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What was your ERP implementation methodology?
Our company is in the early stages of migrating to a full ERP system and I'm curious to know what strategies or methodologies people used when starting the process. Does anyone have a checklist or article that I could take a look at? For implementation specifically, would you consider using the "big bang" approach (where software is rolled out to everyone all at once), or more of a modular implementation? What methodologies did you use?
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6 Answers
I've lead or supported 10+ MRP/ERP implementations and I'd advise putting the "people plan" first. If you check out Gwen's link and follow through on the "Change Management" article(and the Panaroma link in there) you'll see a similar emphasis.
The main theme is to know what structures you want to have in your organization, understand where you are, plan how you will bridge the gap and then execute your project. The people part of this theme is far more crucial than the software. Before you put the tools in everyone's hands do they know "why" and "what" they are expected to do.
This idea is top-down and bottom-up. Management must understand the overall requirements of an integrated system. Not just what they will get out of it but what interfaces (internal & external) will they have to support and at what level of quality (time and data.) From this the palette of procedures and tools offered by the ERP package(s) and otherwise good managment practices can be used to model what operations management will look like. The leadership and management teams should agree on this.
This model can and should be shown to "users" for comment and recommendations as they will be doing most of the setup and start up effort.
The caveat here is "Do the users understand the principles of integrated operations?" Structured communications and collaborative planning and decision making in good ERP environments may be new management practices but they may also go against the grain of departmental politics etc. Change may be good but it isn't easy.
If your employee base (management on down) don't have the knowledge and experience provided by the APICS Body of Knowledge or currrent operations mangement practices then leading with some general education is a good idea. I've started with the education process in about 30% of my implementations.
BTW, I like the Big Bang approach (sort of like "burn the ships") but if you have certain vital operating functions like specialized customer interfaces then there may be good reasons to use the modular approach. Just watch out for the problems of "he who leads, defines." This method may also be called for depending on how much internal resouces you have to do the implementation in the first place.
I have also used the method called "quick slice", which means to implement only a part of the business that incorporates all or most of the targeted functions/procedures first. Although it can work, it requires a reasonably independent divisional structure.
Hi Martin,
There are some great articles around ERP implementations (tips and more) at The Business Management Blog. Here's the link http://blog.sageerpsolutions.com/category/project-management/erp-implementati...
There are pros and cons to both the big bang and phased approaches, but in general, phased rollouts are not as high risk as the big bang approach. We have some implementation checklists, blogs, and overviews of implementation methodologies at:
http://panorama-consulting.com/services/erp-software-implementation/
Hope this helps.
Martin,
There is another very important question that your company needs to ask: What are your critical success factors? What does your company need to see at 'go-live' and what is a 'nice feature' that can wait three months after the go-live? What issues are you looking to resolve and how based on your knowledge, do you expect the software to solve those issues.
Remember, tools are just that. If you use the right tool the wrong way, you will not be happy with the results. When you answer these questions, it will help you answer the question about project methodology. I have managed project both ways and realistically, the rollout approach is always more successful, especially when you focus on the critical success factors. The reason? Because one can plan out the tasks for the critical successes without impeding to much on the existing resources (everyone has a day job) or spending your project dollars on the wrong tasks that will show you low ROI.
We have successfully completed over 1000 new and existing implementations. If you would like to know more, go to www.basalenterprises.com to learn more about us.
Best regards,
Doug
Greetings! It is important to note that there are multiple methodologies required to implement ERP. Now I believe that methodologies are not the issue; it’s how they are applied that is the issue. Following are typical problems I’ve observed with applying a methodology to an ERP implementation:
1.Try to use one methodology for all disciplines.
2.Execute methodologies in silos.
3.No taking into consideration the inherent advantages and challenges associated with a methodology.
With several methodologies for each discipline to choose from the question becomes “Which one should I choose?” Following is a list of the key factors you should consider as part of your methodology selection.
Please refer to the following blog article for additional information: http://gbeaubouef.wordpress.com/2010/10/25/when-erp-methodologies-go-wrong/
The answer is base on the ability of the leadership and community of the organization to effectively control the activity of any particular group.
In smaller organizations (companies or insulated subdivisions), leadership and community can have a unifying and progressive effect on the implementing population. In this case the discomfort of the assimilation and execution of new ERP processes by any individual group can be overcome by directive or communal conscience.
For substantial change, the greater the pysical or political (power) distance of any subdivision (function or business unit), the greater the need for customizing methodology. This applies to any and all change management efforts.
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