Dynamics 365 Business Central Fixed-Fee Implementations

While many believe that moving their business to a modern ERP like Business Central can transform their company and prepare them for future growth, many shy away from taking the leap. Why?

One reason is the prevalence of ERP implementation projects that go way over budget. The cost can vary widely. On average, the cost of an ERP implementation for a small business can range from $10,000 to $100,000. It’s quite understandable that many would pause before taking such an expensive step.

Why is the cost so high and widely variable? After decades of ERP consulting and implementation, we have seen 2 primary reasons:

1. The project scope is not well-defined before starting work.
2. The initial project estimate is not accurate.

Let’s take a look at these two factors and see how they can be overcome in order to deliver a fixed-price project that makes both the buyer and the seller happy.

How Poorly Defined Scope Affects a Business Central Implementation

So, what is project scope? Basically, it’s the definition of what the buyer expects to receive and what the vendor intends to deliver. For example, the scope could include new manufacturing features as well as a streamlined month-end invoicing cycle that reduces the time from 30 days to only 7 from month-end. Of course, a real-world example would include many more features and benefits.

For a project to be successful and remain on budget, the scope must be limited. As a project progresses, often the customer becomes aware of new features or wants to change direction on a few points. The time and effort required to make those changes are what can drive the cost of an implementation to be much higher than expected. That’s why it’s vital that your company’s executives, managers, and users be on the same page, and why some improvements must wait until a later phase to be implemented.

The Hidden Struggle That Drives Inaccurate Business Central Implementation Estimates

A vendor’s sales representative is in a very difficult position. The client wants a system delivered with maximum capability for a minimal investment. At the same time, the partner’s implementation team wants the project’s budget to cover the unknown surprises—including customer changes—that can arise along the way.

The salesperson is trying to please both sides, but that often leads to misunderstandings. One method that is often employed to deal with the unexpected is to bill for their time by the hour. This protects the vendor from going into the negative but doesn’t usually result in a happy customer. It’s an approach fraught with problems.

Are Fixed-Fee Projects for Dynamics 365 a Realistic Alternative?

For large companies with complex requirements, delivering an accurate price estimate is especially difficult. The best way to approach it is to conduct a thorough and extensive analysis of business requirements, which can take significant time and add to the cost of the overall project.

However, said analysis can contribute greatly to a successful outcome. Having defined requirements, project scope can be limited, time and labor can be accurately estimated, and an agreed-upon plan ensures that there are no misunderstandings along the way.

On the other hand, smaller organizations tend to have similar requirements that can be included in a standardized package. With deliverables clearly defined, SMBs can choose what best fits their needs at a predictable cost. After going live with their new system and reaping some of the benefits, they can plan for follow-up projects that refine the system according to their individual needs.

Business Central Packaged Offers Can Work for You

As a smaller business, deploying Business Central in a packaged implementation can save you money and get you up and running on a system that can help you modernize your company. You won’t have to wait months to go live; by eliminating the deep requirements analysis and allowing the vendor to move forward with standard processes that fit your industry, you’ll see a much faster return on investment. As an example, at Open Door Technology, we’ve developed packages for industries such as equipment rental companies that ensure such companies have everything they need to get set up for growth.

In larger organizations, a predictable cost can be a huge benefit. Partnering with a vendor that knows your industry means they know all the right questions to ask and can help you get started quickly.

Packaged offers also depend on experienced implementation team members who also manage the project. Since the labor hours are limited in fixed-price projects, expert consultants ensure that no efforts are wasted and objectives are met on time and on budget. On the other hand, with packaged offers, little to no customization is included in order to keep the promised price.

Here's a look at our packaged offers for Dynamics 365 Business Central

Fixed-Fee Business Central Projects with the Experts at Open Door Technology

With decades of experience spanning many industries, our team at Open Door Technology is ready to assist your company—large or small—to implement Business Central in a way that drives growth and helps you realize a quick return on investment. We offer several fixed-price options that meet the needs of most businesses.

If you have a need for advanced customizations, we can handle that too, delivering a tailored solution that fits your unique business requirements like a glove.

Want to know more about Business Central and our package offers? Contact us today at Open Door Technology to start the conversation.

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By Open Door Technology | www.opendoorerp.com

This article originally published on ERP Software Blog https://erpsoftwareblog.com/2024/12/dynamics-365-business-central-fixed-fee-implementations/