Management of the implementation PROJECT of my ERP D365
Considering the implementation of the ERP D365 is perhaps one of the most important decisions that the management of a company has to make.
At Dynamics Square, as a Dynamics 365 Partner , we have participated in several Dynamics AX and D365 implementation projects and we have found it interesting to share certain aspects of what an implementation entails in a company. The selection of the ERP is as important as the selection of the consultancy that is going to implement it. In this article when we talk about the ERP D365, we refer to any of these three versions of Dynamics 365:
- D365 Finance
- Dynamics 365 Supply Chain Management
- Microsoft Retail, Business Central
Make the leap to ERP D365
There comes a time in companies when management considers the jump to an ERP in order to integrate all its processes in the same environment . In the beginning of any business, you start using free solutions. Free apps have their limitations. You begin to pay for higher versions that do not allow us customizations. In most cases, several programs or databases are used for business management. We find duplication of information, manual data copy processes, specific developments to integrate information from one program to another. Excels multiply and so do errors. In no case do we see a clean process where information flows from the beginning to the end in the same tool.
The ERPs of the D365 family offer the best solution to solve this problem. Its full integration with the best-known office automation tools such as Outlook and Office facilitate the transition and acclimatization times for users. Microsoft is the only manufacturer to offer a complete, unified solution. The ERP D365 not only offers a solution for the current moment of the company but also a platform that allows it to grow . The end customer has all the ERP modules at his disposal and can use them at any time. Your IT system doesn’t stop your business, it helps you grow.
How to select the consultancy that will implement the ERP
One of the questions that many potential clients ask us is if we have experience in their particular sector. Curiously, for ERP consultancies , it is perhaps one of the least relevant points. Knowledge of ERP and experience in various implementations are more important. In fact, when we want to add a member to our programmer consultant/analyst team, we value involvement in various projects within the Dynamics AX or D365 environment more than professional dedication in a specific sector.
The fact of having participated in a wide variety of projects gives the consultancy a broader vision when looking for solutions and has a deeper understanding of the standard ERP processes.
The university education of the employees of the ERP implementation consultancy is another factor that should not be underestimated. It is important to ask the consultant who will be assigned to the project and make sure that they have adequate academic training for the project. At Dynamics Square we monitor this last point. The entire staff has an engineering or computer training, reinforced in some cases by an MBA.
Our first piece of advice is to look for a computer consultancy specialized in the world of ERP Dynamics AX or D365 . The ERP sector is particular. In addition to knowing the technology, it requires knowledge: financial, logistics, production, project management, service management, etc. Not all companies in the computer sector dominate these issues. Many have more knowledge of computer systems (hardware) than business management programs.
Cost of implementing the ERP D365
All the companies that contact us want to know what the ERP implementation costs . Even before providing us with any information… We are going to guide you on the different sections to take into account in the evaluation of the project. Consulting pricing is just one of these elements.
licenses
It is the cost of the EPR licenses. It is marked by the manufacturer, in this case Microsoft. The cost of D365 is public (you can check the manufacturer’s website). D365 Finance, Supply Chain Management and Retail require the client to contract 20 monthly users to open an account. We are not going to go into more details, but it boils down to multiplying the price of the licenses by the number of users. User licenses are assigned like Office 365 licenses . The advantage of the D365 solution is that all the cost and management of the Cloud infrastructure necessary for the operation of the ERP is included in the monthly cost of the licenses. Dynamics Square advises them and always optimizes the cost of licensing.
Preanalysis
In order to obtain a realistic assessment of the global cost of implementing the ERP D365 , Dynamics Square recommends carrying out a preliminary analysis. It is curious how this concept is very well established in the construction sector (before the project) and seems non-existent in the computer sector. It does not occur to anyone to say to an architect: make me the plans of my house without telling him what is expected.
We recommend contracting the pre-analysis to the ERP consultancy with whom you have more confidence. The contracting of this service does not exempt the realization of an internal work of preparation of the client. Dynamics Square will provide you with knowledge of the latest existing technological solutions. The document produced serves to define a framework and details the main points of the project. Too much information about the processes is never delivered. The more details we provide to the ERP consultancy, the more detailed it can give us the assessment of the project and the better it can advise us.
ERP consulting cost
Once our pre-analysis has been carried out, the consultancy is asked to assess the project in as much detail as possible. A well-detailed offer makes it possible to understand the entire implementation process and in some way see if the cost can be optimized. If Dynamics Square has all the necessary information for the project, it will be able to make a more adjusted offer. Like everything in this life, time is money. The more complex the project, the more customization, the higher the cost.
Internal cost of ERP implementation
A successful implementation of an ERP cannot be done without the participation of an internal resource that leads the project (in many cases the task falls to the IT department). In addition to having a project manager, select key resources in each department who have extensive knowledge of the business. It is the duty of Dynamics Square to inform the client of the time that each of the internal resources involved in the project will have to dedicate. We can go so far as to advise freeing internal resources from some of your tasks to dedicate part of your time to the implementation of the ERP. So don’t discount the time your team will spend on the project in your cost estimate.
Cost of migrating historical data
Migrating the historical data of a client takes time, so it has a cost. When the client is asked how many years ago and what data they need, they usually answer us all. How many times is tax information that is more than five years old consulted? Do I really need to import a customer’s fax or telex number? Is my historical data reliable?
It is important to select the data to migrate and not waste time correcting data that will not be used later. We have found certain consultancies that directly do not migrate data. We don’t think it’s the right thing either. For our part, we advise 10 years ago . Quite a lot of work will be required for the client to review the data of 10 years, especially if they have it in different databases. There are several low-cost solutions to access your historical data without maintaining all of your current infrastructure. There is no need to load your new data system that will hardly be used.
hardware cost
Today, the implementation of a new ERP does not imply a major change in the company’s hardware . With the D365 solution entirely in the Cloud, there is no need to invest in local infrastructure. If users’ computers aren’t on Windows 10 and they’re still using square screens, perhaps an investment in equipment is in order. A good check of your network cabling and internet connection will be more beneficial.
User training cost
As the “user training” section is usually at the end of the budget, it seems that it favors its reduction. It is as if reaching this part of the project, there was no money left. User training is discounted , regardless of whether the company is public or private and its number of employees. Your HR department can help you take advantage of these bonuses in order to get this item out of your budget.
The training must be carried out in the workplace , by department and with groups of between 10 and 15 people maximum. In our opinion, it is more productive that it is taught by a member of the consultancy than by an employee of the company. Employee questions will focus more on ERP operations and less on personal issues.
Reduce cost with a grant for the implementation of the ERP
One way to reduce the economic impact of the implementation of the ERP D365 is to seek subsidies or tax benefits available for investments in Information Technology. As an example this year: Call for the granting of financial support for R&D&i projects in the field of Connected Industry 4.0 in 2020 . In fact, there are companies in the financial sector specialized in helping companies process these subsidies. The cost of the service is usually a % of the amount obtained or of the tax deduction obtained.
Financing of the implementation of the ERP
Microsoft, in collaboration with a financial institution, offers a very agile financing model for any project that includes Microsoft products. This financing allows them to release the planned amount of the implementation of the ERP from their lines of credit with their usual bank. Dynamics Square can advise you on obtaining this financing.
IMPLEMENTATION TIME OF ERP D365
The implementation or migration time to the ERP D365 may vary depending on multiple factors (not always in this order):
- Availability of consultancy resources
- Availability of internal resources (travel, commercial and route always)
- Data source
- Customizations (gaps to cover)
- Impact on the organization of the company (change in job definitions)
- Staff predisposition to changes
- Proximity of the different work centers
One of the factors that we have the most difficulty in measuring is the impact on the workforce. Technological change makes it possible to optimize the organization’s operational circuits and some members of the team see their jobs in danger. We all know what it takes to form a team at work. It is important that the internal resources involved in the project review the impact of the improvements provided by the ERP and take advantage of these improvements to reorganize their teams and grow the business.
That said, how many months are we talking about? Taking into account the points previously listed , you must have a minimum of six months . A project should not take more than a year and a half to complete. We leave aside multinational projects with thousands of employees on several continents. The evaluation of time in these cases is measured with other parameters.
SELECT THE DAY OF MIGRATION
We find that several clients initially ask us for the final milestone of the project to be January 1, or the day they close their fiscal year (such as June 30, for example).
It is not productive to shorten or lengthen a project with the sole purpose of starting the new year with the new ERP. Within the ERP D365, the financial department will be able to draw its balances with all the data for the current year without having to resort to the old system.
In our case we always look for a weekend at the end of the month to do the go-live. It is almost more an image theme than a technological theme. Users start a new month with a new system .
OBSTACLES TO THE PROJECT
We cannot pretend to talk about how an EPR implementation project is managed without talking about the obstacles that we can find. Although some of the difficulties that we are going to list will seem obvious. Seeing them written will not be able to help in the preparation of the migration project. Things are rarely black or white. The faults are not always on the same side.
Good team selection
It is essential that internal resources have knowledge and authority over the users who owe them. They must be able to evaluate all the requests that come from users and focus only on those that add value. They must also know how to overcome users’ reluctance to change. In the same way, the consulting team must know how to say yes or no to the client in order to optimize the execution of the project.
Have adequate physical means
Although the hardware requirements are minimal in the implementation of the ERP D365. You have to make sure that everything works. Such as points of connection to the network. It is important to enable a space for team work in the same company if possible. Avoid distractions while the team is meeting.
Postpone start dates multiple times
When we make a Gantt chart with the planning of the project, we remember that the paper waters everything. It is very important to set realistic and agreed objectives from the beginning. It is better to postpone another month than to change the date again two or three times.
Not considering the impact on HR.
If the optimization of the processes clearly reveals a reorganization of the human teams. Officially finish the project
It is important that a date is marked as the end of the project . There may be a list of pending issues. In this case, you have to detail and set resolution dates. Managing the end of the project is almost as important as the beginning. The consultancy must accompany the client in this process.
When we get to this point, it is advisable to make a full stop. New needs will arise. The client can decide to integrate other companies in his new ERP. Add new functionalities that he did not know or simply further integrate the ERP with production, for example.
It is essential to consider these points as new projects. To avoid any confusion, the consultancy must inform the client of the cost of each of the improvements. And help classify them according to cost/effort/result.
