It turns out that companies are better off when they negotiate shorter implementation period than substantial discount. Want to know why? Read on our blog!
Today we continue our guest series by Guus Krabbenborg with the article concerning “Contracting” phase which offers a very unique insight for would-be Dynamics NAV customers.
Better short than discount
Companies that buy ERP-systems make more money on a short implementation period compared to large discounts on implementation services. Nevertheless, a lot of companies still concentrate on getting their discounts! So, time for a change!
During an ERP-implementation companies have to deal with extra costs. Key-users are (partly) taken out of their function. As a result your core processes are under pressure. And you have to hire extra capacity in order to continue the regular work. By that, there is double costs of maintenance and system management on both hard- and software for the old and the new system. And finally the absence due to illness because of the stress is higher than normally.
You thus would expect companies to do their utmost to keep this period as short as possible. But that’s not what happens! When the implementation runs, speed has no priority at all. Even worse, the operational use of the new system is postponed for months without hesitation. Or lifted over the holiday periods. Meanwhile the double cost goes on!
ERP-suppliers can help you shorten your implementation period. So that you get a sooner return on your investment. But therefore you need a different attitude in the negotiations! Don’t ask for discounts on services, because then you might get junior consultants. There is a quick return on the higher fees of senior consultants as they can prevent a delay in the start of the operational use. Ask your vendor not to pay your discounts in cash but in extra consultancy days. It will give your project a quality impulse! And offer your supplier an extra fee for every week the implementation is finished ahead of the planning.
The purchase of implementation services is not about the lowest price. It’s about the impact on the length of the implementation period. And remember, the irritation on the long implementation period goes on and on as you’ve already forgotten about the pleasure of the low price!