Rolling out a new ERP platform is often a very long process. From the initial identification of business needs to mapping processes and workflows to customizing the software to training end users, these projects can easily consume years across the planning, implementation, and optimization phases.

Unfortunately, initiatives with long durations have their own challenges and risks. Companies involved in an extended ERP rollout sometimes struggle with scope creep, mid-project price increases, support gaps due to attrition among senior-level sponsors, and diminishing user engagement. It can also be difficult to maintain alignment between the project’s far-off deliverables and shifts in near-term operational needs.

Reducing the potential side effects of long projects can be difficult, but organizations may find that breaking ERP implementations into chunks with shorter timelines helps to avoid many of the common pitfalls. Condensed schedules can sometimes even accelerate key outcomes, such as cost savings, eliminating security gaps, and reducing complexity within the technology infrastructure.

If you’re concerned about successfully delivering a large ERP implementation over a long timeline, consider these strategies to partition the initiative into multiple components with more manageable durations.

Function-based rollout

To put the project timeline into more manageable terms, you might opt to implement just one functional module in the new ERP platform at a time. For example, you may choose to start with the inventory function and then add finance or production as a separate project. This allows the project team as well as the stakeholder base to focus all attention on a single function and reduce the time needed to complete each discrete rollout.

Feature-based rollout

There are often a few core features that are of primary interest to the organization, and breaking an ERP implementation into chunks around these parameters can make the schedule more workable and engaging. Start with core features that match existing processes, then gradually introduce advanced features and process improvements in subsequent phases.

Department-based rollout

By starting the ERP implementation with a pilot department, the project team can fine tune and streamline the implementation process—taking advantage of the opportunity to resolve hiccups early that might otherwise persist in subsequent rollouts—and then expand to other departments later. This allows for learning and adjustments as the implementation progresses, plus it provides stakeholders with a clear scope to help manage and control each phase of the rollout.

Priority-based rollout

Many ERP implementations can be segmented into a handful of processes that are critical to operations, separating them from those with lower priorities. Identifying and implementing the most business-critical processes first allows you to significantly shorten the project duration and accelerate the transition of your most important workflows to the new platform. Less-critical processes can be addressed in subsequent phases, as resources allow and as each process is made ready for migration. This approach ensures essential processes are maintained throughout the transition.

Geography-based rollout

Enterprises operating in multiple geographic regions may be well served by breaking the ERP implementation into phases associated with individual locations. It’s often prudent to begin with smaller or less complex sites as pilot locations to iron out any early issues. The team can then increase the scale in later phases of the rollout.

Data-based rollout

The data migration element is a significant part of most ERP implementations. Separating this into distinct phases offers clear parameters to keep the overall rollout and necessarily preparation steps more manageable. Consider focusing on current operational data first, then historical data, and then archival data, for example. This avoids the need to migrate all data simultaneously, which can be a complicated and time-consuming part of any ERP implementation project.

FAQs

1. What is a phased ERP implementation strategy?

A phased ERP implementation strategy breaks a large ERP project into smaller, manageable stages—such as by department, function, or region. This approach reduces risk, supports continuous improvement, and helps teams focus on specific project goals with each phase.

2. Why should you break a large ERP implementation into smaller projects?

Large ERP projects often suffer from scope creep, delays, and stakeholder fatigue. Segmenting the implementation into smaller projects helps control timelines, maintain executive support, and accelerate business value in targeted areas.

3. How does a function-based ERP rollout work?

A function-based ERP rollout involves implementing one module—like finance or inventory—at a time. This method helps simplify training and deployment, allowing teams to focus on the specific needs of each function before expanding to others.

4. What are the benefits of a feature-based ERP rollout?

Feature-based rollouts prioritize core or familiar ERP features first, followed by advanced capabilities. This staged approach helps users adapt gradually and enables quicker wins by aligning with existing workflows.

5. How can a department-based ERP implementation reduce risk?

By starting with one department as a pilot, teams can test processes, resolve issues early, and refine rollout plans. This localized focus creates smoother transitions for other departments during future phases.