The Role of Consultants in the ERP Search Process
By Katie Foley
Choosing an ERP system, for the first time or to replace an existing system, is a huge undertaking. Finding the right ERP solution for your business is imperative for long-term success. One of the first questions that comes up in the ERP selection process is, "should we use an ERP consultant or manage the process ourselves?"
There is no correct answer to this question - in this blog post we will dive into some of the pros and cons of working with a consultant and going it alone so you can figure out what the best fit is for your business.
Option #1: Manage the Process Yourself
Pros:
- Lower Cost. There's a lower upfront cost when you utilize your internal resources to manage an ERP search process as consultant fees can run high.
- Deep Knowledge of Business Processes. Nobody knows your business better than you do. An in-house resource knows the ins and outs of the business as well as the key players involved. This may be helpful getting 'buy in' from senior leadership.
Cons:
- Strain on Internal Resources. While there may be a lower upfront cost to using your own team members to conduct an ERP search since they are already on the payroll, the search may also be a distraction from your team's day-to-day responsibilities. If you're team is already overloaded, hiring an outside consultant may be worth the investment to keep your business running smoothly.
- Potential Bias. With internal resources or an outside ERP consultant there is always a risk for bias. You may have a department head that is prioritizing his department need's over the overall needs of the business or you may have a team member who has experience with an ERP system at a previous role and may want to pursue that ERP system more heavily.
Option #2: Hire an ERP Consultant
Pros:
- Experience. Look for an ERP consultant that has many years of experience in ERP searches and implementations. They've probably seen it all and know what works and what doesn't when it comes to an ERP search.
- Expertise. While you're team may have deep knowledge of your business, an outside ERP consultant has deep knowledge of the ERP industry. They know what's out in terms of ERP solutions and functionality. An outside consultant may also be helpful as a neutral party to evaluate your business processes and spot weaknesses during your ERP project.
Cons:
- Higher Cost. ERP consultants come with years of experience and unique expertise, but this also comes at a cost. Your company needs to be willing to make an upfront investment in consulting fees if you choose to go the ERP consultant route.
- Potential Bias. Just like internal team members may have potential bias, outside consultants can also be biased from working with vendors over many years. Consultants might develop a favorite and push clients more heavily towards that vendor. The key is look for an 'independent' consultant that doesn't have any financial relationship with an ERP vendor to ensure that you are getting unbiased advice.
Blended Approach
As with anything there isn't a one-size-fits-all solution. Your decision will depend on a number of factors including internal resources and overall bandwidth, budget, timeline, and complexity of business requirements.
You can also develop a custom blended approach based on these factors listed above. A blended approach allows you to combine the best of your internal resources and the expertise and experience of a professional. This is great for a company that has some ERP knowledge and is budget conscious.
To learn more about Visibility's modern ERP solution, click here to setup a free demo.