By Mike Hart
In my last post I explained why ERP implementation costs can be ruinous to a small business and how those costs escalate as various services inevitably get added to the implementation project.
Why is ERP Implementation so Costly for Small Business?
The case for self-implementation
There is an alternative to costly ERP implementation – it’s called self-implementation and it eliminates implementation costs altogether. Doing it yourself may not seem possible in view of ERP complexity, but keep in mind that all ERP systems are not equal and there is an alternative to the high cost of implementation services.
Self-implementation is a proven alternative
My company’s software package, DBA Manufacturing, is designed for small businesses and for self-implementation. We’ve been refining our self-implementation model over the past 25 years and find it to be superior to consultant-based implementation, not only in cost, but in overall effectiveness.
How self-implementation works
In a nutshell self-implementation consist of a series of tasks that are performed in sequential order leading up to a startup day when you cease operating in the old system and begin manufacturing exclusively in the new system.
The startup wizard provides formal guidance
A startup wizard guides you through the implementation tasks. Each task is documented with text and videos and is closed out on completion, which opens up the next task.
Sequential tasks create a “building block” effect
Completing the wizard tasks in sequential order creates a “building block” effect where each task builds on what was set up and learned in previous tasks. By the time your team gets to system startup day, they will be thoroughly prepared and confident to deploy all workflow processes.
No accounting conversion makes it possible
DBA Manufacturing is an ERP alternative because it can be used with any outside accounting system and does not require an accounting conversion. This greatly simplifies the scope of implementation and makes self-implementation possible. You can focus exclusively on manufacturing and sales orders without experiencing any disruption to the financial side of your business.
Master tables are imported
Your major master tables – customers, suppliers, items, prices, and bills of material – will be imported from spreadsheets using a simple data import utility that can easily be used without the aid of a consultant.
Self-implementation is augmented with support
Self-implementation does not mean that you are totally left to your own devices. If any particular task is not fully understood, support is provided as needed.
The training phase prepares users for startup day
During the training phase users are provided with training videos and training tasks to be performed in the sample company so that they are prepared for system startup day.
Startup day is when you activate the system
The manufacturing system is inventory-driven and therefore can’t be implemented in a partial or incremental fashion. A clean startup day is essential so that all inventory-related processes are deployed at once. On system startup day your team will import initial stock quantities, enter open sales orders, purchase orders, and jobs, and zero out inventory in your old system.
No outsider can know your products and processes
Most implementation tasks require intimate knowledge of your products, processes, and work centers and are not tasks that can be done for you by an outsider. This lack of knowledge is the inherent flaw with consultant-based implementation and it can cost a lot of money to educate an outsider on your products and processes.
Direct implementation costs are literally zero
With the self-implementation model your direct implementation costs are literally zero. The only costs you will incur are the indirect costs associated with the time and effort that get applied to the implementation project.
No matter the model, implementation success rests on you
Whether you use the self-implementation model described in this post or the traditional consultant-based model, implementation success rests on you. It is not something that can be farmed out because your people must be fully involved and appropriate effort must be applied or else startup day will never happen.
So before you go down the consultant path and incur massive implementation costs, I urge you to consider self-implementation as the more effective path for a small business.
Recommended Video:
DBA Manufacturing - Startup Wizard Overview
Mike Hart is the co-founder of DBA Software Inc., a leading provider of manufacturing software for small business.
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