The first question most project managers ask before an ERP implementation is, “How should I approach this project?” Hopefully I can answer that question here.
Any new system will bring about change in the structure of the client’s organisation. However, users don't always welcome change. A degree of resistance to organisational changes is normal. The project manager's biggest challenge is guiding the client through the necessary changes. Gauging the client's attitude towards change could have a significant impact on the success of the ERP implementation.
Project managers have two options when it comes to change: The big bang approach or the phased approach. Deciding on the approach would depend on the client's needs.
The big bang approach refers to a complete changeover to the new system at a specific point in time. This approach has a significant impact on the client's business processes. Smaller companies usually favour this approach. Most big bang projects have fast and intense implementation periods, with more downtime during the implementation.
The big bang approach is easier to implement but requires more preparation, planning and human resources than the phased approach. The big bang approach is generally more expensive than the phased approach. Companies must have a clear mandate from top management, an experienced project manager, a proven implementation methodology and thorough user training for a successful big bang implementation.
Considering all of these factors, the big bang approach is a little more risky.
On the flip side of the coin we have the phased approach. This approach requires a long-term commitment to the implementation of the ERP. This can either be by functional business area or location. The phased approach relies a great deal on the cooperation and communication between the client and the project manager.
Initially the phased approach will require more maintenance for testing and fine-tuning during the implementation of the system. Constant changes and corrections could become de-motivating to the development team and the project manager needs stricter control during this process. It is the project manager's greatest challenge to keep the development team focused for the duration of the project. Completing a phased implementation successfully requires a great deal of planning.
The phased approach is more cost effective, as it requires fewer resources. For a phased rollout to succeed, however, companies might need an interface between the old and the new system for the duration of the implementation.
The more subtle approach might not get the attention it should and could seem unnecessarily lengthy. However, the phased approach is more user-orientated and therefore meets with less resistance. Following this approach also offers the opportunity to learn from mistakes made during the implementation process.
Which approach is best? Although a combination of the two would be most favourable, the deciding factor remains the client’s needs. Does the client welcome or oppose change? I think the solution might be the big bang approach for the core ERP modules and a phased approach for the non-core modules.
