ERP Implementation

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

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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.

See on Linked-in.

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.

New Video Release – Escaping ERP: Challenges and Smart Buying Strategies

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At Engleman Associates, Inc. (EAI), we’ve guided over 1,000 ERP projects since 1996, delivering practical, buyer-focused insights to IT professionals and executives navigating complex enterprise resource planning (ERP) systems. Today, we’re excited to announce the release of our latest video in the ERP Now series, titled “Escaping an ERP: Why It’s So Hard.” In this concise, under-three-minute video, EAI founder Mark Engleman addresses the challenges of switching ERP systems—often described as “escaping” when a move is forced—and shares critical strategies for selecting the right ERP from the start to minimize future risk of such an escape.

Why Watch?

Switching ERP systems is a daunting task, marked by high costs, significant risks, and operational disruptions. Many organizations feel trapped in compromised systems due to these barriers. In this video, Mark underscores why escaping an ERP is so challenging, the behavior this creates with most buyers, and how ERP sellers exploit the situation. Also covered are five essential contract terms to negotiate when purchasing an ERP. These terms—covering aspects like vendor shutdown prevention, cost stability, failover plans, controlled migrations, and data access—empower buyers to maintain control and greatly increase options for a more orderly escape – or to avoid the escape entirely.

Key Takeaways

  • Understand the financial, operational, and strategic hurdles of ERP migrations.
  • Learn proactive steps to negotiate ERP contracts that protect your organization.
  • Gain insights from EAI’s decades of experience helping clients avoid common ERP pitfalls.

Watch Now

Watch the video to explore these insights and equip your team with the knowledge to make informed ERP decisions.

For additional resources, including links to related content, visit the video’s description on our YouTube channel. Explore our full ERP Now series for more expert guidance on ERP strategy, selection, and implementation.

Stay informed and protect your business—watch now and subscribe to our channel for future updates.

Engleman Associates, Inc. – Your Trusted ERP Advisory Partner

Escaping your ERP

Announcing Our New Educational Video on Mastering ERP Implementations

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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.

erp implementation control

Can AI Simplify Your ERP Selection? Insights from Engleman Associates, Inc.

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At Engleman Associates, Inc. (EAI), we’ve guided over 1,000 ERP projects since 1996, always prioritizing the buyer’s perspective. In our latest ERP Now video, “Can AI Help You Choose the Right ERP?”, we explore how artificial intelligence can assist in selecting or optimizing an ERP system—and where it falls short.

AI can be a useful starting point when quality data is available. For instance, it can identify ERP systems commonly used by specific industries or highlight problematic vendor contract terms when prompted correctly (see full list below of ways AI greatly helps). However, the ERP landscape is complex, with challenges like vendor misinformation, biased analyst reports, and unclear buyer requirements. These abstract variances limit AI’s ability to provide tailored, reliable recommendations.

Successful ERP selection still demands skilled buyer-seller interaction to define functional scope, rigorously test critical features, negotiate favorable terms, and choose implementers with proven expertise. At EAI, we specialize in navigating these complexities to deliver solutions that align with your business needs.

Watch the full video below to learn more about leveraging AI effectively in your ERP journey and discover practical insights from our decades of experience.

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For additional resources, explore our ERP Now video series linked in the video description. Stay informed and contact EAI for expert guidance on your next ERP project.

How AI Helps

AI significantly enhances EAI ERP advisory services by providing deep insights and accelerating key activities in ERP selection and implementation control. Effective use of AI requires precise, informed queries, with results typically validated and augmented by tactical follow-up queries, and by other information sources. Below are the key areas where AI is applied in EAI ERP advisory services:

  • Generating Long List ERP Candidates: AI rapidly identifies potential ERP systems (or other business applications) based on client size, industry requirements, and system capabilities, creating an initial pool of candidate ERP. The results are cross referenced to the EAI ERP database and a final long list is generated.
  • Developing Functional Requirements for ERP Selection and Planning: AI assists in defining detailed, relevant functional requirements to screen ERP candidates and support pre-implementation planning, which can greatly improve alignment with business objectives.
  • Identifying and Screening ERP Resellers, Implementers, and Consultants: AI locates and evaluates ERP resellers, implementers, and independent consultants with specific ERP expertise, streamlining the selection of qualified partners.
  • Enhancing ERP Access Cost Control: AI helps articulate clear cost control objectives to vendors, facilitating negotiations and reducing barriers to achieving cost-effective ERP access and implementation. This again is highly dependent on proper AI inquiries.
  • Highlighting and Addressing Commercial Terms Conflicts: AI identifies default commercial terms in ERP contracts that conflict with objectives for buyer cost and commercial control, proposing precise language to address these issues. These objectives are designed by EAI, place appropriate and firm control in the hands of buyers, and this approach makes vendors directly confront various conflicts.
  • Accelerating Implementer Onboarding with Company Insights: AI leverages selected data from company discovery to quickly familiarize implementer personnel with the client’s operations, reducing the need for extensive new business process interviews.
  • Streamlining Business Process Discovery and Metrics Design: AI organizes and makes visible critical insights from the business process discovery phase, supporting effective business process and metrics design during ERP implementation.

The Lack of Buyer Control in Seller-Managed Cloud ERP

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At Engleman Associates, Inc. (EAI), we draw on over 25 years and 1,000 ERP projects to deliver precise, buyer-focused insights for IT professionals and executives. In our latest educational video, “Buyer’s Commercial Control Near Zero - With Cloud ERP,” Mark Engleman addresses a critical issue with seller-managed cloud ERP systems: the near-total lack of commercial and physical application control for buyers.

Seller-managed cloud ERP, where vendors handle all aspects of delivery, leaves buyers vulnerable due to four key realities:

One-sided contracts: Modern cloud ERP agreements heavily favor vendors, often including provisions for unilateral changes post-subscription term.

No physical control: Unlike traditional on-premises ERP, where buyers owned licenses and hosted systems, cloud ERP buyers have little to no control over the physical infrastructure that delivers the ERP.

High switching costs: Replacing an ERP system, cloud or otherwise, is a complex process that can take a year or more, discouraging changes.

Rising costs: With limited buyer leverage, vendors face little resistance to increasing subscription fees.

This combination of poor commercial terms and lack of physical control places buyers of mission-critical ERP systems in a precarious position. In the video, Mark outlines these challenges and offers guidance on how buyers can push back.

Watch the video for a detailed discussion.

For strategies to address these issues, explore the resources linked in the video description. Visit our YouTube channel for more ERP insights, and share your feedback in the comments below. Subscribe to stay informed.

No Control Over Cloud ERP Systems