“Fixed-Fee Implementations – A New Strategy For Success!”
Exciting and Viable Option: Fixed-Fee Implementation
Fixed Fee – Yes! How Times Have Changed.
After 30 years of implementing software, I never thought I would say it: Fixed-Fee Implementations are no longer big scary monsters.
Before: Historically, fixed-fee projects were avoided because implementing was tedious, unpredictable and scopes were hard to pin down. The tasks were difficult and unpleasant: Loading data, training, documentation, building servers, and business process redesign were hindered by old technology. Time and material implementations became the norm for decades, because frankly, old-fashioned software was very difficult to implement!
Now: With Acumatica ERP, fixed-fee implementations suddenly are possible and advantageous, thanks to its modern and flexible architecture. Importing data is straightforward, training time is reduced greatly, servers and infrastructure deployment is magically handled by experts in the cloud. Scoping most of the time is straightforward.
The Rules Have Changed
Implementation goals are different now. Remember when you paid for software, installed it and then used it until it until the wheels fell off?
That model allowed for casual and long implementation schedules. Have you noticed (yes you have) now nearly all software is subscription-based? Also new software is very flexible and designed for fast implementations. Implementations are focused on getting you up and running ASAP with minimal change to maximize return on investment.
Act Now – Lines are Forming
At RefinedLogix, we can evaluate your situation and determine if a fixed fee solution would work well for you. Act now. As you are aware, there is a implementation boom as tens of thousands of Dynamics GP (Great Plains) users are moving to other software. There are only so many competent resellers/implementers who will be doing these conversions. Don’t get caught in the back of the line. A fixed fee implementation can do this for you.
Fixed Fee versus Time and Materials
Are fixed fee projects always better than time and material contracts? It’s a solid choice when implementing Acumatica, but there are some considerations. Let’s take a deeper dive and review the two common types of implementation contracts: Time-and-Materials (T&M) contracts and Fixed-Fee contracts. We can explore the advantages of each. From this, you might have a better understanding of the methodology to use:
- Fixed-Fee Contracts – Best employed when the scope is straightforward and the goal is to get it done quick and with minimal interruption in the business process.
- Predictability: With a fixed-fee contract, the cost is predetermined and agreed upon upfront. This provides clarity to both parties, and the client knows the budget from the start.
- Scope is Well-Defined: The scope is well-defined and typically simplified in order to get the software up and running immediately. Risks are identified and mitigated usually in advance.
- Stricter Deadlines: When the project scope is well-defined and unlikely to change significantly, fixed-fee contracts allow for clear planning and definite deadlines. Everyone knows what work will be done at any given point in time.
- More Intense Project Management: Fixed fee does NOT mean infinite scope! Project management is done precisely, tasks are completed within the allotted time and the process is completed on schedule.
- Time-and-Materials (T&M) Contracts – Best employed when there are complicated process changes, when the scope can’t be defined easily, when there are many unknowns that need to be uncovered.
- Flexibility: When the requirements aren’t necessarily known in advance, T&M contracts allow adjustments and changes throughout the project as requirements evolve and are discovered. This adaptability is beneficial for software implementation where needs and technology can shift.
- Allowance for Deep Discovery – Some implementations require an extensive amount of discovery in order to understand what needs to be accomplished. This can require a more flexible scope and Time and Materials are a better choice.
- Resource Usage In Detail: Time is usually tracked in a very detailed way and visibility on time and material costs is very granular. Customers have a clear view of resources and time expended, enabling better tracking of progress against the budget. Suitable for larger software projects.
- Requirement Changes Are Anticipated in Advance – Requirements are not clear or there are potential unknowns that must be resolved.
Summary
Would a fixed fee implementation work for you? It is very possible. It’s a very real choice in implementing software. Contact us right away and we can get you up and running on the best cloud ERP system out there.