Enterprise resource planning (ERP) systems help organizations achieve cost savings by effectively streamlining processes and improving efficiency, but without proper planning, ERP implementations may result in costly failures.
The key to optimizing ERP systems is implementing the solution correctly the first time. Unfortunately, there are too many avoidable failed implementations. In a previous ERP article, Cherry Bekaert referenced a Gartner report revealing that 55% – 75% of ERP projects either fail or don’t meet their intended objectives, which can lead to a significant financial loss.
Cherry Bekaert provides multiple ERP technology solutions, including Deltek’s Costpoint, which is specifically designed for government contracting organizations that need technology solutions to maintain Defense Contract Audit Agency (DCAA) compliance while centralizing the management of projects, people and financials.
With extensive experience assisting organizations with their ERP systems, our Digital Advisory team has identified a few steps for successful implementation.
Step 1: Choose an ERP Implementor
Choosing the right implementor is the first crucial step to set your ERP project up for success.
“Proper implementation is crucial for organizations to fully leverage the benefits of Deltek Costpoint,” said Traci Shepps, Government Contracting Industry Leader and Partner at Cherry Bekaert. “Additionally, when software is implemented correctly users are more likely to adopt and use it effectively, which is crucial for realizing the software’s full potential.”
The tips below will help your organization identify the right implementation partner and streamline the process so you can reach the full potential of your ERP system:
- Understand the Scope and Deliverables: Carefully read the proposal or implementation partner agreement to ensure you are not making incorrect assumptions about the scope and deliverables. This will help ensure your requirements are covered and there are no misunderstandings.
- Define Implementation Methodology: A well-defined methodology helps efficiently allocate resources, including time, budget and personnel, to various tasks and phases of the project. Additionally, it’s important to confirm stakeholders and decision-makers in the early stages of the ERP implementation process.
- Understand the Software: Gain a general understanding of the software upfront to ensure comprehension of design decisions. Knowing the software’s purpose, functionality and user requirements provides context for the reasoning behind design choices. Additionally, awareness of the software’s technical limitations and capabilities allows you to appreciate why specific design decisions were necessary to optimize performance, scalability and maintainability.
- Discuss Goals and Objectives: Establishing clear goals and objectives provides a roadmap for the ERP project. For implementation success, it is essential that all involved parties understand the purpose and desired outcomes, aligning efforts toward a common target.
- Understand Training Essentials: Confirm training is part of the implementation plan for enhanced user adoption and understanding of the system. Proper training will help minimize incorrect use of the system, which could lead to disruptions and data reporting issues.
- Identify the Expected Outcome: Set clear, realistic expectations for the organizational goals you want the ERP system to achieve. Defined expected outcomes allow your organization to establish metrics and benchmarks to measure the success of the implementation. Additionally, stakeholder alignment helps avoid costly misunderstandings.
- Communicate Concerns Quickly: Address concerns promptly to increase the likelihood of a successful implementation and to proactively manage potential risks and challenges.
Step 2: Follow System Implementation Methodology
As an implementation partner, Cherry Bekaert offers a project approach based on our proven enterprise system methodology and tailors its services to address each client’s unique needs.
We developed our methodology using the comprehensive experience of our Deltek consultants, who deploy the system, and our accountants and business professionals, who utilize the system to support our clients. Our methodology includes a proven five-step process:
- Initiate and Plan: This first step involves examining and identifying the project objectives, scope and implementation approach.
- Evaluate and Design: In this step, we examine, understand and analyze all facets of the business and map out the future-state design solution based on requirements.
- Configure: In this step, we initialize and configure the Deltek application, conduct fundamental testing and perform a peer quality review.
- Integrated Testing: The fourth step involves end-to-end testing. Resources and processes are also discussed for go-live.
- Go-Live and Project Closeout: In the final step, we manage the closeout and cutover activities and monitor the first-period transactions.
Throughout the implementation lifecycle, the key to success is effective project management, comprehensive methodology and proactive training.
Step 3: Utilize Deltek Costpoint Features
For more than 30 years, Deltek Costpoint has served as the leading ERP software for the government contracting industry. Deltek features:
- Three-Dimensional Accounting: This feature offers comprehensive financial management for government contractors and projected-based businesses. It focuses on three key dimensions: project, organize and account.
- The project dimension tracks all financial transactions related to specific projects, ensuring accurate cost allocation and real-time visibility into project finances.
- The organize dimension manages financial data across different organizational units, such as departments or business units, allowing for detailed financial reporting and analysis.
- The account dimension handles traditional accounting functions, including general ledger, accounts payable, and accounts receivable, ensuring compliance with accounting standards and regulations.
- Contract Management Tool: This integrated solution is designed to streamline and automate the contract management process for government contractors and project-based businesses. For example, this tool centralizes all contract-related data, making tracking and managing information throughout the contract lifecycle easier.
- Real-Time Project Management: This feature helps in multiple project management areas, from providing a dashboard with a quick view of project status to allowing managers to get real-time insights into project performance. The user can then drill down to manage resources, forecasts and budgets.
- Flexible, Indirect Cost Pools: With Costpoint, users can set up and manage every aspect of indirect costs pools, including cost, base, allocation and variance accounts.
- Government-Required Forms and Reports: Costpoint is designed to meet the stringent requirements of government contracting, including compliance with Defense Contract Audit Agency (DCAA), Federal Acquisition Regulation (FAR), Cost Accounting Standards (CAS), and Defense Contract Management Agency (DCMA) standards.
- Automatic Revenue Calculations: Costpoint supports various revenue recognition methods, including percentage of completion, cost plus fee, and time and materials. This flexibility allows organizations to choose the most appropriate method for projects.
Connect With Us
If your organization has a failed ERP implementation or has outgrown its current Costpoint setup, Cherry Bekaert’s Digital Advisory team is here to help. Contact us to learn how our professionals can help your organization jumpstart its ERP journey.
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