Oracle Implementation Options

Posted on August 13th, 2008 by Sanjit Anand | Print This Post | Email This Post

A typical ERP Deployment for any Global company typical consider as Global, Regional or Local Deployment , which can be best understood as:

• Global ERP -Corporations with common business areas that are seeking to centralize management and standardize business processes across geographies and divisions
• Regional ERP -Corporations that operate in group of regional businesses which need to meet unique requirements of particular markets and comply with statutory or legal requirements
• Local ERP -Corporations with significantly different business areas having significantly different business process requirements

ERP Implementation /Rollout Options

If you see any ERP books you can find three dominant approaches for ERP implementation , which are “big bang”, location-wise and module-wise implementation.

In the big bang approach the organization decides to implement all relevant modules, for example - Financials, Manufacturing & HR- all at the same time. This has the advantage of getting the full benefit of the integrated software across all functions of the organization. However there is a risk of the implementation getting out of control.

In “Location-wise” implementation, the organization chooses a specific location, say, the head office, one of the new plants etc. The choice could be based on better infrastructure, better IT culture, more co-operative set of users, higher level of automation etc.

In “module-wise” implementation individual modules are taken up for implementation in a phased manner depending on the criticality of applications. Once again a module taken up for implementation can be implemented across all locations or just one location. Later they can be rolled out to other locations.

In reality these Implementation /Rollout Options are typically categorize into two major category as:

• Big Bang : In which all modules implemented in all business units in all geographies at the same time
• Phased : In which Modules implemented one at a time or in small, logical groups

There is also exist something exist known as “Wave” : A hybrid approach that can take many forms Implement all modules in a given geography Move on to next geography, etc.Lets take a closure look:

Big Bangs

All modules, all locations, all users at the same time.

This consist of three major steps

1. All relevant MAPs are designed and implemented in software.
2. Extensive test of individual modules and interfaces between modules and other systems take place
3. Shut down older/legacy system(s) and start up production ERP system with very short cut-off time frame.

 

Advantage

1. Entire organization reaps the benefits of the deployed system, as enforce process change
2. This inturn quicker return on investment
3. Easier integration and reporting
4. No temporary interfaces required (to legacy systems)
5. Lower cost of running the systems as legacy systems are closure simultaneously
6. Faster Implementation timeline , as resource requirements is well planned as well as in this there is no need to design and build temporary interfaces to legacy systems

Disadvantages

1. High capital and human resource investment, as this requires a very big team and Project management is one of major focus area.
2. Any technical/performance issue affects the entire user population
3. Requires training of the entire user population
4. Complex deployment and testing
5. No way to demonstrate progress until entire system implemented that mean mistakes are costly -any issue affects the entire population

Phase Wise & Hybrid

Modules implemented one at time or in small groups

 

 

Advantages

1. Low investment in terms of capital and effort
2. More manageable and less risky
3. Learning from the initial deployment can be applied to the subsequent deployments
4. System failure does not affect a large population of users
5. Minimized disruption to the production environment
6. Fewer users out of their day jobs
7. Reusability of resources, templates, tools and artifacts

Disadvantages

1. Additional Cost of maintaining two or more systems
2. Longer timelines for implementation
3. Complex and effort intensive Integration and Reporting
4. High cost of maintaining systems in parallel
5. Cannot re-engineer processes for the entire organization

Implementation Considerations for choosing the Implementation Approach

• Change Readiness at Organization/Region/Country level
• Resources, Capital and Business & IT Staff Available
• Time Horizon for Return on Investment
• Limitations of the current Legacy systems
• Support/Licensing issues with current Legacy systems
• Impact on Customers/Vendors

Factors Affecting Choice of Implementation Approach

• Organization
  • Big bang approach is difficult to manage for very large organizations
  • Big bang is easier in organizations that are centralized
• Resources available
  • Big bang requires a large concentration of resources
• Complexity
  • Big bang is less risky with simple processes (limited configuration)
  • Big bang is also less risky when not many modules are implemented

Few Cases

Relates to the number of ERP modules to be implemented and the extent of modification to modules required

• Few Modules, little modification
  • The best case is Big Bang
• Many Modules, extensive change
  • Should be Phased approach
• Size and complexity : If there are number, characteristics of customer base, product lines / product complexity,Process complexity
  • Small, simple organizations = Big Bang
  • Large, complex organizations = Phased
• Hierarchy and Control : whenever there are number of ‘layers’ in the management hierarchy and degree( this can be understood as maturity of management processes) to which organizational controls are in place
  • Flat organization, loose controls = Big Bang
  • Hierarchical Organization, tight controls = Phased