ERP Implementation Strategies – Survey Results

Recently, Huston Neal, a fellow ERP blogger, performed a survey to find out what ERP implementation strategies are most popular and successful. The results are very interesting. He wanted to know which of the strategies people used and which ones were successful. The strategies he focused on were:

  • Big bang – Implementation happens in a single instance. All users move to the new system on a given date.
  • Phased rollout – Changeover occurs in phases over an extended period of time. Users move onto new system in a series of steps.
  • Parallel adoption – Both the legacy and new ERP system run at the same time. Users learn the new system while working on the old.

Many companies take a Big Bang approach or “let’s turn off the old and start with the new on a target day” method. Others take a more cautious approach and go with a few modules such as the financial modules while linking them back to the legacy system. This usually takes more work to integrate and it usually costs more in terms of consulting and internal team hours. The Parallel adoption is often very difficult as the two systems usually take a different approach to gathering and summarizing the data. It requires double data entry as well, so the employees feel a lot more pressure. This is seen less-and-less nowadays.

We would have thought that Big Bang would be the more frequently used approach and yet the results show that it is almost even with a Phased Approach. Fortunately only a few companies went with Parallel processing. This is often the most painful approach.

The results of the survey are here. It is a fair representation of how people approach implementing a company-wide software. It would be interesting to see how people implement add on systems to ERP such as a Customer Relationship Management system (CRM).

How to Select and Implement an ERP System

How to Select and Implement an ERP System
Michael Burns
WHAT IS ERP?

ERP is a term that is widely used yet probably not well understood. It stands for Enterprise Resource Planning and although it was initially targeted to manufacturing companies, today it encompasses any product that can be used across an enterprise. When implemented effectively, ERP enables companies to break down traditional organizational silos, replacing them with a tightly integrated horizontal structure in which strategy, organizational structure, process and technology are closely aligned. Applications can include financial, distribution, manufacturing, human resources, payroll, and project costing.

There is a lot of confusion between an accounting system and ERP. In the past, an accounting system was limited to just Continue reading How to Select and Implement an ERP System

Challenge Of ERP Implementation Q & A

This is a good commentary on the challenges of an ERP Implementation. It can be summed up in that it is a technological, financial and human challenge that requires extensive change management.

Challenge Of ERP Implementation Q & A
Rick Maurer
Question: ERPs seem like a good idea, so why is return on investment so low?

Answer: Resistance often kills many of these new systems. Even though the promise of what an ERP can do is high, the planners often fail to look at how the users are likely to view this ‘improvement.’ ERPs take away the old tried-and-true ways of working. Even though some of these cobbled together systems aren’t all that good, people understand them. When they are asked to give up what they know and what they can rely on, you often get resistance to using a new software system.

ERPs also threaten the fragile balance of power and control. The old system allows departments and some individuals to
control the type of information that gets out – and control the way data gets disseminated. The new system destroys all of that and that can be threatening.
One manufacturing plant has spent millions on an ERP, and kept throwing money at the technical parts of project, with no success. What they failed to Read more…

About the Author:
Rick Maurer is an advisor to organizations on ways to lead Change without Migraines. He is author of many books on change including Beyond the Wall of Resistance. His web site offers over 100 free tips and tools for leading change successfully. www.beyondresistance.com