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Chapter 5 • Implementation Strategies 159

surrounding components as well as the methods and processes involved during the implementation.
Decisions around the hardware, software, governance, methodology, and level of modifications
need to be based on the goals set out for the purchase of the ERP system. Management must be sure
that all the components for the implementation are going to be planned and managed throughout
the implementation process. Even though the ERP system selected is the key component for the
company, there are a significant number of third-party products that can have a large impact on an
implementation’s success or failure.
There are two initial decisions, however, that will have a large effect on the implementation
that are neither hardware nor software based. First is the use of an implementation methodology
and whether or not to modify the system. There are a number of proven implementation methodo-
logies available. If the company has a methodology with which they are familiar and can scale it
to a complex ERP system implementation, then it should be highly considered. Management must
have confidence in the methodology and trust that all things considered will help to ensure all the
components and steps for an implementation are in place and followed. This will help to reduce
implementation risks.
The second decision is whether to implement the system with or without modifica-
tions. Modifying an ERP system is costly from the programming side, but not modifying the
system is costly in that business processes are changed to meet what the system is set up to
do. Both can be costly in terms of resources and sustainability. Management must decide on
the approach prior to the start of the implementation process, and it must be communicated
to all on the project. The direction must be clear to all involved; otherwise, it will hinder or
slow down the implementation process and possibly undermine the implementation
altogether.

Summary

•Many components make up an ERP system. governance structure will enable the project
The software as well as the surrounding staff to manage risk and implementation
operational software and third-party soft- progress.
ware are needed to ensure that the business •A number of fundamental discussions and
can accomplish its goals. decisions need to be made even before the
•In addition to software there are a myriad of ERP system is taken out of its wrapper.
hardware components and devices. One key decision is whether or not to
•The table below shows some of the hard- modify the system, change business
ware and software components. processes, or use some combination of
•It is more important in the overall project modification and business change. Vanilla
organization and methodology to implement implementations are becoming more and
the ERP system. ERPs are all about change, more common.
both to business flows and, more important- •Senior management does now look at ERP
ly, to employees. This makes an ERP system systems as large investments that need to be
implementation a very high risk. protected, so modifying the code in these
•Managing the risk throughout the project is very complex systems jeopardizes that in-
key to being successful. vestment. Setting this expectation early,
•A robust and proven implementation whatever the decision, will better guarantee
methodology and a clear and understood the adoption of the system.