Epicor says "shared benefits" program will reduce both the risk and cost of implementing ERP

Under the Epicor Shared Benefits program, Epicor will bill the customer half of its normal hourly consulting rate for all work that exceeds the original estimated budget. Customers also must agree to split any cost savings with Epicor if a project comes in under budget.

 

11/09/2009


Mid-market ERP software supplier Epicor has launched a program that calls for it to share the risk of potential cost overruns associated with implementing its system.
Under the program, known as Shared Benefits, if an implementation goes over budget Epicor will bill the customer half of its normal hourly consulting rate for all work that exceeded the original estimated budget.
Customers signing up for this program also must agree to split any cost savings with Epicor if a project comes in under budget.
Epicor announced this program at Perspectives 2009, its annual user conference, which took place Nov. 9 -11 in Las Vegas.
"The ERP industry as a whole is notorious for endless implementation cycles and excessive deployment costs," said George Klaus, Epicor chairman, president, and CEO. "We're offering our customers a compelling way to mitigate deployment risks and improve ROI with our Shared Benefits program, where customers and Epicor share equally in project outcomes."
Epicor officials say they are confident most implementations under the program will result in shared savings-as opposed to shared costs-because all projects will be supported by Epicor's Signature Methodology for implementing systems and its Project Control Center, which provides timely and accurate information about project health and activities via a portal accessible to all stakeholders.
The Shared Benefits program calls for Epicor and its customers take joint responsibility for the project scope definition based on detailed project mapping, mutually agreed upon business outcomes and ROI calculations.
Both parties have financial incentives to tightly manage the project in adherence with the agreed upon scope to minimize project delays and risk factors.
Analyst Ray Wang of Altimeter Group who has advocated strongly for fairness and transparency in software licensing and pricing writes of the necessity for trust in a vendor-customer relationship "The most valuable commodity in this economy and in business relationships is trust. The current downturn in the economy has been exacerbated by deterioration in trust and a lack of any one party to improve trust and accountability. Software vendors have this opportunity to take their position of strength and demonstrate how they can provide customers value during a down turn. In doing so, they will help their customers succeed and earn customer loyalty and good will when the economy picks up."
Among the first companies to take advantage of Epicor's Shared Benefits program is Baker Perkins, a global manufacturer of equipment for making food products such as baked goods and breakfast cereals.
"What appealed to us about the Shared Benefits program was its overall disciplined project management methodology and focus on collaboration and accountability," said Bob Collin, project manager for Baker Perkins. "This gave us confidence that the right controls and best practices were in place to ensure a smooth deployment in the most cost effective and timely manner."

 

 





No comments
Consulting-Specifying Engineer's Product of the Year (POY) contest is the premier award for new products in the HVAC, fire, electrical, and...
Consulting-Specifying Engineer magazine is dedicated to encouraging and recognizing the most talented young individuals...
The MEP Giants program lists the top mechanical, electrical, plumbing, and fire protection engineering firms in the United States.
2014 Product of the Year finalists: Vote now; Boiler systems; Indirect cooling; Integrating lighting, HVAC
High-performance buildings; Building envelope and integration; Electrical, HVAC system integration; Smoke control systems; Using BAS for M&V
Pressure piping systems: Designing with ASME; Lab ventilation; Lighting controls; Reduce energy use with VFDs
Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Consulting-Specifying Engineer case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.

Protecting standby generators for mission critical facilities; Selecting energy-efficient transformers; Integrating power monitoring systems; Mitigating harmonics in electrical systems
Commissioning electrical systems in mission critical facilities; Anticipating the Smart Grid; Mitigating arc flash hazards in medium-voltage switchgear; Comparing generator sizing software
Integrating BAS, electrical systems; Electrical system flexibility; Hospital electrical distribution; Electrical system grounding
As brand protection manager for Eaton’s Electrical Sector, Tom Grace oversees counterfeit awareness...
Amara Rozgus is chief editor and content manager of Consulting-Specifier Engineer magazine.
IEEE power industry experts bring their combined experience in the electrical power industry...
Michael Heinsdorf, P.E., LEED AP, CDT is an Engineering Specification Writer at ARCOM MasterSpec.