ERP Implementation Methodology

By Mukesh Variyani May 24, 2019 Business

ERP Implementation Methodology

ERP implementation methodology

ERP Implementation Methodologies have changed over a period of time. Traditional approaches have been replaced with more vendor dependent turnkey methodologies of implementing ERP

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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 implementation of ERP systems is a complex process. But how you go about following the process is an important factor. These people tend to adopt different ERP implementation methodology. A methodology defines a structure, plan, a system, procedure and practices that are opted to achieve a particular result-oriented task or objective. It can be explained as a path or direction towards reaching the ultimate goal. Selecting the perfect fit of ERP software is a challenge in itself. So it is very essential to plan out the whole process of the path that is to be followed for the implementation of the software in the business. Methodologies may also include tools, instruments and management procedures. ERP implementation methodology is generally proposed by the vendors or the person who is selling it.

In past years, there are two types of broader classification in ERP implementation methodology based on the trends and patterns. One is a Traditional Methodology as it is going on from the 20th century and the other is a comparatively new one, i.e. Turnkey Methodology as it has emerged in just past few years.

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Methodologies give those with no ideas something to do - Mason Cooley

The traditional methodology is the ones that include the processes or strategies such as the System Development Life Cycle (SDLC), Design and Object Oriented Analysis. These types of methodologies are commonly used by every type of business. It follows a particular process that is discussed below:

1. Planning: Project scope is decided with the designated team allocated for the implementation process and a methodology or a complete plan is laid out.

2. Education: Learning and education are provided to the implementation team by the consultants of the vendors.

3. Configuration: Design, structure and business processes are set up by the vendor consultants. But the entire work is done by the team only.

4. Conference Room Pilot: At this step, testing of the system is done in various Conference Room Pilots (CRP) and software is made ready to go live.

5. Cut-over Activities: Vendor consultants provide support to the business as it trains the employees i.e. end users of the ERP systems.

6. Go-Live Support: Both the teams i.e. Implementation team and vendor consultants provide on-site and off-site support at the beginning of the launch of ERP systems in the business.

Benefits of Traditional Methodology

  • Customer-driven process

  • Lesser consultancies from the vendors.

  • The responsibility lies on the teams of the business in the understanding system

  • A customer has to gain self-sufficiency in gaining knowledge and know-how of ERP systems.

The other methodology that is adopted by businesses is a relatively modern concept. It has come into practice in a few years only.

The Turnkey methodology is the one that is led by the vendor completely in contrast to the traditional one which is customer-led methodology. It is more suitable for the business who are new in the ERP implementation or who lack experience in this field. They may not be equipped in the right kind of training and deployment of the systems. Thus these methodologies provide the right solution.

The process followed under Turnkey ERP implementation methodology is given below:

1. Planning: Here a vendor project manager comes into the role and the planning is led by the vendor consultants

2. Discovery/Setup: In order to provide a turnkey ERP the design, structure, process and everything else is analyzed and decided by the vendor consultants and customers only give insights.

3. Prototype Review: Through prototype demonstrations vendor consultants educate the customers on the use of the ERP systems and implementation team supports.

4. Conference Room Pilot: At this stage, the vendor takes the customers through multiple Conference Room Pilot (CRP) before making the system ready for use.

5. Cut-over Activities: This phase is the same as in traditional methodology where both the implementation and vendor consultant teams provide training to end-users of the ERP system.

6. Go-Live Support: Support is provided by the vendor consultants in a real-time method.

Benefits of Turnkey Methodology

  • Complete vendor-driven process.

  • Best practices for businesses.

  • Faster implementation cycle.

  • Expert guidance provided

The other methodology that is adopted by businesses is a relatively modern concept. It has come into practice in a few years only.

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.

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My methodology is not knowing what I'm doing and making that work for me. - Stone Gossard

mukesh

Mukesh Variyani

MD, Finbyz Tech Pvt Ltd