Tuesday, July 23, 2013

Successful ERP Installs Begin with Finding Resources

Where have all the resources gone?  When searching for Lawson/Infor ERP resources you may find it more difficult than in years past.  There are some key variables to why this has taken place.

1.  Resources have gotten older.  Many of the Lawson/Infor resources have aged to the point of retirement, thus are no longer available to assist on new implementations or optimization efforts. The amount of training providing to younger resources has also diminished, which has provided for an aging resource pool.

2. Resources have gotten spoiled to technology.  Technology has made it easier to do a lot of things, including business consulting.  Consulting resources have started to utilize technology to aid their functionality. By using webex, video conferencing, and remote desktop connections, consultants are able to assist clients from virtually anywhere.  Consultants like this, because they don't have to travel and they can also assist several clients at once. Unfortunately, virtual consulting doesn't compare to an on-site presence of a business consultant.  As a client, it's much harder to garner a consultant's value when they are not physically in project meetings etc, so they tend to up up disillusioned to the consultant's true value. However, more and more consultants are erring on the side of remote support, thus they are harder to lock down, if on-site assistance is needed.

3. Resources have simply gotten tired of traveling.  Many have taken a pay cut and stepped down into FTE positions.  They find it easier to maintain a family life and utilize their skills.

4. Resources became cautious about Infor acquisition.  Many resources decided to move into another career path during the uncertainty that took place during the Lawson acquisition by Infor.  They either moved to another ERP product (ie PeopleSoft, McKesson, MS Dynamics, etc) or stepped out of the industry entirely.

Resources have gotten less abundant in the Infor/Lawson ERP space, but there are still candidates with a lot of talent to be had.  You just have to be patient.

Thursday, July 18, 2013

Successful ERP Installs Begin with Questioning the Market

Has the ERP market matured?  Yes.  Is there still a need for ERP services? Yes. 

While many companies have been able to stabilize their environment, many firms had installs that weren't set-up in an ideal/best-practices manner.  These client's limp along performing processes, many times less efficiently than prior to installing their ERP system (i.e. cutting manual checks, ordering of POs that aren't linked to the system, not tracking ALL items in inventory, mismanaging employees comp time, etc).  Many of these clients could benefit from an optimization effort, or re-implementation, but see it to be a waste of money/time. 

Clients are live already on their current product, so why bother re-implementing?   To save time, money, and earn the ROI they had originally expected.

The bottom line is that the ERP services industry has been profitable.  This profitability has created a surge of providers who aren't client focused.  Instead they are focused on $$$$$ for their firms, not the client. Bigger, more well known, and more expensive doesn't always equate better. 

For Example:

The resource complement for a big firm's Implementation/Re-Implementation generally looks as follows:
  • 1 Project Director
  • 1 Project Manager Human Capital Management
  • 1 Project Manager Financials
  • 1 Project Manager Supply Chain
  • 1 Functional Lead Human Capital Management
  • 1 Functional Lead Financials
  • 1 Functional Lead Supply Chain Management
  • 2 Technical Leads (1 DBA, 1 Programmer)
  • 2 Specialty Consultants (Talent Management, Grants Management, Installers etc)
Total: approx 11

vs

Smaller Firms:
  • 1 Project Director/Manager
  • 1 Functional Lead Human Capital Management
  • 1 Functional Lead Financials
  • 1 Functional Lead Supply Chain Management
  • 2 Technical Leads (1 DBA, 1 Programmer)
  • 1 Specialty Consultant (as/if needed)
Total: approx 5-6

Smaller firms utilize a resource complement of roughly half of what a big firm provides. Clients are sold on the idea that more hands on deck is a good thing, but what happens is that the consultants tend to do more of the work. Instead of having the clients internal staff learning and understanding the product throughout the installation process (which as allows for a smoother running system going forward, and less need for future consulting). 


When considering a re-implementation/optimization effort, remember that the more invested effort and buy-in on the client side is ideal.  This will allow for a greater probability of success going forward.