It is not always easy to manage the implementation of NetSuite ERP for global organizations because of the underlying threat of project failure. Therefore, it is not unreasonable to think that Your Business cannot experience losses in implementing NetSuite ERP. Research done in 2018 shows that 28 percent of the organizations that implemented global NetSuite ERP failed. The risk continues to grow every day with the adoption of NetSuite ERP implementations for global organizations with time zone differences. However, this does not mean that Your Business cannot implement global NetSuite ERP successfully. Several techniques can be taken into consideration when creating a NetSuite ERP project plan and IT strategy. Here are six tips for a successful NetSuite ERP implementation:
1. Consider Reshaping Your Business Processes
You need to understand whether Your Business processes are required to be reconstructed in order to operate optimally on a global level before choosing a NetSuite ERP solution. Business process redesign is complicated, especially when every business reacts differently to different processes. For example, different countries have different tax structures. Some countries tax profit equally while other countries have a progressive tax rate on company dividends. Accounting is also an aspect that differs from country to country hence making standardization a challenge. As a result, you may have to engage with stakeholders across the countries which Your Business operates in order to solve country-to-country differences. The way you redesigned Your Business processes will determine the success or failure of global NetSuite ERP.
2. Have an Impeccable Rollout Plan
The manner in which you launch your NetSuite ERP solution in each location determines how manageable your operations can become. A well-crafted rollout allows you to handle any issues that could come up in small and manageable bits. You should always avoid a big bang approach where all modules and locations go live simultaneously, especially if you run a larger and more global enterprise.
But why is the “big bang” approach a more challenging technique?
Here is an example: A company, Hershey, rolled out global NetSuite ERP in the big bang way in 1999. The suggestions to roll out the global NetSuite ERP solution gradually within 48 months were overlooked. Rather, the company insisted on 30 months’ rollout. To make it worse, they would use three NetSuite ERP systems which increased the chances of failure. From errors in NetSuite ERP implementation, the company missed out $100 million in orders. Hershey has ended up being a modern example of failure in global NetSuite ERP implementation.
3. Be Discreet in Choosing Your NetSuite ERP Vendor
A careful Selection of a NetSuite ERP solution vendor could save a lot of your time and resources. However, It can also consume plenty of time and money especially when running a business with global needs. It is always essential to check whether the vendor of your global NetSuite ERP solution supports the global variables of your enterprise. More importantly, pay attention to items such as currency and regulatory issues.
4. Prepare Employees for Adoption of the Global NetSuite ERP
It is very typical for employees to resist change. At SCG (Seibert Consulting Group), we’ve created a system of organizational management to reduce organization resistance. Thus, Your Business will get a better adoption rate of your implemented NetSuite ERP system.
Standardization is a thorn in user adoption of a global NetSuite ERP solution in many enterprises. For instance, employees may want to keep off any new system with a format of new standards and credit management policies. Therefore, you must work with veterans who know how to neutralize organizational resistance to the new NetSuite ERP system.
5. Adequate Resource Allocation
Most companies’ leadership may look at global NetSuite ERP implementation as a complementary system and allocate few resources to it. This habit stifles the chances of getting the best out of a NetSuite ERP solution. Note, the installation of talented individuals in a project team results in a perfect alignment of a NetSuite ERP technology with your corporate strategy.
6. Create KPIs to Measure NetSuite ERP Success
Do not let Your Business fall into the population of those organizations that are so excited by the feature set of a global ERP like NetSuite instead of its real performance. Now that we’re talking about performance, how should you quantify the success or failure of a NetSuite ERP implementation?
For the adoption of your global NetSuite ERP, have some standardized metrics ready as you coordinate with the heads of departments to develop individual performance metrics for each unit of the company. Most importantly, ensure the metrics are clear and quantifiable at every step of implementation.
Finally, decide which metrics result in Your business’s growth and start monitoring them in order to know whether it is working or failing.
FAQs
Can my new ERP system coexist with an On-Premise ERP System?
Yes, your new ERP system can coexist with an existing On-Premise ERP System. It is crucial for businesses that have previously invested in on-premise ERP solutions to ensure that any new ERP system introduced for managing global expansion can work alongside the preexisting system. Transitioning all legacy data from the on-premise system to the new system instantaneously is often impractical. Implementing a two-tier approach allows companies to maintain their current systems while integrating more flexible, cloud-based global ERP capabilities for new subsidiaries and divisions. A well-designed solution should facilitate seamless coordination between the two ERP systems, ensuring smooth coexistence and minimal disruption to ongoing operations.
Will the ERP system be able to scale as my business grows?
The scalability of the ERP system determines its ability to adapt and support the expanding needs of your business as it grows. A centralized system that facilitates the creation of custom instances for each new business endeavor allows for swift implementation of business processes in various locations. Your ERP software must evolve in tandem with your business growth, offering support and flexibility without hindering its progress.
What kind of customisation can the ERP system provide?
The ERP system can provide various customizations such as support for multiple languages, currencies, and business-flow modifications. It should be able to accommodate global reporting requirements while ensuring consistent information and calculations across stakeholders using the same underlying database. The vendor of the ERP system should showcase successful implementations with these customizations to demonstrate its capabilities.
How much visibility will the system provide?
The system discussed can provide significant visibility into various aspects of business operations. By implementing a global ERP system, businesses can enhance visibility on multiple fronts, including financial consolidation, tax compliance, supply chain management, inventory control, customer relationship management, and invoicing. Standardizing processes through the system allows for more control over operations and enables greater visibility into these operations from the central office. Furthermore, the right system can offer the balance between standardization and flexibility, empowering businesses to streamline operations while still accommodating decentralization where needed. Ultimately, by choosing the appropriate system, businesses can significantly enhance visibility across different functions and processes within the organization.
What kind of financial consolidation will we need?
When considering the financial consolidation needed for a global ERP system, it is crucial for executives to evaluate how the system will align with the business model. The financial consolidation approach could involve utilizing a fully integrated model where all locations and subsidiaries operate on a single ERP system instance. Alternatively, a regional model may be adopted, where various regional businesses maintain separate systems and provide consolidated financial reports to the central office periodically for reconciliation. There is also the possibility of implementing a hybrid model that combines elements of both approaches.
It is important to note that the regional model, while offering some flexibility, can lead to inefficiencies and risks due to the proliferation of non-standard solutions across the organization. Manual data transfers between different local systems can result in errors, lost time, and decreased productivity. Therefore, a global ERP solution should possess the necessary flexibility to accommodate the specific expansion model that best suits the business, whether it involves geographic expansion, product line diversification, establishment of new subsidiaries, or the addition of new sales channels. Ultimately, the chosen financial consolidation strategy should support the business’s growth objectives and operational requirements effectively.
Conclusion
As you make plans to implement a global NetSuite ERP Solution for Your Business, it is good to consult a veteran NetSuite Solution Provider Partner. At Seibert Consulting Group, we ensure that your global NetSuite ERP solution is aligned with Your Business’ requirements. Contact us today at hello@seibertconsulting.com or 760-205-5251.
