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PE investors in a global manufacturing and logistics business were concerned that the Microsoft Dynamics 365 ERP implementation underway was over budget and underperforming so asked Panamoure to undertake a health check of the implementation.
There was no clear plan to deliver, with management and the chosen Microsoft Dynamics implementation partner working separately and with obviously disparate goals. The project spend forecast was incomplete with the original business case expectation and ROI exhausted when the programme was 40% complete. The business had allocated inexperienced human capital to areas of the project who were unable to recognise the gravity of the situation. With confused and fragmented governance in place, decisions were being made outside of management knowledge.
We reviewed the governance, available plans, business case and what the business actually needed the solution to achieve. We uncovered that requirements across the global supply chain were distinct and the MS Dynamics partner was building the solution to fit how it “thought” it should be implemented. Post this initial review, we forecast the true cost and expected timeline to deliver successfully – which transpired to require a further ~£10m spend an additional 2 years to the programme. As this would have disrupted the firm’s daily operations and was outside the investment cycle, we recommended stopping the programme by adopting a revised transformation strategy was the correct approach.
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We are experts in what we do. Committed professionals who are at the leading edge of our specialised field.
PE investors in a global manufacturing and logistics business were concerned that the Microsoft Dynamics 365 ERP implementation underway was over budget and underperforming so asked Panamoure to undertake a health check of the implementation.
There was no clear plan to deliver, with management and the chosen Microsoft Dynamics implementation partner working separately and with obviously disparate goals. The project spend forecast was incomplete with the original business case expectation and ROI exhausted when the programme was 40% complete. The business had allocated inexperienced human capital to areas of the project who were unable to recognise the gravity of the situation. With confused and fragmented governance in place, decisions were being made outside of management knowledge.
We reviewed the governance, available plans, business case and what the business actually needed the solution to achieve. We uncovered that requirements across the global supply chain were distinct and the MS Dynamics partner was building the solution to fit how it “thought” it should be implemented. Post this initial review, we forecast the true cost and expected timeline to deliver successfully – which transpired to require a further ~£10m spend an additional 2 years to the programme. As this would have disrupted the firm’s daily operations and was outside the investment cycle, we recommended stopping the programme by adopting a revised transformation strategy was the correct approach.
DO YOU NEED TO
DIGITALLY OPTIMISE
YOUR BUSINESS?
We are experts in what we do. Committed professionals who are at the leading edge of our specialised field.
ELECTRONICS MANUFACTURER
Panamoure Consulting was approached by a PE fund to perform a pre-acquisition IT Due Diligence review on an upcoming lower mid-cap target who designed and manufactured electronic component boards for the defence, aviation, automotive and energy sectors.
HEALTHCHECK SAVES FIRM FROM POTENTIAL £10M OVERSPEND
PE investors in a global manufacturing and logistics firm were concerned that the Microsoft Dynamics 365 ERP implementation underway was over budget and underperforming so asked Panamoure to undertake a health check of the implementation.
HEALTH CHECK RECOVERS FAILING ERP PROJECT
A small business carve-out had a transitional service agreement (TSA) to decouple itself from the parent company systems within 6 months of separation. A project manager had been hired to help get the system delivered but 4 months in, the deadline was looming and the Sage 500 ERP project was heading for failure.
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