The third generation ERP implementation methodologies include component based ERP architecture in which each component of a solution is designed independently as per the needs of the client and the whole system is integrated at one place. The main advantage of component based architecture is that the components can be upgraded without disturbing the whole system.
The next generation packages provide consisted modular software which has a user friendly interface, supports online transactions, ecommerce, CRM, multi-location and is scalable. Some of the latest concerns of companies are security and maintenance cost - and most of the companies are worried of the time and costs of implementation, and therefore, a number of methodologies has been designed to reduce delays.
Some of the Common Methodologies
Traditional method: The traditional methodology includes evaluation and understanding the needs of the customer, identifying the architecture and business design, getting the involvement from the end users and discussing the functionalities. The responsibility of end users, modifications in process, procedural updates, testing scripts, scheduling and installation script are designed. The risk and impact analysis is done in the later stages.
After finishing the initial application configuration, the database is transferred to the new application, GAPs are settled and the testing of the system is done. Training and post implementation support is provided in the last phase.
Big bang: In this method the company completes the process in one go and all the machines of the company get ready for software installation at one time. The complete system start working immediately after the process but this is not very easy and if there is any error the whole work of the organization is affected. This is possible in companies having less number of users.
Parallel adoption: In this method, two or more processes and departments are automated in one time, and in the last stage all the parallel methods are integrated. This is also a risky method and it is aimed to reduce the time but it can happen that after initial phase the integration of different processes becomes difficult and then the whole work will be disturbed.
Phased rollout: This is the most common method in which the process is completed in a number of stages. The users find it easy to use, and the risk factor is reduced as the software is tested at each level but the time of implementation can be very high.
1. Unit wise: The client having branches at many geographical locations may get the installation unit wise as the implementation teams moves from one unit to other and finishes the process one by one.
2. Department wise: It can happen that the financial department gets the new software and then other departments - in various phases.
3. Module wise: One module can be finished in one stage and then another module is taken up as the first finishes.
Process oriented: In this method some of the critical business processes are completed first and then the other business areas are selected depending on priority and need of the organizations. This can have a high risk and it may even take a long time for implementation.