Big Bang or Phased

ERP implementation strategy offers you two options: big bang or phased.

Big bang is simple; all ERP modules go live at the same time. In real life, it requires all business functions to work together in the correct manner which may be totally different.

Phased means the company starts with a few modules -usually Order Management or business function related- and then followed by the other modules later. In phased, you may want to make sure the running modules are settle before you move forward.

Big bang just like a shortcut. It takes you there within less time, less cost but more riskier and with a lot of effort. For a challenge lover, big bang is hot and tempting. Phased on the other hand is safer but requires more man days, thus charge you more.

If budget and time are constrain maybe big bang is the answer, however the risk is also high. If the company never uses an ERP before then migrate to ERP not only mean changing the way data was input into the system but also change the mind set, procedure and work habit. Problems may rise from all directions This could be frustrating.

If you ask me which one is better then I say none. Before making any decision, I will take a look at the things below:

1.     Organization size (number of function that will run ERP, number of user)

2.     Business complexity (refer to Fit & Gap Analysis)

3.     Business impact (It is a common thing that in early stage, ERP does not run smooth at 100% If it is so then how does it affects the daily operation?)

4.     Organization culture

5.     Management back up and ERP team size

Oh by the way, if it is a manufacturing industry with garment/footwear characteristic, I personally recommended phased strategy. Been there, done that.