Which ERP Implementation Methodology Is Right for Your Business?

07.10.21 03:26 PM By Aishwarya

Picking Up The Right ERP Implementing Methodology 



New Delhi, India

AnyTechTrial.Com


Did you know that half of all ERP installations fail on the first try? Failed implementation can lead to waste software budgets and harmed corporate profitability.

With such high stakes, it's critical to pick an implementation strategy that works with your current IT setup. Selecting the correct ERP implementation approach will help you avoid unreasonable expectations, eliminate implementation problems, and remain inside budget.

We've looked at the three main ERP implementation options in this article and provided a tool to help you decide which is best for your company.

Before moving ahead, We keep you sorted with 100+  ERP Software like SAP, Netsuite, Tally

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Key approaches to ERP implementation

The three main ways to implement an ERP system are big bang, phased, and parallel. Each method has its own set of benefits and drawbacks. As a result, you'll need to know everything about each type before deciding which one is appropriate for your IT system.

  1. The big bang approach

The big bang method involves deploying ERP software throughout the entire firm at once. This means that the system will be deployed across all business functions on the go-live date—manufacturing, operations, sales, finance, marketing, and so on.


Because software is usually implemented on a predetermined date, the big bang technique necessitates a lot of planning. Furthermore, there is a lot of pressure to get things done correctly because any mistake could have a negative impact on the entire firm.


Advantages

  • It needs less time to deploy, as all changes are made in one go.

  • The overall cost of deployment is low.

  • Only one-time training is required.


Disadvantages

  • Deployment risk is high, as changes are implemented across business functions

  • More time is needed for planning the implementation.

  • Changes are irreversible, so there’s high pressure on the implementation team to get things right the first time.

  1. The phased approach

In this strategy, the ERP system is implemented in stages, with each phase focusing on one or more business operations. These phases might be organised by the business department, location, production facility, and other factors.

The phased technique takes longer to deploy than the big bang method, but it offers a higher level of security because any faults will not affect all corporate processes. It also relieves the implementation team of stress by reducing the number of items to worry about at each phase.

Advantages

Lower implementation risk.

Errors can be fixed faster.

Experience in one phase can help with implementation in subsequent phases.


Disadvantages

A longer implementation period.

Data sync errors between the new ERP solution and legacy systems.

It can be taxing for end users, as changes are made more frequently.

  1. The parallel approach

A new ERP system is implemented in tandem with legacy systems in the parallel approach. This reduces implementation risks by allowing you to fall back on legacy systems in the event that the new system fails.
Running two systems at the same time, on the other hand, introduces technological challenges such as data synchronisation difficulties. Because you'll be relying on implementation as well as IT specialists throughout the process, it raises the cost of implementation.

Advantages

Disadvantages

Implementation risk is minimal, so it’s suited for critical processes.

It’s expensive to implement.

Implementation is slower than the big bang but faster than the phased approach.

Data entry issues are likely, as data needs to be recorded both in the old and new systems.

End users can learn features in the new system while still using the old system for daily tasks.

There are technical complexities involved in running both systems in parallel.


Final step:

To find software that’s right for your business, we recommend,

Catalog of ERP software: The numerous types of ERP solutions available on the market are listed in this resource. Products can be filtered by company size, industry, price, and rating. You may view product descriptions as well.


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