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Oracle Implementation Options

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

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:

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

Few Cases

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

4 Comments (Open | Close)

4 Comments To "Oracle Implementation Options"

#1 Comment By Kristina On August 15, 2008 @ 9:32 pm

Nice stuff

#2 Comment By David C On August 19, 2008 @ 3:28 pm

I second Kristina’s “nice stuff”. As a global org rolling out in multiple countries, your site is a blessing.

#3 Comment By Ratan On February 5, 2009 @ 4:52 am

Really very nice.U provided a good knowledge on implementation…..

#4 Comment By Meenakshy On November 18, 2009 @ 4:33 am

Thanks for the detailed presentation on implementation. :)