Implementing an ERP system is one of the most transformative steps a business can take, yet 75% of these projects fail to meet their original objectives. Why is that, and how can companies defy the odds? Nick Foy, CEO and founder of Silverdale, shared his 30 years of experience in the ERP world on the 21st Century Entrepreneurship podcast. From hands-on consulting to revolutionary methodologies, Nick offers insights into why so many ERP projects derail and how Silverdale is setting a new standard for success.
The High Stakes of ERP Projects
Imagine embarking on a project that has only a 1 in 4 chance of succeeding. As Nick Foy explains, “With a 75% failure rate, it’s no wonder many small and medium-sized businesses hesitate to take the plunge into ERP implementation.” Yet the potential upside is enormous: streamlined operations, reduced costs, and improved visibility across your business. The key, Nick asserts, lies in the approach.
At Silverdale, the approach is holistic. It’s about more than just technology.
Nick notes, “We believe that being on-site, physically seeing, smelling, touching, and interacting with a physical operation gets you a much better result in your ERP implementation.”
This philosophy drives their commitment to connecting people, processes, and technology.
What Sets Silverdale Apart?
Fixed-Price Projects
One of Silverdale’s most defining features is its fixed-price model. Unlike traditional hourly billing, which Nick calls “completely at odds with the goals of the client,” fixed pricing aligns incentives. “We’re incentivized to deliver on time and on budget because we’re not paid by the hour,” Nick explains. This ensures transparency and accountability.
A Tailored Methodology: The Silverdale Implementation Method (SIM)
Nick attributes much of Silverdale’s success to SIM, a proprietary methodology based on three key phases:
Discovery: In this phase, Silverdale consultants immerse themselves in the client’s operations. They replicate real sales orders, purchase orders, and manufacturing processes in Odoo to show how the ERP will function in their specific context. “We’re not just asking how your process works,” Nick emphasizes. “We’re simulating your business.” This phase also identifies gaps and outlines mitigation strategies to ensure a smooth implementation.
Design: The second phase involves replaying the business back to the client with all identified mitigation strategies in place. This is where control shifts to the client’s super users, who undergo hands-on training to ensure long-term success. “Our goal is to reduce dependency on us,” Nick says. “Your super users become the first line of support.”
Delivery: Phase three begins with Go Live but doesn’t end there. Silverdale provides Early Life Support (ELS), offering dedicated resources to resolve any issues that arise in the critical weeks following implementation.
Tackling ERP Project Pitfalls
A major cause of ERP failures is businesses trying to mold the system around their existing processes rather than adapting their processes to the ERP. “The trick is identifying the processes that make your business unique,” Nick advises. “Stop customizing P&L reports and balance sheets—they’re the same for every business.” Instead, focus on customizations that enhance your unique value proposition.
Silverdale employs a five-tiered mitigation strategy to address gaps:
Adjust business processes.
Use pre-built Silverdale module extensions.
Apply technical configurations.
Implement client-specific development only as a last resort.
Carefully vet third-party Odoo modules to avoid quality issues.
Embracing Technology: Meet Dale, the 51st Employee
Silverdale has embraced AI to enhance efficiency and decision-making. Their AI assistant, Dale, plays a pivotal role in the organization. “Dale reviews client meetings, provides feedback on agendas, engagement, and red flags,” Nick explains. This AI-driven insight helps Silverdale’s team continuously improve their processes and client interactions.
Beyond analysis, Dale also assists with peer code reviews, test scripts, and creating FAQs and best practices. With access to over five years of data, Dale ensures Silverdale’s teams can leverage past solutions for future projects. “Dale is supplemental, not a replacement. He allows our team to be more effective without replacing the human element,” Nick emphasizes.
Who Is Silverdale For?
Silverdale focuses on small to medium-sized businesses with 1 to 250 employees. However, Nick is clear that not every company is a fit. “If you’re inflexible and want to mold your ERP around your existing processes, we’re not for you,” he says. Instead, Silverdale partners with businesses that are open to change and committed to aligning their processes with best practices.
Key Takeaways
Approach Matters: A hands-on, people-focused approach like Silverdale’s ensures better outcomes in ERP projects.
Avoid Customization Pitfalls: Customize only what makes your business unique, and adopt standard practices for everything else.
Leverage Technology Wisely: AI can enhance, not replace, human capabilities in ERP implementation and support.
Choose the Right Partner: Work with consultants who align with your business size, goals, and willingness to adapt.
If your business is considering ERP implementation and you want to improve your odds of success, visit Silverdale.us for resources, checklists, and unique content. Take the first step toward a successful ERP journey with the Silverdale team.
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