ERP systems are designed to streamline business operations and improve efficiency, but what happens when an organisation’s requirements for the system become too complex?
In pursuit of a modernised, SaaS-based ERP system to take the place of its ageing SAP Enterprise Central Component (ECC) software, City, University of London embarked on the hunt for new software in February 2022.
The deal was estimated to be worth up to an immense £17 million ($20 million).
The university was looking to replace the current ERP and associated systems used by its finance, human resources (HR), payroll, and procurement units with a single, integrated solution and was also in search of a supplier who could provide, implement, and support the new software.
In its words, the institution said, “City is seeking a SaaS solution that will enable improved visibility of strategic information across the university for HR, payroll, finance, and procurement whilst improved usability and control will support our staff, students and partners.”
The objective was for the new system to support 100 users in HR, finance, payroll, and procurement, as well as an additional 2,200 employees throughout the organisation, in what was expected to be a 10-year agreement.
They brought in potential providers to compete for the contract, with City evaluating their software and services to see who could best meet their needs.
However, following a 10-month-long competition exercise, City University eventually abandoned the procurement of the system.
The reason? The 20,000-student tertiary institution simply failed to understand the complexity of its own requirements.
“During the procurement, it was realised our requirements were more complex than had originally been anticipated,” City said.
Intriguingly, it is noteworthy that the support deadline for the London-based university’s current ERP system (SAP version ECC6 EHP5) is approaching, as it is set to expire in 2027, although the option of obtaining limited extended maintenance until 2030 is available.
City’s situation is not unique. Some ERP initiatives face delays or termination due to excessive and intricate requirements.
How can you ensure your ERP project avoids such a fate?
Avoiding Requirement Complexity and Getting Your Project to Move Fast
Here are some tips to help you avoid the complexity of requirements and ensure that your ERP project moves forward smoothly:
- Conduct a thorough analysis of the current systems and processes to determine the scope of the project. City, University of London failed to properly scope the requirements before it began talking to suppliers.
- It’s okay to take all the time you need, but that’s only if you have the time. City realised the problem and went back to fix it, which is better than changing the scope after the project is well underway.
- Equally, you have to realise that it’s important to start on time. You don’t want to battle against time, especially if your current system is in its last stage of support.
- Involve stakeholders and decision-makers in the requirements-gathering process early enough to ensure their needs and concerns are addressed in time.
- Decide what you want to do on time. In City’s case, the university said, “The scope of our requirements changed, and we now envisage combining the exercise to replace the ERP system with a wider programme of IT modernisation rather than conducting separate exercises, which may lead to duplicated expense and challenges relating to interoperability.”
Looking to implement an ERP system?
It’s important to take the time upfront to clearly understand your requirements so that you can make sure your project moves forward smoothly.
FinanSys specialises in providing, implementing, and supporting powerful ERP systems such as Oracle NetSuite. With 25+ years of experience, we help global organisations overcome the challenges associated with business transformation. To learn more, contact us today.
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