Why You Need an In-house ERP Team along with an External Implementation Partner?

Introduction

In today’s dynamic business environment, Enterprise Resource Planning (ERP) systems have emerged as indispensable tools for organizations seeking to streamline operations, enhance efficiency, and drive growth. However, the successful implementation and optimization of an ERP system requires a multifaceted approach, combining internal expertise with external support to navigate the complexities of the implementation process.

Your internal ERP team serves as the backbone of your ERP initiative, bringing deep knowledge of your organization’s processes, systems, and culture to the table. Comprised of subject matter experts, business analysts, project managers, and IT professionals, this team possesses invaluable insights into your organization’s unique requirements and challenges.

Most small-mid sized organizations think that having an external implementation consulting company or a partner should be enough to help them craft an effective ERP strategy and implement it. However, having your own internal team (even if it’s a small IT team along with other functions) that can participate in the planning and overall process from the get go can help avoid most ERP implementation failures.

Importance of Having an Internal ERP Team

Let’s take a look at what your internal ERP team can bring to the table-

Domain Expertise: Your internal ERP team possesses deep knowledge of your organization’s processes, systems, and culture. They understand your specific needs and challenges, which is invaluable during the implementation process. On the other hand, an external implementation partner brings expertise in ERP software and best practices from working with various clients across different industries. Together, they complement each other’s strengths, leading to a more comprehensive and effective solution.

Collaborative Approach: Collaboration between your internal team and external partner fosters a more collaborative approach to ERP implementation. Your internal team provides insights into business requirements, user preferences, and organizational goals, while the external partner offers technical expertise, implementation strategies, and project management support. This collaboration ensures that the ERP solution aligns closely with your business objectives and delivers tangible value to your organization.

Optimization: By leveraging both internal and external resources, you can optimize resource allocation throughout the ERP implementation process. Your internal team can focus on core business activities and provide dedicated support and feedback, while the external partner handles technical aspects, customization, and system integration. This division of labor ensures efficient use of resources and accelerates the implementation timeline.

Knowledge Transfer: Working alongside an external implementation partner provides an opportunity for knowledge transfer and skill enhancement for your internal team. They can learn best practices, new technologies, and efficient workflows from experienced professionals, empowering them to better support and maintain the ERP system post-implementation. This knowledge transfer ensures long-term sustainability and maximizes the return on investment in ERP technology.

Risk Mitigation: Having both internal and external expertise mitigates risks associated with ERP implementation. Your internal team provides insights into organizational dynamics and change management challenges, while the external partner offers risk assessment, mitigation strategies, and contingency planning. This comprehensive approach reduces the likelihood of project delays, budget overruns, and operational disruptions, ensuring a smoother transition to the new ERP system.

How does an External ERP Implementation Partner Add Value?

While your internal ERP team brings invaluable domain knowledge and organizational insight, partnering with an external implementation partner offers additional expertise, resources, and perspective to augment your internal capabilities.

Role of an External ERP Implementation Partner

Technical Expertise: External implementation partners bring specialized expertise in ERP software, technology, and best practices honed through years of experience working with diverse clients across different industries. Their technical knowledge complements your internal team’s skills, ensuring a comprehensive understanding of the ERP system and its capabilities.

Implementation Methodology: External partners bring proven methodologies, processes, experience, tools, and frameworks for ERP implementation, honed through countless successful projects. By leveraging their implementation expertise, you can accelerate the implementation timeline, mitigate risks, and optimize project outcomes.

Resource Scalability: ERP implementation projects often require additional resources and expertise beyond what your internal team can provide. External partners offer scalability, allowing you to augment your internal team with additional resources as needed, whether it’s project managers, technical consultants, or change management experts.

The role of an external implementation partner like us in an ERP project is multifaceted, encompassing a range of responsibilities aimed at ensuring the successful planning, execution, and optimization of the ERP system. Our approach to your ERP implementation is tailored to your unique needs and goals. Also, let’s take a look at the key roles and responsibilities of an external implementation partner:

ERP Expertise and Consultation: The external implementation partner serves as a trusted advisor, providing expert guidance and consultation throughout the ERP implementation process. They offer insights into best practices, industry standards, and emerging trends in ERP technology, helping to shape the strategic direction of the project.

Requirements Gathering and Analysis: The implementation partner plays a crucial role in gathering and analyzing business requirements, working closely with stakeholders to understand their needs, objectives, and pain points. By conducting thorough requirements analysis, they ensure that the ERP solution aligns closely with the organization’s goals and priorities.

Solution Design and Customization: Based on the gathered requirements, the implementation partner collaborates with the internal ERP team to design and customize the ERP solution to meet the organization’s specific needs. This may involve configuring system settings, developing custom workflows, and integrating third-party applications to enhance functionality and usability.

System Configuration and Setup: The implementation partner is responsible for configuring the ERP system according to the organization’s requirements and specifications. This includes setting up user roles and permissions, defining data structures and hierarchies, and configuring modules and features to support business processes.

Data Migration and Integration: One of the critical tasks of the implementation partner is to manage data migration from legacy systems to the new ERP system. They develop data migration strategies, map data fields, cleanse and validate data, and execute data migration processes to ensure the accuracy and integrity of data in the new system. Additionally, they oversee integration with other systems and applications to enable seamless data exchange and interoperability.

Training and Change Management: The implementation partner provides training and support to end-users to ensure smooth adoption of the new ERP system. They develop training materials, conduct training sessions, and provide ongoing support to address user questions and concerns. Additionally, they assist in change management activities, helping to manage resistance to change and foster a culture of acceptance and adoption.

Project Management and Governance: The implementation partner takes on project management responsibilities, overseeing the planning, execution, and monitoring of the ERP implementation project. They establish project timelines, allocate resources, track progress, and manage risks and issues to ensure that the project stays on schedule and within budget. Additionally, they facilitate stakeholder communication and governance processes to keep all parties informed and aligned throughout the project lifecycle.

Optimization and Continuous Improvement: Beyond the initial implementation, the external partner continues to provide support and guidance to optimize and enhance the ERP system over time. They conduct post-implementation reviews, identify areas for improvement, and recommend enhancements to maximize the value and effectiveness of the ERP solution.

In summary, having both an internal ERP team and an external implementation partner enhances the effectiveness, efficiency, and success of ERP implementation. Their combined expertise, collaborative approach, resource optimization, knowledge transfer, and risk mitigation capabilities contribute to a seamless and impactful transformation of your organization’s processes and systems.