ERP implementation strategy: approaches, steps, and guidelines
October 24, 2023
An effective ERP implementation strategy comprises steps, techniques, and best practices to adopt an ERP system aligned with corporate goals and workflows. Having a proper implementation strategy helps increase the project’s ROI, minimize business risks, and overcome common challenges associated with ERP deployment.
The implementation of a new enterprise resource planning system can also have rather challenging implications, which should be addressed by setting up a suitable strategy and relying on ERP implementation 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 for this transformation.
ERP implementation challenges
of respondents implementing ERP software incurred higher costs than expected
of the sample surveyed completed their ERP implementation project later than expected
Minimize ERP implementation risks with Itransition's guidance
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
The big bang approach 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
To choose the optimal ERP implementation strategy, we recommend factoring in these four major parameters:
Organizational size
The big bang strategy is typically recommended for SMBs, which can easily handle a single transition of the entire organization to a new ERP system. Large corporations with a wide range of business functions and branches, on the other hand, can find it too abrupt and risky and should opt for a phased rollout strategy.
Cost
If your goal is to minimize project costs, consider the big bang strategy, as it remarkably speeds up the implementation and saves 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 specific business processes, or revert back to their legacy system 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 system 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
Discovery
This step includes assessing your software ecosystem and corporate workflows and drawing up technical specifications.
- Business analysts
- Project manager
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
Planning
Having outlined the ERP solution’s architecture and chosen the tech stack, the team proceeds with project planning, scheduling, and budgeting.
- Business analyst
- Project manager
- Tech lead
4
Development
The coding process combines front-end and back-end development, along with software integrations, database setup, and multiple tests.
- Project manager
- Developers
- DevOps engineer
- QA engineers
5
Testing
Acceptance testing makes sure that the final product complies with the user and operational requirements detailed in your specifications.
- Analyst
- QA engineers
- Project manager
6
Deployment
Based on the hosting model selected by your company, the project team deploys the new ERP on local servers or in a cloud-based environment.
- DevOps engineer
- Architect
- Tech lead
7
Migration
After accurate data cleansing to remove obsolete or inconsistent information, you can migrate your data assets to the new system.
- DBA specialists
- DevOps engineer
- QA engineers
8
Rollout
The final go-live stage involves the adoption of the ERP solution, which can be performed in different ways depending on your implementation strategy.
- Analysts
- Corporate trainers
Consider Itransition for your ERP project
Itransition offers a full range of ERP services to help you implement a comprehensive future-proof ERP solution that addresses your specific needs and aligns well with your business strategy.
Itransition’s consultants provide advisory support along the ERP implementation process, helping you mitigate project risks and ensure high ROI by taking on:
- Analysis of business needs and technology environment
- ERP solution architecture design
- Tech stack selection
- ERP strategy creation and roadmapping
- Implementation supportÂ
Itransition’s ERP implementation success stories
Adopting an ERP platform according to a well-thought-out strategy results in major process enhancements and profit for a company. Take a look at some examples from Itransition's portfolio of ERP implementation projects:
21%
sales growth
Custom manufacturing ERP
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.
10%
DevOps cost cuts
eLearning ERP/LMS
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.
90%
manual work reduction
Odoo-based ERP system
Itransition provided a US maintenance company with an ERP solution based on Odoo to automate some of its key processes, such as supply chain management and quoting.
21%
sales growth
Custom manufacturing ERP
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.
10%
DevOps cost cuts
eLearning ERP/LMS
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.
90%
manual work reduction
Odoo-based ERP system
Itransition provided a US maintenance company with an ERP solution based on Odoo to automate some of its key processes, such as supply chain management and quoting.
21%
sales growth
Custom manufacturing ERP
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.
10%
DevOps cost cuts
eLearning ERP/LMS
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.
90%
manual work reduction
Odoo-based ERP system
Itransition provided a US maintenance company with an ERP solution based on Odoo to automate some of its key processes, such as supply chain management and quoting.
10 tips for successful 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.
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Devise your ERP implementation strategy
The purely technical aspects of your ERP system represent just a facet of the bigger picture. Selecting the right implementation strategy and methodology 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 helps 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.
Empower your staff with an ERP system by Itransition
ERP implementation FAQs
Let's summarize our overview by addressing some of the most common doubts and concerns regarding ERP implementation.
