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ERP Implementations - Life Cycle

The document outlines the ERP Implementation Life Cycle, detailing various phases such as pre-evaluation screening, package evaluation, project planning, gap analysis, re-engineering, and post-implementation. Each phase is crucial for ensuring that the ERP system meets organizational needs and is effectively integrated into business processes. The overall goal is to centralize information and streamline workflows across departments using a single database.

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18 views18 pages

ERP Implementations - Life Cycle

The document outlines the ERP Implementation Life Cycle, detailing various phases such as pre-evaluation screening, package evaluation, project planning, gap analysis, re-engineering, and post-implementation. Each phase is crucial for ensuring that the ERP system meets organizational needs and is effectively integrated into business processes. The overall goal is to centralize information and streamline workflows across departments using a single database.

Uploaded by

nn814523
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ERP Implementations – Life Cycle

Unit V
Introduction
• ERP at its core is an effective way of centralizing
information and workflow processes through data
management. Because ERP keeps all of your
workflow data in one place.
• With ERP, it is easy to manage every department
under one single database.
• ERP implementation goes thru different phases
• There is no restriction that these phases are
sequential. But logical order is followed
• Some phases are optional for certain organization
Phases
• Pre-evaluation screening First
• Package evaluation
• Project planning phase
• Gap analysis
• Reengineering
• Configuration
• Implementation team training
• Testing
• Going live
• End-user training
• Last
Post-implementation
1- Pre-Evaluation Screening
• This phase starts when company decides to go for ERP
system. Begin with searching a package which is similar
functionality.
• It takes time since every product must first be examined
before making any decisions. Selection is done on best
few packages available .
• As all packages are not same and each has its own
strengths and weakness. Services that are unsatisfactory
for the corporation's business operations should be
eliminated through this approach. To identify,
– Getting help from External consultant
– Must know packages used by other companies which
are similar to ours
– Uses the previously discussed issues to address and
clarify the reasons that were taken into consideration
while selecting a certain ERP package.
– Find out how the different packages are performing in
environments similar to ours
• Most ERP packages are stronger in certain areas
than in others and each one is madly trying to add
functionality in areas where they have been
lacking.
• Investigate the origins of the different packages and
verify that the operations are suitable for our
organization and finalize the packages
• Once you select a few packages after the
screening, we can start with evaluation process.
2-Package Evaluation
• It is the most important phase in implementation. The
requirements of every organization is unique.
• Picking the best solution for our company's operations might be
challenging given the wide range of possibilities on the market.
• This phase depends on success and failure of entire project
with package selection.
• Most important factor while selecting any package is that not
every package can be totally perfect for project but at-least it
should be good fit for project.
• To choose the optimal structure, you must have concrete
evidence that the system satisfies the necessary business
standards.
• ERP elements that don't meet your requirements are removed in
this stage.
• Important points to be noted are:
– Functional fit with company business processes
– Degree of integration between various components
– Flexibility and scalability
– Complexity
– User friendliness
– Quick implementation
– Ability to support multi-site planning and control
– Client/server capabilities, database independence, security
– Availability of regular upgrades, local support
infrastructure
– Amount of customization required, availability of
reference sites
– Total cost
3 - Project Planning Phase

• The implementation procedure is planned and designed at this


phase.
• This stage establishes the utilization strategy. At this step, the
straightforward elements of the execution strategy are chosen.
• The manual is created, the components are identified,
implementation team is selected and task allocated
• This stage will plan what preventative measures to propose
and what constructive actions to encourage when activities
run out of resources.
• Special arrangement for contingencies
• The project planning is usually done by a committee
constituted by the team leaders of each implementation group.
• Periodical review by committee to be done
4 - Gap analysis
• This phase of the implementation is the most important.
Here, differences between firm practice and those
provided by ERP programmes are studied.
• When necessary, GAP analysis is done to assess and
contrast the organization's existing system with where it
wants to go in the future.
• These contain several prepared tasks such as upgrading,
finding an external item that may fill a gap, creating a
special method, if required and altering the ERP core
program.
• In this manner, you can quickly pinpoint the critical
processes that our ERP needs to focus on and help the
company to cover the functional gap
5 - Re-engineering
• Improvements are made by fundamentally
reevaluating and completely redesigning company
procedures.
• Re-engineering is used to improve the process
efficiency and value since it entails several
adjustments and modifications based on planning
and gap analysis.
• As technology becomes more automated and
profitable, every execution will include minor
changes to work obligations.
6 - Customization
• It is ERP Implementation's primary functional
domain.
• It is essential for the success of ERP usage that
individuals outlining the system can explain
where the problems that cause aggravation
occur and don't fit into the setup.
7 - Implementation Team Training
• Following the mentioned procedures, the
system installation team can now proceed to
train the employees.
• For staff to utilize the technology effortlessly,
they will need to receive sufficient training.
• This training will also depend on the
requirements of each business and may
therefore vary from one to another.
8 - Testing
• This is yet another critical phase of the ERP
deployment life cycle. In essence, the aim is to identify
faults and try fixing them just before launching the
process.
• The development team tests the entire system during
this stage.
• The organization will test difficult real-world situations,
including data security, user error detection, system
congestion, and more. This will assist the business in
discovering mistakes, defects, and weak points before
deployment.
• All details are addressed at this point, and the system is
formally declared to be operational.
9 - Going Live
• A selected user group most likely tests and
successfully uses the system for a considerable
time.
• Once the functional and technical aspects are
working correctly, the testing is complete. The
subsequent step is "Going Live." After going
"live" the old system is taken down, and
business is conducted using the new system.
10 - End-User Training
• The admin user will receive training on how to utilize
the system at this phase.
• The end-users of the system will then be instructed on
how to utilize it in the most effective way possible.
• The capabilities of the professionals who will use the
new program are taken into account. They may be
classified into groups as per abilities.
• The ERP system's success rests in the end users' hands,
making this preparation all the more advantageous.
11 - Post Implementation
• This is the maintenance phase. It is both the most crucial
and significant component. Following implementation,
the system must be operated and maintained.
• When the execution plan is complete, this is the really
crucial step. 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
• The organization must have particular members who can
improve the system when necessary.
Conclusion
• Using a central database, ERP makes managing all
departments straightforward. This is a quick and easy
technique of working that requires very little time. A
foundational system for domestic and international
operations, enterprise resource planning (ERP) serves the
majority of working departments in their everyday
operations.
• The process of implementing enterprise resource planning
in any firm is known as the ERP Implementation Life Cycle.
From the very beginning, it encompasses a number of
phases and steps, including project implementation
planning, assessment, implementation, transition, and
operations. The ERP implementation lifecycle highlights
the many stages of installing an ERP system.

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