Saturday, August 1, 2009

Why Do So Many ERP Projects Go Over Budget?

Why Do So Many ERP Projects Go Over Budget?
The most common reason accounting software implementation projects go over budget is because the Partner is spending time working on things not included in the original quote.This work is called out of scope.

Here are a few examples of how this can happen:
You see all the cool things the new system can do and find yourself a kid in a candy store saying, "wow , can we get it to do this too ? The answer is yes, but this request is beyond the scope of the original proposal

You were quoted 8 hours of training for the AP clerk. This AP clerk is slow to learn, or is replaced by a new person halfway thru the project. The Partner must spend additional training time that was not included in the original quote.

You have a report you require from the new system, but you didnt show it to the Partner in advance because you just assumed it would be included. It needs to be designed from scratch and this time wasnt included in the original quote.

A good ERP Partner will tell you in advance if work needs to be done that was not included in the original quote, and get your approval before moving forward.

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