You’re considering moving forward with a NetSuite implementation, but you aren’t sure where to start.
And that scares you because you’ve heard so many horror stories of ERP implementations gone wrong.
Budgets burned through…
Deadlines missed by a country mile…
And finished implementations not doing what they’re supposed to…
How are you supposed to know if you’ll end up just like those poor souls if you move forward with an implementation?
Tens of thousands of dollars and 12 months later, you could be standing in a pile of rubble just like the other unfortunate people who embarked on a journey to implement an ERP system.
These are all very possible outcomes.
In fact, according to ERPFocus, 60% of ERP implementations fail.
And even if yours lands in the elusive 40% of “successful” implementations, the odds still aren’t in your favor.
ERPFocus also reports:
- 80% of customers are unhappy with their ERP implementation
- 57% of ERP implementations take longer than expected
- 54% of ERP implementations go over budget
Yikes…
Those kinds of stats make most people run for the hills.
But here’s why you shouldn’t:
In nearly every case, these horrible things happen due to a lack of proper planning.
With a rock-solid plan in place, your odds of a successful NetSuite implementation shoot through the roof.
And in this article, we’ll give you a proven plan that’s been used in 100s of successful implementations so you can transform your business with NetSuite.
The 7 Main Phases in the NetSuite ERP Implementation Process
The very first thing you need to do is familiarize yourself with the general steps in the implementation process.
You don’t have to know exactly what you’ll do in each step at this point—you just need to be aware of the major milestones on your journey.
If you aren’t, your NetSuite implementation will go off the rails quickly.
Phase 1. Discovery
Here, you determine all the needs and requirements you have for your ERP system. Think of it as finding your organization’s “why” behind looking for a new system in the first place.
In order to succeed, you need to figure out what your system needs to be able to do to satisfy both users (your employees) and your business goals.
Phase 2. Strategy
You’ll have to decide on your implementation strategy based on your resources and long-term goals for your organization. You can tailor this for your unique needs.
The “big bang” strategy means that you will replace your legacy system with an ERP all at once, in a single phase. A “phased” approach is where your ERP modules are introduced in a planned sequence.
Consider which is best for your organization based on the findings from Phase 1.
Phase 3. Installation
This is where the implementation actually begins. The first version of your system is built based on the insights you learned from the discovery phase. Migration from a legacy ERP usually happens here (if applicable) to make sure all your data is moved over.
Phase 4. Testing
The 1st version of your system becomes the 2nd…then the 3rd…then…the 20th.
The team in charge of your NetSuite implementation starts looking for weaknesses and broken features. They test and iterate over and over again until the system starts doing what everyone wants it to do.
Phase 5. Training
All the key stakeholders and users need proper training before your new system is implemented.
They don’t have to know the in’s-and-out’s of every single feature–they just need foundational knowledge so they know how they can use the system to improve their work.
Phase 6. Implementation
This is where the new ERP is actually deployed. After rigorous testing and training, your system is pushed into a live production environment and is ready for use. It’s critical to inform everyone on your team about when this is going to happen.
Phase 7. Post Deployment Support
As your organization begins using the new system, you’ll almost certainly come across minor glitches or ideas for new, helpful features.
That’s why it’s critical to have a plan in place for having the support resources available well after your NetSuite implementation is actually done.
The Proven NetSuite Implementation Checklist: What You Need to Do to Succeed
1. Define what the “win” looks like, beforehand.
We can’t overstate the importance of a clear vision at the beginning. From the get-go, you need to decide how your organization will define the success of this implementation.
Otherwise, you won’t be measuring the right things – and later on, you’ll have a much harder time convincing your boss that this was a good investment.
So decide on the results you want, and then record a starting point you can measure against. You want before/after metrics to see the improvement. If the project goes really well, you want to be able to show everyone why.
2. Secure buy-in from your leadership team.
Buy-in starts from the top. One of the biggest landmines of a failed ERP implementation is lacking support from your leadership team. If you can’t secure 100% buy-in, you won’t have the resources you need to move forward.
So how do you end up with the backing of your leaders?
Start with making your vision of the ERP implementation crystal clear. Paint a picture of the benefits the solution will bring. Hiring someone full-time will be necessary to track project success.
Yes, it’s a large investment up front, and that can be jarring. But make the end results clear. Saving time, streamlining processes, and cutting costs is a dream for the bottom line.
Convince your leadership team that this project can’t be an afterthought. Without their backing, a successful implementation can’t be attainable.
3. Determine budgets, needs, and timelines.
Budgets
NetSuite isn’t cheap and large IT projects are notorious for running over budget.
Make sure you create a budget that has contingencies to cover increased staff, hardware, or development costs.
Keep reading for more specific information on how much you should budget for your project.
Needs
It’s critical to know exactly what you want the ERP system to do before you begin implementation.
Ask questions like:
- Do we need any custom integrations or functionalities?
- Are certain departments or teams requesting certain features?
- Are there any specific pain points NetSuite could solve for us that we haven’t thought of?
The more information you have, the better and faster your implementation will be.
Timelines
Create a project timeline with buffers built-in because, you guessed it, large IT projects are also notorious for taking longer than expected.
The specific amount of time you should plan for depends on the scale of your implementation, but we’ll give you an idea of how long yours might take in a minute.
4. Identify the right implementation partner.
Your main goal should be to get the most return on investment out of your NetSuite implementation. Sometimes they can take months, or even years, to complete.
With industry-specific knowledge and experience, a great team can help you save time and money on your project – which you may be losing out otherwise due to lack of exposure.
These are some of the boxes you should check before choosing a team:
- Do they have certifications and good references?
- What is their plan for post-implementation training and support?
- Can they provide customization?
- How many NetSuite implementations have they completed?
- Can they provide a list of resources and coordination members who will be working on your project?
- Will they sign or provide a statement of designated responsibilities?
5. Create a change management plan.
Changing the way things have always been can be painful. Teams may not be 100% on board initially. Especially if it means they are being taken away from their current role and having extra work thrown onto their plate.
This is your opportunity to align and train your team, articulate your vision for success and show how the ERP implementation can ultimately make everyone’s jobs – and lives – a lot better.
6. Trust your consultants – lean into native functionality first.
Every business is different. As technology consultants, we understand that. It’s natural to want an ERP system that is tailored to your business and ONLY your business.
But let’s go back to the basics. Times have changed and ERP systems are made to simplify your business. Certain native functionalities (which are already built into NetSuite) work for the majority of businesses – and you’ll spin your wheels if you try to “over-customize.”
Going simple can make your processes so much easier than they were before.
We know there isn’t a “one size fits all” solution for every problem – and we’ll help you customize your system where it’s needed – but trust us when we say that adopting the standard processes of your system first can help your ERP implementation stay on track from the very beginning.
How can you make an ERP implementation more fun?
Promote the ERP implementation using creative taglines, mascots, or friendly team competitions to create excitement. It doesn’t all have to be by the book.
What is the best way to keep the project on course?
Project management is a crucial step in making sure everyone is on the same page. While comprehensive project management is typically provided by your ERP implementation team at Crowe, it is crucial to have a detail-oriented project manager from your team that will be responsible for oversight on training and regular communication to make sure all needs are met.
It’s best for your project manager to also act as a “change manager,” championing the ERP implementation from the inside and inspiring excitement within your team.
FAQs About NetSuite Implementations
1. How long do NetSuite implementations take?
Most NetSuite implementations take a minimum of 3 months. More complex ones, though, can take 6-12 months.
This all depends on your organization’s needs in terms of
- Users
- Locations
- Integrations
- Customizations
- Currencies
- Subsidiaries
- Data migration
- And more
2. How much do NetSuite ERP implementations cost?
A small business may be looking at anywhere from $40K to $75K for their NetSuite ERP. A medium to larger-sized business could range from $75K to $250K.
Several factors contribute to your NetSuite implementation cost including:
- Number of user licenses
- Duration of the project
- Cost of base editions
- Scope of the project
- Additional cost of NetSuite implementation services and license
Because NetSuite is a cloud-based service, you can subscribe yearly.
3. What are the main reasons implementations fail?
1. Leadership doesn’t buy in.
Nothing derails a NetSuite implementation faster than leadership not being 100% bought-in to the direction. Make sure your leadership team knows exactly what this implementation will do and look like.
2. Incompatible implementation partners.
Choosing the right implementation partner is absolutely critical to your success. You need to make sure you find a NetSuite partner who has years of experience with successful implementations in your industry.
3. Lack of proper planning.
As we talked about earlier, the discovery and strategy phases are the most critical in the entire process. Without a well-thought-out, thoroughly researched plan on what needs to happen and how to make your implementation a success, it simply won’t happen.
Download the NetSuite Implementation Checklist for FREE
NetSuite implementations are long and laborious.
But when done well, they can completely transform your business.
Because the truth is, NetSuite can help you:
- Automate key processes
- Have incredible clarity on your finances
- Know what’s going on with your inventory
- And so much more.
NetSuite’s ROI is limitless when implemented properly.
And to help you see a successful implementation, we created a FREE checklist you can download that will help you make sure you aren’t missing a single step of the process.
To claim yours, simply enter your name and email below: