CHAPTER

4
DEVELOPMENT LIFE
CYCLE
Updated – December 2022

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Learning Objectives
• 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.

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Covered Topics
• Preview
• Systems Development Life Cycle (SDLC).
• Traditional SDLC Approach
• Rapid SDLC Approaches
• ERP IMPLEMENTATION LIFE CYCLE
• ERP Implementation Plan
• ERP Implementation Methodology
• Traditional ERP Life Cycle
• Rapid ERP Life Cycle
• ERP Life Cycle Vs. SDLC

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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

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 Systems Development Life Cycle
(SDLC)
• SDLC includes a systematic process of planning, designing, and
creating an information system for organizations.
• For complex systems (e.g. ERP), it is often better to have a
structured methodology to coordinate the design and
development tasks properly among the members of a large
systems development team.
• SDLC uses Systems Approach, which basically states that
Complex problems needs to be broken up into smaller
manageable problems using a systems’ hierarchy, and then
developing a solution for each problem within the hierarchy. It
provides a structured top-down problem identification and
bottom-up solution process for managing complex problems.

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 Systems Development Life Cycle
(SDLC)
• SDLC process requires both technical and nontechnical problem-
solving skills, therefore the development team must understand
technology as well as the organization's business processes,
culture, people.

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Traditional SDLC
• You already have studied SDLC in the course of System Analysis
and Design. Here, we will review the main concepts.
• Figure 2 provides a summary of the traditional SDLC methodology.

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Traditional SDLC

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Rapid SDLC Approaches
• The SDLC process has several problems, even though it is
rigorous in making sure that the new system is complete and
successful in the organization.
1.Takes long time for developing a new system
2.The cost associated with the SDLC process is very high
3.Most information systems do not require such a rigorous SDLC
process, therefore organizations over years have used rapid
approaches to SDLC that are quicker and less expensive to this
process.
• Rapid SDLC Approaches:
1.Prototyping
2.End User Development (EUD)

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Rapid SDLC Approaches
• One rapid development approach is prototype:
• Prototyping
• This approach does not go through the analysis and design
phases.
• It implements a skeleton or a prototype of the actual system
with a focus on data input (user interface) and output (screen
display).
• The idea is to demonstrate the system functionality to the
users and get their feedback on the prototype.
• Their 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.
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Rapid SDLC Approaches

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Rapid SDLC Approaches
• End user development is another rapid development
approach
• End User Development (EUD)
• Let's end users create their own applications
• Users are trained by the IT staff to develop customized
applications. (e.g. small decision-making application with
an Excel spreadsheet or departmental employee tracking
system with an Access database).

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ERP implementation life
cycle

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ERP Implementation Plan
• ERP applications are prepackaged software, which may cost
millions of dollars, developed by commercial software
vendors and custom installed for organizations to automate
and integrate various business processes.
• Without these systems a bank would not be able to service
its customers for withdrawals or deposit, and a
manufacturing company would not be able to assemble
and ship their products.

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ERP Implementation Plan
• ERP Implementation Plan is used to create a roadmap or
blueprint to meet cost, scope and time constraints of an
implementation.
• Business processes built into the software. Company require
to align business processes to the ERP, rather than modify
the software. Business process re-engineering is eliminated.

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ERP Implementation Plan
• There are three major implementation plans:
1. Comprehensive (most expensive, lengthy, and costly approach)
• 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
2. Middle-of-the-Road
• Involves some changes in the core ERP modules and a
significant amount of business process re-engineering
3. Vanilla (minimum cost and time required)
• Utilizes core ERP functionality and use the best practice

• Refer to the textbook for more details on pages (96-97)

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ERP Implementation
Methodology
• Methodology refer to a systematic approach to solving a
business problem.
• ERP methodology builds on the theory that the enterprise can
maximize its returns by maximizing the utilization of its fixed
supply of resources.
• An ERP development life cycle provides a systematic approach
to implementing ERP software in the changing but limited-
resource organizational environment.

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ERP Implementation
Methodology
• There are many different vendor-driven methodologies that
use traditional ERP development life cycle or rapid ERP life
cycles (e.g. Total Solution, FastTrack, Rapid-Re, ASAP and BIM).
• 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.

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ERP Implementation
Methodology

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Traditional ERP Life Cycle
• The traditional ERP life cycle has a deliverable at the end of
each stage that is reviewed by management and upon which
a decision is made either to continue with the project or
not.
• Figure 5 shows the ERP life cycle that iterates at a much
faster pace than in the traditional SDLC.
• Figure 5 lists the five stages of the traditional ERP life cycle.

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Traditional ERP Life Cycle

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Traditional ERP Life Cycle
• The traditional ERP life cycle includes the following major
stages:
• Stage 1. Scope and commitment stage
• Stage 2. Analysis and design stage.
• Stage 3. Acquisition and development stage.
• Stage 4. Implementation stage
• Stage 5. Operation stage.

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Scope and commitment
stage
• This is similar to the investigation stage in SDLC. In addition
to conducting the feasibility study, a scope of the ERP
implementation is developed within the resource and time
requirement.
• A number of characteristics of the ERP implementation are
defined. How large will the ERP implementation need to be
defined at the planning stage?
• Develop a long-term vision for the new system and a short-
term implementation plan and top management’s
commitment for both the vision and implementation plan..
• Vendor Selection is another key activity towards the end of
this stage.
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Scope and commitment
stage

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Analysis and Design Stage
• Analysis of user requirements
• ERP team has first to make a decision on the software and decide on
the consultant and SMEs (subject Matter Experts).
• Map the differences between the current business process and the
embedded process in the ERP software, and to develop long term
plan on whether to change the business process or to customize the
ERP software to support existing processes..
• Design a change management plan, a list of embedded processes,
user interface screens, and customizable reports in the ERP software
that will need customization.
• Creating plans for data conversion, system conversion and training
• Team must develop a detailed change management strategy and
execution plan for the release of the new system.
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 Acquisition & Development
Stage
• Similar to acquisition and testing stage of traditional SDLC.
Organization has to purchase the license and build the
production version of the software to be made available to the
end-users.
• The entire production platform must be configured and built
with necessary hardware, network, security, software, database
and real production data.
• The tasks identified in the gap analysis are executed at this stage.
These include customization of embedded software rules, data in
the database tables, input screen and reports that come with ERP
system.
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 Acquisition & Development
Stage
• While the technical team is working on the installation, the
change management team works with end-users on
implementing the changes in business processes and preliminary
training with the sandbox of the software.
• 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.

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 Implementation Stage
• Focus is on installing and releasing the system to the end-users
(Go-Live) and on monitoring the system release to the end-users.
• Errors found in the production version have to go through the
help desk.
• Any changes are then made to the development version, retest
and migrated to the production system a regularly scheduled
updates.

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 Implementation Stage
• System conversion is a major activity and needs to be managed
carefully (4 Phases or approaches)
• Phased: gradual movement of the company from the existing
legacy system to the ERP implementation
• Pilot: implements a small version of the final system
• Parallel: has the most upfront cost because ERP system is
implemented and used in conjunction with the legacy system.
• Direct Cut or big bang: is the highest risk approach but the
most straightforward and clean. The company move from the
legacy system directly to use the ERP system.
• Feedback received from system usage needs to be transferred to
the post-implementation team for ongoing system support.
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Implementation Stage

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Operation Stage
• This is often managed by the operation team with assistance
from implementation team.
• Handover or knowledge transfer is the major activity as support
for the new system which is transferred 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.

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Traditional ERP Life Cycle

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Rapid ERP Life Cycles
• ERP implementations are usually very long. They usually
start with a long requirements-gathering phase, followed by
designs, and implementations.
• As businesses grow and move quickly, there is a high chance
that the requirement will change during those months or
years of time that pass.
• Consultants play an important role in rapid implementation
of ERP systems.
• They provide different methodologies and techniques for
rapid or accelerated implementation.

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 ERP Life Cycle Vs. SDLC
SDLC ERP Life Cycle
Goal Develop a new system to support Implement a packaged system to
the organization requirements support the organization
requirements

Analysis Evaluate user needs through Vendor analysis and evaluation of

observations and interviews and business process changes due to the
create system specifications implementation

Design Develop new system architecture, Installation and Customization plan

user interface, and reporting tools of ERP software, data conversion,
and change management strategies

Implementation Acquire hardware, software, “Go-Live” conversion or releasing

develop applications, installation, the system to the users, training,
testing, training, and conversion and support

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 ERP Life Cycle Vs. SDLC
SDLC ERP Life Cycle
Consultant Technical support mainly Change management, process
Role during design and change, and technical support
implementation from beginning to end
Management Some oversight and support Significant oversight and
Role involvement especially in
change management
End-User Focus group providing input Multiple groups such as SMEs
Role during various stages with (Subject Matter Experts), advance
most involvement during users, and self-service users
Implementation stage are part of implementation team
with continuous involvement

Operations Maintains, updates, and Maintains, updates, upgrades,

provides technical support monitors change management
strategy
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