How to reduce ERP (Dynamics 365 Finance and Operations) Implementation Cost
The Strategic Role of a Client-Hired Project Management Consultant: Implementing an ERP system takes time and money. While third-party integrators offer expertise, they can be costly. Having a client-side project manager helps lower costs by handling key preparation tasks. This reduces reliance on integrators, keeps the project on track, and increases the chance of finishing on time, within scope and budget.
Implementing Microsoft Dynamics 365 Finance and Operations ERP involves meticulously defining scope, adhering to a realistic timeline, and rigorously managing costs to ensure a successful deployment and optimal resource utilization.
The Financial Impact: Let’s break down the potential cost savings using a detailed example.
Consider the typical allocation of hours and costs for an ERP implementation project: Rough estimate created for one of the clients and saved significant ERP Implementation cost.
Benefit Analysis: System Integrator vs. Client-Hired PM Consultant
The Financial Impact: Let’s break down the potential cost savings using a detailed example.
Consider the typical allocation of hours and costs for an ERP implementation project: Rough estimate created for one of the clients and saved significant ERP Implementation cost.
Benefit Analysis: System Integrator vs. Client-Hired PM Consultant
Overall Estimated Savings
Strategic Preparation Activities
To achieve these savings, the client-hired project management consultant should focus on key preparation steps:
- Business Process Analysis: Analyze business processes to find automation opportunities, perform fit-gap analysis, and document workflows. Internal analysis can cut BPA hours by about 10%.
- Documents: Collect key documents such as Business flow diagrams, Workflows, purchase orders, Sales Orders, invoices, reports, labels, and shipping forms.
- Resource Identification: Assign the right resources and subject matter experts (SMEs) early. This helps reduce system integrator hours.
- ERP Tool Capabilities Review: Review the ERP system’s features to see how they fit business needs. This can lower the system integrator’s BPA effort.
- Project Management Optimization: Using an internal experienced PM consultant can cut System Integrators’ PM hours by around 10-15%% through better planning and tracking.
- Data Assessment and Cleansing: Review and clean existing data. This includes checking quality, standardizing formats, mapping fields, and fixing errors.
- Strategic Planning for Integration(s): Create a clear integration and migration plan. Assign resources, involve key stakeholders, and address risks to ensure smooth ERP implementation.
Benefits of Engaging a Client-Hired PM Consultant
- Cost Efficiency: As demonstrated in the financial analysis, engaging a client-hired PM consultant can lead to substantial cost savings, primarily by reducing the billable hours of high-cost system integrators.
- Better Control and Coordination: Having an internal consultant provides better control over the project timeline and deliverables. This individual understands the company’s culture and processes, which facilitates smoother coordination with the system integrator.
- Enhanced Knowledge Transfer: Internal consultants can ensure that knowledge is retained within the organization. They can train internal teams and maintain documentation, which is invaluable for ongoing system support and future upgrades.
- Improved Project Outcomes: With thorough preparation and clear documentation, the project is more likely to stay on schedule and within budget, leading to better overall outcomes.
Conclusion: Hiring a client-side project management consultant for ERP preparatory work yields substantial cost savings. It minimizes expenses and time spent on business analysis and project management, enhancing implementation efficiency. This strategy ensures better project control, knowledge transfer, and outcomes, optimizing third-party integrator involvement. Investing in a client-hired PM consultant pays off by streamlining the implementation process.