SAP B1 blog

In order not to strain the capacities of the company's staff unnecessarily, it is a good idea to seek external help. However, in addition to the necessary software expertise, your implementation partner should also have experience in project management. Here is a guide on how to find the right ERP partner and (successfully) organise the project process together.

1. the right partner for your ERP project

The choice is huge: freelancers, consultancies and system houses are all possible implementation partners. The following list of criteria can make your choice a little easier:

• Number of implementations of your desired ERP system
• Reference customers from your industry who are satisfied with both the ERP and the implementation
• In the case of standard software: Is the partner certified by the software manufacturer?
• Does the potential partner's capacity cover your project?
• Creditworthiness also available (e.g. liability insurance up to what amount?)
• Good presentation of the ERP system with the data and tasks you have set up (no idealised presentations with data from the partner)
• In general, the experience, suggestions and tools used by the partner

2. the right contract

Depending on the level of complexity, an ERP implementation can take between 9 and 15 months. In order to successfully organise a project over this long period, it is essential to have a suitable contract with the partner for the ERP project. In the case of ERP implementations, this is usually agreed via a Specifications and a specification sheet based on this is defined. The following topics must also be clarified with the partner:

Subject of the ERP project

• Check whether you are concluding a so-called contract for work (claim to success in the sense of a work/object) or a service contract (claim to the provision of a service without success owed)

• Choose a good time (e.g. quarterly closing) for the changeover to the new system
• Define the following services
  1. Quantity of licences, as well as costs for standard software
  2. Costs of implementation, i.e. analysis, concept, programming, testing, customisation and conversion as well as transfer of legacy data
  3. Training (type/scope)
  4. Documentation (type/scope)
  5. Support after conversion

Changes / Change Request

• Change management (change request)
  An ERP implementation in which there are no changes that were NOT foreseen in the requirements specification is not a proper ERP implementation. So define right at the start of the project how such change requests (CR) are to be documented, calculated and approved. Without good CR management, your planned budget will quickly be exceeded.

Remuneration and payment conditions

• If possible, agree a fixed price with your ERP partner to increase planning security. It is very likely that this fixed price will be exceeded due to the change requests. Therefore, include a little more in your internal cost calculation (min. 15%)
• If the changeover date is not met due to defects on the part of the partner, a contractual penalty can also be applied (if stipulated in the contract)
• Timing of invoicing and system of acceptance

Attendance duties

• Participation obligations of the principal
  Even for points that are not initially important, such as tests, documentation or training courses it must be clearly defined what the ERP partner can and may demand from you and your employees
• Rights to the programmed solution

3. the right project structure

The distribution of roles in the ERP project

The distribution of roles is the be-all and end-all for the successful implementation of an ERP project. Situations in which, for example, the internal project manager is responsible for the Key Users It is therefore essential to avoid taking on a role that is not part of your daily business. It is best to determine who will take on which role with all internal and external stakeholders before the project begins. Also document the organisational aspects (e.g. substitutions, appointments).

The Steering Committee

As a steering institution, it is essential to have a Steering Committee include. This consists of the internal and external project managers, as well as the sponsors. This group should resolve conflicts between the client and the contractor and must also approve all important decisions.

The role of the internal and external project sponsor should be clearly defined. The Internal project sponsor is the management and a member of the steering committee. It must make decisions (e.g. rejection of change requests) and represents the company's side in resource conflicts.
Of the External project sponsor holds the leading position of implementation partner. He is also a member of the steering committee and is also responsible for decisions.
The internal and external project managers are also members of this steering committee. However, they ensure that deadlines and costs are met and that the client and contractor provide input.

The project managers

Of the Internal project managers also collects the change requests from the key users and coordinates them with the external project manager. He is also responsible for documenting the role allocation (exercise) in the project.
Of the External project managers must, on the other hand, take into account the change requests received and, on the basis of this, makes its recommendation for (non-)approval.

The Key Users

Of the Key User In turn, he is responsible for the correct process description and defines the requirements for the new system. He also submits the change requests to the internal project manager. He also carries out the tests on the system.