ERP Implementation

An ERP implementation typically is broken down into six primary stages spread over months. The process needs to begin well before making some decision about which product to buy, and it continues after the initial rollout of chosen system. Here are the six primary stages of ERP implementation: 

1.Discovery and planning 

All the company member from every department must list down the problem of each department. After that, it will be some teams that must making a short list of vendors, issuing request for proposals, choosing the ERP system that will be suitable for the company based on the problem from each department, managing the implementation and ensuring it meets the needs of different groups and is fully adopted. A solid ERP implementation plan is perhaps the most important success factor. 

2.Design 

The team analyses existing workflow and determines how could they change with the new system. Using that workflow, the team determines exactly which ERP features are critical to the company, how you might need to customize the software or adding some modules to achieve what you need of each department and which data must transfer to the new system. 

3. Development 

The vendor or integration partner works with the team to configure the software to match business requirements and perform other activities to prepare for deployment. 

4.Testing 

Do some test for the system before going live. This testing process should include comprehensive assessments covering all the ways various employees will use the system. If the are some problems uncover, it must be fixed as soon as possible so when the employees use the system, they will not find any major difficulties again. 

5.Deployment 

After all configuration, transfer data, and testing are completed, it is the time for go live. In this process the company must be focused on training for employees beside on the ERP implementation. In this process, there are 4 approaches that can be used by the company for implement their ERP system such as: 

• Phased 

In this approach, implementation is planned gradually with each phase implementing the ERP system for one or more business processes. The phase can plan by business department, location, manufacturing, or others. Phase approach takes more time to implement than other approaches, but it provides a better ERP implementation because it is more safety (lower implementation risk) and if there are some errors, it can be fixed faster. It also has less pressure on the implementation team as there are fewer things to worry about during each phase. 

• Pilot 

In pilot approach, company just use some module of ERP system for some department only (not all department implement ERP). This approach will minimize cost and it will be more safety because the company and teams will only be focused on some small part of ERP system. 

• Parallel

In parallel approach, a new ERP system is implemented while running legacy system in parallel. This minimizes 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. This approach is also more expensive to implement because you must pay for the new system and the latest one. 

• Big Bag

In this big bang approach, ERP software is deployed for the entire organization in once, so it needs less time to deployment. This means that on the go live date, all the system will be deployed across business function. The big bang approach required a lot of planning and preparation since the software is implemented. And the pressure to get things done right is high as any error can potentially affect all business functions. 

6.Support 

The project team must ensure that users have the support they need and continues to upgrade the system and fix problems appear. Employee training also include as a support process part. 

Whatever implementation strategy an organization chooses most of the actual steps are the same. When rolling out new functions to users, the organization configures the software; takes preparatory steps such as training, transfer data, and testing; then deploys the software to users and provides training and support. 

References: 

• Caldwell, A. (2020). 4 Key ERP Implementation Strategies. URL: https://www.netsuite.com/portal/resource/articles/erp/erp-implementation-strategies.shtml. Accessed on 21st June 2021. 
• Srivastava, H. (2020). Which ERP Implementation Methodology Is Right for Your Business. URL: https://www.softwareadvice.com/resources/erp-implementation-methodology/. Accessed on 21st June 2021. 
• BinusMaya PowerPoint Session 13 and 14 Chapter 07 Operational and Postimplementation