The ERP Life Cycle

The ERP life Cycle
CIS Department Professor Duane Truex III
Air Force Mentor-Protégé Program
ERP Lifecycle Concepts
Ronald E. Giachetti, Duane P. Truex, Ph.D.

Ph.D. Associate Professor
Associate Professor Robinson College of Business
Industrial and Systems Engineering Department of Computer Information Systems
Florida International University Georgia State University
ERP Methodology & Project Management
1
"All you need is ignorance and

confidence and the success is sure."
(Mark Twain)
Agenda
 Review ERP implementation project cycle
including
Initiation
Project planning
Process analysis and design
Realization
Transition approaches
Operations from “go live” to support
 Discuss ASAP as an example ERP method
2
Generic view of an ERP implementation

 Essentially two major components
development and deployment
 “Development”
Process selection/modeling
Coding/configuring
Data migration
Infrastructure
 Deployment
Organizational change
Education
Go Live
ERP Implementation Phases
1. Initiation
6. Operations 2. Planning
3. Analysis &
5. Transition
Process design
4. Realization
3
Phase 1: Initiation
 The beginning of the project
 A project will begin when the project
sponsor has obtained the funding
Implies that top management of the firm
feels that it is important enough to invest
big money
 Pull in key project resources, i.e., the
project manager
Phase 2: Project planning details

Set up project administration

Staff project

Set goals and objectives

Acquire project resources

Define metrics

Documentation standards

4
Phase 3: Process design

 Elucidate very detailed information on relevant
processes
Determine specific process details
Redefine/clarify project scope
 Learn what the technology (ERP Modules) offers
as a solution
 Choose whether to redesign processes or
customize technology
 At the same time, ready the technology
infrastructure to support the system
Installation steps
 Size the system
 Decide on installation type
 Check on installation requirements
 Install and configure hardware, network and
base software
 Design file layout
 Install central instance
 Define database
 Build and load database
5
Phase 4: Realization
 Modifying “plain vanilla” enterprise

system to support organization
 Industry specific settings
Unique characteristics of particular industry or
market segment
 Company specific settings
Unique characteristics of company
 Some geography specific settings are
usually allowed
Building interfaces to legacy

 Programs that allow enterprise system
to exchange data with legacy systems
 Inbound and outbound
 Almost always custom-built
this is where the developers would step in;
e.g., in SAP R/3 they would do this in ABAP
6
Creation of authorizations
Roles
Executive B oard
 Manager
Managerial A ccounting
Financial A ccounting
Management
• Ex ec utiv e Offic er • Managerial Ac c ounting • Financ ial Ac c ounting

• Strategic Planner Manager Manager
• Managerial Ac c ounting • Financ ial Ac c ountant
 Purchasing
•
•
Spec ialis t
Managerial Ac c ountant
Projec t Ac c ountant
•
•
Tax Ac c ountant
J oint Venture Ac c ountant
Marketing
Procureme
Agent Service
• Mark eting Ex ec utiv e •

nt
Sales Ex ec utiv e • Serv ic e Ex ec utiv e
• Produc t/Brand Manager • (Key ) Ac c ount Manager • Field Serv ic e
• Mark eting R es earc h & • Sales R epres entativ e R epres entativ e
Analy s is Manager • Sales Adminis trator • Serv ic e C enter Tec hnic ian
Maintenance & Facilities
 Employee
R esource Management Procurement
Management
• R es ourc e Manager • Proc urement Ex ec utiv e • Maintenanc e & Fac ilities

• Strategic Buy er Ex ec utiv e
• Purc has ing Agent • Maintenanc e Manager
• Maintenanc e C lerk
• Maintenanc e Engineer
• R eal Es tate Adminis trator
Manager
Purchasing Agent
Employee
Business Processs
Data migration/conversion
 Need to transfer historical or legacy
data to new system
 Requires custom programs
Significant cost and time could go into
cleaning the data
 Similar to interfaces development work
 Usually one-time uploads
7
Phase 5:Transition approaches

Direct Cutover Old New
Parallel Transition Old

New
Phased Transition Old New
Pilot Transition Old

New
System testing
 Occurs throughout phases 3, 4 and 5
Process personnel responsible for testing
 Unit or function testing
Testing individual and composite processes
Includes data conversion programs, interfaces, and
authorizations
Occurs throughout realization phase
 Integration testing, does it all work
Final step before “go live”
 Stress testing
 User acceptance testing
8
Training
 Occurs throughout the project
 Phase 1 and 2: project team
education on the use and
implementation of the chosen solution
 Phase 3-6: end user education on
how to use the system
Organizational change
 Change Management is the “Buzz” word for

how to help the organization to accept the new
system
 Intangible and fuzzy, yet highly important in
order to smooth the transition to the new system
Often overlooked or the first place to cut budget
More psychological than technical in nature
9
Phase 6: Operations
 Quality assurance checks and evaluations
 Optimization and refinement of the production
environment
 Follow-up training and assessment of end-user
needs
 Refinement of systems administration procedures
 Project review
What are the lessons learned?
ERP System Builds

 Usually several builds maintained
Development System: all new functionality is developed
and tested here. Used by customization experts.
Test System: To test modules in isolation.
Integration System: Also called test system or simulation
system, but test in the integrated environment. Actual
business data to test functionality under realistic
conditions. Business experts involved in test and analysis.
Production System: The ERP system that is in actual use.
All functionality should have undergone intensive testing.
Reporting System: A copy of the production ERP delayed
by a day to enhance performance by doing reports.
Training System: A copy with realistic data for training.
Data is not deleted for continuity of training.
10
ASAP Implementation Methodology

EXAMPLE of a company specific method
Continuous
Project Change
Preparation Final
Preparation
Go Live &
Business
Realization Support
Blueprint
SAP Proprietary Methodology
Accelerated SAP (ASAP)

 An approach resulting in a quick, cost effective
implementation of R/3
Minimizes the length of time between installation and
production start up
Maximizes the utilization of SAP and customer resources
Incorporates a process oriented approach to training
Involves the user community
Results in a repeatable “model” that can be used with
other implementations of R/3
 ASAP accelerators (tools)
R/3 Business Engineer (implementation tool)
Templates, examples, and checklists
Project Plan in MS Project
Templates for steering committee, etc.
11
A University SAP Implementation Timeline

2003 2004 2005
Wave S O N D J F M A M J J A S O N D J F M A M J J A S O N D
Project Prep.
Blueprint
Core Financial Realization Final
Prep.
Management Go Live
(R/3 Enterprise) Core Financial
Sustain
Blueprint
Blueprint Realiz -
Final
Budget ation
Prep.
Project
Planning Strategies & Go Live
(SEM-BPS) Standards Sustain
Blueprint Realiz -
Financial ation Final
Prep.
Reporting Go Live
(BW) Sustain
Go Live
Portal Blueprint / Realization Sustain
Project Preparation
Project Business Final Go Live S ustain

Evaluation Preparation Blueprint Realization Preparation & S upport
3 months
Purpose Key Activities

 Provide detailed planning  Finalize team structure
for the project
 Establish Project Plan
 Identify high-level scope
 Engage business leaders &
 Define high-level strategies client stakeholders
 Define overall project  Establish project mgmt
schedule & implementation procedures & standards
sequence
 Plan technical requirements
 Mobilize project team
 Hold project team training
12
Business Blueprint

Evaluation Preparation Blueprint Realization Preparation & S upport
6 months

 Create the Business  Identify process & functional
Blueprint document which gaps via Business Blueprint
serves as the design Workshops
specification for the new
system  Define & document client
process changes
 Identify org. impacts
 Develop system environment
 Hold project team training
Realization

Evaluation Preparation Blueprint Realization Preparation
6 months & S upport

 Implement business &  Configure the ERP system
process requirements
based on Business  Develop reports, interfaces,
Blueprint design conversions & enhancements
 Develop training materials
and end user documentation
 Conduct unit, integration &
user acceptance testing
 Establish authorization
concepts
13
Final Preparation
Evaluation Project Business Realization Final Go Live S ustain

Preparation Blueprint Preparation & S upport
1 month

 Complete preparations for  Complete system testing
go live of the new SAP
system  Hold end user training
 Complete system mgmt &
cut over planning
 Complete data conversion
 Establish system support
infrastructure
 Develop Help Desk
Go Live & Support
Evaluation Project Business Realization Final Go Live S ustain

Preparation Blueprint Preparation & S upport
1 month

 Move from pre-production  Implement help desk &
environment to live, stable support infrastructure for end
production operation users
14
Implementation Deliverables
1 2 3 4 5
Business Process
Master List
Enhancem ents.
Authorizations System
Project
Reports Performance
Plan Interfaces
Processes
Scope Baseline Procedures Reports Test Plan
Org. structure
Scope Test Cases Interfaces Train.Mat.
Conversion Go Live
Plan
Business
Blueprint
Example of Project Duration

PHASE Pct
1 Project Preparation 12%
2 Business Blueprint 15%
3 Realization 46%
Baseline 12%
Final Configuration 13%
Integration Test 21%
4 Final Preparation 19%
5 Go Live & Support 8%

Total 100%
Source: SAP (2002)
15
Example: Phases of ERP Project at a University

 Invitation to Negotiate
3 consortium universities (in Florida)
Short List
• PeopleSoft
• Oracle
• SCT
Software Evaluations
• 3 consortium universities
• Each vendor – 1 week
Conference Room Pilot
• 3 consortium universities
• One vendor – 6 weeks planned – In reality 3 weeks
Software Selection – PeopleSoft (leading ERP vendor for
university market)
Example: University ERP

 Project Phases
Team Training Phase
Configuration Phase (also called Structure Phase)
• Knowledge transfer
– Consultants configure
– Consultants guide configuration
– Team Leaders configure
• Identify gaps
Construction Phase
• Write specifications and develop from specifications
– Data conversion
– Interfaces
– Modifications / Customizations – Close gaps
• Pre-Production Hardware
16
Example: University ERP

Project Phases (cont’d)
Transition Phase
• Stress testing
• Certification by State
• Campus-wide training
• Additional functionality
Deployment and Stabilization Phase
• Go Live
• Security
• Performance support
PeopleSoft Implementation Project

 Example for a university HR module
implementation
2005 2006
1Q 2Q 3Q 4Q
Planning
Structure
Construct
Executive Sessions Transition
Partner Selections
Project Charter Business Needs
Deploy
Project Plan Design Sessions
Mapping Build / Develop
Conversion
System Test
Training
Rollout Strategy
Support Strategy
17
Summary
 Discussed ERP life-cycle phases
 ASAP methodology as example
 University implementation as example
18

The ERP Life Cycle

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

The ERP Life Cycle

Uploaded by

Copyright:

Available Formats

The ERP life Cycle

CIS Department Professor Duane Truex III

Air Force Mentor-Protégé Program

ERP Lifecycle Concepts

Ronald E. Giachetti, Duane P. Truex, Ph.D.

ERP Methodology & Project Management

"All you need is ignorance and

Air Force Mentor-Protégé Program

Generic view of an ERP implementation

Air Force Mentor-Protégé Program

ERP Implementation Phases

Air Force Mentor-Protégé Program

Phase 2: Project planning details

Phase 3: Process design

Air Force Mentor-Protégé Program

 Modifying “plain vanilla” enterprise

Air Force Mentor-Protégé Program

Building interfaces to legacy

• Ex ec utiv e Offic er • Managerial Ac c ounting • Financ ial Ac c ounting

• Mark eting Ex ec utiv e •

Maintenance & Facilities

• R es ourc e Manager • Proc urement Ex ec utiv e • Maintenanc e & Fac ilities

Air Force Mentor-Protégé Program

Phase 5:Transition approaches

Parallel Transition Old

Phased Transition Old New

Pilot Transition Old

Air Force Mentor-Protégé Program

Air Force Mentor-Protégé Program

 Change Management is the “Buzz” word for

Air Force Mentor-Protégé Program

ERP System Builds

ASAP Implementation Methodology

SAP Proprietary Methodology

Air Force Mentor-Protégé Program

Accelerated SAP (ASAP)

A University SAP Implementation Timeline

Air Force Mentor-Protégé Program

Project Business Final Go Live S ustain

Purpose Key Activities

Project Business Final Go Live S ustain

Purpose Key Activities

Air Force Mentor-Protégé Program

Project Business Final Go Live S ustain

Purpose Key Activities

Evaluation Project Business Realization Final Go Live S ustain

Purpose Key Activities

Air Force Mentor-Protégé Program

Go Live & Support

Evaluation Project Business Realization Final Go Live S ustain

Purpose Key Activities

Air Force Mentor-Protégé Program

Example of Project Duration

5 Go Live & Support 8%

Example: Phases of ERP Project at a University

Air Force Mentor-Protégé Program

Example: University ERP

Example: University ERP

Air Force Mentor-Protégé Program

PeopleSoft Implementation Project

You might also like