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A manufacturing company implements ERP by switching off its old systems on a fixed date and starting on the new ERP for all modules at once across all plants. Which implementation approach is this, and what is its principal risk?

This is the big-bang implementation approach, where all modules and plants move to the new ERP on one date and the old systems are discontinued. Its main risk is that any failure in migration or configuration disrupts the whole organisation simultaneously.

  1. ABig-bang approach; high risk because any failure affects the whole organisation at onceCorrect
  2. BPhased approach; risk is that modules never integrate
  3. CParallel run; risk is that the cost of running two systems is avoided
  4. DPilot approach; risk is that only one user group is ever trained

Explanation

Cutting over every module and location together on a single date is the big-bang approach. It is fast and avoids temporary interfaces, but a failure in data migration or configuration disrupts the entire business. A phased approach introduces modules or sites gradually, and a parallel run keeps old and new systems operating together, which adds cost rather than avoiding it.

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