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Understanding ERP Implementation Methodologies
By Mukesh Variyani May 24, 2019 Business
ERP implementation methodology
ERP system implementation has evolved significantly over the years. While earlier approaches were dominated by structured, step-by-step methods, today, organizations often prefer more vendor-driven and flexible ERP implementation methodologies such as turnkey models.
Methodology should not be a fixed track to a fixed destination, but a conversation about everything that could be made to happen. - J.C. Jones
The success of ERP system implementation depends heavily on the methodology followed. An ERP implementation methodology provides a defined framework including structured plans, phases, tools, and best practices to achieve desired business outcomes. Choosing the right methodology is essential, as it determines the path your business will follow during implementation. From requirement analysis to post-deployment support, the process must be carefully managed to ensure success.
Over time, two broader types of ERP implementation methodologies have emerged. One is the traditional methodology, rooted in the early IT era and still widely used for its systematic structure. The other is the modern turnkey methodology, which has gained traction in recent years due to its speed and vendor involvement.
Methodologies give those with no ideas something to do - Mason Cooley
The traditional methodology in ERP system implementation involves a phased, systematic approach often based on the System Development Life Cycle (SDLC), Design, and Object-Oriented Data Analysis. This methodology has been the backbone of ERP projects across industries and continues to be effective for large, complex implementations. Below are the common phases followed in this methodology:
1. Planning: The scope of the ERP implementation is defined. A core team is allocated, and a detailed roadmap using a chosen ERP implementation methodology is created.
2. Education: Key team members receive training from ERP vendors or consultants to understand system functionality and business process alignment.
3. Configuration: Business processes are structured, and system settings are configured by vendor consultants. However, the core team remains actively involved.
4. Conference Room Pilot: The configured system is tested in real-world scenarios through Conference Room Pilots (CRP) and refined to ensure readiness for production. Software development modifications may also be implemented at this stage.
5. Cut-over Activities: Final data migration and user training are conducted. Vendor consultants support the business in preparing for the go-live.
6. Go-Live Support: Both the internal implementation team and external consultants offer ongoing support as the ERP system goes live and stabilizes within the organization.
Benefits of Traditional Methodology
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Customer-led ERP system implementation approach tailored to specific business needs.
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Minimized dependency on vendors, allowing more internal control during ERP Implementation methodology execution.
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The business team takes full responsibility for understanding and aligning ERP systems with business processes.
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Promotes self-sufficiency and in-depth learning about ERP system implementation.
Another ERP Implementation methodology, known as the Turnkey methodology, is a more recent approach that contrasts the traditional methodology.
The Turnkey methodology is a modern ERP Implementation methodology where vendors lead the entire ERP system implementation process. Unlike the traditional methodology that is business-driven, this approach suits companies with limited experience or technical expertise. It offers a structured process managed by vendors, ensuring smooth deployment of ERP systems.
The process followed under Turnkey ERP implementation methodology is given below:
1. Planning: The vendor’s project manager takes the lead in ERP system implementation planning and strategy.
2. Discovery/Setup: All core design and configuration elements of the ERP system are decided by the vendor, while customer input is used for fine-tuning.
3. Prototype Review: ERP software prototypes are demonstrated to the business, with support from the implementation team to ensure clarity.
4. Conference Room Pilot: The vendor conducts multiple test scenarios to validate the ERP system's performance before going live.
5. Cut-over Activities: Similar to the traditional methodology, vendors and internal teams train end-users on the ERP system.
6. Go-Live Support: Real-time assistance is provided by vendors during the initial deployment phase of ERP system implementation.
Benefits of Turnkey Methodology
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Fully managed ERP system implementation with vendor expertise.
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Adoption of industry-standard best practices for smoother transitions.
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Reduced ERP Implementation cycle, saving time and resources.
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Professional guidance and hands-on support throughout the implementation.
This vendor-led methodology is an efficient alternative to the traditional methodology, especially for businesses lacking ERP experience.
Conclusion
It is very essential to choose the right kind of ERP implementation methodology if you are planning to go for the implementation of ERP software in your business. Selecting the right methodology for your business helps in reducing risks and failures. It also ensures the possibility of completion of the projects on a time-specific basis and with increased efficiency. Depending upon the experience of the use of ERP systems in your business and along with your desired needs and future goals, you must go for the right path for the implementation process.
My methodology is not knowing what I'm doing and making that work for me. - Stone Gossard
Mukesh Variyani
MD, Finbyz Tech Pvt Ltd
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