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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