ERP Implementation Lifecycle

1
Chapter-7

• ERP Implementation Lifecycle

2
Different Phase of ERP implementation are-

• Pre-Evaluation Screening
• Package Evaluation
• Project Planning Phase
• Gap Analysis
• Reengineering
• Configuration
• Implementation Team Training
• Testing
• End-User Training
• Going Live
• Post Implementation Phase

3
ERP implementation Lifecycle
4
Pre-Evaluation Screening

• Pre-Evaluation Screening is the phase which
  starts when company decides to go for a ERP
  System, the search for perfect solution starts.
• It is very time consuming process to select few
  where all claims be the best, it is just
  superficial study of package.
• Not all packages are same each has its own
  weakness and strength.
• While making the analysis it is good to
  investigate the origins of the different
  packages.
• Some packages can be good in some areas while in
  other sectors they may not.
• Once few packages are screened detailed
  evaluation process starts.

5
Package Evaluation

• Package Evaluation process is one of the most
  imp phase of the ERP implementation , because the
  package you select will decide failure or success
  of project.
• There is little room for error in this as ERP
  packages are so expensive once purchased can not
  switch to another.
• While making the analysis the imp point is
  nothing is perfect , imp here is whether it is a
  perfect fit or good fit.
• It is impossible to get a system which will
  perform exactly as the company does business but
  aim is to get least no of differences.

6
Few imp points to remember while evaluating
software includes.

• Flexibility Scalability.
• Complexity
• User Friendliness
• Technology
• Quick Implementation
• Amt of Customization Required
• Ability to support multi site planning control.
• Local support infrastructure .
• Total cost i.e license , training, customization
  etc.

7
Project Planning Phase

• This is the phase which plans that designs the
  implementation process.
• In this phase details of how to go about
  implementation , schedules and deadlines etc are
  decided.
• Roles and responsibilities are identified and
  assigned.
• This is phase which will decide when to begin,
  how to do it and when the project is supposed to
  be completed and what to do in contingencies.
• Their is a committee for this and which is
  suppose to meet periodically through out cycle to
  review process and chart future course of action .

8
Project schedule

• This is the phase that designs the implementation
  process.
• In this phase the details of how to go about the
  implementation are decided.
• Time schedules, deadlines, etc for the projects
  are arrived at the project plan is developed.
• Roles are identified responsibilities are
  assigned.
• The resources that will be used for
  implementation efforts are decided the people
  who are going to be in-charge of implementation
  are identified.
• Team members are selected task is allocated.
• This phase decides when to begin the project, how
  to do it when is it suppose to be completed.
• Planning is done by the committee constituted by
  team leaders.

9
Decision of the phase

• This phase plans what to do in case of
  contingencies, how to monitor the progress of the
  implementation.
• This phase also decides what control measures
  should be installed what corrective measures or
  actions should be taken when things get out of
  control.

10
Team leader

• The project planning is usually done by a
  committee constituted by the team leaders of each
  implementation group.
• The committee will be headed by the ERP in-charge
  (i.e. the CIO or COO).
• The committee will meet periodically to review
  the progress chart the future course of action.

11
(No Transcript)
12
GAP ANALYSIS

• Importance of Gap Analysis
• Gap analysis is a phase in the ERP
  implementation, where the organization tries to
  find out the gaps between the companys existing
  business practices those supported by the ERP
  package.
• This is the process through which companies
  create a complete model of where they are now
  where they want to head in the future.

13

• Main objective
• The main objective is to design a model, which
  both anticipates covers any function gap.
• It has been estimated that even the best ERP
  package meets only 80 of the companys
  functional gaps.

14

• Different ways of finding gaps
• One of the most affordable, but most difficult,
  solutions entails altering the business to fit
  the ERP package.
• Another solution is that the company can simply
  agree to live without a particular function.
• Other solutions include
• Pinning your hopes on an upgrade or updating of
  software.
• Identifying a third-party product that might fill
  the gap.
• Designing a custom program.
• Altering the ERP source code.

15
GAP ANALYSIS
Importance
Main objective
Different ways of finding
FIND OUT THE GAPS BETWEEN BUSINESS AND ERP PACKAGE
ALTERING THE BUSINESS TO FIT THE PACKAGE
DESIGN A MODEL
LIVE W/O A FUNCTION
COVERS ANY FUNCTIONAL GAP
UPDATING SOFTWARE
COMPANY CREATES A MODEL
IDENTIFYING A PRODUCT
DESIGNING A PROGRAM
ALTERING SOURCE CODE
16
RE-ENGINEERING

1. It is in this phase that the human factors are
   taken into account.
2. Two different connotations
3. 1st one is the controversial, involving the use
   of ERP to aid in downsizing efforts.
4. There have been occasions where high level
   executives have invoked the reengineering slogan
   purchased an ERP package with the aim of
   reducing number of employees.
5. While every implementation is going to involve
   some change in job responsibilities, so it is the
   best to treat ERP as an investment as well as
   cost-cutting measure, rather than a downsizing
   tool.
6. Downsizing is a business practice that may have
   its place, but it should not be cloaked within
   the glossier slogan of reengineering.
7. The 2nd use of the word re-engineering in the ERP
   field refers to an ERP implementation model
   initially designed used.

17

• The BPR approach to an ERP implementation implies
  two separate, but closely linked implementations
  involved on an ERP site i.e. a technical
  implementation a business process
  implementation.
• The BPR approach emphasis the human element of
  necessary changes within the organization, which
  is generally more
• Time consuming has received its share of
  criticism for creating bloated budgets extended
  projects.
• The ERP market shifts to a mid-market focus as
  all implementation are becoming more cost
  sensitive the BPR approach has come under some
  real scrutiny.

18
(No Transcript)
19
CONFIGURATION

• IMPORTANCE OF CONFIGURATION
• This is the main functional area of the ERP
  implementation.
• Business processes have to be understood mapped
  in such a way that the arrived solution matches
  with the overall goals of the company.
• THE PROTOTYPE
• A prototype- a simulation of the actual business
  processes of the company- will be used.
• The prototype allows for thorough testing of the
  to be model in a controlled environment.

20

• As the ERP consultants configure test the
  prototype they attempt to solve any logistical
  problems inherited in the BPR before the actual
  go-live implementation.
• STRENGTHS WEAKNESSES
• Configuring a companys system reveals not only
  the strengths of a companys business process but
  also- perhaps more importantly- its weakness.
• It is vital to the health of the company to the
  success of the ERP implementation that those
  configuring the system are able to explain what
  wont fit into the package where the gaps in
  functionality occur.

21
(No Transcript)
22
IMPLEMENTATION TEAM TRAINING

• When the configuration is taking place the
  implementation team is being trained not how to
  use the system, but how to implement it.
• This is the phase where the company trains its
  employees to implement later run the system.
• The ERP vendors the hired consultants will
  leave after the implementation is over.
• Good in-house team
• For the company to be self sufficient in running
  the ERP system, it should have a good in-house
  team that can handle the various situations.
• Thus, it is very vital that the company
  recognizes the importance of this phase selects
  those employees who have the right attitude-
  people who are willing to change, learn new
  things are not afraid of technology- good
  functional knowledge.

23
8. TESTING

• This is the phase where you try to break the
  system.
• Here we reach a point where we are testing real
  case scenarios.
• The system is configured now we must come up
  with extreme case scenarios- system overloads,
  multiple users logging on at the same time with
  the same query, users entering invalid data,
  hackers trying to access restricted areas so
  on.
• The test case must be designed specifically to
  find the weak links in the system these bugs
  should be fixed before going live.

24
9. GOING LIVE

• On the technical side, the work is almost
  complete- data conversions is done, databases are
  up running, on the functional side, the
  prototype is fully configured tested ready to
  go operational.
• The system is officially proclaimed operational,
  even though the implementation team must have
  been testing it running successfully for some
  time.
• But once the system is live, the old system is
  removed the new system is used for doing
  business.

25
10. END USER TRAINING

• Success failure
• The success or failure of an ERP system depends
  on how the actual users use the system.
• The most successful implemented ERP packages fail
  due to lack of end user training.
• People are divided into groups
• ERP system changes the job descriptions of the
  people, so it is important to identify the people
  who are going to use the system. The current
  skills of the people are identified they are
  divided into groups.
• Every group is provided training on the new
  system.
• Training sections
• The training section gives the overall view of
  the system how the individual actions will be
  affecting the entire system.

26

• Every employee is also provided with the training
  of the job profile which he is going to perform.
• The training section should address about the new
  technologies how people will be successful in
  making the change over.
• Atleast the end user training is important
  because the success of an ERP system depends upon
  it this phase is equally difficult.

27
(No Transcript)
28
POST IMPLEMENTATION (MAINTENANCE MODE)

• Important factors
• One important factor that should be kept in mind
  is that the post implementation phase is very
  critical.
• Once the implementation is over the vendors the
  hired consultants will go.
• Necessary enhancements upgrades
• There should be people within the company who
  have the technical processes to make the
  necessary enhancements to the system as when
  required.
• The system must be upgraded as when new
  versions or technologies are introduced.
• Training is needed
• Everyone who uses these systems needs to be
  trained on how they work, how they relate to the
  business process how a transaction ripples
  through the entire company whenever they press a
  key.
• The training will never end it is an ongoing
  process new people will always be coming in
  new functionality will always be entering the
  organization.
• Maximum value for these input
• Living with ERP system will be totally different
  from installing them.
• However, an organization can only get the maximum
  value of these inputs if it successfully adopts
  effectively uses the system.

29
(No Transcript)
30
(No Transcript)