ERP Implementation Types

The main activity in ERP Implementation is configuration or customization. In a broad spectrum, configuring the system with no or very limited modification is referred to as Vanilla implementation, meanwhile with the modification referred to as Modified implementation. The advantage of vanilla implementation is a low effort and cost to implement and maintain the system. However, to solve the gap between organization and system requirements, the organization needs to change its business process to match with the common process embedded in the ERP software. Modified implementation best suits organization that has a unique process that cannot be generalized using the ERP system. However, the company needs to put big effort and cost to implement and maintain the system. Moreover, the organization should plan and assess the impact of ERP modification since the ERP vendor does not support these modifications. Parr and Shanks created a taxonomy based on the organization’s scope of Implementation to simplify organization in planning ERP implementation, which is; Vanilla, Middle of The Road, and Comprehensive.

• Vanilla

Vanilla is implementation without or with very limited modification (e.g. report or screen mask adjustment). It is commonly used for companies that implement an ERP system in a single site, which the company will try to align their business process toward ERP, thus the system modification is almost zero or limited. Only the core ERP module is implemented and it requires the lowest budget and implementation time compared to two other approaches.

• Middle of the Road

Meanwhile Middle of the Road is a mid-level of modification. It is usually used for a company that implements the ERP system in a single site and multiple sites (in the same geographical/ country area). The ununified process in the different areas requires a bit of business process reengineering (business process change) to match with the system. The process that cannot be matched into the system will require minor or major system modification. In this implementation approach normally only the core module is implemented. It requires a higher budget and implementation time compare to the Vanilla approach.

• Comprehensive

Lastly, Comprehensive is a high-level modification. This approach is used for a company that wants to implement an ERP system in multiple sites in the same geographical/ country area and different geographical areas (international). Since all sites need to be integrated, it needs both major business process reengineering change and system modification. Commonly, besides the core module, the company also needs to implement an industry-specific module. It cost the highest and has the longest implementation time compared to the other approaches.

Figure 3 Spectrum of ERP Implementation Taxonomy (Parr and Shanks, 2000)

Reference:

Wijaya, M. I., Suzanna, & Utomo, D. (2021). Enterprise Resource Planning Modification: A Literature Review. ComTech: Computer, Mathematics and Engineering Applications, 12(1), 33-43. https://doi.org/10.21512/comtech.v12i1.6610

Ashley Davis. (2005). ERP Customization Impacts on Strategic Alignment and System Agility. Proceedings of the 2005 Southern Association of Information Systems Conference

Parr, A.N. & Shanks, G.. (2000). A taxonomy of ERP implementation approaches. Proceedings of the 33rd Annual Hawaii International Conference on System Sciences. doi: 10.1109/HICSS.2000.926908