ERP software and Agile Methodology: Cons and Pros

Enterprise Resources Planning (ERP) advantages for organisations are well-known throughout all over the world. But, ERP implementation projects are difficult, costly, and extremely risky. A lot of ERP Implementation projects are carried out using similar techniques or waterfalls. While the use of waterfall methods within IT projects is declining the use of agile methodologies is increasing.

What is ERP Software?

The enterprise resource planning (ERP) software is a technique that corporations use to keep track of and streamline the essential elements of their business. Numerous ERP software applications are crucial for businesses because they assist to implement resource planning by connecting all the necessary processes required to manage their business in one system. An ERP software application can include human resource planning, planning, and inventory for purchasing marketing, finance, sales, and many other areas.

Before ERP software is used to begin an agile change It is important to consider the advantages it can bring to your business.

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What is the agile method?

Agile methods first came into existence in 2001, when a group of process experts determined to create modern, simple, iterative, and incremental development methodology and principles came together. In 2001, they formed the Agile Alliance, and also the term “agile methods” which includes every iterative and incremental method of development.

The core elements of the agile approach are laid out in the Agile Manifesto, which is the set of guidelines developed by the developers to ensure better management.

This innovative method of managing projects was initially developed for testing software development and came into existence during a time when the failure rate for IT projects was extremely high. At the time, popular methodological approaches that used predictive and linear cascades like The Waterfall approach or the V-cycle made no space for contingencies and changes.

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The Benefits of Adopting Agile Methods using ERP Software?

A variety of industries like manufacturing, enterprise, and agriculture, for instance, are faced with a variety of operational and production issues as they expand and grow their businesses. A large portion of these problems require modifications to ERP software, but not enough time for the updating of the software.

To address this issue, these identical companies have also implemented agile methods to their ERP software to make it more efficient and practical and create agile workflows within SAP. ERP software, when used together with agile approaches serves as the foundation for enhancing the business processes, increasing efficiency, as well as providing better insight into their supply chain processes.

Let’s examine the advantages and disadvantages that arise when ERP software employs agile methods.

Pros:

  • Quick access to the information of your business: All work processes are recorded within the software, which is accessible anytime. This lets ERP software users make the best decisions when it comes to managing projects.
  • Optimize Risk When you are maximizing risk, you must consider the trade-off between time, cost, and scope. When developing a project with regular releases, agile development can reduce the risk of failure completely because everything, even the tiniest item, will be completed.
  • Process Integration Centralization and Integration of corporate information into processes like purchasing, operations, or sales facilitates the management of the development of lines of business.
  • Transparency You’re constantly displaying your work using the agile method. There’s nothing to hide within the development archives All of it is out in the open that is happening right before your sight.

Cons:

  • Single Deployment is required when regular releases aren’t certain and only a single deployment is needed–as in a typical ERP implementation, the project could be in danger of not delivering the promised product.
  • Lack of details on the dynamic, ad-hoc nature of agile methods can make it difficult to establish specifics such as timeframes or costs. This can result in sloppy budgeting, poor timing, and a general lack of realistic boundaries to adhere within.
  • Ephemeral planning is agile. It is, in many ways, much more reactive and proactive. It’s about responding to problems as well as feedback at a rapid pace. This can mean that the proper plan is lost in the hurry to respond, change and grow. You require a clear, unified plan to ensure that the overarching strategy doesn’t become obscured in the whirlwind of the day.

Conclusion:

A new method of collecting customer requirements that is able to handle the changes in customer requirements more efficiently than conventional methods. Innovative suggestions are also offered to enhance communication in the course of the implementation.

Author Bio:

Akshay Bhimani is a Software Analyst at Techimply, India. With experience in the technology-driven field, he has mastered his knowledge on How(s) and What(s) to be done for a business. Also, he’s keen to share his knowledge on a few technology-related topics such as cloud technologies, testing automation, ERP, HR, and data security with readers that can assist any kind of business.

 

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About the Author

Akshay

Akshay Bhimani is a Software Analyst at Techimply, India. With experience in the technology-driven field, he has mastered his knowledge on How(s) and What(s) to be done for a business. Also, he's keen to share his knowledge on a few technology-related topics such as cloud technologies, automation, ERP, and data security with readers that can assist any kind of business.
Find out more about @akshaybhimani

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