Navigating the pain of ERP implementation: Strategies for the companies
Is it true that half of all ERP installations fail on the first attempt? In a failed implementation, corporate profitability can be adversely affected, resulting in the loss of software budgets.
Due to the high stakes involved, selecting an implementation strategy compatible with your existing IT infrastructure is important. Choosing the appropriate ERP implementation approach will help you avoid idealistic expectations, remove implementation difficulties, and remain within your budget.
Implementing ERP: key approaches
An ERP system can be implemented in three ways: big bang, phased and parallel. Therefore, the best choice for your IT setup will depend on a thorough understanding of each type.
The big bang approaches
With a big-bang approach, ERP software is deployed for all organizations at once. As a result, the system will be implemented across manufacturing, operations, sales, finance, and marketing on the go-live date.
As the software is implemented on a fixed date, the big bang approach requires a lot of planning. Any error could affect all business functions, so there is pressure to do things right.
The phased approach
This strategy implements ERP in stages, each focusing on a different business operation. A business department, a location, a production facility, or something else might organize these phases.
While phased deployments take longer than big bangs, they offer a higher level of security because faults won't affect all processes at once. As a result, the implementation team doesn't have to worry about as many items at each step.
The parallel approach
A parallel approach involves running legacy systems alongside a new ERP system. It minimizes implementation risks since you can fall back to the legacy system if anything goes wrong.
There are, however, technical complications, like data synchronization issues, when two systems are running at the same time. This also adds to the cost of implementation since you'll need IT and implementation experts.
These are 3 types of strategies that companies can use to navigate the pain of ERP implementation. However, it is upon you which you will use. Use these methods to get more profit.