Based on the latest statistics, approximately 50% of companies are either acquiring, upgrading, or planning to update their ERP systems soon. This trend stems from various factors, including organizational expansion or the need to replace an outdated or legacy system. As a result, it is very common for a business to opt for a change to their ERP software to better align with their evolving needs and technological advancements.

This is an extremely daunting task. It involves hours of selection and review, extensive software demos, and should also require a thorough documenting of requirements.  In addition to that, based on the size of the organization, an ERP implementation including migration, customizations, testing, training, and cutover typically takes from 6 months to 1 year.  It requires an enormous commitment from the company since it requires that their staff not only stay current on their current workload, but also carve out time to focus on this as well.  Then there is the financial investment.  In addition to the software costs, the general rule of thumb is that consulting costs will run anywhere from 1-2 times the cost of the software.

It’s a secret that many ERP consultants don’t want to admit to, but according to statistics, 55-75% of new ERP implementations actually fail.  Some of this is due to the company underestimating the level of commitment in both time and money this requires.  In other situations, it is due to the skill set of their existing staff that are not up to the task of taking on a more complex system, even though in the end it will result in a much more streamlined and efficient process.  However, it is also an unfortunate fact that many times these failed implementations are a direct result of the ERP consultant not having an effective plan.  Even with the best of intentions, an effective plan can only be developed after years of experience in dealing with migrations and constantly learning from and improving their processes.

Top Reasons ERP Implementations fail:

  1. Poor Software fit/inaccurate requirements
  2. Leadership not committed
  3. Insufficient Team Resources
  4. Rushing project
  5. Lack of thorough requirements gathering and definition
  6. Lack of accountability
  7. Lack of investment in change management
  8. Insufficient Training/support
  9. Insufficient Funding
  10. Insufficient review of existing data/cleansing
  11. Insistence on making ERP look like legacy
  12. Lack of Testing

Seamless Transformations: Our Proven Path to ERP Migration Success

SOS Consulting Services has successfully migrated hundreds of clients for over 2 decades.  These represent companies in many different industries, sizes, and skill sets.  So how do we buck the statistical average of over 50% failure rate?  The answer is that we have developed (and are constantly improving on) a tested and proven method to ensure successful migrations for our clients.  As a result, unless a client has determined that due to budget cuts, changes in staffing availability, or other unforeseen major events, they need to pull away from a migration, we have never had a failed migration.

Our method involves several factors to ensure a successful migration.   Listed below are our key tasks, objectives and goals when planning a migration for our clients:

  • Confirm “right fit” – Not every client/consultant relationship is destined to work. There are situations where either the consultant or client’s expectations do not align.  Not every consultant is perfect for every client.  We have learned that it is better to walk away from a potential engagement, rather than ignore the warning signs and run the risk of a failed implementation.
  • Document, document, document – When it comes to an implementation, the phrase “ the devil is in the details” is absolutely correct. It is our job to dig deep by asking the right questions and fully understanding each client’s industry and unique needs.  To accomplish this, we focus on the following:
    • Documenting Workflow
    • Detailed Narrative – current versus proposed processes
    • Interview key staff
    • Fully understanding the clients “Procure to Pay” and “Order to Cash” processes
  • Detailed Project plan – At this stage we take the above documentation and break it down into detailed steps. This includes the following:
    • Tasks are grouped by module and specific tasks
      • Detail client/consultant responsibility
    • The project plan is then made available online and interactive for all team members
    • Determine go live date and work “backwards” to determine timeline for project
    • Identify client contacts/project leaders by areas of responsibility
  • Weekly update meetings – Weekly project update meetings keep the project on target, identify issues and answer any questions that arise throughout the entire migration process from testing and training through go live cut-over.
  • Create “sandbox” environment – This allows us to migrate data and configure the ERP software that will be used for testing and training
  • Testing/Training – meet the client at “their” skill-set/level – Testing and training is where a hands on review and testing occurs. It allows the client to work through processing transactions with our guidance and identify required changes to configuration and/or workflow.  We always stay focused on the company staff’s skill level and cater to their level and experience with ERP software.
  • Be flexible to changes – that’s life – Unforeseen events always come up in every migration. Our goal is to document and account for as much as possible with the understanding that changes and adjustments will occur and be able to respond quickly to those required changes.
  • Identify potential “critical changes” – Some changes are simple configuration changes. However, we are always looking out for situations where during the test migration, testing, and training represent a critical or fundamental change in how your ERP is being configured.  It is not uncommon for these situations to occur even with the most thorough documentation and preparation.  But when they do, we identify them and discuss options and alternatives to accommodate those requirements.

I firmly believe that even if a company selects the best ERP solution for their needs, that is only 50% of the equation.  The other 50% is achieved by selecting an experienced firm that has a proven track record in successful implementations.  If you are considering upgrading to a world class ERP solution, we would be happy to meet and discuss your ERP requirements and show you how SOS Consulting Services can ensure a successful migration and fully leverage your technology investment.

 

By: Vito Evko

Managing Partner of SOS Consulting Services

Tagged: Choosing the next ERP
SOS
mattevko
Consultant · SOS Consulting Services
The SOS team brings decades of ERP implementation experience across Acumatica, Sage Intacct, Sage 300, and Sage HRMS.
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