ERP Introduction
Strategies for the introduction of an ERP system in comparison
1 October, 2021 by
ERP Introduction
manaTec GmbH, Sophia Grünig
 


If a company decides to introduce an enterprise resource planning system (ERP system), many complex decisions have to be made during software selection and introduction - from project preparation, analysis of the current situation, target conception and concrete software selection to fine-tuning of the concept, implementation and introduction.

Whereas the software selection phase incurs rather low costs, requires little external expertise and has little impact on operational processes, the software introduction phase requires considerably more financial and organizational capacity. This blog post will discuss which strategies are available for the introduction and what advantages they have.

Wich strategy is best suited for the introduction of an ERP system depends on different factors.
Wich strategy is best suited for the introduction of an ERP system depends on different factors.

When it comes to the question of how the planned ERP system can be introduced and integrated into the company in the most sensible way, a basic distinction can be made between a simultaneous and a successive strategy.

The simultaneous implementation strategy, also known as Big Bang, involves the introduction of the entire functionality in one step on a fixed date. The advantage of this is both the simultaneous company-wide implementation and thus rapid replacement of legacy systems, as well as a focused, shorter and more transparent schedule. There are hardly any inconsistencies, as old and new data are clearly separated, no interface problems and no duplication of work. The Big Bang strategy therefore allows the possibilities of the new ERP system to be exploited quite quickly throughout the company, but this is also accompanied by a high project risk due to the high project complexity. There is therefore a risk of total failure. Extensive tests and fallback strategies are necessary. Also not to be neglected is the high initial effort. The simultaneous involvement of all areas or departments places high demands on project management and a maximum load on resources, which is why productivity - with regard to the company's core processes - can drop for a short time.

One way of minimizing project risk is through piloting with subsequent roll-out. In this process, a company with a decentralized organization develops a master system as a template and starts a pilot roll-out in a specific division or at a specific location. The pilot roll-out can be either gradual or simultaneous. Subsequently, the introduction is extended to other company divisions or locations. This so-called roll-out as a whole can in turn take place step by step - one division or site after the other - or simultaneously - all other divisions or sites at the same time. As a rule, the individual local roll-out takes place as a "big bang". The pilot roll-out approach can score points with a low project risk and an equalized use of resources in terms of time. The use of the experience gained from the pilot projects and the master system developed as a starting point for follow-up projects are also clearly among the advantages of this strategy. The disadvantage, however, is that piloting with subsequent roll-out is only possible in companies with a decentralized organization and requires extensive coordination and a high degree of employee mobility. A fully integrated system can only be used after the roll-out has been completed.

On the other side of the ERP implementation strategies is the successive strategy. Here, the ERP system is integrated in partial steps with a time lag. This can be function-based or process-based. A clear advantage of the successive strategy is the lower project risk, since it involves manageable individual projects and the experience gained from these can be used. This makes change management and focused user training easier. Resources and employees are continuously loaded, so there is less loss of productivity. Disadvantages again here are a longer overall project duration and a less transparent schedule as well as the partial parallel operation with the legacy software, duplication of work by employees and no integrated system in the transition phase. Necessary iterative data migrations and synchronizations bear the risk of inconsistencies due to data redundancies and also a considerable effort for temporary interfaces as well as manual effort at interface-free points must be expected.

Which strategy for implementing the ERP system makes the most sense for a company depends on various factors: Risk tolerance, resource availability, number of company locations and business lines, time frame, existing legacy systems, level of integration and interfaces to other applications, among other factors, can influence the decision. Careful consideration must be given to the most appropriate strategy for implementing and integrating the ERP system, so that nothing stands in the way of using the system with all its possibilities.

You are about to implement the ERP system Odoo and are looking for a suitable project partner? No problem! Contact us now and we will be at your side as a reliable Odoo partner with many years of expertise from numerous implementation projects!


Sources: www.erpenvironment.de

 
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