Course: ISYS6536-Enterprise System

Effective Period : December 2019

Development Life Cycle

Session 4
 Acknowledgement

These slides have been adapted from:

Enterprise Systems for Management

second edition (2014)
Luvai F. Motiwalla; Jeff Thompson
Pearson Education Limited, England
ISBN: 978-1-29202-348-9

Chapter 4
 Learning Outcome
Student will able to :
• LO 3: Analyse case study in enterprise systems
 Learning Objectives
After studying this chapter, student will able to
:
• Review the Systems Development Life Cycle (SDLC).
• Examine the problems and alternatives with SDLC.
• Know the key issues in ERP implementation strategy.
• Understand ERP Implementation Life Cycle.
• Examine the rapid implementation methodologies.
• Compare and contrast SDLC and ERP Life Cycles.
• Examine the role of people like top in the ERP Life Cycle.
• Understand the importance of the PMO and the project
organization to a successful ERP implementation.
• Know the components of a project organization and the
roles and responsibilities of each.
 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 System Development Life Cycle (SDLC) provides

useful guidelines to the ERP implementation process.

• Discussion on the key phases of the ERP life cycle with

emphasis on roadblocks in each phase and solutions
available to overcome these roadblocks
 Systems Development Life
Cycle (SDLC)
• SDLC includes a systematic
process of planning, designing,
and creating an information
system for organizations.
• It is often better to have a
structured methodology to
avoid mishaps and coordinate
the design and development
tasks properly among the
members of a large systems
development team.
• Systems Approach—Complex
problems are broken up into
smaller manageable problems Figure 4-1 Traditional SDLC Methodology
using a systems’ hierarchy, and
then developing a solution for
each problem within the
hierarchy.
Figure 4-2 SDLC Approach
 Rapid SDLC Approaches

• Prototyping
– This approach does not go through the analysis and
design phase.
– It implements a skeleton or a prototype of the actual
system with a focus on data input and output.
– The idea is to demonstrate the system functionality to the
users.
– Feedback is incorporated into the new system and
demonstrated back to the users.
– This approach has proven to be very effective with user
interactive systems because the prototype is eventually
converted into a full-scale system.

• End User Development (EUD)

– Users are trained to develop their own applications (e.g., a
departmental employee tracking system with an Access
database).
 Figure 4-3
Prototype Development
 Differences between
ERP and Other Software
ERP Other Packaged Software
Millions of dollars Hundreds to Thousands
Mission critical Support or productivity
improvement
One to several years Almost instantly
Requires significant change Requires some training and
management strategy from support
beginning to end for success;
business process change,
training, communications, etc.
Requires in-house employee Requires little or no consulting
time, consultants and vendor support or vendor technical
support in millions of dollars support
 ERP Implementation Plan

• Comprehensive
– Involves implementation of the full functionality of the
ERP software in addition to industry-specific modules.
– Requires a high level of business process re-
engineering.

• Middle-of-the-Road
– Involves some changes in the core ERP modules and a
significant amount of business process re-engineering.

• Vanilla
– Utilizes core ERP functionality and exploits the best
practice business processes built into the software.
– Business process re-engineering is eliminated.
 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.

Figure 4-4 Rapid Application Development Process

 Figure 4-5
Traditional ERP Life Cycle
 Traditional ERP Life Cycle

• Scope and Commitment Stage

– In addition to conducting the feasibility study, a scope of the ERP
implementation is developed within the resource and time
requirement.
– Characteristics of the ERP implementation are defined.
– Develop a long-term vision for the new system and a short-term
implementation plan and top management’s commitment.
– Vendor Selection.
• Analysis and Design Stage
– 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, a list of embedded processes, user
interface screens, and customizable reports in the ERP software.
– Data conversion.
– System conversion.
– Training.
 Traditional ERP Life Cycle

• Acquisition & Development Stage

– 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.
• Implementation Stage
– 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.
 Traditional ERP Life Cycle

• Operation Stage
– 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.

Figure 4-6 ERP Conversion Approaches

 Table 4-2
List of Scopes and Commitments

Gap Analysis Evaluation of the functions provided by the ERP

system compared with the operational processes
necessary to run your business
Physical Scope Establishes which sites will be addressed, the
geographical locations of the sites, and the number of
users.
BPR Scope Will the current processes be refined, replaced, or
eliminated? What users, departments, sites will be
affected?
Technical Scope How much modification will be done to the ERP
software? What processes will be utilized as is and
which will be customized?
Resource Scope How much time and budget is allocated for the
project?
Implementation Which modules should be implemented? How should
Scope the modules be connected to the existing system?
 Figure 4-7
ERP Life Cycle Phases Summary
 Role of
Change Management
• System failures often occur when the attention is not paid to
change management from the beginning stages.
• A vision for CM needs to be articulated from the first stage
and then revised, monitored, and implemented on a
constant basis.
• SMEs and other internal users have the role of working with
the team and to guide the implementation team on all the
activities of change management.
• Support of the top management as well as skills of the
change management team are essential for successful
implementation.
 Methodologies used in
ERP implementation
• Total Solution (Ernst & Young, LLP)
• Phases
– Value Proposition. Does the solution make sound
business sense?
– Reality Check. Is the organization ready for change?
– Aligned approach. Setting the right expectations that
deliver both short-term and long-term value.
– Success Dimension. Getting the 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 & Touche)
• Phases
– Scoping and Planning: Project definition and scope.
Project planning is initiated.
– Visioning and Targeting: Needs assessment. Vision and
targets identified. As-is modeling.
– Redesign: To-be Modeling. Software design and
development.
– Configuration: Software development. Integration test
planning.
– Testing and Delivery: Integration testing. Business and
system delivery.
 Methodologies used in
ERP implementation
• Fast Track (Deloitte & Touche)
• Areas
– Project Management (project organization, risk
management, 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 helpdesk.
 Methodologies used in
ERP implementation
• Accelerated SAP (ASAP)
– Project Preparation. Proper planning and assessing
organizational readiness is essential.
– Business Blueprint. The engineer delivers a complete
toolkit of predefined business processes.
– Realization. Based on the business blueprint steps are
taken to configure the R3 system.
– Final Preparation. In this phase, the R3 system is fine-
tuned. Necessary adjustments are made.
– 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 strategies
and approaches for achieving an enduring competitive
advantage and building stakeholder value.
– The Delivering Phase. Translates the business
architecture into a specific business capability.
– The Managing Phase. The Managing Phase directs,
coordinates, and monitors the activities outlined in the
other three phases, in order to achieve improved
business results.
– The Operating Phase. Operates the new business
capabilities that were 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:
– Scrum- Much is left up to the project team.
– Extreme programming (XP)- Stresses customer
satisfaction and gives working software to the customers
quickly and incorporates their feedback quickly.
 Comparing and
Contrasting SDLC with
ERPLC
SDLC ERP Life Cycle
Goal Develop a new system to support Implement a packaged system to support
the organization requirements the organization requirements
Analysis Evaluate user needs through Vendor analysis and evaluation of business
observations and interviews and process changes due to the implementation
create system specifications
Design Develop new system architecture, Installation and Customization plan of ERP
user interface, and reporting tools software, data conversion, and change
management strategies
Implementation Acquire hardware, software, develop “Go-Live” conversion or releasing the
applications, installation, testing, system to the users, training, and support
training, and conversion
Consultant Role Technical support mainly during Change management, process change, and
design and implementation technical support from beginning to end
Management Role Some oversight and support Significant oversight and involvement
especially in change management
End-User Role Focus group providing input during Multiple groups such as SMEs, advance
various stages with most users, and self-service users are part of
involvement during Implementation implementation team with continuous
stage involvement
Operations Maintains, updates, and provides Maintains, updates, upgrades, monitors
technical support change management strategy
 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.
 Figure 4-8
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 and responsibilities for project
staff is necessary to ensure there is accountability within the
project.

• Defining roles, often used as job descriptions on a project, will

be the responsibility of the project management office.

• Each member of the project team will need to know what is

expected of them, who they will report to, and what they will
be 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 to 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.
 Summary
• A review of the systems development life cycle—both traditional and
alternative approaches—and points out the benefits and limitations of the
traditional and the newer approaches.
• The ERP life cycle has variations from the SDLC process. The key reason is that
organizations buy ERP as prepackaged software, and then have to customize
them as well as change their company’s business processes.
• There are three routes for the company in choosing an appropriate
implementation strategy; Comprehensive, Vanilla and Middle-of-the-road.
• There are rapid implementation methodologies developed by ERP consulting
firms.
• Total Solution, Fast-Track, Rapid Application Development, ASAP., BIM.
• Accelerated implementation approaches are very popular and require the use
of experienced consultants to leverage the knowledge of techniques that have
worked well with other organizations.
• ERP applications generally do not require the rigorous traditional SDLC process.
• ERP software is mission critical, has a major impact on the organization
business processes, and impacts a lot of people.
• It is the role of the project management office to address teamwork initially and
throughout the project as teamwork is paramount to the project.
• Each person on the project needs to understand their role and responsibility,
thus making individuals and the project organization accountable to the project
and the project’s success.
Continued to session 5

Thank you