Global ERP Implementation: Three Questions & Answers
One: Why did Tektronix implement ERP in stages? How should a company decide between a staged implementation vs. a big bang implementation?
Tektronix implemented ERP in stages or ôwavesö versus ôbig bangö implementation for two main reasons. First, the organization was not ready to commit to the changes expected for the post-implementation business environment. Second, the proposed implementation represented a significantly different method of doing business than the current business environment.
In the ôbig bangö approach to implementation, the entire software or IT tools or packages are rolled out in one unified effort. Organizations that use such an approach most effectively are ones that have previous experience with similar projects or are very capable of managing change. Tektronix did not have previous experience with such an IT implementation nor was it capable of managing significant change across its extensive global operations in one concentrated effort. For these reasons, the staged or ôwavesö approach to implementation was better suited for large-scale projects like ERP that require significant organizational change. In this manner, Tektronix was able to create change over a number of project waves or phases. In addition, by using the staged approach to implementation Tektronix did not have to expend the entire cost of the project upfront. In this manner it realized some benefits from early project phases as it was putting the required capital into later phases. In addition, company was able to reduce problems by resolving them in early phases before extending them to other divisions or locations. For example, program managers had flexibility to make upgrades or changes before rolling out future phases when Oracle would release new versions of software.
Two: How Did Tektronix manage the risks of ERP implementation?
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