Client ERP Contract Negotiations

TECHNOLOGY ADVISORY CLIENT SUCCESS

CHALLENGE

A World Class light technology integrator, providing solutions that enhance products and improve life.Twenty-two years ago this privately held lighting technology manufacturer implemented what was then a leading edge manufacturing ERP system for their singular business entity. In the years since, they have grown organically and added 5 divisions specializing in lighting and illumination verticals.The ERP system was modified along the way to accommodate the added business. Unfortunately, neither our client nor their implementation partner were aware of the contractual language requiring each of the business entities to be individually licensed with the ERP software provider. When IT Ally entered the scene both sides were embroiled in an unsavory contract dispute that was on the cusp of heading into litigation.

SOLUTION

Taking on the role of intermediary, we engaged with legal counsel and contract specialists to ensure the positions of both sides were being clearly presented on the face of the facts and without emotion. We listened to our client to ensure we understood what a “win” looked like for them. We listened earnestly and respectfully to the vendor as they made their case. We then negotiated away the penalties and compliance fees in lieu of an ERP upgrade for our client.

RESULTS

In the end, both parties compromised and came away with a win. Our client will benefit from an ERP upgrade that will propel them decades into the future, eliminating the tech-debt risk they’ve carried for 20+ years and enabling them to transform their business processes along the way. Additionally, they have a contractual structure now that fully supports their multi-entity business structure and agreed mechanisms for business expansion or restructuring. The ERP vendor also won by avoiding the cost and reputational risk associated with litigation and by earning the right to continue serving a valued customer.

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