Risk Reduction

Adopting an ERP system can be transformative, adding capabilities and efficiencies to your operations.  It can also be expensive and the implementation disruptive to your company.  There is typically a single contract for the implementation and, if it goes wrong, you can be left with a bit of a mess. Balancing the risk-reward, the cost-benefits, can be a challenge, especially if you are not familiar with the ERP system and the vendor supporting the implementation.

That is why we suggest approaching the decision to implement with care and caution.  Our process involves a risk-reduction approach that ensures your financial and resource-based risk is limited at each stage. The stages involve increasingly complex levels of planning and execution. At each stage your knowledge of the system and appreciation of the benefits will grow.  You will have the opportunity to see us at work and we get to know you.  

The initial stages are small and have almost no risk.  We talk, you might need a demo.  Only a bit of time is involved.  The decision that follows is not to proceed with a full ERP implementation but rather to undertake a proof of concept or perform exploratory planning.  At the end of each stage is a review of the work completed and the plans for the next stage called a "Gate" meeting.  The Gate is a decision to proceed, redo work to address concerns or to kill the project.  We will only proceed if you are comfortable and willing to invest in the next stage.

The stages and decision points or gates we recommend are as follows:

  Stage Gate Relative Cost/Risk (Example only)
1 Introduction and Demonstration - This is a simple conversation about your needs and a demonstration of the basic ADempiere system, highlighting the functionality that would be relevant to your company. Go/No Go A few hours of time. A few pages of notes.
2 Exploration - During this stage we explore the needs of your company in more detail, perform process mapping and gap analyses to determine the amount of customization required.  A better picture of the requirements is developed along with the costs of delivering these.  An initial business case with a cost-benefit analysis is performed and the areas of customization and implementation risk are identified.  If a proof of concept is required, it will be identified here. Proceed to Proof Review

5% of the overall cost

Three weeks of time.

30 to 50 pages written.

3 Proof of Concept - if required, a proof of concept demonstration can be arranged to demonstrate specific features.  This involves some software development and rapid prototyping.  If successful, the development would reduce the costs of implementation. Planning Readiness Review

Several weeks to several months of effort depending on the demonstration required.

Costs vary with the complexity but shouldn't be more than 10% of the overall cost.

4 Implementation Planning -  Your system and infrastructure requirements are developed in detail along with the acceptance and verification requirements.  Implementation plans are developed in detail.  Change management requirements are identified.  The implementation team is identified and roles and responsibilities are assigned.  Detailed costs and plans for the implementation and go-live process are developed. Initial training of key staff takes place to raise awareness.  Implementation Readiness Review

Several weeks to several months depending on the size and complexity of your organization. 

Costs vary but shouldn't be more than 20% of the overall cost.

5 Implementation - The system is configured and loaded with your data. Customization of special features begins. Testing of the implementation is performed.  Change management activities start in earnest with education, familiarization and training.  Development, testing and production infrastructure is established.  Frequent progress reports are provided. Go-Live Readiness Review

Two to six months of time. 

Cost of around 60% of the total

6 Go Live - The switch to the new system takes place.  Active monitoring and support is provided to address issues.   

A week to a month.

Costs about 5% of the total.