DEVELOPMENT

LIFE CYCLE
CHAPTER 4
Doctor: salem
alemaishat
 Preview
There are various technical and organizational
challenges in implementing ERP systems
depending on the organization, scope of
implementation, business processes, and skill
level of the end users.
The purpose of this chapter is to make you
knowledgeable about the ERP life cycle process
and to alert you to the implementation
challenges by looking at the experiences of
other organizations.
SDLC provides useful guidelines to
the ERP implementation process.
 Preview
Discussion on the key phases of the ERP life cycle
with emphasis on roadblocks in each phase and
solutions available to overcome these roadblocks.

Discusses the key differences between SDLC

and ERP life cycles.

Provides hints on what roles you should play as

an end user and discusses the implications for
managers.
 SYSTEMS
DEVELOPMENT LIFE
CYCLE
The process of developing new information systems is often
called the system development life cycle.

SDLC includes a systematic process of planning, designing, and

creating an information system for organizations.

Even though the process of For complex systems

developing a system for development projects (e.g.,
individual or personal use ERP), it is often better to have
can be simple, the task can a structured methodology
become very complex when to avoid mishaps and
the system has to support coordinate the design and
thousands of business development tasks properly
processes for several hundred among the members of a large
users both inside and outside systems development team.
an organization.
 Traditional SDLC
In the early days of systems development,
very few of these projects were successful in
the first attempt.

There were many reasons for the early

failures, chief among them being lack of
experience.

This led to the systems approach and a

structured SDLC methodology.

The SDLC consists of tasks

that are divided into phases
or stages.
Summary of the traditional SDLC
methodology
 Rapid SDLC
Approaches
The SDLC process has several problems,
even though it is rigorous in making sure
First, developing a new system is
time consuming and tedious. In
that the new system is complete and many cases the new system is
successful in the organization. outdated by the time it is
developed.
Second, the cost associated with the
SDLC process is very high. The cost of Finally, all information systems do
recruiting the development team and not require such a rigorous SDLC
involving other members of the process.
organization in the development
process can be very expensive.

For example, the SDLC would be overkill for a small-scale decision-making

application; therefore, over the years organizations have used rapid approaches
to SDLC that are quicker and less expensive shortcuts to this process.

These are called Rapid SDLC

The 2 Rapid development
approachs:

End-User
prototyping Development
(EUD)
Prototyping
Approach
This approach does not go through the instead, it implements a prototype of the actual
analysis and design phases. system with a focus on input (i.e., user
interface) and output (i.e., screen displays and
reports generated with dummy data).

The idea is to shows the system Their feedback is incorporated into the new
functionality as soon as possible to system and demonstrated back to the users. This
the users and to get their feedback approach has proven to be very effective with
on the prototype. user-interactive systems because the prototype
is eventually converted into a full-scale system.

In ERP implementations, many companies install a sandbox system to expose

users to the system functionality. ERP sandboxes replicate at least the minimal
functionality needed to get user feedback before implementing a full-
scale system.
The goal of sandboxing is similar to that of prototyping.
Prototyping
Approach
End-User Development (EUD)
Approach
which lets the end users create their own applications.

In this process the users are trained by the IT staff or professional trainers to develop
customized applications (e.g., a small decision-making application with an Excel spreadsheet
or a departmental employee tracking system with an Access database).

EUD is applicable in ERP for designing custom reports from the ERP
system.
 ERP IMPLEMENTATION LIFE
CYCLE
ERP applications are prepackaged software developed by commercial software
vendors and custom installed for organizations to automate and integrate the
various business processes.
Although an ERP is packaged software, it is very different from PC-based software
packages (e.g., Microsoft Office or other software) that you may have purchased for
personal use.
These are complex software packages costing millions of dollars to develop and maintain
that automate hundreds of business processes in an organization. Furthermore, these
applications are mission critical (i.e., if they fail or break down, the organization will stop
functioning).
For example, without these systems a bank would not be able to service its customers for
withdrawals or deposits, and a manufacturing company would not be able to assemble and
ship their products.

Any breakdown of an ERP application can therefore be very disruptive and cost
millions of dollars to the organization.
Differences Between ERP and Other
Software Packages
A rigorous ERP life cycle process, though expensive and time
consuming, is therefore recommended to ensure success.

The life cycle consists of 4 acceptance is similar to system analysis

phases: where user requirements are analyzed
and accepted by the team before
proceeding to design and
implementation.

Adaptation is similar to
system investigation
routinization is where the
Once operational, the ERP system is either
infusion or maintenance customized or business
and evaluation phase gets processes are changed to
started where recurring assimilate the system in
problems are fixed and the organization.
new features are sought
for next implementation
life cycle.
 ERP
Implementation
Plan
 ERP Implementation Plan

Comprehensive Middle-of-the-Road Vanilla

Involves Involves some Utilizes core ERP

implementation of changes in the core functionality and
the full functionality ERP modules and a exploits the best
of the ERP software significant amount practice business
in addition to of business process processes built into
industry-specific re-engineering. the software. –
modules. – Requires Business process re-
a high level of engineering is
business process re- eliminated.
engineering.
 ERP Implementation
Methodology

Traditional
Rapid ERP life
ERP life cycle cycle
 ERP Implementation
Methodology
An ERP development life cycle provides a systematic
approach to implementing ERP software in the changing
but limited-resource organizational environment.

The traditional ERP life cycle accomplishes one stage at a

time and requires formal milestone approvals prior to
moving to the next stage.

In a rapid ERP life cycle, once a company commits to

the implementation, employees are empowered to
make the decisions to keep the project moving forward
Rapid Application Development
Process
 Traditional ERP Life
Scope and Commitment
Stage Cycle
In addition to conducting the Characteristics of the ERP
feasibility study, a scope of the implementation are defined.
ERP implementation is
developed within the resource
and time
requirement.

Develop a long-term vision

for the new system and a
Vendor Selection
short-term
implementation plan and
top management’s
commitment.
Traditional
ERP Life
Cycle
 Traditional ERP
Life Cycle (Cont’d)
 Traditional ERP Life Cycle
Stage (Cont’d)
Analysis and Design

– A decision on the software is made and decide on consultants

and SMEs.
– Analysis of user requirements.
– Map the differences between the current business process and
the embedded process in the ERP software.
– Design a change management plan, , user interface screens,
and customizable reports in the ERP software.
– Data conversion.
– System conversion.
– Training.
 Traditional ERP Life Cycle
Stage (Cont’d)
Acquisition & Development
Purchase the license and build the production version of the
software to be made available to the end-users.
– The tasks identified in the gap analysis are executed at this
stage.
– Change management team works with end-users on
implementing the changes in business processes.
– Data team similarly works on migrating data from the old
system
to the new system.
– Finally, the ERP system needs to be configured with proper
security.
List of Scopes and Commitments
 Traditional ERP Life Cycle
Implementation
Stage (Cont’d)
Focus is on installing and releasing the system to the end-users
and on monitoring the system release to the end-users.
– System conversion (4 Phases)
• Phased.
• Pilot.
• Parallel.
• Direct Cut or big bang.
– Feedback received from system usage needs to be funneled to
the post-implementation team for ongoing system support.
 ERP
Conversion
Approache
s
 Traditional ERP Life Cycle
Operation
Stage (Cont’d)
Handover or knowledge transfer is the major activity as support
for the new system is migrated to the help desk and support
staff.
– Training of new users to the system as ERP modules are
released.
– Managing of new releases of the software, installation of
patches and upgrades.
– Managing the software contract with the ERP vendor.
Scope and Commitment ERP Life Cycle Phases
• Define the system scope.
• Secure top management support.
• Select the implementation team.
Summary
• Determine the role of internal employees and SMEs.
• Select vendors and negotiate contracts.
Analysis and Design
• Choose the implementation methodology.
• Decide between Vanilla and BPR implementations.
• Map data and plan conversion.
• Develop prototypes or sandboxes.
Acquisition and Development
• Procure hardware and software. Change
• Customize the system as needed. Management
• Convert and load data.
• Configure the system.
Go-Live
• Perform system conversion.
• Conduct testing.
• Provide training to end-users.
Operations
• Provide ongoing support and training.
• Perform patching and upgrades.
 Role of change
Management
System failures often occur
when the attention is not paid
A vision for CM needs to be
articulated from the first stage and
to change management from then revised, monitored, and
the beginning stages. implemented on a constant basis.

SMEs and other internal

Support of the top
users have the role of
management as well as
working with the team and
skills of the change
to guide the
management team are
implementation team on all
essential for successful
the activities of change
implementation.
management.
 Methodologies used in ERP
implementation
Total Solution (Ernst & Young,
component LLP)
s:
Value Proposition. Does the Aligned approach. Setting the
solution make sound business right expectations that deliver
sense? both short-term and long-term
value

Reality Check. Is the organization Success Dimension. Getting the

ready for change? right blend of people, skills,
methods, and management in
the team.

Delivering Value.
Measuring results and
celebrating success.
 Methodologies used in ERP
implementation
Fast Track (Deloitte &
Phas Touche)
es 1. Scoping and planning: Project definition and scope.
• Stage
Project planning is initiated.
• Stage 2. Visioning and targeting: Needs assessment. Vision
and targets identified. As-is
• modeling.
• Stage 3. Redesign: To-be Modeling. Software design and
development.
• Stage 4. Configuration: Software development. Integration test
planning.
• Stage 5. Testing and delivery: Integration testing. Business and
system delivery.
 Methodologies used in ERP implementation
Fast Track (Deloitte &
Touche)
Area
• s Management (project organization, risk management,
Project
planning, communications, budgeting, quality assurance).
• IT Architecture (hardware and network selection, installation,
operations, design, development, installation).
• Process and Systems Integrity (security, audit control).
• Change Leadership (leadership, commitment, organizations
design, change-readiness, policies, performance
measurements).
• Training and Documentation (needs assessment, training
design and delivery, management, end-users, operations, and
 Methodologies used in ERP implementation
Rapid-Re
Stages
• Stage 1. Preparation. Mobilize, organize, and energize the people who will
perform the reengineering project.
• Stage 2. Identification. Develop a customer-oriented process model of the
business.
• Stage 3. Vision. Select the processes to reengineer and formulate redesign
options capable of achieving breakthrough performance.
• Stage 4. Solution. Define the technical and social requirements for the new
processes and develop detailed implementation plans.
• Stage 5. Transformation. Implement the reengineering plans. In an ideal
project, stages one and two consider all key processes within a company and
conclude with a step that sets priorities for the processes to reengineer. The
other stages are executed repeatedly for each process selected for
reengineering.
 Methodologies used in ERP
Accelerated SAP
(ASAP)
implementation
Phases
Final Preparation. In this phase, the
Project Preparation.Proper planning and assessing
organizational readiness is essential.
R3 system is fine-tuned. Necessary
adjustments are made.

Business Blueprint. The engineer

Realization. Based on the
delivers a complete toolkit of
predefined business processes. business blueprint steps are
taken to configure the R3
system.

Go-Live and Support. Procedures and

measurements are developed to review the
benefits of the R3 investment on an
ongoing basis.
Business Integration Methodology (BIM)
Business Integration Methodology
(Accenture)
• The Planning Phase. Help define appropriate
• The Managing Phase. The Managing
strategies and approaches for achieving an Phase directs, coordinates, and
enduring competitive advantage and building monitors the activities outlined in the
stakeholder value. other three phases, in order to achieve
improved business results.

• The Delivering Phase. Translates the • The Operating Phase. Operates the
business architecture into a specific new business capabilities that were
business capability. created in the Delivering Phase.
 Agile Development
• Agile methodologies start with smaller sets of requirements, they
start small and deliver functionality incrementally in a series of
releases.

• No single release covers all requirements, but every release delivers

more than the previous one.

• Users are able to provide feedback quickly on how the system meets
their needs and also if a requirement is missing or wrong, it can be
corrected quickly.

• Two of the most popular implementations are:

1. Scrum- Much is left up to the project team.
2.Extreme programming (XP)- Stresses customer satisfaction and gives
Comparing and Contrasting SDLC with
ERPLC
 Project Management
• A clear project plan and reporting structure will better ensure that the
project receives the attention and accountability needed to be
successful.

• The project owners, a project steering committee, and project

executive must develop the hierarchy and determine responsibilities.

• Many businesses now have a project management organization within

IT to provide the project management necessary for company projects

• The functional, technical, and change management staff for the

project will likely consist of existing staff from the business, new
hires, and consultants
Project Organization
 The Project Organization
Project Management Office (PMO)
Project Leads
• They provide the input to management and coordinate team activities.
Project Teams
• The Functional Team- Knowledgeable staff from each area.
• The Infrastructure Team- Implements hardware and software .
• The Development Team- Modify the software to meet the goals.
• The Conversion Team- Convert the legacy data to the new system.
• The Reporting Team- Develops a reporting framework and initial set of
reports to be included in the system implementation.
• The Change Management Team- Training and communications plan for
the project. Their role is to provide project implementation information to
key areas within the organization.
Project Roles and Responsibilities

Identifying and
describing roles Defining roles, Each member of
and often used as job the project team
responsibilities descriptions on a will need to know
for project staff is project, will be what is expected
necessary to the responsibility of them, who
ensure there is of the project they will report
accountability management to, and what
within the office. they will be
project. evaluated on.
 Implications for
Management
• It is critical to have solid top management commitment.
• It is important to have strong and experienced program
management.
• It is a good practice to minimize the type and number of
customizations that are implemented.
• It is critical emphasize training and change management.
Effective and frequent communication keeps everyone on the same
page and give the greatest chance of problems being identified early.
 Thank
you!
presented By:
ASIA ALBARGHOUTHI
FARAH AMIN