Description
You are preparing to meet with your end users to discuss possible strategies for converting their old ERP system to a new one. Propose two (2) or three (3) alternative strategies, and explore related examples of situations for which each approach would be preferred and required.
Explanation & Answer
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The two most prevalent ERP implementation approaches are “the big bang” ERP implementation approach and the “phased- roll out” ERP implementation strategy. Below are the most common pros and cons of either of the method which can play a key role in helping you make a sound decision.
The Big Bang: this is like ripping off the band-aid; it may hurt, but only for second! ERP implementation takes place in one big action. All users have to move to the new system on a given date.
Pro:
· No one should operate their business in two dissimilar computer systems
· every person in the company has to move forward on the same day.
· reduces the tendancy of people to saying , “oh we’ll fix that issue until we convert fully”
· it takes a Shorter implementation time
· Pain and frustrations are condensed into one time period, not drawn out
· Lower costs
· Training needed only on the new system, not a changeover
Con:
· High risk
· A number of things can go wrong
· More pronounced problems
· Small details or issues can be overlooked in the rush
· Sink or swim for employees when it comes to learning the new system
· Testing can be tough prior to the implementation
· Failures in one part of the system can cause problems and failures in others
· Fall back plans do not always work out
· Performance can temporarily decline after the initial implementation as a result of employees adjusting to the new system
Side note: Pre ERP implementation steps must be taken to ensure success and always have a fall back plan, but that’s a different blog
Phased Rollout: In this method, small changes are made over an extended period of time; there is a predetermined plan of steps which help transition from old to new. There are different ways to do this such as by module, by business unit, or by geography (if you have multiple locations for your company) etc.
Pro:
· Less risk
· Employees learn as they go, there is no dip in performance after
· More time for users to adapt to the new system
· Not a sink or swim environment
· Small details and issues can be fixed as you go
· Skills and experience are gained with each step/phase which can help smooth the process as you get further along
Con:
· Takes longer to be fully converted
· Not as focused as the big bang
· A state of continuous change can sometimes be disruptive
· Can have missing information because each module relies on info from others, so in a transitional period there may be some gaps
Please let me know if you need any clarification. I'm always happy to answer your questions.