When it comes to implementing an Enterprise Resource Planning (ERP) system, identifying the right strategy is crucial to ensure a successful outcome. With various implementation strategies available, it can be challenging to determine which one is best suited for your business. However, choosing the right strategy can make all the difference in achieving a smooth and efficient ERP implementation. In this blog, we'll explore the various ERP implementation strategies and discuss how to choose the one that aligns best with your organisation's goals and objectives.
There are a number of proven strategies for moving to a new ERP system, each with distinct advantages and disadvantages. Let’s walk through four of the most common approaches.
Big Bang
In this approach, also referred to as the “single-step method,” all users move to the new system at the same time. You’ll need to have completed all configuration and testing of the new system, as well as training, by the go-live date.
The advantage is that you quickly start realising ERP benefits, such as higher productivity, better insights and lower operating costs. However, once you’ve rolled out the system, it’s hard to go back, so it’s critical to get things right. Any error or glitch—even a relatively minor one—can impact employees, business partners and customers. There may also be a temporary productivity drop as employees adjust to the new system.
Phased Rollout
With a phased rollout, the deployment of features, tools and components is done over an extended period, which may cover weeks or months. This more measured approach can be less risky than the big-bang strategy. It also enables the company to focus first on “quick wins” and apply lessons from the initial deployment phases to subsequent phases.
There are three primary strategies within phased rollout. Organisations may switch on one ERP module, iron out bugs and process issues, and then tackle another module. Another option is to deploy by business units, such as HR or operations, and then move forward based on needs. The third approach is to break up the rollout by geography, testing and refining the system at one location before moving on to other offices, factories or facilities.
But there are drawbacks to a phased rollout: It takes longer to get the full benefits of the new ERP, and your company will need to support and pay for, two systems (the old one and the new one) at the same time.
Parallel Adoption
With this strategy, the organisation keeps using its old systems in parallel with the new ERP for a specific length of time. This is generally considered the least risky approach because of the inherent safety in redundancy, especially in protecting critical functions that must continually operate.
This approach also facilitates a gradual adoption process for users. However, parallel adoption can be an expensive approach because it requires more staff time and resources to keep two systems running simultaneously. And parallel adoption is not risk-free—entering data twice, into two different systems, doubles the chance of errors.
Hybrid
As the name implies, this approach combines elements of the strategies above. For example,
an organisation might switch on core ERP modules using a big-bang strategy, then roll out other modules in phases to specific locations or departments.
In conclusion, identifying the best implementation strategy is a crucial step towards a successful ERP implementation. By carefully considering the different options and selecting the approach that best fits your company's needs, you can improve your chances of success. However, even with the right strategy, there are still common challenges that companies face during ERP implementation. In the next blog, we will discuss how to plan for and overcome these challenges to ensure a smooth implementation process.
