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ERP Implementation

lifecycle

Submitted By:-
Kratagya Chandra-
0609013036
IT-1/3rd year
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 Screening
2. Package Evaluation
3. Project Planning phase
4. GAP analysis
5. Reengineering
6. Configuration
7. Implementation Team Training
8. Testing
9. Going Live
10. End-User Training
11. Post Implementation
Company Management Pre-selection Process ERP Vendors

Package Evaluation

Project Planning

Gap Analysis Reengineering Configuration

Implementation Team Testing End- user Training


Training

Going Live

Post-Implementation Phase

ERP implementation Life Cycle


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….