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ENTERPRISE RESOURCE PLANNING SOFTWARE IMPLEMENTATION  


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AN EXECUTIVE'S GUIDE TO ERP SOFTWARE IMPLEMENTATION

crm ERP IMPLEMENTATION APPROACHES
Just as there is no one best ERP system, there is no one best implementation methodology. Veteran consultants can apply the benefits and downsides of various implementation approaches toward your particular environment.

The Big Bang Approach. This method minimizes overall implementation time and cost, however, is by far the most complex. In a big bang go-live, the new system replaces all other prior systems in a single cut-over. Successfully performed, it actually minimizes impact, elapsed time and cost. However, the multifaceted nature imposes great risk due in part to a high number of interdependencies. If any single department, user community or line of business fails, the entire implementation is at risk. For this approach to be successful, there must be a clear mandate from the top of the organization, dedicated leadership by veteran (internal or external) resources, an experienced change management leader, a proven implementation methodology, period risk analysis, near real-time project monitoring and strong user training programs. This approach was extremely popular in the 1980’s, became far less trendy in the 1990’s and has recently seen some revitalization and interest.

Phased Approach. In a phased approach, the company generally first focuses on the ‘need to have’ business requirements and limits the initial implementation to a controlled number of organizational units. Once initial success is achieved, the production system is upgraded to include more ‘nice to have’ or complex functions and features and is expanded to include additional organizational units. The approach of staging discrete project phases sequentially permits organizations to reduce scope, take smaller bites, advance in more of an iterative process, perform reviews between phases and incorporate lessons learned from one phase into successive phases. While a phased approach ultimately consumes more time (and therefore cost) as compared to a big bang, it is generally perceived to be less complex and thereby reduces overall risk. While implementation stages can be user defined based on the company, software scope and individual project objectives, common phases include a planning phase, conference room pilot (CRP) phase, validation phase, go-live phase and post-implementation phase.

Phased Implementation

Franchising Approach. This approach is used by some as a derivative of the phased approach, however, for most this method is used to implement multiple local ERP systems at different geographic locations of the same entity. This approach locally implements the business software systems at each subsidiary or remote location. In many cases, portions of the operational systems will remain unique for each location while certain back-office applications may be shared across the overall enterprise. The franchising approach tends to be most successful for decentralized organizations operating dissimilar business models at different locations.

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crm ERP IMPLEMENTATION FAILURE RATE
ERP software implementation failures have made media headlines for over a decade. Despite publicly available best practices and lessons learned literature, improved project management methods, increasingly mature software and more experienced implementation project teams, both commercial and government ERP software implementation failures continue to be unacceptably high.

In September of 2008, ERP.asia assembled a focus group of several industry veterans and acquired numerous publications related to the best practices and lessons learned surrounding both successful and unsuccessful ERP implementations. A summary of the group's resulting research is titled Top ERP Implementation Failure Factors.


On Demand ERP Systems  

ERP Software Implementation

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Most common 5 phase approach:
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Planning Phase

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Conference Room Pilot
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Conversion and Integration
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Training Phase
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Parallel Processing
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Go-Live and Stabilization
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ERP software implementations are a constantly evolving process. ERP application software projects should be thought of as a 'journey' and not a 'destination' achieved upon the go-live event. Recurring measurement and continuous process improvement are essential if ERP software systems are to deliver strategic objectives for the organization.

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tags Tags:
software implementation
erp implementation, big bang, enterprise 2.0, crm, sap, erp.asia, government erp software, crp, accounting software, saas, erp implementation failures

 

 

 

 

 

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