White Paper FINAL System Integrators

How to Select and
Manage Your
ERP SYSTEMS
INTEGRATOR
INTRODUCTION
Our team – led by our CEO and Founder Eric Kimberling – has conducted
annual research of the ERP, HCM and digital transformation markets for over
a decade. This research and corresponding reports are intended to provide
benchmarks and an understanding of industry trends related to enterprise
implementations and digital transformations.
This report reflects our findings from our most recent study of system
integrators within the digital transformation markets to better understand how
they impact the industry as a whole. More importantly, this report is meant to
help digital transformation project teams select and manage their ERP systems
integrators.
Copyright 2019 Third Stage Consulting Group LLC. All Rights Reserved. 1
METHODOLOGY
The methodology we used for this recent study identifies more meaningful metrics – both
quantitative and qualitative in nature. We looked at factors that went into choosing the
right system integrator for a digital transformation project and conducted research on
what people looked for regarding system integrators.
More importantly, this most recent study analyzes and dissects the process that goes into
choosing an integrator as well as how to handle a system integrator if things go south.
We looked at strategies and tactics that have the highest correlation with success versus
failure with choosing integrators and this report focuses on deeper and more meaningful
analysis of both quantitative and qualitative findings.
In analyzing data for this year’s report, the Third Stage Consulting
Team engaged in the following approach:
Participants in this white paper represent a combination of clients of

Third Stage Consulting, as well as companies that are not clients.
Third Stage evaluated both quantitative and qualitative data points in

its analysis.
The sample represents the same transformations included in the

samples for the 2019 ERP Report and the Lessons from 1,000 ERP
Implementations Report, which can also be found on Third Stage’s
website.
ERP SYSTEM INTEGRATOR
VS. CUSTOMER:
WHO IS REALLY TO BLAME FOR YOUR
IMPLEMENTATION CHALLENGES?
THE RISK OF BIG ERP SYSTEMS INTEGRATORS
While conducting research on system integrators, our team published a blog on exposing the
big ERP system integrators, highlighting quotes from consultants within some of the larger firms
and confirming the concept of being “Accentured” or “Deloitted.” It is a real phenomenon and
something to watch for both before and during an implementation.
While SIs and VARs (Value Added Resellers) are easy to blame, we do need to clarify that they do
not ultimately hold the responsibility for an implementation failure. In the end, the implementing
organization holds responsibility for the success or failure of the project as they are the ones
who chose who to hire in the first place. The key is for YOU to take control of your ERP system
integrator and overall project.
HOW TO MANAGE THE BIG ERP SYSTEMS INTEGRATORS
Here are a few considerations for managing the larger system integrators:
Your ERP systems integrator should not be involved in your ERP software
selection.
You may be facing an SAP S/4HANA vs. Oracle ERP Cloud vs. Microsoft Dynamics
365 decision, but your systems integrator should not be involved in that evaluation.
They are aligned with one or more of the ERP vendors, and their recommendation
will be biased depending on which arm of the firm you are working with. Instead,
you need an objective evaluation of the technology that is best for your particular
digital transformation.
Understand that you, as the implementing company are responsible for

quality assurance.
Accenture or Deloitte cannot provide quality assurance on their own activities.
They will tell you they can but make absolute certain this is being managed
internally or by an independent consulting firm. Otherwise, the fox will be guarding
the henhouse. If you do not take responsibility for this and let your SI oversee
themselves, you will fail, and it will be your fault.
Validate the technical capabilities of the system integration team.

Big SIs are notorious for employing kids right out of school and charging their clients
to train them. They are also notorious for outsourcing a majority of work to people
with limited skillsets. What happens in these scenarios is either budget overruns to
fix issues, or failure to implement needed functionality.
Make sure you have leverage on the resources that are brought in, that you have a
governance model on resource qualification and acceptance and that you or your
QA firm are able to provide your SI with resource direction. Don’t assume that they
will staff appropriately or in your best interests.
Don’t assume that your SI should or is able to cover every needed angle of
your implementation.
Your ERP systems integrator is not a silver bullet. You will likely need additional
internal staff, backfilling, independent advisors, OCM specialists, process engineers,
technical and integration specialists, data specialists, etc. The concept of being
“Accentured” or “Deloitted” stems from these firms embedding themselves in
multiple channels across your company and aligning assessments and budgets in
their favor. It is your job as the company implementing a new technology to not let
this happen.
THE PROBLEM WITH BIG ERP SYSTEMS INTEGRATORS
The problem we see is that it is often easier and more straightforward to “just let some big name
integrator handle it.” Nobody ever stated that implementing ERP or any enterprise application is
easy, and it is your job as an implementing organization to staff the project to the best interests
of your firm and stakeholders.
Your SI is most likely NOT such a stakeholder, and therefore should not be making the staffing
and organizational decisions or managing all activities of the implementation. At the end of the
day, the success of an implementation rests on the company that is purchasing and using the
technology – not your systems integrator. But in our time as ERP consultants we have been able
to expose some system integrators to see what they’re about.
RISKS OF
ERP SYSTEM INTEGRATORS
Choosing a technical system integrator is an important decision for any digital
transformation. But the risks of ERP system integrators are even greater than for other
ERP solutions. Newer approaches to implementation have led to a high degree of
variation in the market and almost too many options to choose from. This can make it
difficult for many organizations to select the best ERP system integrator.
Here are some things to consider

when searching for the best system
integrator for your transformation:
1 THE ERP SYSTEM

INTEGRATOR SPACE IS
FRAGMENTED
The root cause of many problems
in the space is fragmentation.
Simply put, there are too many
system integrators and resellers to
choose from – with very little quality
assurance or oversight. Some have
historically focused on Great Plains,
others on ECC, and others on Oracle
EBS. Now, they are all rushing to
replicate their competencies in these
legacy products in the ERP space as
software companies retire their old
products.
2 MANY ERP SYSTEM INTEGRATORS ARE ILL-PREPARED TO HANDLE A
TRANSFORMATION OF YOUR SIZE AND COMPLEXITY
With fragmentation comes inconsistent capabilities. ERP system integrators that used
to focus on Great Plains for small to mid-size organizations, for example, are now
being thrust into larger and more complex companies supporting a more complex
ERP product. Implementing a relatively narrow on-premise solution like Great Plains
or Axapta is completely different than upgrading, which is being adopted by some
larger and more complex organizations.
3 DEFINING A REALISTIC ERP IMPLEMENTATION TIME FRAME AND

BUDGET IS A DIFFICULT TASK
Estimating implementation costs is a tricky proposition as it is. It becomes even more

difficult when your system integrator or reseller doesn’t have the big-picture focus
and competencies to understand what it will really take to get the job done. This is
one of the biggest challenges of ERP implementations today.
4 JUST BECAUSE THEY CAN, DOESN’T MEAN THAT SYSTEM

INTEGRATORS SHOULD CUSTOMIZE THE SOFTWARE
Most system integrators we run into are very technically savvy. They understand how
the software works and how to make it do whatever you want. They are also working
with a very flexible system that can be easy to customize. But just because they can
doesn’t mean they should customize the software. This is one of the biggest lessons
in our experience as an expert witness in this field.
5 HOW TO MITIGATE THE RISKS OF ERP SYSTEM INTEGRATORS
Don’t worry – all is not lost. You didn’t necessarily make a bad decision by choosing
Dynamics 365 vs. NetSuite, D365 vs. SAP S/4HANA, or whatever other systems you
may have considered.
The important thing is that you recognize that you have plenty of options and
take your time to find the best system integrator as part of your implementation
readiness process. This is one of the best practices to ensure a successful ERP system
implementation project. With an implementation project it’s also important that you
understand that language that comes with it.
TIPS TO SELECT
THE BEST SYSTEM INTEGRATOR FOR
YOUR ORGANIZATION
Choosing or upgrading your preferred ERP system is a big milestone. But selecting
the best ERP system integrator for your company is an even bigger decision. ERP
implementation success generally has less to do with the software you choose and more
to do with how you implement the software. This is one of the key lessons from our
experiences within the industry as an expert witness.
Choosing a system integrator has several dimensions. Here are some tips to choose the
best ERP system integrator for your organization:
ASSESS THE COMPETENCIES OF THE SYSTEM INTEGRATOR
Your ERP integrator is only as good as its team members. You should assess system integrator
skills and competencies – not only in your current system, but in project management, business
process, and other skills important to your implementation. If your integrator or reseller doesn’t
have that experience, then you should plug that gap with a third-party firm that can provide the
required experience.
LOOK FOR PAST EXPERIENCE WITH PROJECTS SIMILAR TO YOURS
Your organization is a unique one, so ensure you work with a system integrator with relevant
experience. You will want to find a team that has worked with organizations like yours. This
includes your industry, culture, and scope. This will ensure that your consultants aren’t learning
on the job or delivering a solution that doesn’t fit your needs.
In addition, you will want to make sure your system integrator team has experience with similar
scope. If you are implementing finance and operations, point of sales (POS), Power BI, or other
tools, make sure your chosen integrator has the relevant product experience. A lot of these
products are new to the market so it’s important that your system integrator knows what they’re
doing.
ASSESS YOUR SYSTEM INTEGRATOR’S PROPOSED TIME AND COSTS WITH A

GRAIN OF SALT
ERP system integrators don’t have an incentive to be realistic about their estimated
implementation duration and cost. This could explain why most implementations take more time
and money than expected. This makes it difficult to estimate the implementation time and cost
for your ERP implementation.
The way around this is to take your integrator’s proposed plan and budget with a grain of
salt. Look for critical activities that are missing from their plan, such as organizational change
management and implementation readiness. Then, determine how you will fill those gaps
internally or with other third-party consultants.
DETERMINE HOW YOU WILL ADDRESS YOUR ORGANIZATIONAL CHANGE

MANAGEMENT
If your system integrator is like most, then they are exclusively focused on product functionality –
not on organizational change management. Yet, org change will arguably be the most important
aspect of your successful implementation. You will want to identify strong organizational change
consultants such as those at Third Stage to ensure your project’s success.
REGARDLESS OF WHICH ONE YOU CHOOSE, ESTABLISH A STRONG PROJECT

QA PROCESS FOR YOUR ERP IMPLEMENTATION
No matter which system integrator you choose, your implementation process will involve a great
deal of risk. The best way to mitigate that risk is to establish a strong project quality assurance
process for your system implementation. The chart that follows is an overview of some of the key
activities necessary to mitigate risk and keep your project on track.
PROJECT AND QA ASSESSMENT FRAMEWORK
Project Governance Configuration and
Procurement Project Planning Project Resources Process Alignment Architecture
& Controls Development
• Differentiating • Realistic time, budget, • Time, budget, cost • Core team and SMEs • Future state • Documentation • Integration
requirements resources • Decision framework • Executive Steering processes • Out of box
• Contract compliance
• Technical fit
• Demos • Clearly defined vision Committee • Business scenarios functionality
and plan • Controls with third • Change Agent • Physical and IT org
• Softwere fit • Requirements • Industry and
parties Network infrastructure
• Employee buy-in • Clear project charter traceability software best
• Methodologies and • Platforms
• Backfill
• Contract terms • ID critical path tools practices
activities • Third-party resources • Tools
• Go/no-go framework
• Project ownership
Organizational Change Master Data Benefits Realization

Management Management Testing Security Reporting and Analysis and Performance
• Skills • Data mapping • Software testing • User profiles • Forms • Baseline metrics
• Readiness • Cleansing and • Integration testing • Internal controls and • Reports • Measurement audit
• Change impact migration plan • Data load testing compliance • Business intelligence processes
• Training • Ownership • User acceptance • Segregation of duties
• Communications • Controls testing • Cybersecurity
• Organizational design
Ensure Strategic Alignment
Assess and Mitigate Risk
Third Stage Project Certification
Many ERP systems can be a great product for your organization. But, finding the best system
integrator is even more important than your decision to choose the product. It’s important that
you’re able to find an integrator who can effectively manage your project and any change that
comes along as well.
BIG
ERP SYSTEMS INTEGRATORS EXPOSED
After the French Revolution in 1848, a famous French writer once wrote: “the more things
change, the more they stay the same.”
This is certainly true today – especially in the digital transformation and ERP
implementation space. More than ever, it seems that corruption and greed among
the big system integrators overshadows what really matters: client success. This is a
challenge for Deloitte, Accenture, Capgemini, and other big system integrators.
THE PROBLEM: ARE THINGS REALLY
CHANGING FOR THE BETTER?
Not much has really changed in the industry

within the last 20 years within the ERP
implementation space. For example, in the
early 2000s you had well publicized failures at
Hershey’s, Waste Management, and others. In
the last few years, we have seen ERP failures at
Lidl, National Grid, Haribo, and others. So, while
technology has seen quantum improvements,
the end results are largely the same.
A decade ago, big consulting firms were forced
to split themselves up because of indiscretions
and biases that contributed to the Enron failure
and other corporate debacles. This forced them
to split their audit and consulting practices at
the time, yet here we are today with those big
incumbents once again contributing to large
ERP failures.
So, what is the problem? For one, there is no
accountability – and things are not getting
better. Our team member Brian Potts recently
wrote an article about getting “Accentured,”
along with what to do to mitigate those risks.
Some may say that no one has ever gotten fired
for hiring one of the well-known big guys, but
many organizations have certainly been sued as
a result of doing so.
FEEDBACK FROM INDUSTRY PEERS REGARDING THE BIG ERP SYSTEM

INTEGRATORS
Based on how others have responded on various social media posts over the years, it is not just
us that see this as a problem. Of the roughly 100+ comments we have received on the topic, not a
single person came to the defense of the big systems integrators.
This alone doesn’t necessarily make the other comments true, but we find it interesting that none
of my thousands of contacts within the big systems integrator firms defended themselves. We
even tried baiting anyone from the big firms to challenge me otherwise, but none took the bait.
We did, however, receive comments from people within these big consulting firms that were
critical of their own firms.
Following are some of the themes from the interactions I have had with various colleagues and
peers on social media. Some of these comments were publicly posted, but many were sent
via private message or email requesting anonymity. These quotes intentionally do not cite the
sources for this reason.
Copyright 2019 Third Stage Consulting

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2018LLC.
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Reserved. Group LLC. All Rights Reserved. 10
One of the most common themes we heard from people is that the big system integrators have
significant knowledge gaps that harm their clients’ chances of ERP success. We have also written
an article about what your ERP system integrator can’t do and what to do about it, so we were
interested to see these comments.
Below are some of the excerpts of quotes we received from various people:
Most of the issues arise when it comes to staffing – customer should control this
through overall control and day-to-day running of the project.”
Things will not change till Organizations take ownership and control of any IT
investment. But while that happens (which remains to be seen) for IT providers (SAP
HANA, Oracle, MS, etc.) business will be as usual…. Isn’t it?”
The problem is not just confined to the really big firms. There is a constant
information disparity. The client never quite knows who to trust.”
I think when we read about large scale IT failures, we are often seeing organizations
make large IT investment decisions when they were not fit to understand those
dependencies. Therefore, they are left with the very large risk of failure because they
outsource the decision making to a party who may be taking a fairly narrow view
that ignores many of those dependencies.”
At firms like Deloitte, you really cannot even get a straight answer internally - ask 10
managers the same question, get 10 different answers.”
With something like ERP implementation, the problem always goes back to hiring
functional “experts” with no program management abilities, and that is why they
are weak in business needs like readiness, data migration, etc.”
Problem: Most business/IT organizations or vendors do not have the skills to

identify/implement the organizational and process changes required for success.”
These comments suggest that the big system integrators often aren’t doing enough to provide
the knowledge, direction, and leadership to make their clients successful. This could be a key
reason why digital transformation failures are on the rise.
CONFLICT OF INTEREST AND BIAS AMONG THE BIG ERP SYSTEM INTEGRATORS
A second theme we saw in the comments we received were that the big system integrators are
biased. They represent SAP or Oracle or another ERP vendor, so they tend to go into clients with
a S/4HANA or Oracle ERP Cloud-first mentality.
Economic incentives bias digital transformations, yet these biases are not necessarily beneficial
for clients. Another bias involves staffing. The big system integrators have hundreds of thousands
of consultants that they need to keep staffed, so they probably “need” to staff 100 or 200 on your
project to make it worth their while – and they need to do so now. But you don’t need an army of
consultants that will ultimately steamroll your business into compliance with “best practices” and
other myths created by ERP incumbents.
There’s a lot you need to do to prepare for your SAP implementation (or any other ERP
implementation), but you don’t need the meter running on an army of consultants while you do.
Here are some of the comments we received, along with examples of the impact
on the clients of system integrators:
You can simply solve this by having staffing delivered by expert third parties other
than external parties responsible for delivery, and have it overseen by the customer.”
Such procurement and subsequent integrations need internal, technical oversight.

Organizations small and large need someone on their team who can call BS when
they see it and then navigate successfully around it.”
Most Big ones in the IT/Business consulting field come from Accounting/Audit
background even Accenture (Arthur Andersen). Remember Enron? SAP deployment
failures involving the Big 5 have exposed some flaws in their MO.”
I wouldn’t say it’s just the big integrators who have this inherent conflict of interest,
but I see mid and small-sized consultancies too – once they get a sniff of having
opportunities to staff, they rapidly become conflicted just like the big SIs. I should
also add that I think it would be unfair to say every Partner/SI leader is the same.”
Remember that you own your digital transformation or ERP implementation – not your system
integrator. So, act accordingly and get your big ERP system integrator under control.
CLIENT OWNERSHIP OF THEIR DIGITAL TRANSFORMATION VS. PUTTING ALL

THEIR EGGS IN ONE BASKET WITH ONE SYSTEM INTEGRATOR
Another theme was around putting all your eggs in one basket by outsourcing to a single, big
ERP systems integrator. In these cases, clients assume (or are told by the SI) that the system
integrator can handle all of their needs. They are also often told that they don’t need any
additional involvement from outside third parties. In other words, they are convinced that it is
okay to have the fox guarding the henhouse.
Here are some of the comments related to that theme:
When a vendor ‘owns’ everything, you gain nothing, but risk and the costs
associated with that risk. Whether multiple vendors, or a mix of SI, internal
governance, and a TPA, putting all of your eggs in one basket will end badly.”
Agree the client needs to govern all teams on the project and lower silo barriers.”
The difference is whether they do it “to” you as opposed to “with” you. One leaves a
legacy/capability while with the other approach, everything falls apart once they are
gone.”
Consulting cartels have always been around.”
THE NEGATIVE IMPACT BIG ERP SYSTEM INTEGRATORS CAN HAVE ON THEIR
CLIENTS
Perhaps the most concerning part of all this is how it can so negatively affect their clients. While
they are making millions of dollars (sometimes tens of millions or hundreds of millions) off of
their clients, the end customers are the ones left holding the bag when things don’t go well.
For example, just look at the recent SAP failure at Haribo or National Grid’s SAP lawsuit against
Wipro.
Here are some of the comments we received along these lines:
I found your post about ‘Accenturization’ interesting. I joined Accenture three years
ago, but I agree with your article. Most of my co-workers are “lifers” and the only
thing they know is the Accenture way.”
Their primary value proposition is cheap offshore staff and replacing people with
automation.”
You may want to outsource IT support or offshore software development but be aware that
outsourcing your entire digital transformation to a single big ERP system integrator can have
catastrophic results.
THE VALUE OF SMALLER ALTERNATIVES TO THE BIG SYSTEM INTEGRATORS
Fortunately, we didn’t just receive complaints and negative comments from people – we also
received some helpful suggestions. This included options outside the big ERP system integrators.
Here are a few sample quotes:
I think this is starting to shift slightly. Companies want more bang for their buck
these days and will look to more specialized/boutique companies for solutions.
Bigger companies are less likely to go the “extra mile” and don’t or won’t offer the
same flexibility as others.”
Smaller companies are hungry and so they are willing to go the extra mile! Losing a
client can make or break them so they work hard.”
TAKE CONTROL OF YOUR ERP SYSTEM INTEGRATOR AND OVERALL PROJECT
It may not quite be time to fire your ERP system integrator, but recognize that you do have
options outside of the big incumbents. And, it’s not an either/or proposition: you can get the best
of the system integrator and augment with the more strategic and specialized skill sets of others.
Leverage our team’s experience if you are looking for help finding the right system integrator
or trying to figure out how to mitigate some of their risks. If you’re still not sure what risks come
with system integrators, we have a few considerations that you should keep in mind when you’re
evaluating your overall project.
ARE YOU AT RISK
OF BEING ACCENTURED?
Very different than being “delighted,” this term has become increasingly popular among boutique
consulting firms and independents. More importantly, it is a term we have heard clients use to
refer to their experiences with the large SAP, Oracle, and ERP system integrators.
To be clear on a couple points: First, we are not just talking about Deloitte, Accenture, or
Capgemini, but most of the larger system integrators including KPMG, Hitachi, and PwC to name
a few. Second, we did not make up this concept, but have heard it countless times across the
industry. This term has been talked about behind closed doors for years.
What we are referring to is the approach that Accenture, Deloitte, and other large firms take in
terms of control of their accounts and not playing nice with others. Their goal is to essentially
staff and manage an entire implementation or project and not let any other firm offer support or
guidance. It may sound nice to have a “one-stop shop,” but they are also positioning themselves
for no oversight and leaving the opportunity open to exploit their clients.
This is not only detrimental to other consulting firms but is potentially very dangerous to the
engaging organization they are working with. They may have rules of conduct and no conflict on
the auditing side, but in terms of ERP and technology services this is not the case. ERP system
integrators are typically not the ultimate holistic answer that clients are looking for.
Consider the following as you evaluate your own situation:
These firms position

and train their resources
specifically to keep others
away.
And they are truly good at it.

At least one of these firms has
shared directly with me that they
have specialized training as part
of their management program
on how to deflect advisory firms
that attempt to offer additional
services to their clients.
They will offer “free” services to keep other consultants out.
Personal story from one of our team members:
I had spent a good part of the day meeting with a services company that had engaged
Deloitte as their systems integrator for an SAP implementation. They had reached out to
us to provide an independent assessment of what they needed to accomplish internally
prior to implementation before Deloitte brought in troves of consultants to start working
on the implementation.
The intention of this small workstream was to help outline what they could potentially
handle in-house vs. where they would need help from Deloitte and ultimately save them
money. Two days later, I received a call back letting me know that Deloitte had offered
the “same” work as part of their implementation. Does anyone else not see the conflict of
interest here?”
They staff at least one dedicated resource to keep clients happy and in the dark.
Either an account executive or in some cases this is at the Partner level. They are some of the
best salespeople we have ever seen and have spent a good amount of time and effort engaging
the highest levels of the organization to build trust and friendship. This individual’s only focus is
to keep the client happy, wine and dine, keep them from talking to any other consultants and,
most importantly, to distract them from any issues or risks on the project. Hopefully they are not
billing this person as a project resource, but unfortunately that is not always the case.
They focus on distraction from true project risks.
This is in our view the most dangerous part of being “Accentured.” As a large system integrator
takes over more and more aspects of a project, they are better able to push, delay or simply
hide potential project risks. This is with the intention of preventing disruption to their “cash cow,”
which can be countless consultants working a project. Any risk of slowing or reducing the run-
rate hits the Partners directly. This is even more reason to ensure a solid ERP quality assurance
approach exists.
System integrators need to provide project management for their team and for the
implementation. However, they should not be providing overall program management, they
should not be providing organizational change management besides training and training
development, and they should not be providing quality assurance outside of system-specific QA.
It is important to understand what ERP system integrators aren’t good at and what to do about
it. The intention is not to simply bash big systems integrators. They provide a level of service that
cannot be matched for implementing systems in large, complex and global environments. They
simply need some oversight and augmentation from independent ERP consultants, and clients
should not be swayed against protecting their internal interests. Your system integrator shouldn’t
be the last resort for your implementation project to be successful.
ALTERNATIVES TO THE
BIG SAP AND ORACLE SYSTEMS
INTEGRATORS
We’ve discussed the double-edged sword that the big systems integrators bring to the table. The
good news is that even larger organizations don’t need to limit their options to the big guys –
there are plenty of viable alternatives to the big SAP and Oracle systems integrators.
SAP AND ORACLE SYSTEMS INTEGRATOR LANDSCAPE
First, it is helpful to understand the landscape of the massive SAP and Oracle systems
integrators. These big guys generally fall into two buckets:
The biggest of the big systems Technically focused offshore

integrators. systems integrators.
These are all the big-name players that Though lesser known, these SAP and
we have all heard of. For example, bigger Oracle systems integrators typically
companies often evaluate Deloitte vs. are also very large – with more of an
Accenture vs. Capgemini vs. other big, offshore mix than the Accentures and
blue chip names. They are typically Deloittes of the world. Examples include
global in nature and typically have Infosys, HCL, and Wipro.
hundreds of thousands of consultants at
their disposal.
The good news is that the big guys represent just a small sample of the viable alternatives in the
marketplace. They may be the ones with the deepest pocketbooks to make big splashes at the
SapphireNow/asugConference each year, but there are a host of other providers with a strong
bench, ability to scale, and global capabilities.
Here are some examples of some alternatives to the big ERP systems integrators:
itelligence
Century Link
Hitachi
SAP Consulting
Oracle Consulting
NIMBL
Atos
Abeam Consulting
Hitachi Consulting
BDO
There are dozens – if not hundreds – more viable options out there, but hopefully this gives you a
sense of alternatives you have.
THINGS TO CONSIDER WHEN COMPARING ALTERNATIVES TO THE BIG SYSTEMS

INTEGRATORS
With the plethora of options out there, it is important to have a clear set of criteria to use to
compare alternatives to the big systems integrators. Though their importance will vary for every
organization, below are some criteria to consider:
Read the reviews for systems integrators.

It is important to understand what others have experienced when working with the various
implementation partners. Just as importantly, these data points can help you understand
how to mitigate the weaknesses and risks of any given option. Raven Intel (ravenintel.com)
is a good, technology-agnostic resource to research and read reviews of leading SAP and
Oracle systems integrators – a sort of Yelp directory with client reviews and opinions.
Cultural fit.
SAP and Oracle consultants can be highly effective when they match your culture well, but
they can just as easily be highly ineffective when they don’t. It is important to meet the
individual team members – from the engagement manager down to front-line technical
consultants – to assess and gauge their level of fit with your team and culture. Because this
is an intangible (albeit very important) criteria, many companies unintentionally neglect this
variable when assessing options.
Would you prefer to be a big fish in a small pond or a small fish in a big pond?
You may be enamored by the prospect of working with a blue chip consulting firm with the
firepower to sponsor national advertisements, but you should also consider where you
stand in the pecking order. For example, you may think you are a large company at $10B
in annual revenue, but if that is the case, Accenture and Deloitte are both 4x your size, and
they have clients that are exponentially larger and more important than you.
Choosing an SAP or Oracle systems integrator isn’t an all-or-nothing proposition.

Most systems integrators will prefer that you source all your transformation work solely
to them, but that need not be the case. Instead, many firms hire systems integrators for
what they are good at – functional and technical software consulting – and hire others to
handle the people and process-related aspects of their transformation. After all, systems
integrators are not a magic potion to solve all your transformation challenges.
Protect and control.

Perhaps most importantly, the systems integrator shouldn’t be the one to self-assess how
things are going and where the risks lie. This is akin to the fox guarding the henhouse.
Instead, consider hiring an independent third-party consulting firm like Third Stage to
independently provide quality assurance and implementation support.
WHY YOUR SYSTEM
INTEGRATOR
ISN’T THE SILVER BULLET YOU’RE
LOOKING FOR
Choosing the right system integrator is as important – if not more important – than the choice to
deploy any specific software in the first place. Unfortunately, the right choice here doesn’t solve all
your problems, either.
We work with plenty of clients who spend considerable time evaluating Deloitte vs. Capgemini vs.
Accenture and other system integrators. This is indeed an important activity, but even these well-
known ERP system integrators have competency gaps to be filled.
This is an important aspect of ensuring a successful implementation. Your system integrator is an
important piece of the puzzle, but it’s up to you to put together the puzzle and fill in the missing
pieces. Recognizing this early on will help you develop a more complete, realistic, and effective
implementation plan.
Here are some of the areas where ERP system integrators typically need help:
Program management and governance
System integrators are typically strong at managing their own project teams and
activities, but those are part of a broader program that needs to be managed. Internal
resources, risk mitigation, and non-technology related activities all need to be integrated
into a single program. It is up to you, the implementing organization, to create an
overarching program governance structure and plan that pulls together various
workstreams and resources.
Independent project quality assurance
Generally, these projects can get off track quickly. As good as your system integrator
may be, they are too entrenched in the functional and technical details of your program
to recognize risks percolating along the way. And, they are only as good as their last
few implementations they helped with. For this reason, it is important to have a third-
party provide ERP project quality assurance to act as an extension of your program
management office to keep your project on track. Independent experts such as Third
Stage Consulting can help in this area.
Strategic organizational change management
We find that Deloitte, Capgemini, Accenture, and other ERP system integrators are
fairly good at tactical organizational change management, but not at the more
strategic aspects. For example, you will need to address organizational design and
job descriptions as part of your digital transformation – something that falls outside
the realm of ERP organizational change management. This is especially true for
organizational change on global ERP implementations.
Also, it is important to recognize that system integrators are typically very good at what
they do (functional and technical consulting), but not so good at what they don’t do
(organizational change management). This is where independent, third-party expertise
can help.
Data cleansing and migration
ERP system integrators often treat data conversion as an afterthought. As long as the
software works, what difference does the data make anyway, right? Not really. Data is
a key component for keeping your business running smoothly during the transition. It
is also the key to taking advantage of predictive analytics, machine learning, business
intelligence, and other advantages of the software.
Dedicated focus on data cleansing and migration will be key. Your legacy data probably
needs some TLC, so ensure that you have someone helping you through the process.
Data is typically on the project critical path, so delays in this area are more likely
to delay the overall transformation program. There are independent third parties
specializing in data migration that can help address this critical component better than
your system integrator.
Building internal competencies
Overdependence on consultants is a problem that many encounter. Another common

problem is deferring too much to your system integrator because you don’t know
enough about the software. Both challenges can be mitigated by better building your
internal competencies to become self-sufficient sooner.
Taking time to build these internal competencies early on will help ensure success in
the long term. Knowledge transfer from your system integrator won’t occur through
osmosis, so you will need something more deliberate. Following is a chart of some
of the activities we helped a recent client through as they ramped up their ERP
implementation:
IMPLEMENTATION READINESS PLAN
Technical Readiness
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Architecture and Integration Plan / Infrastructure Gap Analysis Data Cleansing and Mapping / Data Governance
Technical
Readiness
IT Skills Competency Gap Analysis SAP Technology Training / Mobilize SAP Center of Excellence
Key Objectives: Workstream Key Activities

Architecture and Integration Plan • Finilize Phase 1 scoping and business objectives
/ Infrastructure Gap Analysis • Technical team buildout of roadmap from current state to Phase 1 go-live
• Workshop review with senior IT leadership, SI, and project core team
• Define Phase 1 go-live
architecture Data Cleansing and Mapping / • Identify all Phase 1 data elements for conversion
Data Governance • Current state integrity analysis
• Align data elements to future state SAP data elements
• Develop high level data • Define initial structure, approach, and resources for data governance and management
migration plan and readiness moving forward
• Define future state IT skill sets IT Skills Competency Gap Analysis • Define future IT roles and competency matrix
• Perform current staff skills assessment
• Establish technical CoE • Create organizational transformation plan for education, recruting, and alignment
SAP Technology Training • Attend SAP, SI, and third-party training

• Educate on new infrastructure • Workshop debriefs aligning tools with roles and responsibilities
tools and capabilities • Build in-house training curriculum for long term
Mobilize SAP Center of Excellence • Formally define CoE (purpose, composition, roles, & responsibilities)
• Align IT go-forward roles to this virtual organization
These are some of the things required to augment your ERP system integrator’s deficiencies and
make the best use of their strengths. This also helps ensure that you are being as effective and
deliberate as possible with your system integrator.
What are you doing to better manage your implementation and position it for success? Do you
know if you selected the best system integrator for your organization?
WHAT YOUR ERP
SYSTEM INTEGRATOR
CAN’T DO – AND HOW TO FIX IT
When we look at why projects fail during our ERP expert witness and project recovery
engagements, we find common themes that trace back to system integrators. The integrators are
typically very good at what they do, but no one seems to know what to do about the things they’re
not good at. This is where the problems creep in.
FRAMING THE PROBLEM OF ERP SYSTEM INTEGRATOR GAPS
First, it is important to look at some of the common root causes of failure:
Misalignment within your organization

Poor organizational change management
Unrealistic expectations
Lack of internal ownership and buy-in
Resistance to change
Not enough attention to your budget and strategy
We find that the issues related to technology are rarely a key root cause of failure. It’s not that the
system integrators are not to blame during a failure, but problems typically extend well beyond
their domain. The biggest problem is that the intangible competencies that make or break a
transformation are not within the scope of most system integrators. Too many people assume
that their system integrator will solve all their problems. This simply is not the case.
Whether you are working with Deloitte, Capgemini, Accenture or other system integrators, there
are deficiencies to be aware of. Here are a handful of things that your system integrator won’t do
for you, along with what to do about it:
Help define your independent digital strategy and ERP software evaluation
Your digital strategy and ERP evaluation should be conducted in an unbiased matter. For
example, if you are considering SAP vs. Oracle to enable your digital transformation, you
want to know that you are working with technology-agnostic, independent ERP consultants.
This helps remove biases, but it also helps set realistic expectations from the start. Third
Stage Consulting is an example of a team of unbiased experts that can help.
Digital transformation implementation readiness
There is a lot of work to do once your digital strategy is defined and your software is
selected. For example, you will need to:
• Mobilize your internal team

• Define a more detailed work plan
• Create an organizational change strategy and plan
• Define your project governance, quality assurance, and risk mitigation processes
• Begin creating your data migration strategy
• Define your overarching solution architecture
These are just a few examples. In most cases, these aren’t the strengths of system
integrators. You don’t want the meter running while you’re beginning these activities and
making key decisions. An implementation readiness phase of the project will help mitigate
this risk.
IMPLEMENTATION PROJECT QUALITY ASSURANCE
We have found that system integrators typically aren’t good at overseeing themselves. They are
simply too close to the implementation to objectively and rationally manage risks. Risks proliferate
throughout most transformations, so this is an extremely important insurance policy. Seek out
this independent implementation quality assurance to help keep your project on track.
ORGANIZATIONAL CHANGE
MANAGEMENT
Organizational change management requires a

much different skill set than those required to build
and configure software. So, it’s understandable
that most system integrators aren’t very good at
this. If they do have a competency in org change,
it is typically very transactional and focused on
the software rather than on the more important
strategic components of change. This is why you
find organizational change management experts to
help.
OWNERSHIP OF YOUR ERP

IMPLEMENTATION
No matter who you hire to help, they can’t own the
digital transformation – nor should they. Only you
can fill this role. Your system integrator is not a
replacement for your own organization’s ownership
of the project. This is your project, so ensure that
you manage it accordingly.
WHAT TO DO ABOUT IT ALL
The good news is that there is an easy solution: bring in the right help to augment your system
integrator. This is the only way to mitigate the risk of system integrator deficiencies. Contact me
to discuss how our team at Third Stage can help. We are happy to act as a sounding board as
you embark on your transformation; and if you’re looking for alternatives to whatever system
integrator you have currently, we have compiled a few tips and a list of alternatives you should
consider.
We frequently encounter organizations implementing ERP who are adamant that their software
reseller can manage their project implementation along with needed change management.
Their system integrator tells their customers that they can handle the change – and the
customers believe them. This put customers in a precarious situation since organizational change
management is the #1 key to digital transformation success.
If this is you, please just consider the following:
1 Having an “OCM methodology” does not constitute the ability to deliver change
management, and a methodology or approach can be acquired anywhere.
Try typing it in your search bar. What really matters is the execution of these plans. Several
firms are now promoting PROSCI certification or similar methodologies. PROSCI requires a
3-day class and acquisition of a toolset, and you then have a certification. It does not require
any actual experience in using the tools or effectively delivering change management.
2 Training is not “OCM.”

We do recommend that you engage your SI to help with system training. However, it is
only a piece of the OCM puzzle. This is a big reason why so many organizations and their
consultants underestimate the importance of organizational change management.
3 Change management is NOT a system integrator’s core business.

They are in business to sell and implement software. Consider where they are putting their
efforts in terms of hiring and training for their own team. Most likely it is not on the OCM
front. OCM has become a very developed acumen and is more important to a successful
ERP implementation than ever. Consider hiring experts for that purpose. It is important to
understand what your system integrator can’t do.
4 It is simply a bad idea to hire your SI to perform change management.

Even if you are working with a large system integrator such as Deloitte, Accenture, or
Capgemini, and even if they allege to have a “change team,” you do not want to give this
level of control to one organization. Getting the system up and running quickly and getting
users acclimated can be a conflict of interest. Consider a case where users are pushing back
on an off-the-shelf process, where they either learn to accept it or the SI performs system
modifications to align with the way things were done in the past. Who wins this battle?
If you are currently implementing or considering a new ERP system and your systems integrator is
getting rebellious and not helping progress at all, here are some tips to help with that:
HOW TO GET YOUR
SYSTEM INTEGRATOR UNDER
CONTROL!
GETTING “ACCENTURED”
The premise of the section is that big system integrators are masters of selling and avoiding
accountability or oversight in the meantime. They also tend to take advantage of the fact that their
clients often lack the knowledge or experience to know how to “look behind the curtain” of how
they are running their projects.
These dynamics could help explain the SAP failure at Lidl, SAP transformation problems at Haribo,
or the National Grid SAP lawsuit against Wipro. Every situation is different, and there are usually a
variety of contributors to digital transformation difficulties.
Here is the more important question: how can we better manage our system integrators? Here
are a few things to help get a handle on this industry problem.
You should set the tone and parameters for your digital transformation project (not
your SAP, Oracle, or Microsoft Dynamics system integrator)
Control your project. Listen to your consultants and understand their advice, but at the end
of the day, this is your business and your digital transformation. You are the one who has
everything to gain or lose by this initiative. It is important that you dictate the tone, pace,
resourcing, and other parameters of the transformation.
Engage in an implementation readiness project first before engaging your system

integrator
Too many companies rush straight into implementation without a clear vision or plan of
what they want to be when they grow up. In the meantime, a swarm of system integrator
consultants are running the meter while the client rushes to make critical business
decisions. This is why it is important to engage in an implementation readiness phase prior
to fully engaging your system integrator.
Augment your team with more than just a system integrator

Your SAP, Oracle, or Microsoft Dynamics system integrator is not the answer to all of your
digital transformation needs. There are things that your system integrator can’t (or should
not) do, so be aware of those weaknesses. Get creative and find alternate resources.
Educate yourself on digital transformation best practices
System integrators often don’t want you to see what’s behind the scenes, and this works
to their unfair advantage. The best way to level the playing field is to arm yourself with
knowledge. In other words, train and educate your team on digital transformation best
practices. Part of the reason we share so many digital transformation and ERP case studies
and best practices is to counter this problem.
Implement a third-party implementation QA and risk mitigation framework

System integrators typically advise against it, but a strong quality assurance and risk
mitigation framework is an excellent insurance policy to hedge against the risks described.
Don’t be lured into the idea of “them” quality assuring themselves. True independent
quality assurance and risk management should be conducted by an independent third
party such as Third Stage Consulting.
When all else fails, fire your system integrator!

It may be a last resort, but don’t be afraid to fire your ERP system integrator. It may be
painful, but if you have exhausted all your other options to no avail, it is a lot less painful
than a digital transformation failure.
Assess your current system integrator situation

This is an important thing to get a handle on early, so please feel free to reach out to me
to discuss your potential SAP S/4HANA, Oracle ERP Cloud, or Microsoft Dynamics 365
system integrator options. Whether you are looking for the best system integrator for your
business or looking for ideas to better manage their risks, we are happy to help! But if you
need to make a snap decision about whether to keep a systems integrator or not, here are
some signs that it’s time to move on from your systems integrator.
IS IT TIME TO FIRE YOUR
SAP, ORACLE, OR MICROSOFT
DYNAMICS SYSTEM INTEGRATOR?
In all our years as ERP expert witnesses and digital transformation specialists, we’ve seen more
transformation failures than we like to admit. It seems that the industry is becoming numb to the
realities of transformation challenges.
The good news is that this is your project. You can play large part in being successful. And, you
can do so without having to necessarily fire your system integrator. Here are four steps to get
your project on track and ensure that your transformation success or failure is not solely in the
hands of your integrator:
1 RETAIN (OR REGAIN) CONTROL OF YOUR ERP TRANSFORMATION
First is to recognize that your transformation should not be outsourced. Unlike

offshoring software development or outsourcing your manufacturing to a third-party,
you need to own your digital transformation. This is a cultural, people, organizational,
and operational change that you need to own. Just because they have access to a
deep bench of functional and technical experts (and an even better sales machine)
doesn’t mean that Deloitte, Accenture, or Capgemini should own the transformation.
You should.
2 CORRECT ANY INTERNAL TRANSFORMATION FLAWS AND
SHORTCOMINGS
The next step is to remediate any shortcomings in the way you are managing the
transformation.
For example:
• Have you dedicated appropriate internal resources to the project?
• Do you have a clear blueprint for how you would like to deploy operational
and organizational change management?
• What does your entire solution look like? (hint: it is probably not limited to just
one software vendor)
• How will you ensure governance and project quality assurance over your
system integrator?
• How will you define and measure transformation success?
• How will you ensure alignment between the day-to-day details of the
transformation and the overall strategy of your organization?
• How will you ensure compliance and mitigate cybersecurity threats?
These are just a few examples of the questions that should be answered to ensure
you are doing your part to make your project successful. And don’t worry: if you don’t
know how to answer these and other critical questions, then move on to step #3.
3 AUGMENT YOUR ERP SYSTEM INTEGRATOR WITH INDEPENDENT,

THIRD-PARTY STRATEGIC CONSULTING SUPPORT
An independent, strategic ERP consulting partner is one of the best ways to ensure
you do your part to accomplish #1 and #2. You and your system integrator probably
don’t have the expertise to do all the things that need to be done.
Your ERP system integrator is good at certain things, so augment their deficiencies
with a consulting partner that isn’t incentivized to staff an army of technology
consultants on your dime. A strategic independent consulting partner can act as an
extension of your team, while protecting your interests.
4 FIRE AND/OR LITIGATE AGAINST YOUR SYSTEM INTEGRATOR (AN

OPTION, BUT HOPEFULLY NOT)
When all else fails and you’ve done everything in your power to accomplish steps #1
through #3, it may be time to point your finger at the system integrator. Have they
done their part successfully?
If the answer is “no,” then refer to #1 again and take action. Perhaps you need to find
another system integrator. Perhaps you augment with other third-party skills. Or,
worst case scenario, perhaps you hire an attorney who can help you litigate against
them if the deficiencies and damages are great enough (contact us in confidence if
you need recommendations: info@thirdstage-consulting.com).
YOU WILL MAKE YOUR DIGITAL TRANSFORMATION SUCCESSFUL
Success is by no means out of reach. It’s not up to chance. And it’s certainly not dependent on
any third parties – though the right ones can help. Part of the solution is also realizing the limits
of your ERP system integrator. You should know what they can’t do and what that means for your
organization.
CONCLUSION
We at Third Stage Consulting pride ourselves in being able to help organizations that need digital
transformation guidance in all ERP related subjects. System integrators are a difficult concept to
navigate but we are always here to help. Whether you are implementing SAP, Microsoft, Oracle or
other digital transformation technologies, Third Stage Consulting is here to provide guidance in
any form needed.
If your organization is confused about system integrators, feel free to consult this white paper or
any of our blogs that we have created and published on our website. Please reach out to us at
info@thirdstage-consulting.com with specific questions you may have. Join our independent
digital transformation movement that is focused on transparency and results!

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How to Select and

Participants in this white paper represent a combination of clients of

Third Stage evaluated both quantitative and qualitative data points in

The sample represents the same transformations included in the

THE RISK OF BIG ERP SYSTEMS INTEGRATORS

Understand that you, as the implementing company are responsible for

Validate the technical capabilities of the system integration team.

Here are some things to consider

1 THE ERP SYSTEM

3 DEFINING A REALISTIC ERP IMPLEMENTATION TIME FRAME AND

Estimating implementation costs is a tricky proposition as it is. It becomes even more

4 JUST BECAUSE THEY CAN, DOESN’T MEAN THAT SYSTEM

5 HOW TO MITIGATE THE RISKS OF ERP SYSTEM INTEGRATORS

ASSESS THE COMPETENCIES OF THE SYSTEM INTEGRATOR

ASSESS YOUR SYSTEM INTEGRATOR’S PROPOSED TIME AND COSTS WITH A

DETERMINE HOW YOU WILL ADDRESS YOUR ORGANIZATIONAL CHANGE

REGARDLESS OF WHICH ONE YOU CHOOSE, ESTABLISH A STRONG PROJECT

Organizational Change Master Data Benefits Realization

Ensure Strategic Alignment

Assess and Mitigate Risk

Third Stage Project Certification

Not much has really changed in the industry

FEEDBACK FROM INDUSTRY PEERS REGARDING THE BIG ERP SYSTEM

Copyright 2019 Third Stage Consulting

Problem: Most business/IT organizations or vendors do not have the skills to

Such procurement and subsequent integrations need internal, technical oversight.

CLIENT OWNERSHIP OF THEIR DIGITAL TRANSFORMATION VS. PUTTING ALL

Consulting cartels have always been around.”

Here are some of the comments we received along these lines:

Here are a few sample quotes:

TAKE CONTROL OF YOUR ERP SYSTEM INTEGRATOR AND OVERALL PROJECT

Consider the following as you evaluate your own situation:

These firms position

And they are truly good at it.

Personal story from one of our team members:

They focus on distraction from true project risks.

SAP AND ORACLE SYSTEMS INTEGRATOR LANDSCAPE

The biggest of the big systems Technically focused offshore

THINGS TO CONSIDER WHEN COMPARING ALTERNATIVES TO THE BIG SYSTEMS

Read the reviews for systems integrators.

Choosing an SAP or Oracle systems integrator isn’t an all-or-nothing proposition.

Protect and control.

Program management and governance

Independent project quality assurance

Data cleansing and migration

Building internal competencies

Overdependence on consultants is a problem that many encounter. Another common

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6

Key Objectives: Workstream Key Activities

SAP Technology Training • Attend SAP, SI, and third-party training

FRAMING THE PROBLEM OF ERP SYSTEM INTEGRATOR GAPS

First, it is important to look at some of the common root causes of failure:

Misalignment within your organization

• Mobilize your internal team

IMPLEMENTATION PROJECT QUALITY ASSURANCE

Organizational change management requires a

OWNERSHIP OF YOUR ERP

2 Training is not “OCM.”

3 Change management is NOT a system integrator’s core business.

4 It is simply a bad idea to hire your SI to perform change management.

Engage in an implementation readiness project first before engaging your system

Augment your team with more than just a system integrator

Implement a third-party implementation QA and risk mitigation framework

When all else fails, fire your system integrator!