ERP
Introduction
As your business evolves, its requirements for streamlining and integrating its core business processes will also evolve. ERP solutions provide varying degrees of integration of core business processes such as:
- Sales
- Procurement
- Production
- Distribution
- Customer services (ITSM)
- Human Resources (HR)
- Finance
- Asset management
- Business intelligence
- Corporate governance
Most ERP solutions we support are provided on a SaaS basis, but we also support: loocal implementation, implementations within your own cloud environment and virtualisation.
ERP solution providers
Some ERP solutions are supplied and implemented directly by the technology provider (such as SAP and Oracle), while others are licensed by the technology provider but implemented using an Implementation Partner (most commonly here we see Microsoft Dynamics implemented by a range of differing implementation partners who are specialised in a particular sector).
Our ERP experience
We have worked with many ERP providers, including:
- Microsoft Dynamics
- SAP
- Oracle
- Netsuite
- Infor
- Sage
- Access Group
- Epicor
- Acumatica
- Syspro
- Kerridge
- Merlin
Navigating ERP documentation & negotiations
ERP providers tend to have complicated document suites which need an experienced IT lawyer to navigate. Licences from technology providers tend to have no (or very limited) scope for negotiation, but it is important for businesses to understand their rights, the types of licences they have acquired, and the limits of the responsibilities of the technology providers.
On the other hand, it is common to negotiate in implementation activities, particularly with implementation partners, and we are very experienced in this regard.
ERP legal expertise
We can support with:
Off the Shelf:
Off the shelf licence management and support services.
Customisations:
Large scale implementations, where engagement with vendor and system integrators for set up of environment, installation, configuration, testing and ongoing support come into play.
Bespoke development:
Bespoke development across different methodologies and approaches to delivery, from common methodologies to hybrid approaches. We understand how to manage contract and legal engagement to fit the process.
Implementation partners:
We work for both implementation partners and customers appointing implementation partners, making us very knowledgeable in this area.
ERP implementation support
Selecting the right solution requires:
Determining your requirements (all your required business functions and gaps in existing systems). These should be categorised as:
- Essential
- Future essential
- Desirable
- Nice to have
Assessing potential systems against those requirements and in particular assessing whether they are met:
- Out of the box
- Through configuration
- Through development
- Through integration with a third-party solution
We are often brought into negotiations with a supplier after this has been finalised, yet we can add significant value at this stage, not least by controlling the “terms and conditions” that will apply at contract award.
Necessary for larger implementations
This is the first activity with the selected supplier, which sets the expectations between the parties. The aim is to gain as much specificity as possible, acknowledging that the detailed design phase goes to a much greater level.
Key issues are:
- To ensure the scope ties back to the requirements. See Specification vs requirements
- Identify and document any agreed “gaps” against the original requirements (as time moves on and requirements change)
- Confirming what is out of the box vs through configuration vs through development vs through integration with a third-party solution
- This can and should form part of the main contract, but we do often see this phase started in haste without the right contractual protection. It is possible to pull it back under the wider arrangement, but this can be difficult
Detailed design is where the design of the new system is finalised. This essentially covers the contents of blueprinting/scoping, but to a much greater depth, enabling both parties to be able to understand their respective obligations.
It is important to see a detailed and comprehensive RACI matrix (Responsible/ Accountable/ Consulted/ Informed).
A very common area of dispute comes from a lack of understanding on the part of the customer as to its obligations and “over-optimism” on the part of the implementer in this respect.
This is where the solution is configured and developed (as applicable) in accordance with the detailed design.
This may include developing custom modules, integrating with existing systems, and configuring the system to meet specific business requirements.
Once built, the solution needs to be implemented. This involves deploying the new system, migrating data from existing systems, and training users on the new system.
It is crucial to have a well-defined plan for data migration and user training to ensure a smooth transition.
There are differing elements to testing, whether (for example):
- Functional testing
- Load testing
- Penetration testing
- User acceptance testing
It is important, yet often overlooked, to ensure that:
- It is clear which party is responsible for which elements
- How the acceptance criteria are to be set
- How testing will take place
- How achievement is determined
- What happens if there is a failure
Following successful acceptance testing, a date is agreed for go-live.
Necessary for larger implementations
This is a short period of support immediately after go-live where typically the original team who built and implemented the solution remain on the project to monitor and deal with issues.
We work with clients to ensure hypercare runs for an appropriate period of time, that the right people are made available for hypercare and that appropriate response and resolution targets are applied, together with appropriate consequences for any failures.
Life isn’t perfect and systems never quite run perfectly!
Ongoing managed support is therefore an important part of the contracting process.
See IT services
Overlooked concerns
Key concerns you may not have considered:
Specification
Getting the specification right and ensuring it is contractually binding.
Licence type/extent
Ensuring your licence is adequate for your needs now and in the future.
System resilience
Ensuring the system is resilient, but also dealing with your internal business continuity should the worst happen.
Notable work
Advising various retailers on implementations of Oracle, Microsoft Dynamics, SAP, Netsuite, Infor, Sage, Access Group, Epicor, Acumatica, Syspro, and Kerridge.
Advising an implementation partner on intellectual property rights in customised Dynamics modules.
Supporting on the sale of Merlin ERP to Aptean.
Meet our team
Jaskeerat Sanghera
Managing Associate
Loving technology
Our IT lawyers live and breathe all things digital and data
Speaking technology
Acronyms fill this sector. Our lawyers know most of them and love learning new ones
Embracing technology
Technology is critical to our success and something that we embrace
Contact us today
Whatever your legal needs, our wide ranging expertise is here to support you and your business, so let’s start your legal journey today and get you in touch with the right lawyer to get you started.
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