How pilot programs can ease companies into ERP

ERP implementations can be fraught with risk. The wrong software choice could be made, or circumstances may appear that alter the trajectory of the implementation project. When integrating software like Microsoft Dynamics NAV into a business model, an effective risk management strategy will be necessary. This includes outlining a specific plan to install the software and then have the company switch over to it completely within a given period of time. A company should take steps to minimize the potential for disruptions both during and after the switch.

The two most popular approaches to installing ERP software, while effective, have their own risks. The big bang method, while being the fastest, also has the potential to be buggy and leave employees unprepared, making operational shutdowns and delays very likely. The safer option is the phased rollout, but it has the greater potential of being affected by cost overruns due to the slow nature of the installation process. Some would cite the parallel adoption strategy as the most ideal solution, but the upfront costs are often higher than either of the two previously mentioned options. The best idea for some businesses may be to combine the big bang and the phased rollout as a hybrid approach as opposed to a single method., utilizing a pilot program concept.

Working together There are many ways to combine the big bang approach with the phased rollout. However, all of them require that the latter method come first. The practical reason is that a big bang approach is more comprehensive and covers all areas of implementation. Doing a phased rollout on the back end doesn't make that much sense. Accordingly, it may be more desirable to start with a phased rollout, and then move to a big bang approach at higher levels in the company when it feels comfortable to do so.

The pilot program makes this method workable, and especially applies to businesses with offices or shops outside the main headquarters according to TechTarget. Basically, the new Microsoft Dynamics implementation is put in place within a smaller satellite office that has most of the same resources as HQ, only on a smaller scale. Bugs that impact production and any other possible issues that may appear during testing in larger branches will get sorted out. Once the testing is completed, the pilot program expands to other company offices and factories, allowing for more elaborate or advanced scenarios. Then, when the requirements of the program are satisfied, the rest of the company rolls out the ERP software to all company offices.

There are other ways of deploying pilot programs as well. Some can be module-based. For example, a specific add-on such as one suitable for use with warehouse management systems, can be deployed in one distribution center for testing, while another office handles the accounting components. The modules can then be installed in other company locations over time. Having this system accelerates the phased rollout process while making the eventual main switchover much easier to complete.

Learn how to define your ERP strategy by downloading the white paper entitled "ERP in Manufacturing: Defining the ERP Strategy" from the DMS website today.

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