ERP implementation can be done through a number of methodologies. The traditional method required many phases such as pre planning stage, planning and analysis of requirements, implementation and post implementation testing and training. Some of the standard ways of implementation includes the Big Bang method, Parallel Adoption, Phased Rollout, Modular and Process oriented method.
Some of the common methods are
Traditional method: In the traditional method the vendor designs the software after studying the requirements of the client. The product is highly customized and client based. The process may take more than 2 years to complete and it is done in a number of stages. This method has a low risk of failure.
Big Bang: When the company plans to finish the process in one 'Go' it is called the Big Bang method. The buyer prepares its machines and sanctions the customized solution, and the whole system is modified once. This may be done in least time and it prevents wastages on various phases but it has one of the highest risks.
Phased Rollout: Phased rollout requires the industries to complete the process in various phases. In the initial stage the user machines are prepared for installation and in one phase the software is tested before implementation. As the customized product is sanctioned by the buyer, it is implemented in the many stages. This has lowest risk of failure and it enables the customer to test if the system is working properly at each stage.
Parallel Adoption: In parallel adoption method the client has a number of processes running in various stages and each process is integrated at one place. This may reduce time on implementation but if one process is dependent on other and the previous process has not completed it may further delay the complete process.
Unit-by-Unit: It is also called the unit-by-unit method, in which, the process starts with one business unit at one stage and later it is implemented in every departments .If a company has many branches which are located at various geographical regions the company may require a unit-by-unit method in which the system can be installed at every unit.
The method has better employee acceptance and it may take highest amount of time for the process. The risk rate for unit-by-unit method is less.
Modular: If the process is done module-wise, for example - the HR module is implemented first - then only the HR department has to spend time on the process, later the financial module is implemented - it is called modular method. It helps the company to ensure the modules are working as per the need of the departments but it may delay the whole process and complexities arise during integration of all the modules.
Process Oriented: In this technique the vendor aims to finish a critical process of the company first and then the related departments and branches are automated. The process starts with a small division and later it may grow to all the departments and business units. In this method the vendor may start with a key process initially to reduce inconvenience but even in this method the integration of various processes can be tough.