The High Stakes of Choosing the Wrong Technology Partner

According to data compiled by NetSuite, over 50% of companies experience disruptions when they go live with a new enterprise resource planning (ERP) system, and implementation often takes 30% longer than expected. This costs money, time, and resources, and of course, it’s downright frustrating. But when you work with an experienced and reliable NetSuite ERP partner, these hiccups are much less likely.

In this article, you’ll learn what it could cost your business if you have poor NetSuite support and why it’s best to cut your losses and choose a new partner to help you grow.

Telltale Signs of a Poor Tech Partnership

When it comes to enterprise resource planning, the right consultant can propel you to new heights of success, while the wrong one can lead you down a treacherous and costly path. But how do you know if your partner doesn’t stack up?

Here are some signs that you may be working with the wrong ERP partner:

• Misalignment with business goals: ERP systems should be tailored to meet your business’s specific needs. If your partner tries to implement a one-size-fits-all solution without considering your unique requirements, it’s a red flag.
• Suboptimal technology solutions: If your ERP partner suggests overly complex workarounds, customizations that seem unnecessary, or solutions that are frustrating your users, they may not have your best interests in mind.
• Strain on operational efficiency: Two keys to a successful ERP implementation are a well-defined project plan with milestones and deliverables, an ongoing training and support for your team. Without these, employees may struggle to use the system effectively, causing operations to be worse off than they were pre-implementation.
• Missed growth opportunities: ERP systems should support your business as it grows. If your partner doesn’t consider scalability, you may quickly outgrow the system they implement. Or, just as disappointing, you may unknowingly neglect opportunities for increased efficiency and revenue generation.

If any of this sounds familiar, it may be time to reevaluate your partnership with your current ERP consultant .

What Can the Wrong ERP Partner Cost You?

Choosing the wrong ERP partner can have significant financial, operational, and reputational costs for your business.

Financial Costs

An obvious cost is the money wasted on the ERP system that didn’t meet your needs or work as expected. But inefficient technology comes with hidden costs as well, including:

• Increased operational costs, as your processes may become less efficient or require more manual work
• Lost sales and revenue due to frequent system downtime
• Missed revenue-generating opportunities if your technology partner fails to keep your systems up-to-date or doesn’t provide innovative solutions
• Budget overruns caused by poor project management or constant changes
• Hidden fees for additional services or changes in scope
• Maintenance and support expenses if/when you try to resolve the issues — or try another solution entirely

Risk of Reputation Damage

If the NetSuite support you’re getting from your partner is not helping you get the most out of your existing technology, or if you experience frequent technical glitches or system failures, it can lead to poor customer experiences, eroding trust in your business’s reliability and leading to customer attrition.

Your reputation will also take a hit if insufficient security measures result in data breaches, which could come with costly legal fees, too.

Compliance and Security Risks

If your ERP partner doesn’t adhere to industry regulations or fails to implement necessary compliance measures, your business could face legal consequences, fines, data breaches, and other security vulnerabilities.

Employee Morale and Productivity

Inefficient or malfunctioning technology can frustrate employees, leading to decreased productivity and increased turnover rates.

Other Potential Costs

• Inflexible technology solutions provided by the wrong partner can make it challenging to scale your business as it grows.
• If your technology partner doesn’t provide adequate NetSuite training and support, you may incur additional costs as you get employees up to speed.
• A partner that doesn’t keep up with industry trends and emerging technologies may leave you at a competitive disadvantage.
• If your technology partner’s solutions negatively affect your customer experience, you may experience increased customer churn rates.

It’s crucial to conduct thorough due diligence when selecting an ERP partner to minimize these risks and ensure a successful and cost-effective implementation.

The Importance of Proactive Assessment and Intervention

While the consequences of choosing the wrong NetSuite partner can be costly, the impact of such a choice can be mitigated through proactive assessment and intervention in the following areas.

Identifying Red Flags Early

Proactive assessment involves vigilantly monitoring the ERP implementation process from the outset, so you can spot warning signs before they transform into costly setbacks.

Red flags such as missed project milestones, communication breakdowns, or budget overruns can be addressed promptly when detected early.

Protecting Operational Efficiency

ERP systems play a central role in streamlining business processes. Working with the wrong technology partner can lead to operational inefficiencies, manual workarounds, and a decline in productivity.

Proactive intervention can help you rectify these issues before they become deeply ingrained in your operations, preserving the efficiency and effectiveness of your business processes.

Safeguarding Data and Security

Throughout the implementation process, you should be continually evaluating your partner’s security measures and data protection protocols. By identifying and addressing vulnerabilities early, you can avoid the substantial financial and reputational costs associated with data breaches and regulatory non-compliance.

Maintaining Project Timeline and Budget

Closely monitor your ERP project timelines and address any delays or deviations promptly. This will keep your project on track and within the established budget, as you’ll be able to prevent wasteful spending on ill-fitting solutions, unnecessary customizations, or unanticipated expenses.

Don’t Let a Wrong Choice Cost You

In 2019, a survey of distributors and manufacturers found that 67% of respondents described their ERP implementations as successful. To be part of this majority—and to avoid financial losses, operational inefficiencies, security risks, and potential damage to your business’s reputation—it’s crucial to choose the right partner.

Sikich has a track record of success when it comes to ensuring cost efficiency, productivity, and security for NetSuite projects large and small. Contact us today to begin exploring the possibilities of a new tech partnership.