Kontio ERP transformation: Working together to succeed all the way from tendering to a successful go-live

One of the strategic objectives of Kontiotuote Oy (later Kontio) for the strategy period is "exploiting the potential of digitalisation". This objective was one of the major factors behind Kontio's decision to renew its IT architecture from the current single, large ERP solution architecture to a so-called Best-of-Breed architecture.

The need for renewing systems arising from the strategy

One of the strategic objectives of Kontiotuote Oy (later Kontio) for the strategy period is "exploiting the potential of digitalisation". This objective was one of the major factors behind Kontio's decision to renew its IT architecture from the current single, large ERP solution architecture to a so-called Best-of-Breed architecture. 

In a Best-of-Breed architecture, the solution best suited to the different functions is selected and integrated with other solutions using an integration platform. Another important starting point for the renew systems was the objective of making the transition from existing on-premises solutions to cloud solutions.

As part of the strategy of “exploiting the potential of digitalisation”, there was a need to renew the ERP solution to meet current and future business needs better.

An external project manager brought in expertise and experience

Even before the ERP renewal started, Kontio realised that an external project manager would be needed for both the RFI/RFP process and the implementation project. Kontio did not have the skills or experience available within its organisation to manage large-scale information system projects. In addition to the ERP project, Kontio had other ICT projects going on at the same time, which also required Kontio's internal resources.

An external project manager was used to bring the project structure and management. In addition, the external project manager was used to gain experience from similar projects and to provide knowledge of a successful project implementation.

RFI/RFP process to ensure a suitable ERP solution and partner

After identifying the need to renew its IT architecture, Kontio started to plan either the acquisition of a new ERP system or the upgrade of the existing system to cloud-based.

Kontio identified a challenge with their internal resources to go through the RFI/RFP process, so they sought a partner to lead it. Midagon was selected to help Kontio select the most appropriate ERP solution and partner to meet Kontio's needs and requirements.

The RFI/RFP process was carried out using Midagon's delivery guide approach, which allowed the RFI/RFP process to be carried out in an agreed timeframe from needs and requirements gathering to contract closing.

Implementation project and key success factors

During the project, external factors impacted the plans and progress, but with excellent management commitment and cooperation between the different project parties, these were considered. The decision to start the project and the selection of an ERP solution and supplier was made by Kontio’s Board the day before the war in Ukraine started. Kontio's carve-out from the PRT Group also occurred during the implementation project. Due to these external factors, the project also had to make some difficult decisions, which, in the end, proved to be right for a successful outcome. 

The implementation of the large-scale system went very well and according to plan, with no interruptions or impact on business. At the same time, the PLM solution and a significant number of integrations between new and/or existing systems also went live. In the same timeframe, several systems migrated from PRT Group to Kontio's systems and transferred to the cloud.

The most important success factors of the project were:

• Collaboration between different parties. All parties had a common desire to make a successful project for Kontio. What was exceptional about the project was that all parties seemed to be on the same side of the table.

• Commitment to the project from the top to the bottom. Kontio's expert team was very committed to the project and had to stretch themselves several times during the project. The low turnover of the project team also contributed to the project’s success.

• Skilled implementation partners who wanted to help Kontio deliver a successful project and solutions to support Kontio's strategic goals.

Kontiotuote Oy (Kontio)

Kontiotuote Oy (Kontio) is the world's biggest log house manufacturer. Over 40 years, Kontio has delivered more than 50,000 log buildings and today, Kontio is the world’s leading log house company.

Looking to transform your ERP? Read more about ERP and Core System Transformation here.