The eBook recently published by Strategic Systems Group (SSG) is an FAQ resource. It provides in-depth answers to “12 Frequently Asked Questions about Enterprise Resource Planning Systems” for manufacturers. In Chapter 6 we look at the case for Doing It Yourself (DIY) versus working with a consulting firm.
ERP Implementations: The PROs and CONs of Doing It Yourself (DIY)
There’s a certain appeal to DIY, especially relative to home improvement projects. But, if you’ve ever seen an episode of the TV show, In a Fix, you might think twice. Each episode features a team of professional construction workers who “rescue” homeowners from “do-it-yourself” renovation projects that have gone horribly wrong.
When it comes to ERP implementation projects, DIY may also have its allure. BUT, more often than not, it’s not a particularly good idea. We’ll take a look at the exceptions to the rule as well as the compelling reasons for engaging a team of professionals to do it for you.
You can download a complimentary copy of our eBook now, or just read on.
SSG has been implementing manufacturing ERP systems for 27 years. And in all those years, we’ve only come across one case of a company that successfully implemented a new ERP system on its own. They had the internal resources, the expertise, and most importantly, the time to do it. BUT, even in this case, it should be noted that the project took twice as long to complete versus the timeframe that would have been required had they engaged a professional consulting organization.
Now, let’s look at the top 3 compelling reasons for working with a consulting team to implement your new manufacturing ERP system.
The fact is that even if you have internal resources with the skills required for a successful ERP implementation, your internal resources are not generally available on a full-time basis. They have other jobs to do for your company. On the other hand, a consulting organization has a team dedicated full time to your project. That’s why, in most cases, a DIY implementation, on average, takes twice as long.
One factor that impacts the overall cost of an ERP implementation is the ROI (Return on Investment). The longer it takes to complete the implementation, the more costly it is. And the more costly it is, the longer it takes to achieve your ROI.
Internal resources, especially subject matter experts (SMEs), would need to be freed up to work on the new implementation. But these resources are generally working full-time, on average 45-50 a week. Let’s be generous and suppose that they could free up 5-10 hours a week to work on a new ERP implementation. That’s a mere fraction of the time that a dedicated consulting team would be working on your ERP implementation. If you take these internal resources off their paying jobs, you have to calculate the lost income into your Total Cost of Ownership (TCO). You’ll quickly realize that it’s not worth it!
To learn more about the advantages of engaging a professional consulting organization …
Download a complimentary copy of our eBook now.