Going the wrong way can be very expensive

I recently saw a video about the top 10 SAP implementation failure stories.

Unfortunately, this happens more often than I would have liked. I don’t think SAP is to blame for this; indeed, I think it was a mutual lack of foresight. We all have an interest in improving confidence in IT projects. And we have to do that together, both the buyer and the supplier.

In the metal world

In our industry, we often find that amounts of €100,000 or more are the rule rather than the exception when it comes to creating a custom web portal or full ERP with CAM implementation.

You expect positive results from such an investment, just like when you buy machinery: it does what the requirements demand and works within a reasonable period of time.

However, there is a special risk to software: it is transformative in the organization.

Machines work linearly, software works dynamically.

Because it has such a big impact, it must be clear exactly what the purpose and requirements are. And these are often difficult to determine internally because it is not clear exactly what is a requirement, a desire or an opportunity. It is also difficult to determine what works and does not work (best practices).

If this step is skipped, the final result may not meet the requirements. Or perhaps it would have been better to have another combination of systems at a fraction of the cost. Or the other way around: a standard solution was chosen, whereas customization was needed from the beginning.

Therefore, it is important to know what wisdom is.

Here is the point

A good plan in advance prevents major headaches and costs.

Suppose you have a budget of 100K available for the entire project. And let’s say you set aside 10% of that to make a solid plan. What is the probability that some or all of the remaining 90K would be wasted if you did not do this plan?

In other words, you only need to save them 10K in time/costs/budget to make such an initial investment profitable. That’s about 100 hours (2.5 work weeks) of man-hours over the life of the project.

That’s why I start every project with a solid plan. I never advise or execute without analysis.

Do you have questions about your project? Let’s talk about it without obligation.

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