Whether Big bang Approach Right for your ERP Implementation?

Enterprise resource planning (ERP) is a culmination of an organization's technologies and systems an organization uses to manage its business processes. ERPs offer single-system solutions that consolidate user interactions, disseminate information and enable techno-functional collaboration across various streams in the organization. It brings together planning, manufacturing, purchasing, distribution, sales, marketing, finance, resources, analytics, and other business areas. As a result, implementing your ERP as per the Big Bang Approach might be the right step.

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ERPs work like glue binding different technology systems of larger organizations. Sans ERPs each department will have its system optimization; while, with ERP software, each department will still have its system, but importantly, the systems work in unison and can be accessed via one interface. It collects data regarding the activity and states of different departments, simultaneously making it available to other parts, where it can be used productively and also facilitates the elimination of costly duplicates and incompatible technology. Let us explore how the big bang approach to ERP implementation can be a game changer.

Big Bang ERP Approach For Implementation

A Big Bang implementation (aka single-step strategy/implementation/bigbang installation) as the name says is an all-at-once implementation i.e. all users will start using the system on the same day. It is almost like switching off the old system and going over in a single step to the new system. This kind of implementation oftentimes involves

1. A conscientious testing effort, i.e. Detailed data validation strategies to ensure system compatibility and weeding out issues/dependencies to address business rules
2. A clear & well-planned approach involving iterative data loads along with contingency plans in place to recover data in worst-case scenarios
3. A detailed outline for the migration to the new system with rosters made for every process, data, and employees who will use the new system
4. Methodical training to be imparted to all users beforehand
5. A meticulous change management approach, taking into account all possibilities & providing concrete outcomes for handling changes
6. A well-planned risk management approach

With the advancement of technology, ERP systems have also evolved from traditional physical client-server models to cloud-based software offering remote, web-based access and a host of other benefits at lower costs. To achieve this single state of technology, either traditional or modern, every business needs to perform a thorough ERP implementation. An ERP installation, though it sounds straightforward, is not; it involves at a minimum:

• Definition of requirements
• Detailing how to redesign processes
• Determining a change management plan
• Configuration of settings, options, pre-requisites/rules
• Installation of the desired business modules
• Transfer of core data
• Configuration of users and processes
• Mapping system dependencies
• Big bang approach in testing both functional and non-functional aspects
• Deploying the system across various environments/regions
• Imparting user-training
• Providing operational support, handoff, and enhancements per business needs

Phased ERP Approach for Implementation

On the contrary to a bigbang approach or all-at-once go-live; a phased or incremental implementation involves a step-by-step rollout of ERP modules. In this case, instead of a single go-live date for the entity, there will be several small go-live dates for each phase/region/module according to the implementation strategy. This will result in a gradual phase-out of older systems and incremental tune-in to newer systems, thereby reducing risks associated with a big bang implementation also, not causing a hiatus with the overhaul. A phased approach to ERP ordinarily involves:

1. Conceiving the implementation beforehand to establish a plan for phasing the implementation either by business unit/geographic location/module
2. Devised roadmap with milestones and migration dates to ensure there are no extensions time and again thereby causing project extensions
3. Set up temporary/placeholder infrastructure to ensure business continuity while migrations are in-flight
4. A deliberately contemplated risk, change, and cost management plan to cover contingencies/worst-case scenarios

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How If We Combine ERP Implementation Methods?

Implementing an ERP is a major painstaking step any organization can make, and it involves eliciting a comprehensive roadmap before even investing in an ERP package. One stereotypical question that marks its presence in every implementation checklist is what methodology will the organization use in implementing the package.

There are two methodologies that organizations follow in any ERP implementation:

• Waterfall methodology – in which each step flows seamlessly to the next step in a well-planned structure and defines specific steps that must be carried out in an implementation. Traditional methodology in which requirements of one phase need to be fully completed before moving into the phase. The cost of changes is very high.
• Agile methodology – in which the implementation is done in short and incremental iterations called sprints accommodating changes, testing, and customer feedback in every sprint. Modern methodology propagates flexibility and rapid delivery. The cost of changes is relatively low.
• Hybrid methodology – in which the implementation is structured to combine both waterfall and hybrid i.e. planning in waterfall and implementing via sprints in a flexible delivery model. Hybrid methodology tries to bring in best practices from the waterfall and flexibility of Agile to the organization, but yet can be very confusing and elongated at times.

Utilizing any of these methodologies, organizations may approach their ERP implementation either

1. Single-Step strategy (Big Bang)
2. Phased Rollout
3. Parallel adoption
4. Hybrid

Each of these approaches may have its considerations as follows:

Considerations	Big Bang	Phased Rollout	Parallel Adoption	Hybrid
Training time	Low	High	Medium	High
Support network	High	Low	Low	Medium
Planning required	High	Low	Low	Low
Implementation Time	Low	High	High	High
Cost of Implementation	Low	High	High	High
Risks involved	High	Low	Low	Low
Suitable for	Less functional areas or 2-3 modules	More than 2-3 functional areas or modules	More than 2-3 functional areas or modules	More than 2-3 functional areas or modules

Organizations may choose to utilize any of the approaches independently or even combine one or more approaches to derive the benefits based on the business case involved. For example, one popular approach is to do a big bang implementation for smaller business units and transition into a phased implementation approach for larger units.

When a Big Bang ERP Implementation is the Best Choice?

When it comes to an ERP for any organization, there is no one-size-fits-all implementation approach and every organization needs to weigh the pros and cons of various approaches as well as methodologies before concluding on a particular approach and methodology. However, there are instances where Big Bang deployment approach or a single-step strategy may be the best choice for any organization. These instances may be:

• Quick turnaround – when the organization is looking for a shorter and quicker implementation timeline
• Cost-effective implementation – A big bang implementation brings together economies of scale and a consolidated effort resulting in a low-cost implementation vis-à-vis other approaches
• Closely knit landscape – When the organization has a very closely knit application landscape
• Customization – when there is a lot of customization due to business rules/scenarios involving custom coding/package customization
• New system migration – when the organization is ready to migrate all at once to the new system switching off the old one shortly
• Platform upgrade – The organization has decided to upgrade to a new platform i.e. From an on-premise to cloud/legacy to cloud or any such business case scenario

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Tips for a Successful Big Bang ERP Implementation 

A big bang implementation though it sounds very complex and involves the same number of steps as with other approaches. The only difference is that in the case of big bang implementations, several steps need to be accomplished on the new system, before moving away from the old one. Some best practices/tips for a successful big bang strategy in ERP implementation include:

1. Understanding the As-is landscape: Getting a solid understanding of the existing technology and application landscape sets the blueprint thereby minimizing costly changes later in the lifecycle.

2. Collecting Stakeholder Inventory: Once the as-is landscape is identified, it is very imperative to review inbound-outbound systems and identify application owners who will be the key stakeholders for the implementation. This is a major step that will help the organization avoid late traps during the implementation.

3. Devising a robust data management strategy: The data migration strategy should cover all systems, all loads, frequencies, change management, and recoveries amongst several other considerations in data migration. This is the pillar on which the whole implementation process would fall back and needs to be handled with utmost accuracy & comprehensive planning.

4. Categorization of business processes: Identifying and categorizing key and peripheral business processes would help establish the groundwork for business rules in the new system. The processes should have owners/SMEs who would work with the implementation team/partner in establishing the To-be behavior on the new system/platform.

5. Managing roles & responsibilities: Establishing clear definitions, roles & responsibilities, and devising a RACI matrix to refer back to are some of the key steps which can help demarcate & elucidate activities between the organization and implementation team.

6. Managing changes & scope creep: Engaging stakeholders in pre-discovery and discovery sessions actively, understanding their ask, helping them envisage the future application/technology landscape, and limiting customization on a necessity-only basis to not dilute the package functionalities are some key steps that can help formulate an effective change management strategy and avoid scope creep which can potentially derail the chalked-out implementation plan.

7. Multiple UAT Cycles: User Acceptance Testing (UAT) is a key piece of the puzzle in any ERP implementation. UAT serves as a net on which the critical issues/missed requirements are found before a go-live. Having multiple UAT cycles with real-time data, hands-on scenario executions, and end-to-end validations goes a long way in certifying the implementation before a production move.

8. Collaboration & coordination: Collaboration & coordination between the implementation, consulting, and application teams serve as the lifeblood of an ERP system. Clear communication and collaboration among stakeholders to resolve issues/impediments, a boisterous versioning strategy helps ensure a successful implementation and rollout.

Big bang implementations are astonishingly complicated as well as ambitious projects. The points outlined above are some tips that may help the organization on a case-to-case basis; but it is important to remember that this list is not exhaustive and can include several other pointers such as:

• Setting the right expectations with stakeholders
• Determining the right team, consulting, and implementation partner(s)
• Devising powerful operations and post-go-live strategy
• Conceiving an upgrade/patching mechanism
• Keeping in mind security, non-functional aspects
• Understanding environmental changes/challenges
• Planning thorough training/knowledge sharing for system users

Deciding a strategy to introduce or deploy the ERP package is ordinarily based on the organization's business objectives, budget constraints, available resources, and time constraints among other factors. But each approach has its benefits as well as loopholes.

Steps to perform a successful ERP implementation

Pros and Cons of Phased Implementation

The essence of a phased rollout is that project teams can take some time to plan, map the business process, build, customize, and validate the system while continuing with their regular duties/roles and responsibilities. Some of the pros and cons of a phased rollout embody:

Pros	Cons
Involves lesser time for adjustments and adaptation	Commonly long-term projects due to extensions/scope changes
Best Practices/Lessons Learned can be shared across other phases	Time-consuming fallback to a legacy system in worst-case scenarios
Team expertise by performing continuous rollouts and learning by execution	Change fatigue and lack of control over resource team in the long term
Small issues can be resolved quickly on the goGo-live happens on planned date and is not susceptible to multiple changes	Temporary fixes causing breakages
Far-reaching and incremental testing approach to ensure sanity and qualitySystem integration is relatively easier as requirements are identified and addressed at once	Higher implementation costs
	Delay in project benefits realization/ROI
	Organizational compliance & policies may cause delays/additional scope

Pros and Cons of Big Bang Implementation

Organizations that look for shorter implementation times and go with a full-fledged plan early on in the implementation cycle prefer a big bang approach, which, albeit has its share of benefits and drawbacks, such as:

Pros	Cons
Short implementation lifecycle	Risky to perform regression/end-to-end testing closer to the go-live date
Low cost due to shorter timeline and economies of scale	Productivity loss in case of system issues in one module affecting other business areas
Single system/interface for all business functions	Costly to do a rollback of all modules in case of issues
Go-live happens on planned date and is not susceptible to multiple changes	Chances of overlook/errors are high in the last-minute rush toward go-live
System integration is relatively easier as requirements are identified and addressed at once	System training and usability can get complex for users

In the current context, particularly weighing factors for a big-bang vs phased approach, the below parameters are also important to consider:

1. Complexity: A big-bang ERP implementation will mean switching completely to a new system on a given date while making a graceful transition from the older system. Due to the high convoluted stakes, this can have more complexity depending on the pre-implementation activities planned/performed. Contrarily, the complexity is far lesser in a phased implementation as the business embraces changes in a piecemeal fashion and users have time to acclimatize to the new system.
2. Risk Associated: Big bang implementations at the outset carry an intrinsically higher level of risk; this is a result of, interdependencies as well as the nature of ERP systems that have a ripple effect across the business landscape even in the cases of single-point failures. Also, achieving a high success rate in full-fledged end-to-end testing is ruled out due to the nature of business scenarios that cannot be as easily emulated as in real-time executions.
3. Organizational Pressures/Multiple business segments: With the multi-geography, multi-site set-up of an organization's business activities, there is always an added organizational pressure in transitioning to a new system. this is, however, relatively higher when an all-at-once implementation is planned versus a phased implementation where the approach can be further prioritized or split according to the business, environment, and economic factors. This is however an exception for the hub and node-based category of business, for which only the big-bang approach is well-suited for operational continuity.
4. Temporary Interfaces: Delta systems or temporary interfaces are often visible with a phased implementation and add to the ERP implementation cost which cannot be easily done away with when users migrate gradually/phase-wise to a newer system. Though they do not carry a long-term value-add, they are necessitated to have a graceful and well-planned transition from the older system to the newer one.
5. Time Slot: The major areas where big-bang implementations score big are the duration of the implementation cycle, benefits realization, and overall ROI. A big-bang implementation means shorter implementation time, an exciting build-up to launch, and faster ROI which is quite the contrary due to the step-by-step embracement of systems often carrying longer acceptance times by business teams; ultimately having an impact not only on project financials but also on regulatory compliances of the organization.
6. Effect on the Enterprise: Though go-live periods are faster in a big-bang implementation, they come at a cost. This cost is nothing but the straining of the organization due to the hustle to bring all businesses up to speed on a newer system in the shortest span. Phased implementations, on the other hand, do not carry this sense of urgency, thereby allowing teams to develop confidence and help onboard the complete organization, one step at a time.
7. Costs Factors: Due to the project longevity, delta systems, and step-by-step onboarding of teams/processes - phased implementations often involve a high cost of implementation versus big-bang where the go-live happens in a shorter timeframe saving costs as well as embracing economies of scale.

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Conclusion

Implementing an ERP is a daunting decision any organization can make and determining which approach and/or methodology is the best to choose depends on the organization's specifics such as the business goals, strategies, and needs. It is also crucial to have a thorough implementation plan, identifying each step in the cycle, addressing dependencies, especially those related to configuration and data, and finally allocate abundant time and resources for user training to have a successful implementation.

Irrespective of the strategy an organization wants to use to implement its ERP – it is significant to consider leadership buy-in, manage expectations, limit customization, and use the right measurement KPIs to review the post-implementation performance of the system. A successful and timely ERP implementation will result in a multitude of benefits including increasing revenues, improving processes, efficiencies, and economies thereby reducing costs, disruptions, and dependencies. Choosing a methodology/approach is something an organization can do considering a balance between costs, risks, and quality.

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