ERP implementation strategy:
approaches, steps, and guidelines

ERP implementation strategy: approaches, steps, and guidelines

January 11, 2023

An enterprise resource planning system is a multifunctional solution designed to supervise your key corporate operations, provide valuable, data-driven insights, and help you harmonize your business processes. In other words, it might be considered as the software version of a conductor whose orchestra is actually your company.

But just as hiring a new conductor may unsettle the other musicians involved, the implementation of a new ERP system can have rather challenging implications, which should be addressed by setting up a suitable strategy and relying on ERP consulting services.

In this article, we'll review some of the most common ERP implementation strategies, describe a standard adoption roadmap, and provide a set of guidelines to embark on this journey.

What is an ERP implementation strategy?
An ERP implementation strategy is an ensemble of essential steps, techniques, and best practices to effectively adopt an enterprise resource planning system in line with your corporate goals and workflows.

Such a strategy will help you minimize business risks and overcome the most common challenges associated with an ERP implementation project. Panorama Consulting identified the list of key areas which required the help of ERP consultants.

Among organizations that sought consultant guidance, the most common type of guidance sought was business process management and/or process reengineering:

Percent of respondents

Scheme title: ERP implementation consulting areas
Data source: f.hubspotusercontent40.net—The 2022 ERP Report. Panorama Consulting Group

This should give you an idea of several complications which may hinder your efforts, as well as further highlight the importance of a well-suited ERP implementation strategy.

The same study also reported the following stats:

of respondents implementing ERP software incurred higher costs than expected

of the sample surveyed completed their ERP implementation project later than expected

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Top 10 ERP implementation strategies

When it comes to categorizing ERP implementation strategies, one of the most common classification criteria focuses on the software rollout roadmap.

Chart title: Major ERP implementation strategies by popularity
Data source: f.hubspotusercontent40.net—The 2022 ERP Report. Panorama Consulting Group

Big bang

This strategy involves a one-shot shift of all your staff and business functions to the new system, which ensures faster implementation and cost optimization while allowing your company to reap the benefits of a modern ERP right from the start. However, it's also a riskier changeover, difficult to roll back and potentially leading to multiple failures at the same time.

Pros
  • Fast implementation
  • Cost mitigation
Cons
  • Risk of multiple failures
  • Complex rollback

ERP implementation strategies selection guide

While Panorama Consulting's report pinpointed a general propensity for hybrid (42.9%) and phased (40.7%) ERP implementation strategies over the big bang approach (16.4%), the choice is yours and will mostly depend on these four major parameters:

Organizational size

The big bang strategy is typically recommended for SMBs, which can easily handle a single transition of all their employees and units to their new ERP system. Large corporations with a wide range of business functions and branches, on the other hand, may find this strategy too abrupt and risky and prefer a phased rollout.

Cost

If your goal is to minimize project costs, consider the big bang strategy, as it remarkably speeds up the implementation and will save your company from maintaining two separate ERP systems at the same time.

Business risk

Organizations prioritizing risk mitigation should probably opt for a phased or parallel ERP implementation. This way, they can get familiar with the new system and integrate it into their business processes, or revert back to their legacy environment if the rollout fails.

Expected ROI

The big bang strategy represents a shortcut to fully seizing the benefits of large-scale ERP implementation without delays and maximizing the return on investment. However, even a phased, hybrid, or pilot rollout focusing on the most critical and profitable functions might generate considerable ROI.

ERP implementation lifecycle

So far, we've mostly focused on the rollout phase. However, an end-to-end ERP adoption roadmap encompasses several implementation stages and multiple areas of expertise.

1

Planning

This step includes assessing your software ecosystem and corporate workflows, drawing up technical specifications, and setting up a project timeline.

  • Business analysts
  • Project managers

2

Design

In this phase, your team designs the architecture and user interface, outlining ERP features and modules through mockups and UX/UI wireframes.

  • Architect
  • Project manager
  • Tech lead
  • UX/UI designer

3

Development

The coding process combines front-end and back-end development, along with software integrations, database setup, and multiple tests.

  • Project manager
  • DevOps engineer
  • Developers
  • QA engineers

4

Testing

Acceptance testing makes sure that the final product complies with the user and operational requirements detailed in your specifications.

  • Analyst
  • Project manager
  • QA engineers

5

Deployment

Based on the hosting model selected by your company, the implementation team deploys the new ERP on local servers or in a cloud-based environment.

  • DevOps engineer
  • Tech lead
  • Architect

6

Migration

After accurate data cleansing to remove obsolete or inconsistent information, you can migrate your data assets to the new system.

  • DBA specialists
  • QA engineers
  • DevOps engineer

7

Rollout

The final stage involves the adoption of the ERP solution, which can be performed in different ways depending on your implementation strategy.

  • Analysts
  • Corporate trainers

Itransition’s ERP implementation success stories

Adopting a comprehensive ERP system with a suitable implementation strategy will result in major process enhancements and other benefits for your organization. Take a look at some examples from Itransition's portfolio of ERP implementation projects:

Custom manufacturing ERP

21%

sales growth

Our team implemented a custom ERP/CRM suite to automate the core business processes (customer data entry, quote conversion to orders, etc.) of a major UK furniture manufacturer.

eLearning ERP/LMS

10%

DevOps cost cuts

We delivered a combined ERP/LMS system built on top of Odoo and designed to help a US-based eLearning company streamline student enrollment, lesson scheduling, and other administrative tasks.

Odoo-based ERP system

90%

manual work reduction

Itransition provided a US maintenance company with an ERP solution based on Odoo to automate some of its key processes, such as inventory management and quoting.

Custom manufacturing ERP

21%

sales growth

Our team implemented a custom ERP/CRM suite to automate the core business processes (customer data entry, quote conversion to orders, etc.) of a major UK furniture manufacturer.

eLearning ERP/LMS

10%

DevOps cost cuts

We delivered a combined ERP/LMS system built on top of Odoo and designed to help a US-based eLearning company streamline student enrollment, lesson scheduling, and other administrative tasks.

Odoo-based ERP system

90%

manual work reduction

Itransition provided a US maintenance company with an ERP solution based on Odoo to automate some of its key processes, such as inventory management and quoting.

Custom manufacturing ERP

21%

sales growth

Our team implemented a custom ERP/CRM suite to automate the core business processes (customer data entry, quote conversion to orders, etc.) of a major UK furniture manufacturer.

eLearning ERP/LMS

10%

DevOps cost cuts

We delivered a combined ERP/LMS system built on top of Odoo and designed to help a US-based eLearning company streamline student enrollment, lesson scheduling, and other administrative tasks.

Odoo-based ERP system

90%

manual work reduction

Itransition provided a US maintenance company with an ERP solution based on Odoo to automate some of its key processes, such as inventory management and quoting.

10 tips for effective ERP implementation

Whether you decide to adopt a big bang implementation strategy, a variant of the phased rollout, or a hybrid approach, keep in mind the following recommendations to streamline your ERP implementation journey.

1.

Rely on reputable consultants

2.

Set a realistic budget

3.

Define a roadmap

4.

Communicate the project scope

5.

Assemble a team

6.

Cleanse your legacy data

7.

Prioritize key features

8.

Invest in training and user support

9.

Assess the success

10.

Monitor data security and compliance

Devise your ERP implementation strategy

Devise your ERP implementation strategy

The purely technical aspects of your ERP system represent just a facet of the bigger picture. Selecting a suitable strategy based on your organizational size, propensity to invest, risk tolerance, and expected ROI can play a vital role in the success of your ERP implementation project. Combined with a solid adoption roadmap and the aforementioned set of best practices, an ERP implementation strategy will help you maximize the impact of this comprehensive software solution and streamline its deployment across your organization. To further facilitate this process, consider relying on Itransition's holistic expertise in ERP consulting and development.

Devise your ERP implementation strategy

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ERP implementation FAQs

Let's summarize our overview by addressing some of the most common doubts and concerns regarding ERP implementation.

How much does ERP implementation cost?

How long does ERP implementation take?

On-premise or cloud ERP implementation?

How to integrate an ERP with my software ecosystem?