ERP Life Cycle

Phases of an ERP Life Cycle
• Pre implementation Phase • Project Preparation • Requirements Engineering/ Business Blue Printing • Configuration/Realization • Final Preparation • Go Live and Testing

Pre Implementation Phase
• • • • • • Having a team in place: ROI Analysis Getting Budget for ERP Implementation High Level Requirement definition High Level Scope definition Request for Proposal (RFP) for implementation partner • Evaluation and Selection of Consulting Partner • RFP for ERP package selection • Evaluation and Selection of ERP Package

Critical Deliverables
• • • • • • Business Case High Level Requirement Document High Level Scope Document RFP for implementation partner RFP for ERP package vendor selection Contract with implementation partner and ERP package vendor.

Project Preparation
Project Preparation Business Needs Scope

Project Team ROI Analysis

Implementation Strategy

Project Document

Outer Oval shows the Phase of ERP Life Cycle, inside ovals show sub-activities , rectangle shows object (data/document/software). An object is required by a phase if there is an incoming arrow to the phase, an object is produced by a phase if there is an out coming arrow from the phase.

Business Needs
• Company’s business needs are evaluated by studying its business strategy and processes. • Questions like: Do we need an ERP system? Are we ready for it? Will it enhance our competitive advantage? What are the benefits that we can achieve? Need to be asked.

Scope
• Location Scope - List of Places the implementation would be carried out. - Implementation Location: Where PMO will be located. Example: Location Scoping Implementation location 1. Company’s head office in Pune. Locations Covered 1. Head Office 2. Plants in Mumbai and Pune 3. Central Warehouse at Mumbai and Delhi Locations Not covered 1. Third party warehouse at Bangalore.

• Business Scope Whether all business or part of it is under implementation scope. Example: ITC implemented SAP for their tobacco, food and agarbatti business. ITC’s hotel business not a part of it.

• Process/ Functional Scope
Level 1 Main Process Procurement Level 2 Detailed Process Procurement of Materials Level 3 Activity Purchase Requisition Purchase Order Goods Receipt Invoice Verification Inventory Management Good Movement Inbound Movement Goods issue Stock Transfer Reservation Division Scope Division 1 X x x x x x x x Division 2 X x x X x x x x

Outbound Movement x

• Technology Scope: System requirements identified. Hardware Requirements - Servers - Networking based on scope of ERP OS Database Backup Security Disaster Management
• SAAS (Software as a Service Provider), Cloud Computing options for ERP hosting

• User Scope:
– Expected no of users for the application. – Can be derived from no of users in existing legacy system or no of supervisory and management staff in different depts.

• Data Migration Scope - How will the data be migrated? - Who will do data cleaning and migration? - What data needs to be migrated? • Application Scope • Interface Scope • Report Scope

Project Team
• Usually made of two different teams - One from consulting side - One from organization implementing ERP, also called CORE Team.

CORE Team
• The team from business organization that participates through out the implementation is called the core team. • The main objectives of the core team are: - Providing business inputs to design right processes for configuration. - Data validation. - Explaining the consulting team about current methods of doing things, problems and improvement methods. - End user training - Testing.

Implementation Strategy
• Big Bang • Phased

Project Document
We are going to write a sample project document for a retail company. A retail company ABC is based in Delhi and formed in 1995. They have their office in Dubai also. It deals with packaging of Metallic material. It is a $10 million company with less than 10 employees. They have 3 managing directors, sales, purchase and accounting department.

ABC want to implement SAP package for sales and purchase department. They have a proprietary software for accounting and do not wish to change it. This is their first major IT-project and company has no IT capability. They have decided to go for phased implementation of SAP. They have hired consultant for implementation. A project manager is made a single point contact person between the organization and the implementation team.

Requirements Engineering (RE)
Requirements Engineering

Elicitation

Representation

Validation

Business Blueprint

BPR

Outer Oval shows the Phase of ERP Life Cycle, inside ovals show sub-activities , rectangle shows object (data/document/software). An object is required by a phase if there is an incoming arrow to the phase, an object is produced by a phase if there is an out coming arrow from the phase.

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