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In this blog, we're going to be taking a look at some common implementation pitfalls you can run into, as well as some tips for best navigating the implementation cycle.
In case you haven’t seen my Implementation Videos, there are two tips I really want to make sure you have when you're buying NetSuite. First: that you don't overbuy it and you're not purchasing a bunch of modules that you're not going to need.
Secondly, when you're choosing your implementation team, it's important to make sure that you go with a team that has industry experience in your industry or in something that fits your exact needs. Those are very important points to make sure that you have upfront.
Now, before we actually get into the tips, I really want to lay out what are some of the warnings or admonitions I can give regarding diving into a NetSuite implementation. The first and most important thing that I can say is a NetSuite implementation is hard. Under no circumstances is it a simple, easy or a fast cycle. It can be very tedious, it can require an amazing amount of work. One of the number one reasons for failure that I've seen with clients is the fact that the client themselves are underestimating the amount of work that they're going to need to put in and the time and effort required from them to make their NetSuite implementation successful.
That’s not to say that the implementation team doesn't need to be great, but regardless of even if you have the best implementation team physically possible, it is going to require a lot of work from you.
Where I've seen clients who expect because they're paying so much for the licensing fees on NetSuite and they're paying so much for the implementation costs and the consulting fees, they’re kind of considering that, well, the consulting team is going to do all the heavy lifting and there's going to be little required of me. Maybe I just need to make some key decisions.
It simply is not going to be that way. Considering the fact that you're moving your company onto such a major transition onto a system like NetSuite, it makes sense that it is going to require that level of contribution from you and that effort and responsibility, not just from you, but from your team at your company to make sure that you have the best possible implementation.
Along that vein, I really want to make a note of the fact that Oracle NetSuite has really put a lot into the marketing campaign with SuiteSuccess, and they've done a successful job of marketing that as a methodology for implementing NetSuite. But the reality is that the expectations that are set with SuiteSuccess are simply not realistic. They tend to say that the implementations can be three months or maybe six months, and in the vast majority of cases that's simply not possible. Nor is it sensible to make such a rushed approach at transitioning over to NetSuite. So please don't believe the hype. SuiteSuccess can definitely give misleading representations of what the implementation cycle is going to be like.
If you're not familiar with SuiteSuccess, the very summarized version is that it's sort of an out-of-the-box approach where, let's say if you're in retail, even if you're a simple company, they're going to give you this sort of out-of-the-box version of NetSuite that you're going to take, you're going to implement it very rapidly, no customizations, and you're going to be able to roll with NetSuite. But unfortunately, in the vast majority of cases, your company does have some things specific to it or needs that really are not necessarily automatically set up in NetSuite and will require that extra level of work and customization to make sure that it's successful.
Honestly, the implementation timelines can easily go nine months, a year, or even longer, and those are quite common.
So if you're going into this implementation with incorrect assumptions and expectations about how much work you'll need and what the timeline is going to be like, then you're going to minimally be disappointed by what it actually results in. Just think about it from the standpoint of if, even if you're a fantastic football player, if you think you're just going to breeze your way into the NFL and be a superstar, you're going to have a rude awakening when the rubber meets the road.
So make sure you are appropriately thinking with the level of work and effort and time that's going to be needed. Once you have that, the likelihood that you have a successful implementation and that you'll be happy with your implementation is going to be far higher.
Now let's take a look at some tips for going into that NetSuite implementation. The best advice I can really give is between you and your team. Really sit down and define what success looks like for you. Take a look at what are your needs, what absolutely needs to occur, what is maybe a nice to have, what is a realistic timeline that you need to look at for having your implementation executed, and just decide what that picture looks like for success in your NetSuite implementation.
Once you have that framework, then you can really take a better look at what are the priorities and what are things that maybe can go later down the timeline.
Specifically, I'm referring to the fact that in an implementation cycle, you'll have the build-up, and then at some point, you'll have what's called go-live, which is where you're actually turning on the NetSuite system. You've now moved off your old system, and you're operating fully in NetSuite. Unfortunately, some people tend to think of that as an all-encompassing cycle. In other words, if there are 15 things that you want from NetSuite, sometimes clients will think that all 15 need to occur right at go-live, and you may be rolling from there.
But really, while that can be done, in most cases, that's actually increasing the risk of failure or, minimally, of disappointment.
Instead, it may be more effective to solidify and nail down what are the core functions and the core things that have to be transitioned to and have to be operational when you hit that go-live. That might be something like your accounting functions, CRM, maybe some HR functions, or inventory management.
Once you've narrowed those down, then you can really focus on those points, and other more complex customizations or integrations—while they might be excellent for your business—may not be vitally needed at that exact moment. Those are things that you can actually place later on the timeline.
If you look at the whole implementation process, there's the implementation itself, the go-live, but then there's the support and optimization side of things. Especially if you've chosen a solution provider for your implementation partner, they're going to not only do the implementation but also carry forward into the support.
If you talk to your team and lay out what are the things you have to have at go-live and what are the things you'd like to do or have at the top of your to-do list after you hit that go-live point, then you can really start narrowing down what you're going to focus on and what that timeline looks like. By doing so, you really mitigate a lot of the risks of doing the implementation.
When looking at things that might be best to place after the go-live, keep in mind the three big points where people tend to have trouble during their implementation from a technical standpoint, aside from the human element of change management: data migration, integrations, and complex customizations. Specifically, integrations and customizations—if there are certain things that again are not vital but can be placed after go-live—you’ll have plenty of time to set those up. For example, if you want to set up a web store or a banking integration, you can do those afterward and have sufficient time to test and optimize.
When doing an integration, it's important to ensure thorough testing. The complexity of setting up an integration involves many connections between, for example, the website or platform you're integrating with and your NetSuite instance. This provides numerous opportunities for errors. Taking the time to test every possible scenario is critical for making sure custom integrations succeed.
Another tip I want to bring up is that just because something can be customized in NetSuite doesn’t mean it should be customized. NetSuite has native processes and standard workflows, such as "order to cash" and others. These may not match how you've done things in the past or how other ERPs handle certain functions.
Therefore, it's crucial to understand what NetSuite does and explore opportunities to adjust your workflows to align with its native functionality. By doing this, you greatly increase the likelihood of smooth operation.
That said, recognize the opportunity to change certain business processes during the transition. Some clients tend to fixate on how they’ve always done things, even if it's inefficient. This transition is an opportunity to adopt optimized processes that fit better within NetSuite's framework. For instance, NetSuite’s classification system can help you condense a bloated chart of accounts into something more manageable, streamlining your financial workflows. Use this opportunity to improve your business processes as you move onto this new ERP system.
The last tip I want to give is about assigning responsibilities and roles within your own team. This might involve appointing someone to be responsible for providing data to the implementation team or having a project manager on your side. Clearly defining roles, making people aware of their responsibilities, and holding them accountable is essential.
To summarize, I don’t want to make it seem like NetSuite implementations are all doom and gloom. NetSuite is a fantastic product and brings a lot to the table. If your implementation is successful, the odds of your company growing and expanding with this ERP are very high. You just need to approach it with the correct estimation of effort. Doing so will significantly increase your chances of success.