Phase 0 vs. Discovery Phase

2BCS AG conducts around 25 ERP evaluation projects each year. In the 2BCS Best Practice Evaluations, clients first define their requirements for future processes, systems, partners, and the implementation project. Together, 2BCS and the client then identify the most suitable product and implementation partner.

The focus of these evaluations is to determine whether—and how—the partner can meet the defined requirements, and at what cost. At the end of the evaluation, a preferred vendor is selected, and contract negotiations begin.

During these negotiations, the client’s tasks, obligations, and responsibilities are usually defined concretely for the first time. This clarification is essential, as the client’s contribution is critical to the overall success of the project. The implementation partner expects the client to fulfill their responsibilities—without the client’s active participation, no project can succeed.

What is expected from the client?

• The client is expected to make project-related decisions quickly.
• The client is expected to provide sufficiently skilled key users and process owners.
• The client is expected to have clearly defined target processes.
• The client is expected to cleanse and extract legacy data from the old system.
• The client is often expected to adhere to ERP standard processes and adjust business practices accordingly.
• The client is expected to organize and actively manage change management.

These expectations are typically documented in the RACI matrix (responsibility matrix) as the client’s obligations. If the client fails to fulfill these, it can result in formal warnings, change requests, and ultimately, schedule and budget issues.

Phase 0 or Discovery Phase?

From the client’s perspective, there are two options for addressing these topics:

• Before project start – during Phase 0, or
• After project start – together with the implementation partner in the so-called Discovery Phase.

For the implementation partner, the Discovery Phase is often more attractive. The implementation contract has already been signed, consultants are assigned, services are billable, subscription costs are running, and the client is effectively locked in.

2BCS sees clear disadvantages for clients in this approach—especially the need to make critical decisions under time and cost pressure, while subscription fees are accumulating, consultants are waiting, and the internal project team is already mobilized.

The Phase 0 Alternative

As an alternative, 2BCS recommends conducting a Phase 0—a preparatory phase that takes place after the evaluation but before signing the implementation contract. At this stage, the future implementation partner has been identified but not yet formally engaged.

In Phase 0, the client is not under pressure and can address key topics thoroughly and objectively. Together with the potential partner, open questions can be clarified, expectations aligned, and the foundation for a successful collaboration can be established. By doing so, many project risks can be identified and mitigated before the actual implementation begins.

Our experience shows that Phase 0 is the right approach.

2BCS is pleased to share its knowledge, proven concepts, and templates to help clients prepare effectively for their ERP journey.

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.