ERP implementation methodology depends on the business, number of users and locations of the buyer company where implementation process is to be carried out. If it is financial institute - the process should be big bang or parallel and if it is manufacturing companies it can be done department wise.
There are many different methodologies followed by companies to implement ERP. Some of the common methods are -
Traditional methods: The method was followed in 80s where the vendor starts the process with identifying the requirements of the buyer and then the designing of the new system is done. The processes involved are planning, education, design, and configuration, demonstration of demo and final implementation and training.
The designing team is supported by the customer at each stage and then the core team is educated about the new system. The consultants guide the implementation team to design, configure and set up the new system. A conference room pilot is designed which is tested prior to the implementation of the final product. The last stage of the methodology is to provide training to end users.
Turnkey method: Some of the leading ERP providers go for Turnkey method in which the vendor discovers the inputs and designs the set up of the new system. Then, the users are trained about the new system and the software is delivered with some minor adjustments. In the last phase, the customer accepts the new design provided by the vendor and it may include changing business processes to meet the needs of the system.
Phased-out method: In this method the user moves from old system to new system in phase. There are many different ways of delivering the phased out project. It can be module wise in which at one time the modules are implemented, and the core business functionalities are implemented and tested in one phase and then the next set of modules are added.
Sometimes the implementation is done business unit wise or department wise, or it can be completed depending on the location which is also called the pilot adoption method usually followed by large organization having multiple units across the various geographical locations.
Big Bang: The big bang method is a fast method but it can be less costly and it has a higher risk. It even prevents expenses of resources during the makeover process. The implementation process starts and completes in one day and users find it easy to shift to the new system.
Some of the drawbacks of the big bang method is employee do not get time to learn the process and failure in any part can have an impact on other departments or modules, which can halt the work processes completely .
Parallel Method: It is a way of implementation in which two or more processes are started at one time and many parallel processes are integrated in one. Parallel processes reduce time of implementation but in this method it can happen that one process completes earlier than other and the delayed process causes delay to related processes.