Avoid NetSuite Implementation Cost Overruns: Understand Excluded Services

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A new NetSuite implementation journey is an exciting endeavor for any company.  However, amidst the anticipation of the shiny new system to enhance efficiency is a formidable risk: the murky territory between client expectations and implementation partner deliverables.

The ambiguity surrounding “included” deliverables versus “non-included” activities sets the stage for unwelcome surprises and blown budgets. This blog post delves into some of the most common issues that frequently emerge as implementation surprises.

Below is a list of the top implementation surprises I’ve encountered.

  1. Data Migration: Data migration can often be challenging due to the lack of a clearly defined scope. Questions like what records are included and the volume per record can lead to surprises. Typically, master data such as customers, vendors, items, charts of accounts, and starting trial balances are included. However, transactional and historical data are often left out. Therefore, it’s crucial to have a comprehensive list of what is included and what is not included to avoid any confusion or issues during the migration process.
  2. Training: Most partners incorporate training into the implementation process. This training is usually led by consultants and takes place during various working meetings used to configure the system. However, if this training is not enough or if other employees did not participate in the workshops, then additional training will be necessary. It is important to clearly define and list the training deliverables in order to ensure comprehensive learning and support for sustaining processes after the implementation is complete.
  3. Integrations: Integration with other systems such as CRM, Payroll, and Banking should be treated as distinct line items to avoid integration-related surprises.
  4. Custom Reports: It is critical to map your existing reports to NetSuite’s standard reports. Budgeting for custom reports is also essential, particularly if your business heavily relies on specialized reporting. Compile a list of necessary reports.
  5. Coordinating Third-Party Solutions: Deploying third-party solutions will require coordination with your implementation team, which can take time and money. Allocating dollars in your budget for this activity will prevent miscommunication and delays.
  6. NS Customizations: SuiteBuilder, SuiteFlow, and SuiteScripts provide robust customization capabilities within NetSuite. However, it’s advisable to minimize customization during the initial implementation phase. It’s better to gain a comprehensive understanding of NetSuite before committing to customizations. Nonetheless, some level of customization may be necessary from the outset. In this case, it’s essential to prepare a clear list of customization requirements and budget accordingly to align expectations.
  7. Sandbox: A separate sandbox environment for testing, development, and training is highly recommended. In an NS implementation, the initial configuration is mostly done in the live system and then refreshed to the Sandbox. It is important to plan and document the data refresh process and the associated costs. Do not assume that any configuration or customization made in the live system will automatically be refreshed to the sandbox environment. This is not the case, so it’s important to plan accordingly.

While understanding what’s included in the project scope is crucial, defining what’s not is equally important. By proactively detailing non-included items and setting clear expectations, you can mitigate the risk of implementation surprises and cost overruns.

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