ERP implementation strategy: approaches, steps, and guidelines

A sequence of smaller "bangs" that may affect entire divisions or corporate functions (HR, accounting, etc.) one at a time. Similarly to its original version, it represents a relatively inexpensive and fast option, but requires several well-coordinated workflow adjustments and may be severely hampered by potential oversights.

A phased approach implies a succession of rollouts focusing on single ERP software modules that cover individual business functions, such as inventory management or marketing. It's a relatively safe, step-by-step solution to address the specific needs of each department. On the other hand, it results in a longer implementation timeline and may cause integration issues between modules.

This phased strategy is module-centered, but driven by urgent business requirements like compliance and strict timelines and therefore prioritizing operationally critical goals, which makes it ideal for SMBs with limited resources. Still, it causes integration complexities and risks when performed without a proper implementation plan to deal with emergencies.

This phased implementation approach involves single or multiple units and departments gradually migrating to the new ERP and is best suited for large multinational companies. It allows corporations to assess the first rollouts and therefore optimize the following ones but, once again, it extends over a longer time and requires meticulous integration.

This implementation strategy is adopted by large-scale organizations with multiple branches around the world that need to meet specific regional requirements related to local legislation or culture. In these cases, a phased rollout is essential to properly harmonize a variety of geographically distributed processes, but will certainly require serious coordination and a longer timeframe.

This strategy implies the coexistence of new ERP software and an old system for a period of time, ensuring a backup plan if the rollout goes wrong and leaving more time for data migration from one system to another. However, a parallel adoption doubles data entry efforts, potentially leading to human errors and data inconsistencies.

This strategy is a personalized blend of phased and parallel rollout, combining their strengths to better suit your specific needs and minimize implementation risks. At the same time, this mixed strategy might be more time- and resource-demanding.

This relatively safe and cost-effective strategy begins with implementing ERP software in the most profitable business function to "test the ground" and ensure the maximum benefit from the get-go. However, the settling phase between the pilot and the other functions will lengthen the implementation time and won’t allow you to fully assess the potential impact of the ERP system on a larger scale.

This relatively recent ERP implementation strategy relies on SaaS platforms provided by a vendor to enable a cloud-based implementation of your system. Thanks to its flexibility and scalability, it paves the way for virtually any type of implementation rollout described above. On the other hand, organizations opting for SaaS rollout should keep an eye out for potential hidden costs and restrictive licensing conditions.