8 Reasons Running Parallel Systems During ERP Implementation Can Backfire

Implementing a new Enterprise Resource Planning (ERP) system is significant for any organization. It promises improved efficiency, streamlined operations, and better decision-making capabilities. However, some organizations consider running parallel systems during transition as a safety net. In this blog post, we’ll explore why this approach may not be the best strategy and offer alternative considerations for a smoother ERP implementation.

At KNEX, our experience resides in implementing Oracle Cloud Applications for over a decade, with more than 100 successful implementations. This extensive experience has taught us the importance of adopting best practices that maximize the benefits of ERP systems while minimizing risks and disruptions to business operations.

Let’s go over the 8 key considerations to plan your strategy:

1. Resource Intensive:

Running parallel systems requires doubling up on resources, including time, money, and personnel. This burdens the organization heavily and can strain its resources during an already challenging transition period.

2. Data Integrity Concerns:

Maintaining data integrity across two systems is inherently difficult and increases the risk of errors and inconsistencies. Ensuring that data entered into both systems matches perfectly is challenging, leading to confusion and potential inaccuracies.

3. Process Inefficiencies:

Parallel systems often result in duplicated efforts and redundant processes. Employees may need to enter the same data into both systems, leading to wasted time and decreased productivity. Decision-making processes also slow down as stakeholders reconcile information from multiple sources.

4. Delayed Benefits Realization:

Implementing a new ERP system aims to realize benefits such as streamlining operations and improving efficiency. However, running parallel systems prolongs the transition period, delaying the realization of these benefits and keeping the organization from fully leveraging the new system’s capabilities.

5. Increased Complexity:

Managing two systems simultaneously adds complexity to the implementation process. It requires careful coordination and synchronization between the old and new systems, increasing the likelihood of technical issues, data discrepancies, and compatibility problems.

6. Resistance to Change:

Running parallel systems may signal to employees that the organization lacks confidence in the new system. This can lead to resistance to change, as employees may be hesitant to fully adopt the new processes and technologies if they see the old system still in use.

7. Risk of Confusion and Errors:

Having two systems operating concurrently increases the risk of confusion and errors. Employees may inadvertently use the wrong system or enter data into the incorrect system, leading to discrepancies and operational disruptions.

8. Vendor Support Challenges:

Maintaining vendor support for both the old and new systems can be challenging and costly. Vendors may prioritize support for the new system, leaving the old system vulnerable to issues and security risks.

Conclusion:

While running parallel systems during an ERP implementation may seem like a prudent approach, it comes with significant drawbacks that can hinder the project’s success. Instead, organizations should consider alternative strategies such as phased implementation or a clean transition to the new system. By doing so, they can minimize risks, streamline the transition process, and accelerate the realization of benefits from their new ERP system.