ERP involves applications which collectively function to assist in all the cardinal areas of management process. Choosing the right way of implementing ERP software is as important as choosing the right software.
Enterprise Resource Planning involves applications which collectively function to assist in all the cardinal areas of management process. Choosing the right way of implementing ERP is as important as choosing the right software. ERP implementation methodologies should be discussed with the vendor so as to use the best suited method. Some of the various ways of implementation are the Phased rollout, the Big bang method and the Parallel adoption.
To choose the appropriate method of ERP implementation may be difficult as what may work for some company may not work for the other. The strategy has to be chosen according to the circumstances. Let us look at the different ERP implementation methodologies in details as below:
1. Big Bang: In this, the implementation of the Enterprise Resource Planning system happens at once and the system is installed across the company at once. To achieve this, a lot of planning has to be done prior to the implementation. With proper planning in place, the new ERP system is launched by switching off the old system. This kind of ERP implementation methodologies cost a little less and is quick. It happens all at once, so the implementation time is shorter and all are aware of the day the implementation is going to take place. The training period is also shortened as the training is given only for using the new system and not for the transition period. But Big bang has its set of disadvantages too. The employees have lesser time to get used to the new system and some details can be overlooked in order to switch over to the new system in one go. The full testing of the system before implementation may be difficult to carry out and a failure in any part can affect the others parts. 2. Phased Rollout: This is different from the Big bang and the changes do not all happen at once. The implementation is done in a series of phases which are predetermined module wise, unit wise or by location. In the phase rollout by module, the modules are implemented one by one. The critical ones are implemented first and then the rest added. In some cases, the critical ones are added later. One of the ERP implementation methodologies is phased rollout unit wise in which the implementation is done in one business unit at a time. In the phased rollout location wise, if the company has multiple locations, the new system is implemented one location at a time. This approach is used for large organizations usually. The advantages of phased rollout are that plenty of time is available for the alterations and users have more time to adapt to the changes. The disadvantages are that several adjustments are required and duration of implementation is very long. 3. Parallel Adoption: This is one of the least risky ERP implementation methodologies as it includes running of the old and the new ERP system together. It has its own set of pros and cons.
There is certain way of choosing the right ERP methodologies for your company as it has to be based on the company strategies and goals.
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