Phase 0

Delays and cost overruns in ERP and CRM projects can often be traced back to shortcomings in preparation. 2BCS proposes introducing a “Phase 0” between evaluation and implementation to proactively address the most common root causes of such delays and overruns.

Some Observations from Evaluations and Implementations

2BCS AG is a specialist in ERP and CRM evaluations and implementation support for medium-sized industrial and trading companies in Europe. Over the past 20 years, more than 200 evaluations and implementations have been supported.

Reflecting on recent implementations, several recurring issues have emerged:

The necessary client-side resources were not made available to a sufficient extent
The limitations of the public cloud approach were not sufficiently elaborated, and the client was unprepared for these changes
Many people quickly agree to “clean core” and “process standardization.” However, the actual consequences in the processes were not sufficiently thought through
The project tasks and responsibilities of top management (e.g., regarding change management) were not clearly communicated
The challenges of master data cleansing and consolidation were severely underestimated and addressed far too late

The consequences of these issues are straightforward: there is rarely enough time to resolve them. Limited time results, at best, in delays, and at worst in poor decisions or omissions. Ultimately, the outcomes are consistent: delays, change requests, and internal dissatisfaction.

As evaluation consultants, we must also ask ourselves whether we should have raised and clarified these issues during the evaluation. Our goal is to ensure flawless implementation readiness. Did we always succeed? The answer is not a simple “yes” or “no,” but rather “partially.” Some topics - such as internal resources, master data, or change management - are regularly highlighted by our consultants, while others are addressed less consistently.

In my opinion, the issues mentioned above do not always occur. They become more acute under the following conditions:

Size and complexity of the client: the larger the implementation project, the more preparation is required
With applications where there are functional differences between public and private cloud editions
Very tight schedules, where there is little buffer for unforeseen issues—especially between evaluation and implementation
In business transformation projects where business processes are significantly changed
In situations where data from multiple sources must be consolidated into a unified dataset

Requirements for Consulting

The consulting industry specializing in evaluations and implementations (such as 2BCS AG) must enhance its methodology with the aim of:

Defining the critical topics
Developing structured work packages to systematically address these topics (how to proceed)
Creating standardized templates to structure the solutions (what needs to be produced)
Clarifying stakeholder roles and responsibilities (who does what)
Defining the appropriate timing for addressing these topics (when)

Critical Topics

Alignment

Strategy clarity & communication
Leadership alignment

Business Readiness

Target process definition
Financial organizational structure

Technische Readiness

Data cleansing & harmonization
RECIFW
IT architecture

Stakeholders & Communication

Communication concept
Team training
Leadership training

Business Transformation

Programm-Management
ERP/CRM Project-management
Governance

This list, and the concept of “Phase 0,” is based on and inspired by the work of Thirdstage Consulting.

Timing

Some of the critical topics mentioned above depend on the chosen ERP application, the approach, and the implementation partner. Therefore, some of these topics cannot be addressed before the final product and partner selection.

However, deferring these topics to the implementation phase often proves highly problematic. Subscription costs typically start on day one of implementation, creating immediate cost and time pressure. This environment makes thorough analysis and decision-making on critical topics extremely difficult.

For clarity, we refer to this preparatory stage as “Phase 0,” in alignment with Thirdstage Consulting’s methodology.

About 2BCS AG

2BCS AG is a Swiss consulting company specializing in business transformation for medium-sized industrial and trading companies. Each year, 2BCS supports around 40 clients in their transformations. These often include ERP and CRM evaluations and implementations, accompanied by comprehensive change management activities.