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Road Map to ERP

implementation
Section 06

 The Enterprise Resource Planning (ERP) application implementation

methodology is composed of well-defined processes that can be managed in
several ways to guide the ERP implementation team
 This methodology provides the tools needed to effectively and efficiently
plan, conduct, and control project steps to successfully implement new
business systems.
 The implementation methodology defines an organization’s business needs at
the beginning of the project and maintains their visibility throughout the
execution. It defines time-sensitive business events, and maps each event to
the corresponding business and system processes.

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Critical success factors

 Sufficient infrastructure
 Clear understanding of business needs
 Upper management support
 Strong program/project management
 Team strength
 Organizational readiness
 Sufficient technical architecture

ERP implementation project estimate

based on
 What is the business objective?
 What is the scope of the project and how does it relate to the overall
objective?
 Who will participate in the project (employees, consultants, or vendors)?
 What are the constraints affecting the project (timing, budget limitations, or
organization changes)?
 Which applications will be implemented?
 Which sites will be involved?
 Will a phase deployment be employed? If so, in what sequence will ERP be
implemented?
 When will work commence?
 What experience does the organization have regarding the technology that
will be used

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ERP Project Initiation

Prerequisite to Initiate ERP projects

 Contractual agreement documents

 Consultant proposal
 Client policies
 Consulting policies
 Resource costs
 Environment requirement

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Management Processes
 Control and reporting
 confirm the scope and approach of the project,
 manage change, and
 control risks
 guides toward management of project plans and reports project status.

 Work management
 define, monitor, and direct all work performed on the project.
 maintain a financial view of the project.

 Resource management
 Achieve the right level of staffing and skills on the project,
 implementing an infrastructure to support the project.

 Quality management
 Implementing quality measures to ensure that the project meets the client’s purpose and
expectations throughout the project life cycle.

 Configuration management
 Store, organize track, and control all items produced by and delivered to the project.
 provides a single location from which all project deliverables are released.

The golden rules to follow for successful

implementation
 Start right
 Know your client
 Define the project scope
 Manage the risks
 Deploy a winning team
 Adopt a conflict minimization strategy
 Produce formal documentation
 Plan for completion
 Communicate with honesty and conviction

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ERP Implementation approaches

Core Process Conference

Customizations
Analysis Room Pilot

System
Interface and
Training Integration
Conversion
Testing

User
Production Go
Acceptance Rollout
Live
Test

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Core Process Analysis

 Purpose:
 define the business requirements of the new application system aligned to the future
business model as conceived by the client
 Activities

1. Client specific 2. Business

Information requirement 3. Gap Analysis
gathering mapping

Conference Room Pilot

 Purpose
 is to test the operation and integration of the business system processes.
 Successful CRP should verify:
 The system successfully supports business operations.
 All results are predictable and repeatable.
 Variations of the test script produce expected results.
 Data are verifiable through alternative means across the business system.
 Relevant key performance indicators can be validated.
 Support procedures intended for production are accurate.
 Modifications to procedures, policy, and system are fully implemented.

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 Activities

2. Define
1. Prepare Application 3. CRP and Unit
Instance Strategy Setups and Install Testing
the CRP Instance

Customizations
 Enterprise resource planning (ERP) application provides the users, the flexibility to
customize the standard application functionality to suit the specific business needs,
which is not supported by the standard application product
 Developing additional reports as per business requirement of the organization also
falls under the scope of customization.
 During any implementation of ERP application,
 a general observation is that customers request for a sizable degree of customization.
 Before doing any customization, it is the responsibility of the application consultant to
ensure the following for Process Level Customizations
 Whether standard applications do not provide that functionality
 Whether it is possible for customers to fit into standard functionality if that is a better practice
 Whether customization is coming as future release in ERP

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Activities related to customization

Analyze
Gap Analysis Design Development
Dependency

Interface and Conversion

 During implementation of enterprise resource planning (ERP), there would be a
need of building a bridge between an existing applications and legacy application
is very much required.
 These are required in the following two conditions:
 ERP application is replacing a legacy application that the business was using. Hence,
the data need to be moved permanently into ERP applications. In this case, we talk
about data migration/conversion.
 ERP application will be running along with an existing legacy application. Hence, there
needs to be a bidirectional data flow between the legacy system and ERP application. In
this case, we talk about interfaces. Interfaces are inbound when the data are loaded
into ERP applications and outbound when the data are extracted out of ERP
applications.
 In brief, conversion is usually meant for programs which are run once only, and
interfaces are those which are run at a predefined frequency.
 During the implementation of ERP applications, these interface and/or conversion
programs serve as a bridge between the ERP application and the legacy system

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Activities related to Interface

Identify Prepare
Interface Interface
Interfaces Interface-
Designing Development
and Tools Building Plan

User Interface
Acceptance Integration
Testing Testing
Activities related to Date Migration

Identify Define
and and Build the Flipping
Conduct a
Freeze Design Migration the Audit
Live Test
Source the Solution Switch
Data Files Migration

System Integration Testing

 The purpose of the system integration test is to test the operation of the
business system across and between application systems.
 The testing approach is integral to the entire implementation effort and is
structured to build upon itself.
 The primary deliverables of the testing process are high quality application
systems that include both packaged applications and custom extensions

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Activities related to System Integration Testing

Define Testing Perform System

Prepare Testing Regression
Requirement Integration
Environment Testing
and Strategy Testing

Training
 The skill transfer is an essential step in an enterprise resource planning (ERP)
implementation project.
 The training is conducted at two levels for the client members in the project.
 In the first level, the key users/process owners are required to be trained on the
functionality and major features of the software package. This training, if given
before the business process analysis, helps to improve the communication between
the consultants and the key users/process owners during the analysis phase.
 The next level of training is required for the end users where more stress is given
on the transactions, reports/interface/other programs, user security, and
system administration activities (applicable for the system administrator only).
 This training is required before the commencement of acceptance testing.
Any other training may be arranged also, if required.
 Successful projects require that end users be properly trained on the
completed system. This step provides the requisite user procedures and
training program to support end-user transition to the new system.

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Activities related to Training

Develop
Develop
Training
Assess User Training/User
Curriculum and Deliver Training
Requirements Procedures
End User
Strategy
Documentation

User Acceptance test

 This is the phase where the client validates the software to find out whether the
solution provided is fit for their use and satisfies their business needs.
 After successful testing of each software component by the consultants themselves, it
is handed over to the client for acceptance testing.
 Bugs/defects detected during acceptance testing are to be rectified accordingly before
obtaining the certificate of acceptance from the client.
 The results of the acceptance test in the test report for the acceptance test should be
recorded and communicated. This report should ideally contain:
 Summary (including statistics) of successes of tests organized by the process.
 Actions and assignments relating to changes to procedures and policies.
 Highlights, action plan, assignment, and schedule for completion of critical failure in code.
 Summary of repeating select business systems tests based on these changes.
 Completed test scripts as an appendix.
 A list of open technical issues that have been communicated to ERP support through a third
assessment report (TAR)

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Activities related to UAT

Prepare UAT
UAT Strategy Conduct UAT
Environment

Production Go Live
 The objective of production migration is to migrate the organization, systems, and
people to the new enterprise system.
 The production environment is prepared in this phase.
 The database instances are created, applications are set up, and initial data (master
data, open transaction, and required historical transactions) are migrated from the
legacy systems to the new enterprise resource planning (ERP) applications.
 The system is audited and performance check is carried out.
 The system is assessed again after the Go Live and necessary measures are taken

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Activities related to Production go live

Prepare
Define Transition Develop Set Up
Production
Strategy Contingency Plan Applications
Environment

Implement
Integrate Custom Verify Production Production
Data Migration
Components Readiness Support
Infrastructure

Begin Production Maintain System

Rollout
 Rollout is required if the ERP project is implemented in multiple sites. First
the ERP project is implemented at one pilot site.
 After stabilization of the system at the pilot site, the system is implemented
at other sites using the procedures and configuration data, and customization
of the pilot site is carried out as far as possible.
 Different project teams are required for each rollout site.
 The major stress of the rollout project team is to reuse the implementation
process, set up data, technical and operational architecture, customized
components, interface, and data migration programs as much as possible.
 Too much deviation from the pilot site implementation results in the delay in
commissioning of the rollout sites and eventually increases the stress on the
project budget

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Activities related to Rollout

Analyze Site- Prepare

Rollout Application
Specific Production
Strategy Setup
Requirement Environment

User Integrate
Begin Data
Acceptance Custom
Production Migration
Testing Components

Maintain
System

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