Methods Of Implementing ERP Enterprise Resource Planning Software

There are three different methods of implementing ERP which are popularly used by companies. Implementation is a tedious and time consuming effort but is also very important for proper and smooth functioning of ERP in future. To reduce time and effort and also to ensure that implementation is done properly and in correct way companies try different ways of implementing ERP. Big bang implementation, modular implementation and process-oriented implementation are three most popular and different methods of implementing enterprise resource planning software.

The big bang implementation, as the name suggests, is a way of implementing ERP at one go. At the onset this was the only method of implementing enterprise resource planning software. In this method all the modules of ERP are implemented simultaneously across entire organization. Before implementing ERP with this method functional consultants study the entire work process and business flow of the organization and chalk out the flaws and areas need to be improved. This analysis is then compared with the solutions and working of the ERP and GAP between requirements and their fulfillment is analyzed. Once GAP analysis is over customization of ERP takes place and after deployment, training and testing enterprise resource planning software is handed over to the staff for practical use.

This was one of the popular ways of implementing ERP initially but this method was responsible for failing most of the implementations. Big bang approach increased the complexity of the implementation process. Also implementation of all the modules across entire organization burdened the staff, management and also ERP providing company with lot of things, this mostly resulted in over-expenses and delays and improper implementation. Amongst different methods of implementing ERP this method was one of the major causes behind most of the ERP failures in olden days.

Modular implementation is the most popular and effective approach amongst all different methods of implementing ERP. In this one module of enterprise resource planning software is implemented after another. This reduces the scope of implementation which avoids over-burdening of staff, management and ERP providing company, once one module is successfully implemented then implementation of next module is initiated. This is very suitable methodology for large or medium organizations which do not share many common processes across their departments or business processes.

After implementation of all the modules integration of all the modules takes place which brings all the processes and departments of the organization under single software. This allows realignment of business processes and transformation of business processes rather than simple automation which is real advantage of ERP. Amongst all different methods of implementing ERP this approach is time-saving, economical, less risky and ensures smooth transformation from present system of working onto enterprise resource planning software.

Process-oriented implementation is another methodology which very suitable for small to medium sized companies who have simple but few critical business processes involving few business units. In this approach the implementation starts with one business process and can grow into full blown implementation. However this method of implementing ERP cannot be utilized for every organization and is not suitable for large organizations which have big and complex and very less common business processes.