Are you looking to implement an ERP into your organisation but aren’t sure which methodology is the best to use? Don’t worry, please continue reading below for all the answers.
So you’ve conducted a rigorous evaluation and selection process before choosing an Enterprise Resource Planning software. However, you know that while picking the ERP software is an arduous process, you’re not entirely done yet.
After all, ERP software implementation failure is quite common. In fact, according to studies, those who have implemented ERP software without proper planning reported that about 70% of their implementations ended up as failures.
Leveraging the full benefits of your ERP purchase depends on a successful ERP implementation.
So what next?
Well, it’s pretty straightforward; you have to do a whole lot of planning. In fact, having an implementation plan before purchasing your new ERP package is a prerequisite for successful ERP software implementation.
However, how is an ERP software ideally implemented? What are some of the most common mistakes when it comes to implementation, and how can you go about getting your organisation ready for this challenging phase? So, where do you start?
When firms start looking into vendors or re-sellers, one of the most crucial questions they must ask is, what methodology will be used to govern the ERP implementation?
Although there is a relatively standard set of steps that are taken during ERP software implementation, the approach you pick might not be the same. Here’s a look at the typical phases of ERP implementation:
One of the main concerns about ERP implementation is that even with a great team, it might still take a long time before they are actually ready to go live.
However, part of the reason why some implementations take longer than others is because of the approach or methodology used. So you have to ask, what are the methodologies used to implement ERP systems, and which is the best one for you?
There are two primary methodologies that companies use to govern their ERP systems: Waterfall methodology and agile methodology.
The waterfall approach is what might also be referred to as ‘the traditional method’ used to implement ERP software. The name of this methodology can be traced back to the structure of the method, with each step flowing seamlessly to the next.
While requirements often change, making it impossible for ERP implementation to follow a linear progression, the waterfall methodology operates under the basis that there are specific steps that must happen on an ERP implementation.
The waterfall ERP implementation methodology might look something like this:
The agile methodology recognises the challenges of managing technology for prolonged periods in an environment that’s continually changing. This approach offers more flexibility and increased speed compared to the waterfall methodology.
With the agile method, rather than deal with the implementation in a linear progression, the project plan is divided into sprints (short intervals), and testing occurs at the end of each sprint with adjustments being made accordingly.
Therefore, rather than develop the entire process only to find problems later, the agile approach allows the team to respond faster to changes and issues as soon as they manifest.
Every company is different, and sadly there isn’t a one size fits all when it comes to ERP methodologies. There are pros and cons to both the waterfall as well as the agile approach.
For instance, the waterfall methodology might be easy to understand due to its linear structure and an excellent fit for a static environment. On the other hand, the agile method is better suited for a dynamic environment.
Because neither methodology is an excellent fit in every situation, it pays to consider ERP implementation consultation.
If you are looking for accounting software solutions anywhere across Australia, then please get in touch with us at Stratus Smart Software Solutions.
Our solutions encompass many functions of ERP software including financials, CRM and sales, stock control software, barcode scanning, EDI integration, project management and more.
Call us today on 1300 499 000 or fill out our inquiry form and we will get back to you within 24 hours.