At Raven Intelligence, we see the good, bad and sometimes ugly results of digital transformation projects through our customer reviews. Close to 50% of Enterprise Software projects fail outright or fail to deliver the results anticipated. In some cases, customers unfortunately report their projects have taken them steps backward — hardly the outcome anticipated when developing their plans and securing budgets. Yet others, even when implementing the exact same software, have been successful in transforming their businesses and employee experience through improving processes and technology.
Why such variability in results? We’ve found less depends on the technology, and more hinges on an organization’s readiness, team and partner that is chosen to help lead the effort. During the planning and selection process, customers need to consider their implementation approach–and decide if they will utilize a 3rd party consulting firm to help guide them or approach the project DIY (do-it-yourself) internally—potentially enlisting the help of the Software Vendor’s professional services team.
PROS of a DIY Approach
No one wants to spend more money or time then they have to, which makes the DIY approach attractive–at least initially. Here are a few reasons why customers opt the DIY approach:
• Cheaper (at least up front.) The cost of working with a Consulting partner ranges from 1.5x – 4x the cost of your annual software license.
• Not having to make a partner selection makes the due diligence process faster (and you don’t have to explain the plan you’ve developed.)
• You only have “1 Throat to Choke” if things go south — your SaaS vendor (and your internal team)
CONS of a DIY Approach
One of the questions we ask software customers in our post-implementation surveys is about the “Lessons Learned” along the way. One of regrets we see often is “not hiring a consulting partner sooner”. Here are a some drawbacks of the DIY approach:
• You’re on your own. If your internal project team member quits, goes on leave or moves roles—your project will be impacted. (Partner firms can in many cases offer staff augmentation for this common scenario.)
• No “best practices” to draw from in terms of what others in your industry / peer software customers have done.
• Understanding & managing change (aka “Change Management”) is much more difficult when you’re on your own.
• A 3rd party will help ensure to keep your project on-schedule (and help you determine if your timeframe / budget are realistic from the outset.)
• SaaS vendor Professional Services-led projects are rated much lower in satisfaction and delivery. (This is true regardless of software–look up any up vendor’s PS teams ratings on RavenIntel.com.)
• Integrations can be a beast. Partners have access to previous integrations and experience building these things (e.g. why in many cases partners are called “Systems Integrators (SIs)”.
• Your people may not have the required time available for the project while also performing their regular job.
• New system implementations create anxiety for HR and Payroll practitioners. Having a 3rd party that has “been there / done that” will lower their stress and make them feel supported by the organization. (They will thank you for it!)
• Hiring a certified partner that knows your software vendor’s software and implementation methods means they can translate ‘vendor-speak’ terms and tasks so that your team understands what is being asked of them.
• Partner resources can be engaged up front to be sure you’re prepared before implementation kickoff. They can also be contracted for post-go-live support beyond the point that the vendor’s implementation team has moved on to another client.
• Software Experience. Using a partner’s Project Manager means you have a resource that has implemented your chosen software’s systems before (whereas you internal IT PM probably hasn’t.)
Wrap-Up
Choosing the right software vendor, implementation approach and partner will ensure your digital transformation project has the foundation to be a success. While a DIY approach can be less expensive up front, if your project has any degree of complexity, or your internal team doesn’t have the skills or capacity to handle a large project, opting to work with a good partner consulting firm will probably serve your organization well. For more research on how to choose the best partner for your projects, click here.