An ERP implementation phased approach improves user adoption with BizNext

In an Enterprise Resource Planning (ERP) system, different software modules handle various business processes, such as accounting, inventory and warehousing, manufacturing, distribution, and sales. ERP systems are fundamental to the smooth and efficient operation of businesses.

All ERP implementation steps, including the initial analysis, design, deployment, testing, training, and support, must be done correctly. As a result, the software can be easily adopted across different departments, the processes can be streamlined, and ROI will be higher.

How do ERP implementations differ? 

ERP implementation can be divided into three approaches. Phased, parallel, and big bang implementations. The benefits and drawbacks of each approach are different. Find out what the best ERP adoption strategy is for your company.

Big Bang ERP Implementation Vs Phased ERP Implementation

Each strategy of ERP implementation has its advantages and disadvantages. Choosing the best software for an organization depends on its resources and expectations. 

ERP implementation strategies include Big Bang and Phased Implementation. However, businesses can combine these two implementation styles, choosing to go for a big bang approach for smaller units and using the phased implementation approach for larger units. 

With a big bang ERP implementation strategy, a business switches to the new ERP system at once. Changes are implemented simultaneously across departments. 

During phased ERP implementation, each phase of the project goes live at a separate time.

Hence, older systems are replaced based on factors such as business unit (HR, logistics, finance, etc. ), module, and location of facilities/ offices. 

An organization that needs ERP implementation for a few functional areas may choose big bang implementation. In a large setup, the phased ERP process works well. 

Although the big bang approach can be faster and less expensive if implemented correctly, it is quite risky. Employees must be trained before the launch date. If not, productivity may suffer. Phased ERP strategy is more practical, but the implementation process is spread over a longer period. Employees have more time to adjust and learn.

Benefits & Disadvantages of Phased ERP Implementations

It is crucial to resolve any bottleneck in ERP adoption before it goes live to perform proper configuration, testing, and data validation. Additionally, a proper data recovery plan is required to ensure the work is not lost if the entire system crashes after the Big Bang. 

With a phased ERP approach, the bits are smaller, making testing and validation easier. Customers, partners, and employees will not encounter any problems.

There are several benefits to implementing ERP in phases.

• Better usability and adoption of ERP system: Employees have enough time to learn and adapt to the ERP system in a phased manner.
• We can fix vulnerabilities quickly: Implementing smaller chunks helps identify issues and fix them before they become a problem. The phased approach to ERP implementation is better than figuring out the problem after the project has been launched.
  
• Teams can assess, analyze, and optimize each module and improve efficiency while the project is still in progress. The business bears a heavy burden if the entire budget is spent at one time and the project turns out to be a disaster.
  
• It is easier to streamline the deployment of tools, features, and components because the workload is spread out in phases. The workload is spread out over a shorter period of time.
  

Cons of Phased Approach for ERP Implementation

Longer process: More time is required for the phased ERP implementation and testing, delaying ROI.

Higher investment: The investment is higher. In order to migrate data, the old and new systems must be used simultaneously. In each phase, there is a possibility of sunk costs.

Co-dependency: It is impossible to divide a solution into phases if the functional areas or modules are interdependent.

How Can Phased ERP Boost Adoption?

The process of implementing ERP phases encourages user adoption. Implementing features all at once may not give employees the technical expertise needed to understand the system. 

Training employees will take longer if the entire ERP module is implemented at once. Otherwise, it will create higher chances of confusion due to poor comprehension.  

Each employee takes a different amount of time to adapt to a new ERP system.  

However, a phased and timed approach is necessary. By providing feedback on productivity improvements, employees are able to better appreciate how the system reduces their workload.  

Using a phased implementation strategy, you can increase user adoption.

A phased rollout of the ERP system begins long before it is finalized and continues even after the software is deployed. It can take weeks, months, or even years to complete.  

Stage 1: Planning well in advance 

The project members should research and understand the requirements to solve the current system's problems. Secondly, dedicate enough time to preparing an ERP implementation plan that will satisfy everyone's needs and is easy to implement. 

Employees should be assigned various tasks, including issuing requests for proposals, choosing potential vendors and ERP systems, and other tasks during the implementation. 

Stage 2: Designing 

Each team member decides which features are of most importance and how to incorporate them. A team may decide to customize or add modules to an existing ERP system. It is also determined how to migrate data most effectively without disrupting the business. 

When planning ERP implementation to modify existing workflows, various factors are taken into consideration. Team members can create specialized interfaces to manage the integration between the old and new ERP systems so that critical functions do not suffer during migration.  

Further, the project team can establish standard operating procedures (SOPs) and the workflow during the transition phase.  

Stage 3: Development and testing 

The ERP vendor and the in-house project team, which includes members of different expertise, are working together at this stage. The software is configured after proper discussions. During this phase, data migration, documentation, and training resources are prepared. 

When implementing ERP in phases, the timeline must take into account core processes such as financials, inventory, databases, reporting, sales, etc. After the first phase is successful, the integration planning is done for purchase, advanced warehouse management, advanced analytics, CRM, and other systems in successive phases. 

When moving from an on-premise ERP system to a cloud-hosted or hybrid system, a variety of factors, such as connectivity, security, and maintenance, should be considered. Once an ERP is built, test it for all potential uses. It may take time, but it will save employees from the struggle if they encounter it after deployment. 

Stage 4: Deployment 

Give the software to your employees after it has been built and incorporated into the IT system of your organization. Employees who face difficulty should be trained, and the department-wide productivity growth should be evaluated. 

Stage 5: Support 

Team members are responsible for troubleshooting any problems that arise and upgrading systems as needed. In an on-premises ERP, the IT team is responsible for maintenance, patching, and more. However, cloud ERP software such as BizNext is largely vendor-driven.  

BizNext ERP Phased Implementation: How to Achieve Higher ROI?

Using BizNext ERP, every department within an organization can collaborate and accomplish tasks efficiently. BizNext experts help phase in the implementation of the software across different business functions. BizNext ERP also makes it easier to integrate with existing systems and deploy standalone modules.

ERP can streamline any type of business resource, including human, machine, and material resources. A software provider brings transparency to the process and assists in defining the process and policy for successful software enforcement.

Conclusion

As important as understanding the features and functionalities of the ERP software is choosing the right implementation approach. 

For companies to succeed, they need to consider the right time to implement, the duration of the project, and the risks involved. Phased ERP implementation is the safer and more effective approach for complex projects.