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Top 10 Pitfalls to Avoid During your NSPB Implementation

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Implementing NetSuite Enterprise Performance Management (EPM) can significantly enhance your financial planning and budgeting processes. However, as with any digital transformation, there are potential pitfalls. At EPM for NetSuite Nordics, we’ve identified the top 10 derailers that can hinder a successful NetSuite EPM implementation.

1. Lack of Experience with NetSuite ERP

Your NetSuite ERP serves as the primary data source for NetSuite Planning & Budgeting. Before starting your EPM implementation, your ERP should be in stable use for at least a few months. For example, a small legal services firm postponed their EPM project to gain more familiarity with their recently implemented ERP, ensuring a smoother transition.

2. Starting with a Big Bang Approach

While NetSuite EPM offers extensive capabilities, trying to implement everything at once can be overwhelming. For small businesses, a “Quick Hit” approach with a manageable scope and a timeline under six weeks is often more effective.

3. No Executive Sponsorship or Organizational Support

EPM implementations require a strong Executive Sponsor, typically the CEO in small companies or the CFO in mid-sized ones. Their role includes:

  • Hosting monthly follow-ups.
  • Acting as the primary spokesperson for the project.
  • Supporting escalations when needed.
  • Encouraging and thanking the team.

Additionally, involving another senior leader (e.g., a sales executive) can provide continuity in case of organizational changes.

4. Poor Data Quality (“Trash-in, Trash-out”)

EPM systems rely on accurate data. If your data quality is poor, implementing NetSuite EPM won’t resolve the root issue. However, it can serve as a data-cleaning tool, as NetSuite EPM offers robust data validation and cleansing mechanisms during import.

5. Confusing EPM with BI

Enterprise Performance Management (EPM) is distinct from Business Intelligence (BI). While EPM focuses on planning, budgeting, and forecasting, BI emphasizes analytics and reporting (check our article: Differences Between Enterprise Performance Management and Business Intelligence).

For example, a global hotel chain initially requested a NetSuite EPM pilot. After analyzing their requirements, we recommended NetSuite Analytics Data Warehouse (NADW) instead, as it better suited their needs.

When considering NetSuite EPM, look for features like:

  • Security
  • Performance
  • Metadata integration with your ERP
  • Workflow approvals
  • Collaboration tools

If strong dashboarding is a priority, NetSuite Analytics Warehouse can complement your EPM.

6. Choosing the Wrong Implementation Partner or wrong approach

Selecting the right partner is as critical as choosing the right tool. Follow these tips:

  • Research implementers thoroughly.
  • Ask for references and case studies.
  • Verify certifications and the experience of the assigned consultants.
  • Avoid signing a SaaS contract with NetSuite until your implementation partner is selected.

While NetSuite sales teams may suggest partners, conducting your own research ensures you find a partner aligned with your company’s size, needs, and culture.

Regarding the approach, we recommend you research the recently launched NSPB Financials, as it poses several advantages to a big group of SME companies. Read this article to know more.

7. Lack of Networking in the NetSuite Ecosystem

Engage with the NetSuite EPM ecosystem before your implementation begins. Networking with other NetSuite users allows you to learn from their successes and challenges. Once your project starts, time for external research will be limited.

8. Second-Guessing After Starting

It’s normal to have doubts once you’ve signed with an implementer, especially if competitors offer lower prices. However, trust your decision. NetSuite EPM, part of Oracle’s suite, has consistently been recognized as a leader by Gartner.

Focus on implementation success and user adoption rather than second-guessing your choice of tools.

9. Low Involvement in the Project

Even with the best implementation partner, active involvement is crucial. Regular meetings (weekly is ideal) ensure the project stays on track and aligns with your expectations. Think of implementing NetSuite EPM like building a house—you need to stay engaged throughout the process.

10. Poor Pricing Negotiations

NetSuite often ties new SaaS agreements (like EPM) to existing NetSuite ERP contracts. Before signing, revisit and negotiate your ERP terms to ensure satisfaction.

When negotiating implementation costs:

  • Research standard support rates in the NetSuite ecosystem.
  • Avoid over-negotiating with your chosen implementer. Underfunding them can result in inadequate support and high consultant turnover.

NetSuite’s fiscal year begins in June, with quarterly closings in August, November, February, and May. Timing your negotiations around these periods can secure better deals.

Conclusion

Avoiding these common pitfalls can ensure a smoother NetSuite EPM implementation, maximizing the benefits of this powerful tool. At EPM for NetSuite Nordics, we help companies navigate these challenges and achieve successful outcomes.

Ready to start your NetSuite EPM journey? Contact us today to learn more!

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