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ERP Implementation Lifecycle

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Chapter-7 ERP Implementation Lifecycle Different Phase of ERP implementation are- Pre-Evaluation Screening Package Evaluation Project Planning Phase Gap Analysis ... – PowerPoint PPT presentation

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Title: 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
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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.

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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.

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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.

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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.

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