Choosing The Right ERP Implementation Methodologies

Choosing the right ERP implementation methodologies is very essential for a successful implementation. A lot of resources are involved to implement an Enterprise Resource Planning system. Many different methods are available for implementation and it be chosen such that it suits the business environment. Different methods apply to different businesses and every company will have its own choice for implementation. The vendor should suggest the ideal ERP implementation methodologies according to the company’s business environment.

The ERP implementation methodologies are as below:

1. Big Bang Methodology: This methodology is the traditional approach wherein the implementation is done all at once. It is a one time process and a single event. All the modules of the ERP software are implemented across the organization in one go and involves a lot of planning. Various pre implementation activities have to be carried out before the actual implementation. When the new system is implemented, the old system is shut off. It has high risk as many things can fail in an instant changeover. The advantage of this ERP implementation methodology is that it is less costly than a long phase wise process. The implementation time taken is less but a failure in one part of the system can lead to failure in other parts.

2. Phased Rollout Method: This is one of the ERP implementation methodologies and very different than the Big Bang method. It is a way of implementing the ERP system over a period of time instead of at once. It is done in steps and can be done in three ways namely Phased Rollout by business unit, by module and by location. These ERP implementation methodologies are selected according to which suits the environment the best. The phased rollout by module is the common way in which the modules are implemented one at a time. In the phased rollout by unit, the implementation is done in a business unit or department at a time. In phased rollout by location, the ERP implementation is at one or more company locations at a time. This is most used in organizations with multiple locations. With these implementation methodologies, it is possible to introduce modules in future, more time is available to adapt to the new ERP system but several adjustments are needed.

3. Parallel Adoption Method: In this method, both the old and the new system run at the same time in parallel manner. This method is the least risky method out of the ERP implementation methodologies. This method allows the users to get used to the new system while they work on the old system. When the new system needs are met, the legacy system is decommissioned.

These implementation methodologies have to be selected after a careful planning and analysis. Companies may select any or a mix of the ERP implementation methodologies according to their goals and plans. The implementation strategy is built on a foundation of people, product and processes. The success of the ERP implementation depends on the methodologies chosen along with the right ERP software chosen.