Common ERP Implementation Strategies
Enterprise Resource Planning systems (ERP) make business work. They allow you to see the big picture so you can move your business in the right direction. However, just having a solution is not enough to lead your company to success. Your success will largely depend on your ERP implementation strategies. You need to consider your implementation strategy as soon as possible so to maximize the benefits. No single blog post can fully explain every strategy, but here is a quick guide to get you started.
The Importance of ERP Implementation Strategies
ERP implementation strategies are necessary for the transition from your legacy system to the new ERP software. It makes sure the transition is smooth, efficient, and aligned with your business goals. Choosing the right strategy minimizes disruptions, enhances user adoption, and helps you realize the full benefits of your ERP system. Whether you opt for a Big Bang approach or a phased rollout, understanding these strategies will guide you in making an informed decision that fits your company’s unique needs.
Three ERP Implementation Strategies
Big Bang Implementation
Big bang Implementation happens all at once. You install every module on every computer system in your entire organization in a single night. While there are some pre-implementation tasks, there is no turning back once you changeover to the new system.
Big bang has its supporters and critics. Most people claim the risk factors as their main reasons to not use a big bang. However, you can set up your ERP quickly and more cost efficient with a big bang. If you choose this strategy, be prepared for temporary reduced productivity as your personnel get used to the new system.
Phased Rollout
With phase rollout, you install components over time rather than all at once. Your company moves from your legacy system to your new one in a series of predetermined steps. You can complete these steps using one of the following formats.
- Phased Rollout by Module: With module rollout, you install ERP modules one at a time. Most people typically start with the core functions and then add other modules based on their needs and hierarchy.
- Phased Rollout by Business Unit: Business unit rollouts make the changes based on the needs of your business units. ERP implementations happen department by department.
- Phase Rollout by Geography: The format works well for companies with multiple locations. Also known as pilot adoption, each location or department implements the new system when they feel ready.
As with big bang, phase rollout has its own fair share of pros and cons. Phase rollouts let your company ease into the new system. However, they also make your network and infrastructure more complex and error-prone. You also risk data loss as ERP modules exist to work together as a single unit.
Parallel Adoption
Also called parallel conversion, parallel running, or parallel cutover, parallel adoption is the least risky of the three implantation strategies. With this strategy, you run both the old and new ERP systems at the same time. Then, once the new system is fully functional and employees are comfortable using it, you phase out the old one.
Parallel adoption is slower than big bang but faster than phased rollout, with a smaller learning curve compared to big bang. While it is more challenging than phased adoption, the main trade-off of parallel adoption is the increased cost, as it requires twice the resources.
The ERP implementation you should use depends on your business goals and needs. There is no one size fits all solution here. Every business is unique and requires a unique implementation based on careful planning and analysis.
Tailored ERP Solutions for Long-Term Success with Mayer Group
At Mayer Group, we specialize in helping businesses identify and implement the best ERP strategies for smooth transitions and long-term success. Our expertise in ERP implementation, combined with our knowledge of Acumatica’s flexible and scalable software, allows us to offer solutions that fit your specific business requirements. For advice on which is right for your business, contact us today, and we will help you devise a strategy that will lead your business to success.