ERP Implementation Strategies

It’s virtually not possible to compete in the market with out implementing ERP software. It automates trivial features, accelerates operations, breaks data silos, permits different departments to work as a cohesive force, and enables interacting with clients in a better way. ERP implementation is a step-by-step process that may, at times, turn into a complicated process. Each firm follows a unique implementation technique because it is determined by budget constraints, enterprise goals, time sensitivity, etc. This article sheds mild on a few of the widely used ERP implementation strategies and talks about their advantages and disadvantages.

1. The Big Bang Implementation Strategy

In this technique, all of the ERP modules and enterprise-wide functionalities are implemented on a single day. The workers must migrate to the new ERP system on the same day. The implementation can occur at totally different geographic levels — city, state, nation, or many nations together. This technique’s most important drawback is that corporations can't migrate again to the earlier system once the implementation has been finished. It additionally has numerous advantages just like the implementation takes less time than other methods, and resource wastage can be minimal.

2. Mini Big Bang Implementation Strategy

The mini big bang implementation technique follows the phased rollout strategy for implementing ERP solutions. What this implies is that totally different ERP modules are implemented separately. For instance, the finance module is implemented within the first stage, the advertising and marketing within the second, the HR within the third, and so on. Thus, it’s simpler to deal with the rollout challenges of each unit individually after their implementation. Another benefit is that the workers get a hands-on-experience earlier than the venture begins to roll out. One of the drawbacks of this technique is that some corporations experience efficiency deterioration after the implementation process has been finished.

3. Phased rollout implementation technique

In the phased rollout implementation technique, the implementation occurs in several phases over an extended period. The core administration staff will get sufficient time to consider how the implementation is completed, which permits them to brainstorm a perfect technique. The technique usually consists of components such as:

a. Implementation blueprint

b. Customization

c. System testing

A major benefit of this technique is that groups study from the failures of the preliminary implementation levels. The drawbacks include worker fatigue because it takes too lengthy to implement all of the ERP modules.

4. Phased rollout by geographical location

This technique is gaining momentum within the present situation because many corporations are opening branches in multiple places. And by adopting a phased rollout by geographical area, they will adapt based on a specific area’s numerous needs. This technique’s important benefit is that corporations can achieve a 360-degree perspective of a particular region’s social, financial, political, cultural, and organizational aspects. The drawbacks embrace implementing numerous change administration processes concurrently.

5. Phased rollout by enterprise unit

Big companies have a number of departments that perform autonomously. In this technique, the ERP modules are implemented one after the other throughout every department. It’s a worthwhile technique as staff learn from previous implementations errors and keep away from repeating the same in the future. This technique’s benefits are that it has a better worker acceptance rate and is much less risky. On the contrary, the drawbacks embrace a longer implementation time.

6. Parallel rollout implementation technique

This technique requires using each systems — legacy techniques and the brand new ERP system. Employees can learn to work on the new solution whereas operating the previous one. The plus level of this technique is that there are not any system migration and data integrity points. The only disadvantage is that each transaction is recorded twice, within the legacy system, after which within the new ERP system. Moreover, ERP implementation value might skyrocket in the last levels.

Conclusion

ERP implementation is a rigorous process and consumes lots of time. There are varied strategies, with their benefits and disadvantages, that corporations can undertake to put in the ERP system efficiently. Once the ERP is put in, you'll really feel the distinction in the best way you do enterprise. The ERP solution will automate all business-critical features, and workers may have more time to concentrate on work that needs human ingenuity. Moreover, numerous departments will work in tandem with one another. You will serve your clients effectively and give a tough fight to the big sharks within the business.