO. It's way easier as we guide them to alter this stuff compared to it on their behalf.
    We train people to load data to the systemData loading is often a task we assign to a co-op student after a few hours training. The truth is, when customers "get" how this can be done - they certainly a far better job cleaning their data and things go much smoother!
    We keep exercise sessions shorter and VideoPeople forget what they are taught. It's without a doubt of life. You've got a lot in your plate. Also, the more time an individual spends in training - the greater they "zone out" and begin to shed focus. We keep training sessions short, and record these as videos. People absorb increasingly can readily review what they've forgotten. This means we absolutely must train remotely. Travel time is really a killer (and totally waste)- so we can't travel.
    We keep the project tight, and discourage changeTraditional ERP partners encourage remodeling. Extra work means extra profit. Not for all of us. Once we perform a Business Central project, we discourage any changes in the original project. Our projects aren't super restrictive - however they do limit the features we will implement in "Phase 1." Keeping the plan tight, there is a lot less "creep" as well as the boss is normally much happier.
    We still bill for customizations, but discourage them as well Customizations are the one thing we're not able to predict - therefore we also discourage them. Given this new model, look for customers request a lot fewer also. They trust us more to be aware what we are doing. Occasionally a customization is only a no-brainer, plus those cases we support and in many cases encourage them. Having said that - we now have fewer than half the customization we used to.
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