Different Methods In Implementing ERP Used By Organization

A lot of organizations spend time, money and effort to implement an Enterprise Resource Planning system. There are many steps involved to ensure that the implementation is successful. There are different methods in implementing ERP and the right implementation method should be chosen to avoid failure. The method should suit the business environment and different methods apply to different businesses. Every company uses a different methodology for implementing the ERP software depending on the business process. The vendor accordingly suggests the right method. It is important to study the details of the different methods in implementing ERP in order to select what fits your environment the best.

The different methods in implementing ERP are as follows:

1. Big Bang method: Big Bang is the traditional approach to implementing the ERP software. Earlier the companies used this method only in which all the functional modules are implemented together at once. Many companies have used this method successfully but this method has a high risk as everything is being implemented simultaneously. This is one of the different methods in implementing ERP and requires a lot of planning. Without proper coordination between the teams and proper planning, the implementation can result in a failure. The advantage of this method is that it takes less time in implementation and requires lesser training. The disadvantages are that it is risky and the employees get lesser time to understand the working of the new system. Also some details can be overlooked in order to implement the entire system at once.

2. Modular Method: Another one of the different methods in implementing ERP is the modular method. In this, the implementation is done module wise. The Enterprise Resource Planning system consists of many modules which look at the functioning of the various functional departments in an organization. With this modular approach, first one module is implemented and completed successfully and then the next one. After all the modules are implemented successfully, they are integrated together. This approach is often successful as it is done in a step by step manner.

3. Process Method: Process oriented method is one of the different methods in implementing ERP. With this approach, the crucial business processes are first implemented in the important functional departments. This approach is most suitable for the small scale and medium sized companies. This method has proved to have a success rate and is getting popular. Also if the company has various branches, the critical processes can be integrated across all the branches first and then start with the integration of the rest of the functional modules.

4. Parallel Method: In this approach, the implementation is done with two or more processes at one time and various parallel processes are integrated into one. This method reduces the time of implementation. The only problem is that delays happen when one process completes quickly and the other gets delayed.

These above different methods in implementing ERP are used by companies according to their needs. One should carefully study and choose the need which is apt and suits your environment the best.