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154 Chapter 5 • Implementation Strategies

Implementation Methodology
System implementations are complex, time consuming, and resource intensive. As with any system,
no ERP system is perfect, “bug free,” or meets all the user requirements. ERP systems, however, will
grow and change to provide the business with a new way of looking at business processes and
decision making. A business will need to grow, change, and adapt to ERP systems whether vendor
purchased or developed internally.
Understanding ERP system life cycles from inception to operations and the effects on
today’s organizations is fundamental to fulfilling the long-term investment in an ERP system.
The key to a successful implementation is to use a proven methodology. When a system imple-
mentation does not have a well-defined methodology, deadlines will likely be missed, budgets
overspent, and the functionality not meet the client’s requirements. In other words, the results
will be less predictable. ERP system implementations are very risky, but a well-defined project
methodology will assist in managing those risks.
There are many methodologies documented and used in system implementations. There
is nothing complex about methodologies, but they need to be well understood and proven.
A proven methodology will better ensure a successful implementation. Implementation risks
will be reduced as the technology improves and the information technology and functional staff
gain more experience in ERP systems. Until that time you should consider a robust ERP system
methodology as critical to the project’s success in terms of time and budget. A sample method-
ology appears in Figure 5-2.
When selecting a methodology, make sure it addresses all components for the entire
project. This includes project start-up through system stabilization. If an implementation partner
is involved, be sure to review their methodology. The implementation partner’s expertise in func-
tional areas of the system is important, but the most important reason for using a partner is the
knowledge base and process of how to design and implement systems successfully.
In the past, it was considered Nirvana when a business deployed a single database
instance from a single ERP vendor that provided the functionality a company needed to do their
business. This type of implementation has been contemplated and discussed for years with few
successes. It did not become feasible to address this until the mid-to late 1990s. The Internet
and Web allowed connectivity anywhere at anytime, cheaper and faster servers improved

Requirements General System Build and Test Implementation Stabilization and
Gathering/Gap Design Production Support
Analysis

Functional

Technical

Change Management

FIGURE 5-2 Sample Project Methodology.