Types of ERP Implementation
Table of Contents
The use of ERP software and other management solutions is increasing day by day. New businesses are exploring these management solutions to increase the efficiency of their business management.
Most businesses often get confused about the whole process of ERP implementation. In this article, we will discuss various steps, types, and stages of ERP implementation. From the selection of ERP software to the ERP implementation.
ERP implementation strategies:
ERP implementation strategies are a trail of steps that businesses commonly follow to fulfil their need for ERP software. These ERP implementation strategies are tailored by ERP software providers and businesses that have successfully implemented ERP software for their businesses.
If you are a business owner that needs ERP software then you must follow these to save your time and money with these effective ERP implementation strategies.
- Research and planning
- Development and customization
Research and planning:
The first step towards a successful ERP software implementation is research and planning. To search for the right ERP software, firstly you have to know your needs and what exactly you are searching for. Research and planning are the pillars on which the whole ERP implementation process stands.
Businesses should consider different models and features for their business needs and go for different vendors for the best offer.
Design refers to analyzing the workflow of the current system and the impact of possible ERP features. Businesses should analyze the integrity of their old system that either needs to be fully replaced or a stage-by-stage implementation will work with it.
By designing the nature of ERP implementation businesses will better understand the results and possible errors.
Other than that, the designing of ERP implementation will clear the picture about the future implications of ERP software. Businesses can better understand the results and can forecast their efficiency benchmark for ERP software.
Development and customization:
Once the research and design are completed, businesses choose the best ERP software for them according to their needs. Sometimes ERP software vendors offer customization. Businesses that require complex systems for their unique business model need customized ERP software.
For that purpose business managers and ERP software developers set together and develop the desired software.
Neither all businesses require customized ERP software nor do all ERP vendors offer customizations.
After successful development and customization of ERP software the testing starts. Testing is the most critical phase of ERP implementation. It shows how the ERP software works in real business management with multiple variables and processes at the same time.
ERP software that passes through the testing will then move to the next phase. Sometimes minor changes are required to solve any possibility of errors or some additional features are added or removed, as per the results of the testing.
Implementation of ERP software happens if the software passes the testing. The implementation is of different natures, which we will discuss in detail ahead.
Some businesses implement the software on trials so that they can construct a parallel system to check the credibility and efficiency of the system.
When the ERP implementation is completed then the ERP software support provided by the vendors helps businesses in managing the system seamlessly through different support channels. Like on-call support, training, system maintenance.
The support helps businesses keep the ERP software in a workable state with 100% efficiency.
4 Types of ERP implementation:
As we discussed above different businesses prefer different types of ERP implementations. The kind and nature of ERP implementation depend upon the business and ERP software itself.
Here we will discuss four different types of ERP implementations that are used by businesses across the globe.
- Big Bang
- Phased rollout
- Parallel adoption
Big Bang is a popular type of ERP implementation. As you can judge by the name Big Bang implementation refers to implementing the ERP software at once. The whole company will shift to the new system at once, this technique is also known as the single-step method. This ERP implementation type has some advantages over other types and also has some disadvantages.
We will discuss both of these briefly.
Big Bang offers immediate implementation of the ERP software. Businesses can immediately see the results of the management processes and they can enjoy instant productivity.
Immediate shift to the new system can cause operational challenges. Any error or turbulence in the system can cause a mass shutdown of the system that can cause losses and difficulty in business operations.
Phased rollout refers to ERP implementation in different phases. large-sized enterprises used this type of ERP implementation to avoid any turbulence in their in-use system. Moreover, businesses with complex models and dynamics also prefer this type of ERP implementation.
The management systems that businesses use are the core of their business operations. The dependency of business operations makes it difficult to entirely change the system at once. That is why businesses with such nature prefer phased rollout ERP implementation.
The phased rollout approach is less risky than the big bang approach. It offers plenty of time and phase-wise implementation to make sure the business structure adopts it. It offers the option to businesses to choose areas where they need immediate use of ERP software.
The phased rollout approach is a time-consuming process that may take months or years to fully implement a system. It means that the efficiency a business expects after ERP implementation will be attained after years of phases.
The parallel adoption approach refers to implementing ERP software parallel to the legacy system. Among the above two approaches, this is the least risky approach used by businesses. A parallel system is created using ERP software that operates beside the legacy system.
When the ERP software fully integrates all the data and operations from the company then the ERP software replaces the legacy system in different phases. These phases are different from phased rollouts because they take less time than phased rollouts.
Parallel adoption is less risky and gives the employees a better chance to learn its operations before completely shifting to the ERP software. Moreover, the system identifies any potential error or flaws before its full implementation.
This approach is costly as compared to other approaches because it requires more staff and resources. Other than that, it may cause problems in business operations because of double data entry and human errors.
This type of ERP implementation consists of different features of different ERP implementation modes. The hybrid model of ERP implementation allows businesses to use flexible models according to their needs.
For example, a company uses the big-bang approach for ERP implementation, and alongside they use a phase rolled-out approach for their production units. This kind of implementation model is called the hybrid implementation of ERP software.
CISERP, 24 hours implementation plan:
CISERP is the #1 ERP software provider in Pakistan. CISERP offers a 24 hours implementation plan and training to employees. CISERP believes in serving the customers first. Our state-of-the-art support system helps businesses in resolving their queries and system implementation.