This is why mid-market Software & Technology Companies should purchase their ERP system through a Partner

The software and technology industry is fast-growing, on the cutting edge of innovation, and the desire for rapid growth. The software and technology industry extends across several exciting areas of innovation, including Software as a service (SaaS), Smart Phones, Internet of Things (IoT), Blockchain, and Artificial Intelligence (AI).

Although companies in each of these areas are unique in their own way and have their own proprietary offering, from an accounting and business management standpoint, they have several similarities. At the very root, these companies are selling products (software and hardware) and providing professional services to execute upon the growth strategy.   

The selling of products and services represents a traditional “Order to Cash” process, which may include a one-time purchase, an annual subscription, and team members performing services, such as an install, implementation, or upgrade project. In mapping these requirements a high-level to an ERP software package, this will require Financial Management, Supply Chain Management, Project Accounting, Revenue Recognition, and Financial Reporting capabilities.

Each one of these capabilities represents a layer complexity to the overall ERP system solution, so it is important to be in the right situation to properly evaluate the ERP software. It will be through this evaluation processes that a business can determine whether the ERP software is the right fit. For software and technology companies, there is a “fork-in-the-road” on where to begin the ERP software evaluation process: with the Developer or with a Partner.

The C-level decision maker for a technology company may reason they should work with a developer to create relationship. If you’re one of the many decision makers in the midmarket believing you will have a direct relationship with one of the leading enterprise developers, such as Microsoft, Oracle, or SAP, then there is an awesome timeshare out there for you. Furthermore, if the goal is to simply get a better deal on the software licensing, then prepare to be over-sold and underwhelmed.

Here’s why Software and Technology Companies in the mid-market should purchase their ERP system through a partner:

Partners Actively Listen to Business Requirements

ERP partners are often referred to as value-added-resellers (“VARs”) focused on establishing successful long-term relationships, so when they discuss the business requirements with prospective client in a discovery meeting, they are practicing active listening. The process of active listening is based on an effort to consciously listen, but to also understand the overall message of what is being communicated, such as current system limitations, business objectives, and the overall strategic vision.

With this approach, a level of trust is established between the prospective client and the partner, which is based on understanding the needs and wants of a new ERP system. Since the ERP partner has worked with clients in similar circumstances, this provides the prospective client with a level of confidence in a potential system solution for their business.

Personalized ERP System Solution

In gaining confidence in the process, the partner will be able to consume the information communicated and create a personalized demonstration of the ERP system. The solution demonstration will be based on the business requirements and the information shared in the discovery meeting. Having a personalized demonstration will assist in illustrating how a future state vision may be able to become a reality.

In having the opportunity to have the partner walk through the demonstration of the ERP system based on the understandings from previous conversations allows the prospective software and technology client to begin to trust the entire process. When there is trust in the process, the prospective client will be begin to rely on the partner as a trusted advisor.

Successful Implementation based on Collaboration

In transitioning from the sales process to the ERP implementation, the process will be one of collaboration between the partner and the client. In the software and technology industry to experience a successful outcome to the ERP implementation will depend on organized and detailed deployment of sophisticated functionality.

The functionality needing to be deployed will require a team of subject matter experts with experience, knowledge, and expertise in the areas of Financial Management (GL, AR, AP, Bank Reconciliation, & Fixed Assets), Supply Chain Management (Sales Orders, Invoicing, Purchase Orders, & Inventory), Project Management (Project Budgets, Time, & Expense), Revenue Recognition (Deferred Revenue and Expenses, Fair Value, ASC 606 Compliance), and System Integration (ex: CRM, Expense Management, Payroll, etc.). Working together hand-in-hand will enhance the level of communication, the completion of tasks and activities, and achieve valuable momentum.

Long Term Strategic Relationship

With momentum and consistency of effort, the partner strives to create a long-term strategic relationship with its clients through system adoption and optimum use of the ERP platform. They will put the client first in solving complex problems with features, functionality, automation, financial and operational reports, colorful dashboards, and system integrations based on the growing business needs.

The partner will offer long term service and support through a personalized support plan, which may include deployments, upgrades, system optimization, or training. The partner understands the software nuances, so they have the ability to stay in front of the latest functionality roadmap and in times of special circumstances, having your back by providing the support you need in a timely fashion.

In Conclusion

The enterprise ERP software developers are great a developing software through technology and innovation. They are backed by shareholders, venture capitalists, and private equity groups to sell as much software licensing as possible and reinvest in research and development. Although they may have a direct sales team, they are not equipped to provide a personalized sales experience, implementation service, or on-going support based on the goals, needs, and strategic vision of their software and technology clients.

An implementation partner serves the software and technology industry as an experienced guide on the ERP journey from system evaluation through implementation. The partner is in the best position for translating the business requirements with the capabilities of the ERP system. The process of transforming a business with manual processes, disparate systems, and spreadsheets to one of automation, productivity, and real-time insight into the business is a significant achievement. When you reach the fork-in-the-road and need to determine with to work with a developer or partner, just know that with a partner, there is a greater probability for the ERP journey to be a success.

If you are interested in attending our special Oracle + NetSuite virtual lunch and learn webcast for the Software and Technology industry on Thursday, September 24, please click here to register.

For more information on Oracle + NetSuite, Dynamics 365 Business Central, or Sage Intacct, please contact Chris Kutt at 303-298-6424, or email at [email protected]