ERP implementations: The role of implementation partners and knowledge transfer

ERP systems are difficult and costly to implement. Studies show that a large portion of the overall implementation cost can be attributed to consulting fees. Therefore it becomes crucial to use consultants effectively to keep the overall costs low. On one hand organizations want to reduce the engagement of costly consultants, but on the other hand hardly any organization has the internal knowledge and skills to implement an ERP system successfully without external help. Choosing the right consultants and using their skills and knowledge appropriately, as well as transferring and retaining essential knowledge within the organization becomes essential to the overall success of an ERP system implementation. In this article the authors suggest a framework, which explains how the role consultants assume and the knowledge the implementing organizations have and obtain during the implementation, impacts the outcome of the project.