1. Lifecycle
CHAPTER 8
ERP IMPLEMENTATION
LIFECYCLE
Sonali C.
UDIT -T.Y.B.Sc (IT)
2008-09
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Company ERP Vendors
Management Pre-Selection Screening
Package Evaluation
Project Planning
Gap Analysis Reengineering Configuration
Implementation Team Training Testing End-user Traning
Pre-Selection Screening
Phases of ERP
Implementation
Pre-Selection Screening
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Pre-Selection Screening
 There are many Vendors and all packages are not same
 Study strong points and week points of each packages
 Short list according to the requirement of organization
 Check the years of existence of the vendor and past
experience
 Search for a perfect packet.
 Compare the cost
 Compare the time required
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2. Lifecycle
Package Evaluation
 Most important phases because it will decide failure and
success of project.
 Require huge investment so switching to another ERP
package is not easy.
 “DO IT RIGHT THE FIRST TME”
 No package is perfect - (keep in mind before analysis).
 Do not require prefect fit ,Should be flexible enough
for the company needs.
 Develop selection criteria
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Cont…
Package Evaluation
Points to be kept in mind while evaluating ERP:
1. Functional fit with the 7. Ability to support multi-
company‟s business site planning and control
process. 8. Technology
2. Degree of Integration 9. Availability of regular
between the various upgrades
components of the ERP 10. Amount of customization
system. required
3. Flexibility and scalability 11. Local support
4. Complexity infrastructure
5. User friendliness 12.Availability of reference
6. Quick implementation sites
13.Total cost
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Cont…
Package Evaluation
 Better to form evaluation/selection committee for
evaluation process
 This is not a one-man-decision.
 All the departments are involved.
 Thus it should have company wise acceptance
 Discuss the pro & cons
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3. Lifecycle
Project Planning Phase
 Designs implementation process
 determine-“How to go about” – time schedule,
deadline, etc – PROJECT PLAN IS DEVELOPED
 Roles are identified and Responsibilities are assigned
 Everyone's scope of work defined and Heads of
implementations identified
 Team members are selected and task allocation.
 How- When- What to DO???
 Phase is controlled by committee and meets periodically
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Gap Analysis
 Crucial phase
 Create complete model of where they are now and in
which direction they will head in future.
 Even the best ERP package can only cover 80% of
the companies functional requirement.
 The remaining 20% of these requirements present a
problematic issue for the company‟s BPR.
One of the most painful solution is to change the
business process to fit the ERP package
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Cont…
Gap Analysis
 Other solutions:
 Updation at low cost
 Identifying a third party product that might fill the
gap.
 Design a custom program.
 Altering the ERP source code (most expensive) used
only for mission critical
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4. Lifecycle
Reengineering
 Human factors are taken into account.
 Two different connotations:
 Downsizing efforts (controversial)
 Reduce significant no of employees
 Business Process Re-Engineering ( Two separate but closely
linked implementations are:)
 Technical implementation
 Business process integration.
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Configuration
 Business should be mapped according to goal of
company
 Prototype is created before implementing it Live.
 Testing is done on prototype
 Configuring not only reveals strength but also
weakness.
 Explains what wont fit and whr the gap is
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Implementation team Training
 Implementation team is trained i.e. connotations how
to implement
 Later employees are also trained to run the system
 Vendors and consultant will leave after implementation
is over.
 Good in-houses must be there to handle system.
 So there should be right selection of employee.
 Willing to change ,Learn new thing and
 Not afraid of technologies – and good functional knowledge
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5. Lifecycle
Testing
 Try to beak system
 Testing real case scenarios
 While testing- come up with extreme case scenarios-
 System overload
 Multiple users logging at same time
 User entering invalid data
 Hacker and so on…
 Test case must be designed to find weak links and bugs
should be fixed before going live
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Going live
“Lights On, Switches Thrown, Gloves Off”
 Technical side, Work is almost completed
 Functional side, prototype is fully configures and tested
ready to go operational
 Once system is „live’ old system is removed and new
system is use
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End-User Training
 Actual user is given training on how to use system.
 Starts much before system goes live
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6. Lifecycle
Post-Implementation
 This is very crucial phase as there are no vendors and
consultant at this stage.
 So employees must be trained thoroughly to handle
problem is system.
 There should be employed who must have knowledge
to enhance the system in future.
 System should be upgraded and ne technologies are
introduced.
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Any Questions????
THANK YOU
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