Why Fixed-Bid ERP Implementations Are Unrealistic: Insights from Engleman Associates, Inc.

At Engleman Associates, Inc. (EAI), we’ve guided over 1,000 ERP projects since 1996, delivering practical, buyer-focused advice. In our latest ERP Now video, “Why a Fixed Bid ERP Implementation Is Pure Fantasy,” we address the misconception that ERP implementations can be accurately quoted upfront.

ERP projects are inherently complex, with unpredictable variables—unique business challenges, unforeseen obstacles, and evolving requirements—that make fixed bids unreliable. Like an uncharted expedition, the true scope and cost of an ERP implementation only become clear as the project unfolds. Vendors offering fixed bids may use them as a tactic to secure contracts, leaving buyers to face inevitable cost overruns.

The key to controlling costs and achieving successful outcomes lies with the buyer. Effective planning, disciplined execution, and proactive management are critical. Our new video explains why fixed bids are impractical and offers insights into how buyers can take charge of their ERP journey.

Watch the full video for actionable advice drawn from decades of experience.

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For more strategies on managing ERP implementations, explore our ERP Now video series linked in the video description. Contact EAI for expert guidance tailored to your ERP needs.

Announcing Our New Educational Video on Mastering ERP Implementations

At Engleman Associates, Inc. (EAI), we are excited to share our latest educational resource: a video titled "Controlling ERP Implementations: Key Factors for Project Excellence." This video, now available in our YouTube library, is designed to guide IT professionals and executives through the critical elements of successful ERP implementation projects.

ERP implementations are complex, and while the concepts behind project excellence are straightforward, their execution often falls short. Our video outlines ten essential Project Excellence Factors that can make the difference between a struggling project and a highly successful one. These factors are:

  1. Strong, Resolute Leadership: Effective leadership to navigate challenges and drive progress.
  2. Pre-implementation Planning: Critical groundwork to set a solid foundation.
  3. Skilled and Resourced Team: A capable team with the right expertise and mindset.
  4. Clearly Defined Scope: Tight scope control to minimize risks and maintain focus.
  5. Agile Project Management: Flexible, iterative approaches to adapt to evolving needs.
  6. Sustained Pace and Continuity: Consistent momentum to avoid costly delays.
  7. Informed Process and Metrics Design: Thoughtful design to address complex influencers.
  8. Effective Use of ERP Tools: Leveraging native ERP tools to meet business objectives.
  9. Adaptation to Native ERP: Embracing standard functionality with robust change management.
  10. Strategic Commercial Terms: Favorable agreements with vendors to optimize costs and outcomes.

This video provides practical insights into applying these factors to achieve sustainable, high-quality results in ERP implementations. Whether you’re an IT leader or a C-suite executive, this resource will equip you with a clear framework for project success.

Watch the video to learn more.

Stay tuned for more educational resources from EAI as we continue to drill into the realities of controlling ERP project costs, risks, and achieving superior results in support of enterprise business processes.

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Selecting an ERP Implementer

Engleman Associates, Inc. is pleased to announce the release of our latest educational video, Selecting an ERP Implementer, now available in links below. Presented by Mark Engleman, this video draws on insights from over 1,000 ERP projects since 1996 to provide practical guidance for IT personnel and executives tasked with choosing an ERP implementer.

The video outlines critical factors for evaluating potential implementers, including:

  • Consultant team expertise, particularly the role of the big-picture analyst.
  • Billing rates for consulting and developer roles.
  • Proximity to improve timely on-site support, ideally within one flight leg to minimize delays.
  • Commercial terms that give buyers control over their project and deliverables.
  • Implementer adaptability to align with the buyer’s preparedness.

Additionally, Mark addresses common misconceptions, advising buyers to discount:

  • Statements of Work with unreliable consulting time estimates and costs.
  • Claims of superior methodology, usually just sales rhetoric.
  • General assurances from implementer leadership, which may not address underlying project risks.

Explore these video and our broader collection of ERP resources to support informed decision-making in your ERP initiatives.

ERP Implementer
ERP Implementer

Summary video
on Selecting an ERP Implementer.

Comprehensive video
on Selecting an ERP Implementer.