Deployment of an ERP system is the strategy with which you decide to implement the system in your organization. You should seriously consider the appropriate strategy for your organization.
Understanding each strategy and choosing the best option is a difficult subject. While one strategy may work for one company, it may not be the best strategy for your business. Deployment of the on demand ERP system, also known as ERP cloud solution, may be easier than a standalone traditional installment.
Options for ERP System Deployment
Which options are you facing? The traditional and most common option is the standalone applications in which you purchase hardware as well as software (mainly the licenses – the right to use the ERP software).
After installation you will need to implement the ERP system; perform data migration from the old system to the new one and integrate your processes together with the standard processes that the ERP software suggests – using the functionalities that the ERP system offers you to document your processes and facilitate data flow between the different parties in the organization.
Deployment of an ERP system is time consuming and it will take long before you will the horizon of this project not to mention the costs.
ERP System Deployment in a Single Instance
Which strategies are common? One option will be to switch to the new system in a single instance; all users start to work with the new system on a given date. This is a very ambitious goal that requires a lot of operational resources as well as mental; the users must adapt a new work method quite quickly.
This kind of method requires a pilot phase in which all processes and scenarios must be documented defined and tested. SAP uses for example its famous business blue prints; functional documents of the business processes in the organization that you want to integrate in the ERP system.
That means a well planned test concept must be laid. The main advantage is that that the implementation phase project has a defined end date. You may postpone and delay it but still the horizon is defined which is an advantage in such a project. The users and employees know – one day it will all over.
ERP System Deployment with Rollout
A second option is to manage a phased rollout; a Deployment of the ERP software in stages. With phased rollout the switch will occur in phases over an extended period of time: first the finance and all that it concerns; customers and suppliers data and the relevant movements.
After a while when all is proved to be stable the company may start to enter and manage the orders and deliveries. And when all goes well the planning of the production will be done with the aid of the system. This requires a very distinct planning and will not be always feasible.
The advantage is that the organization has the opportunity to examine the abilities of the system and make fine tunings.
The main disadvantage is that you could be running two systems parallel – the old system and the new ERP system. The interface between them will be manual. For example, the bookkeeping will have to enter the records the movements manually because it still does not get automatically through the ERP system processes.
ERP System Deployment with Parallel Adoption
The third option is the Parallel adoption where the deployment occurs while the old system still runs; the old system and the new ERP system run at the same time. Users learn and operate the new system while working on the old. This also requires a lot of resources.
This phase lasts normally between two to three months because it is very demanding from the workers to maintain two systems. But the advantage is that mistakes and flaws can occur without the fear that damage is done or sales are lost.
ERP Deployment – Cloud Solution
The problems that may occur during the deployment phase can fill a book or two; lost of data, lost of sales, intern organizational problems and flaws in the production or deliveries. Too many big as well as small organizations suffered from the same problems for the last thirty years (approximately the lifetime of the modern ERP systems). And because of these problems the world today is moving towards the cloud solution.
Mark my words – the ERP giants such as SAP, Oracle, Microsoft Dynamics and Sage are investing millions of dollars in developing cloud solutions. In a few years ERP on demand will be a standard solution. And with it comes an easy on boarding ERP deployment methodology.
Probably the key benefit of ERP on demand is that the technological deployment of the software is easier than traditional, on-premise installation. ERP on demand offers an easy access to the system, less need for expensive IT infrastructure and simpler and less expensive maintenance. I link you to the next resource for more information.
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