Tektronix

As Tektronix decided to implement the new Oracle ERP system, the company chose to introduce it in phases, based around the specific functionality or a particular geographic region. Implementing in phases, or in waves as Tektronix called it, allowed the company to experience regular feedback on specific areas of implementation, allowing time to adjust processes and scheduling as needed. The phased approach enabled the company to achieve frequent victories, which kept team and employee morale high throughout the process and provided encouragement to the Board despite the high cost and long timeline of the overall implementation.

To ensure Tektronix’s success, the ERP implementation was divided into five manageable sub-groups: (1) Financials, (2-4) Order Management/Accounts Receivable (OMAR) in the three divisions, and (5) the global rollout. Within the sub-groups, additional waves were created to ease into the system. For both the Financials and OMAR, Tektronix decided to implement the new system in the United States first. Though the ultimate goal was for location to be irrelevant in the system and processes required for an order to be completed, it was important that the company see the added-value of the implementation as it proceeded.

When deciding whether to implement in stages or full scale, a company must consider several factors related to the feasibility of each option. Like Tektronix, companies with multiple and/or unrelated business units will benefit more from a phased implementation approach. This allows the company to evaluate the success or failure of the implementation at different stages and in various functionalities. Implementing in stages incurs less risk for large companies than a full-scale approach, as the entire operation does not need to be suspended for the change to take place in phases.

Smaller companies with fewer business units or simpler processes would benefit more from a full-scale implementation approach, as well as companies who do not have the luxury of time for a phased approach. A full-scale approach requires less down-time in the system, which is crucial for smaller companies and companies who have a tighter time frame for implementation.

Because Tektronix previously had problems implementing IT projects, the company was mindful that replacing their legacy systems could be a risky undertaking. Further, it was well-known that wide-scale ERP implementation would be a very costly endeavor. Consequently, Tektronix managed the risks of its ERP implementation by having a coherent, guiding vision entailing: 1) separability of the businesses; 2) leveraging shared services; and 3) staying as “plain vanilla” as possible.

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