Enterprise Resource Planning or ERP takes many months for the implementation process and involves a lot of resources. Many organizations and companies are turning towards ERP system to streamline their business process. They undertake different methods of implementing ERP depending upon the customer business process, best suited methodology and vendor suggestions.
All kinds of assessments and studies are done to work on the ERP system implementation. The appropriate method of implementing ERP has to be chosen due to the risks involved. The consultant may review the profile of the organization and suggest a certain method. The methods of implementing ERP system is a major part of the project. There are different methods of implementing ERP and the one chosen should be suitable for your business environment. It should fit according to your business processes and environment.
The different methods of implementing ERP are as below:
- Module based method: In this approach, the implementation is done module wise. An ERP system consists of various modules linked to the functional departments. The ERP software is implemented module by module. One module is installed completely before moving on to the other one. After all the modules have been installed, they are integrated. This step by step approach is successful for implementing an ERP system.
- Traditional method: The traditional method involves designing of the software after detailed study of the needs of the client. The result is a totally customized and a client based product. This is also known as an enterprise wide full installation and was a common approach in the early days of ERP installations. This is one of the different methods of implementing ERP.
- Unit based method: This is a common method and in this method, the implementation is done unit by unit and is useful when the company has various branches. The system is installed in every unit in this method.
- Process based method: In a process based methodology, the crucial processes of the company are first looked at and then the rest of the related departments. Smaller organizations opt for this kind of an approach where the key processes are focused upon in the initial ERP installation and implementation.
- Big Bang method: One of the different methods of implementing ERP is the Big Bang method in which the organization finishes the whole process in one go. This takes less time as the whole system is modified but has high risks.
- Parallel method: In this method the client has many processes running together parallel and each process is integrated at one place. This method can cause delays when some processes are dependent on each other.
- Phase based method: The implementation is done in many phases. This method allows for testing each phase separately and has low risks.
These are the different methods of implementing ERP system. The smaller organizations would prefer the traditional method of enterprise wide full implementation as it reduces the time and efforts. For larger organizations, different methods work depending on their business environment which may consume more time and labor. The customer would need to discuss what kind of method best suits your company based on the resources, time, budget and business complexity.
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