Chapter-7
ERP Implementation Lifecycle
Different Phase of ERP implementation are-
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Pre-Evaluation Screening
Package Evaluation
Project Planning Phase
Gap Analysis
Reengineering
Configuration
Implementation Team Training
Testing
End-User Training
Going Live
Post Implementation Phase
Company
Management
Go ahead
Pre-Evaluation Screening
ERP Vendors
Package Evaluation
Project Planning
Gap Analysis
Implementation Team Training
Reengineering
Testing
Going Live
Post Implementation Phase
ERP implementation Lifecycle
Configuration
End-User Training
1.
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.
2.
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.
Few imp points to remember while evaluating software
includes.
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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.
3.
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 .
a.
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.
b.
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.
c.
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.
PROJECT PLANNING PHASE
Project schedule
DESIGN IMPLEMENTATION PROCESS
TIME SCHEDULES, DEADLINES, ETC
RESOURCES ARE NEEDED AND IMPLEMENTATION IDENTIFIED
Decision of phase
CONTINGENCIES, MONITOR THE PROGRAM, CONTROL
MEASURES , CORRECTIVE ACTIONS
Team leader
PLANNING IS DONE BY TEAM LEADERS
COMMITTEE WILL BE HEADED BY INCHARGE
4.
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 company’s
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.
• 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 company’s
functional gaps.
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Different ways of finding gaps
a. One of the most affordable, but most difficult,
solutions entails altering the business to ‘fit’ the
ERP package.
b. Another solution is that the company can simply
agree to live without a particular function.
c. Other solutions include:
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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.
GAP ANALYSIS
Importance
FIND OUT THE
GAPS BETWEEN
BUSINESS AND ERP
PACKAGE
COMPANY CREATES
A MODEL
Main objective
Different ways of finding
DESIGN A MODEL
COVERS ANY
FUNCTIONAL GAP
ALTERING THE BUSINESS
TO FIT THE PACKAGE
LIVE W/O A FUNCTION
UPDATING SOFTWARE
IDENTIFYING A PRODUCT
DESIGNING A PROGRAM
ALTERING SOURCE CODE
5.
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.
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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.
RE-ENGINEERING
Human factor taken into account
Downsizing effort
bPR APPROACH
6.
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CONFIGURATION
IMPORTANCE OF CONFIGURATION
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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. A prototype- a simulation of the actual business
processes of the company- will be used.
b. The prototype allows for thorough testing of the ‘to
be’ model in a controlled environment.
c.
As the ERP consultants configure & test the
prototype they attempt to solve any logistical
problems inherited in the BPR before the actual golive implementation.
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STRENGTHS & WEAKNESSES
a. Configuring a company’s system reveals
not only the strengths of a company’s
business process but also- & perhaps more
importantly- its weakness.
b. 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 won’t fit into the package &
where the gaps in functionality occur.
CONFIGURATION
Main functional area
Solution match with goals
Prototype-allows for thorough testing
Attempt to solve logistical problem
Configuring reveals strengths & weaknesses
Important for success of ERP implementation
7.
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.
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.
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GOING LIVE
• On the technical side, the work is almost completedata 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.
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.
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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.
END USER TRAINING
Success or failure
Lack of training
Change job description
Groups all formed & training provided
Training gives over all view of system
Employee provided training
Address new technologies
Important & equally difficult
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.
POST IMPLEMENTATION
Most important & critical factor
Vendors & consultants will go
Necessary enhancements & upgrades are made
Training is needed for those who use the system
Training is an ongoing process
Maximum value for this input
IMPLEMENTATION TEAM TRAINING
Team is being trained for implementation of system
Run the system
Vendors & consultants leave after implementation is over
Good in-house team for handling various solutions
Select employees who have:
RIGHT ATTITUDE
WILLING TO CHANGE
LEARN NEW THINGS AND NOT AFRAID OF
TECHNOLOGY