ERP Implementation Methodology- Did you know that 50% of ERP implementations fail the first time around? Failed implementation can result in wasted software spend and has the potential to hurt business profitability.
With stakes this high, it’s vital to choose an implementation approach that suits your existing IT setup. Selecting the right ERP implementation methodology will significantly reduce implementation errors, help avoid unrealistic expectations, and ensure that you stay within budget.
In this article, we’ve analyzed the three main ERP implementation approaches and suggested a tool that can help you decide which approach is the best for your business.
Key approaches to ERP implementation
There are three key approaches that you can use to implement an ERP system: big bang, phased, and parallel. Each approach has its inherent advantages and disadvantages. Therefore, you’ll need to thoroughly understand each type to select the one that best caters to your IT setup.
The big bang approach
In the big bang approach, ERP software is deployed for the entire organization in one go. This means that on the go-live date, the system will be deployed across business functions—manufacturing, operations, sales, finance, marketing, etc.
The big bang approach requires a lot of planning since the software is implemented, in most cases, on a pre-decided date. Also, the pressure to get things done right is high, as any error can potentially affect all business functions.
|It needs less time to deploy, as all changes are made in one go.||Deployment risk is high, as changes are implemented across business functions|
|The overall cost of deployment is low.||More time is needed for planning the implementation.|
|Only one-time training is required.||Changes are irreversible, so there’s high pressure on the implementation team to get things right the first time.|
The phased approach
In this approach, implementation is planned sequentially, with each phase implementing the ERP system for one or more business processes. You can plan these phases by business department, location, manufacturing facility, and more.