What is the right approach to implement an ERP?

There are three key approaches that you can use to implement an ERP system: big bang, phased, and parallel. Each approach has its inherent advantages and disadvantages. Therefore, you’ll need to thoroughly understand each type to select the one that best caters to your IT setup.

Top 3 approaches to implementing ERP

• The big bang approach
• The phased approach
• The parallel approach

The big bang approach

In the big bang approach, ERP software is deployed for the entire organization in one go. This means that on the go-live date, the system will be deployed across business functions—manufacturing, operations, sales, finance, marketing, etc.

The big bang approach requires a lot of planning since the software is implemented, in most cases, on a pre-decided date. Also, the pressure to get things done right is high, as any error can potentially affect all business functions.

The phased approach

In this approach, implementation is planned sequentially, with each phase implementing the ERP system for one or more business processes. You can plan these phases by business department, location, manufacturing facility, and more.

The phased approach takes more time to implement than the big bang method, but it provides a higher degree of safety because errors, if any, won’t be impacting all business operations. It also puts less pressure on the implementation team, as there are fewer things to worry about during each phase.

The parallel approach

In the parallel approach, a new ERP system is implemented while running legacy systems in parallel. This minimizes implementation risks, as you can default to the legacy systems in case critical errors come up in the new system.

However, running two systems simultaneously invites technical complexities, such as data synchronization issues. It also adds to the cost of implementation, since you’ll be relying on implementation as well as IT experts throughout the process.

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