ERP IMPLEMENTATION LIFE

CYCLE AND FRAMEWORK

Contents

Introduction To ERP
ERP Implementation Life Cycle
Integrative Framework For ERP Implementation
 INTRODUCTION

Enterprise Resource Planning - a software system that

integrates core business areas such as manufacturing,
distribution, financials and human resources.

Example: A warehouse in Singapore enters a customer order

data automatically flows to other areas of the company.
It would flow to the financial and accounting people in New
York
Automatically update accounts receivable.
 ENTERPRISE RESOURCE PLANNING

The order would also flow to the manufacturing

operations in Europe instructing them to make
another component.

Inventory levels would automatically be reduced in

the warehouse and an order would be placed to
replenish inventory.
IMPLEMENTATION LIFE CYCLE

 Go Through Many Different

Phases
No separate Line Between Any of
these Phases
They Follows A logical Order
IMPLEMENTATION LIFE CYCLE
The Different Phases of Implementation are
 Pre evaluation Screening
 Evaluation Package
 Project Planning
 GAP analysis
 Reengineering
 Configuration
 Implementation Team training
 Testing
 Going Live
 End User Training
 Post implementation
IMPLEMENTATION LIFE CYCLE-
PHASES

Fig 1: ERP Implementation Life Cycle

Pre evaluation screening
Decision for perfect package

Number of ERP vendors

Screening eliminates the packages that are not at

all suitable for the company’s business processes.

Selection is done on best few package available.

Package Evaluation
Package is selected on the basis of different
parameter.

Test and certify the package and also check the

coordination with different department

Selected package will determine the success or

failure of the project.
Cont.
Package must be user friendly

Regular up gradation should available.

Cost
Project planning
Designs the implementation process.

Resources are identified.

Implementation team is selected and task

allocated.

Special arrangement for contegencies.

Gap analysis
Most crucial phase.

Process through which company can create a

model of where they are standing now and where
they want to go.

Model help the company to cover the functional

gap
Reengineering
Implementation is going to involve a significant
change in number of employees and their job
responsibilities.

Process become more automated and efficient.

Configuration
Main functional area of ERP implementation
This includes synchronizing existing company
practices with the ERP packages rather than changing
the source code and customizing it to suit the company
Business processes have to be understood and mapped
in such a way that arrived solutions match up with the
overall goal of the company
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

This phase is performed to find the weak link so

that it can be rectified before its implementation.
Various extreme conditions are checked and made
sure system is error free.
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

End User Training

The employee who is going to use the system are

identified and trained.
Post Implementation
This is the maintenance phase.

Employees who are trained enough to handle

problems those crops up time to time.

The post implementation will need a different set

of roles and skills than those with less integrated
kind of systems.
Integrative Framework For ERP
Implementation

Developing Stage
Different frame works are there. Few considering
operational level only. Then few integrating strategic
and tactical level
The real implementation Is a mix of business process
Integrative Framework For ERP
Implementation

Fig 2: Frame work for ERP system and Project Implementation

Integrative Framework For ERP
Implementation
Each level contains a critical factor
Each factors are not independent to each other
Each levels input varies
Dominant ERP Success Factors
Top management commitment/support

Business case

Project management

Change management

Training

Communication
 Top management commitment/support

 Willingness of top management to provide resources

etc
Commitment should be not stopped with initiation and
facilitation. Should end after full implementation only.
 Business case
A true business case which can show the need for
implementation
It focus on present scenario as well as expected return
Scope of project is designed based on the business
case
Project Management
The most important one
A best practice of project management should includes
following
Project Schedule and Plans
Monitoring and Feedback
Risk Management
Change Management
Activities , methodologies will be changed
Employees must be created awareness regarding
Employees view and their ability to change must be
studied
Training
Proper training must be provided to employer
Additional benefits can be provided
An appropriate plan must be made and should be
implemented
Communication
Challenging and difficult task
A communication plan can be made
The communication plan has to include the following
areas,
Overview and rationale for the ERP implementation.
Detail of the business process change management.
Demonstration of applicable software modules.
Briefings of change management strategies and tactics.
Establishment of contact points.
Periodic updates
References
Sean W. O’Donnell, President, Datacor, Inc. “5 Steps To Successful ERP Implementation”
Anonymous , “ERP system implementation overview” ,
http://media.wiley.com/product_data/excerpt/80/04712351/0471235180.pdf downloaded on 25.03.2012
APICS , 2008, “Introduction to ERP “ , http://www.apicsaustin.org/education/apics_appl_ierp.aspx
downloaded on 28.03.2012
Apur Gourav, 2003, “ ERP Implementation Life Cycle”, http://www.slideshare.net/apurvgourav/erp-
implementation-life-cycle downloaded on 30.03.2012
Duane Trux,2000 “ERP Life cycle”
http://www.cis.gsu.edu/~dtruex/courses/CIS8090/pdf/ERPLifeCycle.pdf downloaded on 30.03.2012
Anonymus, 2000http://www.prlog.org/10345138-what-is-erp-implementation-life-cycle.html
downloaded on 30.03.2012
Michael Donova, “Successful ERP Implementation the First Time”,
http://www.idii.com/wp/donovan_erp_success.pdf downloaded on 30.03.2012
Anonymus, Enterprise resource planning”, http://en.wikipedia.org/wiki/Enterprise_resource_planning
H Akkermans and K van Helde,2005, “Vicious and virtuous cycles in ERP implementation: a case study
of interrelations between critical success factor” http://web.rollins.edu/~tlairson/ecom/virtuouserp.pdf
downloaded on 31.03.2012
N. Parr, 2002, “A Taxonomy of ERP Implementation Approaches”,
http://www.beyondsoft.com/doc/Success_stories_Mettler_Toledo.pdf downloaded on 25.03.2012
References
Philippe Dugerdil, Gil Gaillard, 2003, “Model-Driven ERP
Implementation”http://campus.hesge.ch/dugerdilp/_private/ICEIS2006.pdf
downloaded on 25.03.2012
Ada Won, 2005, “Critical Failure Factors in ERP Implementation”
http://www.pacis-net.org/file/2005/395.pdf downloaded on 31.03.2012
Xavier Thavaruban Thavapragasa, 2005,”CULTURAL INFLUENCES ON ERP
IMPLEMENTATION
SUCCESS “ ,
http://www.cs.berkeley.edu/~benr/publications/auscc03/papers/thavapragasam-
auscc03.pdf downloaded on 31.03.2012
Jiang Yingjie, 2004,”Critical Success Factors in ERP Implementation in Finland”
http://www.pafis.shh.fi/graduates/yinjia03.pdf downloaded on 31.03.2012
Chan-Hsing Lo, Chih-Hung Tsai, and Rong-Kwei LA, 2006 “Case Study of ERP
Implementation “http://www.journal.au.edu/ijcim/2005/jan05/IJCIM-V131-
pp2.pdf downloaded on 31.03.2012