Big Bang 💣
or Small Steps 👣 Which Project Approach is Right for your ERP Project?

ERP Modernization is More than just a System Change

Implementing a new ERP solution or upgrading to a newer version is not merely an IT project. Both change processes, work practices, and often the culture within your company - sometimes even fundamentally.

Typical tasks associated with an ERP project include:

• Master data cleansing and migration
• Analysis and optimization of existing business processes
• Customization or redesign of workflows
• Integration of other systems
• Employee training
• Change Management
• Testing and quality assurance

An important question is in what steps you want to implement your project. Should it be a big bang project, in which a very extensive change is implemented all at once? Or does it make more sense to proceed in many small steps (small steps)?

The Big Bang Approach

With the big bang approach, the complete transition to the new ERP system takes place on a fixed target date. On that day, the existing system is completely replaced by the new one, and from then on, all users work exclusively with the new solution.

In this case, there is a clearly defined project completion date. At the same time, however, this project approach requires intensive preparation, as the entire company works toward the target date. Another important aspect that should not be underestimated: If unexpected errors occur after go-live, they can significantly disrupt day-to-day operations and must be resolved while business continues as usual. In some cases, this can be very stressful and lead to feeling overwhelmed.

Advantages

• Quick and complete transition to the new solution or software version
• No parallel system environments over an extended period
• New processes integrate seamlessly
• The project is clearly concluded

Challenges

• Very high organizational overhead
• Significant burden on employees
• Higher risk of productivity losses after go-live (e.g., due to a lack of routine and the need for further adjustments)
• Errors immediately affect the entire company
• Changes during the project are difficult to accommodate

The Small Steps Approach

With the small steps approach, however, the ERP implementation is divided into several manageable project phases. You proceed in small steps and implement the changes gradually. For example, the system is first rolled out to individual business units, locations, or functions and then expanded step by step.

This approach reduces the risks of your ERP implementation and offers the opportunity to start working with the first new features or processes early on. Employees can gradually get used to the new system. At the same time, the project team gains valuable experience that can be directly integrated into the subsequent project phases. Each completed phase delivers measurable results. This has a motivating effect and strengthens confidence in the overall project.

A project based on small steps is particularly well-suited for companies with complex business processes or multiple locations or subsidiaries. Furthermore, this approach makes sense when employees are to be closely involved in the implementation. However, you should be prepared from the outset for greater coordination efforts and a longer overall project duration, and factor this sufficiently into your planning.

Advantages

• Lower project risk
• Faster time-to-value
• Higher acceptance among employees
• Lessons learned from the initial phases can be directly incorporated into later expansion phases
• Changes can be accommodated more easily (implementation possible in later project phases)
• Less impact on day-to-day operations

Challenges

• Longer overall timeline until full implementation
• Parallel operation of old and new processes or systems may be necessary at times
• Greater effort required for alignment and coordination between project phases
• The full benefits of the new ERP solution are only realized upon completion of all project phases

Why you should not
buy Licenses and Services But Project Success!

Small Steps: Taking Small Steps 👣 Toward Long-Term Success

While a big bang approach enables a quick and complete transition to a new solution or software version (albeit with increased project risk!), a project that takes small steps offers you significantly more flexibility. Instead of converting all processes at once, you can start with a single business unit or a new function. For example, focus first on financial accounting or warehouse management and then expand the solution step by step to other departments. This way, you’ll gain valuable experience and identify early on where there is still room for optimization. At the same time, this also significantly reduces project risk.

In our experience, the small steps approach has proven effective in many ERP projects. While this typically means the project takes longer, the benefits are overwhelmingly clear. Initial features go live sooner, employees can gradually familiarize themselves with the new system, and feedback from the early project phases is directly incorporated into the ongoing implementation. On the one hand, this helps your employees accept the change, and on the other hand, it prevents day-to-day business from being unnecessarily burdened by a comprehensive transition.

Stay Flexible and Adaptable

Don’t view your ERP implementation as a one-time, large-scale project with a single go-live, but rather as a continuous development process. Modern ERP systems, just like companies, markets, and requirements, are constantly evolving. By modernizing your ERP solution in stages, you’ll be able to respond flexibly to changes and new requirements. In the long run, this approach will yield the greatest positive changes and successes.