Implementing ERP in Phases vs. Big Bang: Which Strategy Works Best?
Implementing ERP in Phases vs. Big Bang: Which Strategy Works Best?
Blog Article
When it comes to implementing an ERP, organizations have a critical question to answer: phased rollout or big bang approach? Both approaches to getting your ERP system up and running try to accomplish the same goal, but there are different ways of going about it, different levels of risk, and different effects on your daily business. The right approach will depend on your organization’s size, complexity, readiness for change and risk tolerance.
Phased ERP Implementation:
A Step-by-Step Process For a phased rollout, the implementation is broken down into different phases.
Modules are added to an ERP system, often one at a time or one department at a time. By testing, adjusting and learning as you progress through each stage, this approach helps organizations achieve a smoother transition.
Advantages of incremental implementation are:
Reduced exposure to risk from incremental changes
Smoother staff training and user adoption process
More control over costs and deadlines
The system can be optimized before final deployment
But implementing is a longer term solution, and could make way for temporary data inconsistencies and/or complex situation of old and new systems during the transition.
Big Bang ERP Implementation: The Total Overhaul
Big bang is the method of cutover where all modules and all the departments changeover to the new ERP system in one go and at the same time. This approach is quicker and doesn’t require running the old and new systems in parallel. Advantages include:
Shorter implementation time
Clear, defined point of transition date
Quicker and smaller cost (maintaining 2 system)
Easy access to data that is integrated with other departments
While the big bang method can be exciting, it does come with its fair share of risks. If things don’t go as planned, it could throw the whole business into chaos. Plus, it requires meticulous planning, thorough testing, and comprehensive user training before you even think about launching.
Which Strategy Works Best?
There’s really no universal answer here. Smaller or mid-sized companies with simpler processes might find that a big bang rollout suits them well because of its speed and straightforwardness. On the other hand, larger organizations, or those with intricate workflows and strict compliance requirements, often lean towards a phased approach to better manage risks and facilitate a smoother transition.
Organizations should take a close look at their: -
Team’s readiness and ability to train
Willingness to take risks and handle potential disruptions
Flexibility in budget and timelines
Technical complexity of their existing systems
Conclusion:
Both phased and big bang ERP implementation strategies come with their unique advantages and challenges. The best choice really hinges on your business objectives, the resources at your disposal, and how complex your operations are. A carefully crafted plan, backed by knowledgeable ERP implementation partners, can pave the way for success—no matter which route you decide to take.
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