ERP Implementation

The most important factor that decides the success of an ERP implementation is the transition strategy. Selecting and implementing a new ERP system and the process changes that go with it, is a complex undertaking. Regardless of the size and perceived resources, an ERP implementation is not something that should be approached without a great deal of careful planning. Among companies that have been struggling through a less than fully successful ERP implementation, the following reasons for inefficient results always show up:

  • The implementation or transition strategy chosen was not the one suited for the organization
  • The implementation took much longer than expected
  • Pre-implementation preparation activities were done poorly, if at all
  • People were not well-prepared to accept and operate with the new system
  • The cost to implement was much greater than anticipated

Process, people, and technology—support any ERP implementation. Failure to use any one of these or failure to use them in the best possible manner can result in inappropriate implementation. Understanding the relationships of ERP transition strategies between the process, people, and technology will assist the ERP implementers.

Big Bang Approach

In this strategy, companies layout a grand plan for their ERP implementation. The installation of ERP systems of all modules happens across the entire organization at once. The big bang approach promised to reduce the integration cost in conditions of thorough and careful execution. This method dominated early ERP implementations and it partially contributed to the higher rate of failure in its implementation.

Today, not many companies dare to attempt it. The premise of this implementation method is treating ERP implementation as a large-scale information system, which typically follows SDLC (systems development life cycle). However, an ERP system is much more than a traditional information system; in the fact that the implementation of ERP continuously calls for the realignment of business processes. Many parties involved in ERP software systems are not IT professionals. ERP more than automates existing business processes; it transforms the business processes.

In the big bang strategy, the company moves from the existing or legacy system to the new ERP system on a specific date. All the business functions performed in the legacy system across the entire enterprise are simultaneously transferred to the new legacy system during a period of one day or a weekend. The big bang strategy is seldom used and often not recommended by ERP vendors, systems integrators, and service providers. Many companies struggle in deciding whether the big bang approach is the right choice for their company.