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Rigorous Strategic ERP Procurement

high value outcome

The majority of ERP projects “fail to deliver what was promised”.  Things start to go awry during the procurement process.  The JAR&A ERP doctor team offer a high impact procurement process that starts the project off on the right footing:

1. Construction is rigorous — generally, when one embarks on a construction or other engineering project one expects a successful outcome. One of the reasons for this is that the deliverable is designed literally to the last nut and bolt and the procurement process to appoint the contractor is extremely rigorous.  The award of the work to the successful contractor is backed up by a rigorous and legally enforceable contract with severe penalties for non-performance.

 

2. Most ERP projects fail to deliver what was promised — the majority of ERP projects on the other hand fail to deliver! Search on Google for “percentage of erp projects that fail” and you will encounter a statistic of 75% or more ERP projects fail.  For example:

 

According to Gartner, ERP implementations failure rates can exceed 75%. Meanwhile, global consultancy McKinsey estimates that more than 70% of all digital transformations fail.

Search on Google for “ERP project failure” or similar

 

3. Many projects end up in Court — search on Google for “percentage of ERP projects that end up in court” for a further insight.

 

4. One sided contracts that favour the implementer — in most cases clients sign a contract provided by the implementer which is totally one-sided and protects the implementer at the expense of the client.

5. Engineering approach — the ERP Doctor, with a background in Civil Engineering, and knowledge of the approach to tendering for contractors to do the work and then contracting with those contractors has developed a robust approach to the procurement of ERP and other business information systems which includes:

 

a. Strategic discovery — high level executive strategic discovery of the requirement.

 

b. Comprehensive RFP — comprehensive Request for Proposal document that draws on the ERP Doctors’ experience over three decades of what works and what does not work and how to contract against the factors that cause failure.

 

c. Certificates — certificate based approval approach – key team members sign off on accountability for delivery.

 

d. Clear requirements — comprehensive and clear specification of requirements and deliverables.

 

e. Robust tender — robust tender process in terms of which a range of implementation providers bid for the work against a comprehensive set of documentation.

 

f. Robust contracting — robust contracting including strong negotiations.

 

g. Strategic project leadership — strategic ERP Project Leadership by the ERP Doctor, see one pager of this name.

 

h. Precision configuration — includes strategic precision configuration.

 

i. High value outcome — this approach ensures that a high strategic value outcome is achieved.

 

We look forward to assisting your organization to select the most suitable ERP or other IT system and the most suitable implementer in order to achieve a high-value ERP implementation.