With all the AI hype in 2023, did it dramatically impact Enterprise Software implementations? The short answer is no. Based upon 500+ peer reviews of projects completed in the past 12 months, the story remains much the same. The quality and value that a software implementation brings (whether its ERP or payroll or HCM) still comes down to a few fundamentals – none of which include Generative AI. Those fundamentals are: the project plan and team, the quality of the data and the readiness of the organization to deal with change. Will Generative AI enable efficiency and speed for things like documentation, workflow builds and data exchange in the future? Absolutely. But according to Raven’s customer feedback review data, ChatGPT isn’t replacing solid project management and a good partner selection anytime soon.
2023 Implementation Projects in Review
Looking at the data, while many projects demonstrated satisfactory results, there’s room for improvement in several areas including value delivery, team consistency and scoping quality.
Project and Partner Ratings: A Tale of the Neutral Zone
The median rating for both projects and consulting partners (aka Systems Integrators, or SIs) was observed at 8 out of 10 with many customers having mixed feelings about their project experiences. In terms of value delivered, 45% of customers reported that they received the full value they anticipated from their HCM projects, leaving the remaining 55% of customers wanting. The most successful were those with well-scoped projects (and few change orders) and whose team stayed in tact throughout the duration of the project. Projects that were rated low typically did not deliver the value anticipated, were riddled with change orders and rated their consulting partner low in the areas of responsiveness and adaptability.
Software Vendor Ratings: Meeting Expectations, but Not Exceeding
Similarly, the median rating for software vendors was 7 out of 10. When customers rated their software vendor low, the biggest complaints often stemmed from the overselling of ‘integrations’ during the sales process and a lack of speed/responsiveness during implementation.
Project Duration, On-Time, On-Budget
The median project duration observed was 10 months, with an average of 18 months.
Change Orders, Timeliness, and Budget Adherence: Lessons in Project Management
Managing change orders is often seen as a critical component of project success. 42% of projects experienced no change orders, signifying a smoother project execution. In terms of timeliness, 58% of projects were completed on schedule, while 62% adhered to their budgets. These figures underscore the vital role of effective project management in achieving desired project outcomes.
Key Trends in 2023: Adapting to the Evolving Landscape
Several key trends were observed in the feedback:
Integrations: As organizations adopt more best-of-breed solutions, seamless communication between different systems remains a significant challenge.
Consultant Selection: The role of consulting firms is paramount, but customers should carefully vet consultants assigned to their projects to ensure success.
Change Management and Training: Rapid implementations often neglect change management and training, leading to suboptimal results. Allocating sufficient time and resources to these areas is imperative.
Data Cleanup: The persistent challenge of data quality continues to plague HCM projects, emphasizing the need for meticulous data cleanup efforts.
Turnover: Managing project turnover, whether mid-project or post-project, is critical to the overall success of HCM projects.
Finding the Right System Integrator (SI): The Search Continues
43% of customers discovered their System Integrator (SI) through software vendor recommendations, 25% had prior experience with the SI, 22% conducted independent research, and 10% relied on referrals and events. These findings emphasize the significance of building relationships and conducting thorough research when selecting an SI.
Keys to Victory
There are four main themes based upon the “lessons learned” area which allows customers to share their keys to success. They are:
Know your why. Don’t do projects with unclear outcomes or that do not solve a defined business issue/goal. Digital transformation only works if there’s actually a business transformation.
Your team will make or break your success. Pick the best partner, project leader and internal team for your project, and if you don’t have a solid executive sponsor, you’re fighting an uphill battle. Don’t change your team mid-project if at all possible.
Control what you can control. Before your project gets approved, start getting your house in order. Clean up bad data before you start your project. Make sure you have a way to manage your project systematically throughout.
Integrations. They’re more important that you think, take longer and can be problematic. The less spaghetti, the less mess. Make sure you have documentation on what ‘standard’ integrations entail and ensure you allow time / resources for custom work here.
Summary
2023 emphasized the persistent importance of fundamental project management principles, the quality of data, and organizational readiness for change. While Generative AI holds promise for future efficiencies, it is clear that it will not replace the essential role of solid project management in the immediate future. The key trends uncovered in our peer reviews serve as valuable signposts for organizations embarking on digital transformation initiatives. Raven Intelligence remains committed to providing actionable insights and support to ensure that businesses can make the best choices about software implementation to reach their goals.