ERP Implementation lifecycle

What is ERP? Enterprise resource planning (ERP) covers the

techniques and the methods employed for the integrated management of businesses as a whole from the viewpoint of the efficient use of the management resources , to improve the efficiency of an enterprise.

ERP packages are integrated software packages that support the above ERP concepts.

ERP Lifecycle

ERP Lifecycle highlights the various stages in the implementation of ERP .

The ERP implementation project goes through these different phases of the ERP lifecycle implementation.

Different phases of the ERP implementation

1. Pre-evaluation Screening2. Package Evaluation3. Project Planning phase4. GAP analysis5. Reengineering6. Configuration7. Implementation Team Training8. Testing9. Going Live10. End-User Training11. Post Implementation

Post-Implementation Phase

Pre-selection Process

Package Evaluation

Project Planning

Gap Analysis Reengineering Configuration

Implementation Team Training

Testing End- user Training

Going Live

ERP implementation Life Cycle

Company Management ERP Vendors

Pre-Evaluation Screening

Search for the perfect package. Infinite number of ERP vendors. Screening eliminates those packages that are not

at all suitable for the business process . This limits the number of packages that are to be

evaluated by the committee. This screening is done on the basis of the product

literature of the vendors, external consultants etc. Once you select a few packages after the

screening, you can start the detailed evaluation process.

Package Evaluation This is one of the important phases of the Erp

implementation ,because the package that one selects will decide the success or the failure of the project.

Implementation of ERP system involve a huge investment ,so once a package is purchased, it is not an easy task to switch to another one. So it is a ‘do-it-right-the-first-time’ proposition.

The objective is to find a package that is flexible enough to meet the company’s needs, that is it may be not a perfect fit but a ‘GOOD FIT’.

Cont…

Once the packages to be evaluated are identified , the company needs to develop a selection criteria that will permit the evaluation of all the available packages on the same scale.

While evaluating the following points must be kept in mind:- Should be user friendly.- Regular updates must be available.- Complexity.

Cont…

It is always better to form a selection committee for the evaluation of the packages.

This committee should comprise of people from the various departments like the functional experts etc.

Project Planning

In this phase the implementation process is designed.

In this phase the details of how to go about the implementation are decided.

Time schedules ,deadlines etc for the project are decided.

Roles are identified and the responsibilities are assigned.

Cont…

The implementation team members are selected and the task allocation is done.

This phase decides WHEN to begin the project, HOW to do it, and WHEN it should be completed.

This phase is usually carried out by a committee constituted of the team leaders of each implementation group.

Gap Analysis This is the most crucial phase in the ERP

implementation.

This is the process through which the companies create a complete model of where they are now, and in which direction will they opt in the future.

The model helps the company to anticipate and cover any functional gaps.

Cont…

It has been estimated that even a best ERP package, custom tailored to meet the company’s needs, meets only 80 % of the company’s functional requirements. The remaining 20 % of these requirements present a problematic issue for the company’s BPR.

Reengineering

It is in this phase that human factors are taken into consideration.

While every implementation is going to involve a significant change in number of employees and their job responsibilities, as the process becomes more automated and efficient, it is best to treat ERP as an investment as well as cost cutting measure rather than a downsizing tool.

Configuration

This is the main functional area of the ERP implementation.

Here in this phase a simulation a PROTOTYPE-that is a simulation of the actual business processes of the company will be used , so that the company can carry on with their work when the mapping process is taking place. The prototype allows for the thorough testing of the “to be” model in a controlled environment.

Through this the consultants configure and test the prototype and attempt to solve any inherent problem in the BPR before going live.

Cont…

This also helps to reveal the strength and the weakness of a company’s business process which enables those who are configuring the system to point out what fits into the package and where the functional gaps occur.

Implementation Team Training

Takes place along with the process of implementation.

Company trains its employees to implement and later, run the system.

Employee become self sufficient to implement the software after the vendors and consultant have left.

Testing

In this phase ,we try to break the system.

That is we try to find the weakest link so that it can be rectified before going live.

Going Live

The work is complete, data conversion is done, databases are up and running, the configuration is complete & testing is done.

The system is officially proclaimed.

Once the system is live the old system is removed and the new system is used for doing the business.

End-User Training

In this phase the actual users of the system are identified and trained on HOW to use the system.

This training is very important because the success of the ERP system lies in the hands of the End-users.

This makes this phase very crucial.

Post -Implementation Once the implementation is over, the vendor and

the hired consultants will go.

To reap the fruit of the implementation it is very important that the system has wide acceptance.

There should be enough employees who are trained to handle problems those crops up time to time.

The system must be updated with the change in technology.

Cont…

The post-ERP organisation will need a different set of roles and skills than those with less integrated kind of systems.

However, an organization can only get the maximum value of these inputs if it successfully adopts and effectively uses the system.

Thank you….