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Implementation Methodology of ERP

What is ERP?

Enterprise Resource Planning (ERP) is a software that provides a single unified platform for managing a host of business processes and facilitates a smooth flow of data to optimize the company’s day-to-day business operations.

ERP pulls data from different departments within an organization and builds a Single Source of Truth that provides real-time and accurate access to information, at all levels such as manufacturing, marketing, sales, supply chain, project management, risk management, and financial.

What is the Implementation Methodology of ERP?

ERP Implementation Methodology encompasses all the procedures and activities involved in the ERP Implementation into an organization, and its successful adoption to achieve the strategic business goals and objectives.

Here are the stages involved in the ERP implementation:

Planning

  • Defining ERP implementation objectives, and conducting a thorough analysis

  • Finding out various ways ERP software can fulfill organizational objectives

  • Assigning a dedicated team to deploy the ERP

ERP Selection

  • Comparing different ERPs and choosing the one that best suits the organizational needs

  • Tweaking and customizing the best ERP software in India to meet organizational requirements

Data Migration

  • Integrating your ERP with existing legacy systems

  • Conducting data transfers to the new ERP while maintaining data integrity and consistency

Training

  • Providing extensive training and support to the employees to use the new system

  • Organizational change management

Quality Assessment

  • Finding discrepancies in the product manufacturing and taking corrective measures

  • Maintaining consistency in product quality throughout the manufacturing operations

Go-Live Phase

  • Involves the final transition from the legacy systems to the new ERP

  • Company-wide implementation of the ERP

Post-implementation Support

  • Monitoring the ERP performance and optimizing it to meet the growing organizational requirements

  • Providing timely & consistent support to the users and addressing any issues they may have

Feedback

  • Gathering user feedback and making appropriate adjustments to ensure a smooth and successful transition

  • Listening to user feedback can help minimize business disruptions and achieve the strategic goals set up during the ERP integration

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Different Types of ERP Implementation Methodology

There are several ERP implementation methodologies, each of which is tailored to meet the specific needs and requirements of each industry.

Big Bang Implementation

The Big Bang Implementation is also called Comprehensive Rollout, wherein the entire ERP system is deployed in a single rollout. The Big Bang Implementation requires careful planning, analysis, and research to prevent sudden business disruptions, losses, and loss of opportunities & revenues.

Phased Rollout

Phased Rollout is a type of implementation methodology of ERP wherein the ERP is implemented in phases as a gradual transition, such as one department after another. This type of rollout gives ample time to employees to adapt to the new changes.

Parallel Adoption

Parallel Adoption deploys the new ERP in parallel to the existing legacy systems. In other words, the legacy systems continue even after deploying the ERP. This gives safety for the company in the event something goes wrong during the ERP implementation.

Rolling Wave Planning

Rolling Wave Planning is a combined methodology that uses an iterative approach, such as implementing certain modules in Big Bang, and other modules in Phased Rollout.

Best-of-Breed

Best-of-breed is also known as Selective Adoption. In this implementation methodology of ERP, only useful ERP modules are implemented, rather than implementing the entire ERP company-wide.

Vanilla Implementation

The Vanilla Implementation methodology is focused on reducing the implementation time and cost. In this methodology, the company relies on the default configurations and settings from the ERP vendor, rather than customizing the ERP for its specific needs.

Business Process Reengineering

In this methodology, the existing business processes are redesigned and optimized to align with the new ERP. Typically, this methodology is used in conjunction with other methodologies.

Agile Implementation

Agile Implementation methodology involves consistent collaboration between stakeholders. It is a preferred method for those who prefer flexibility and adaptability.

Lean Implementation

Lean Implementation involves reducing unnecessary steps in the ERP implementation, lowering wastage, and improving the benefits of ERP.

Industry-specific Methodologies

Each company operating in a different industry uses a methodology tailored to its specific needs. For example, a company operating in the production of food products will use a different methodology than one operating in the healthcare sector.

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