ERP IMPLEMENTATION - LIFECYLE

WHAT IS ERP ?

Enterprise Resource Planning ( ERP ) covers the techniques

and the methods employed for the integrated management of
business as a whole from the view point of the efficient use of
the management resources, to improve the efficiency of the
enterprise.

ERP packages are integrated software packages that support

the above ERP concepts.
Different Phases of the ERP Implementation

1. Pre Evaluation
2. Package Evaluation
3. Project Planning Phase
4. GAP Analysis
5. Reengineering
6. Configuration
7. Implementation Team Training
8. Testing
9. Going Live
10. End-user Training
11. Post Implementation
Company management Pre-selection Process ERP Vendors

Package Evaluation

Project Planning

Gap Analysis Reengineering Configuration

Implementation Testing End user Training

Team Training

Going Live

Post Implementation Phase

 Pre-Evaluation Screening

• Search for the perfect package

• Infinite number of ERP vendors
• Screening eliminates those packages that are not at all suitable
for the business purpose.
• This limits the number of packages that are to be evaluated by
committee.
• This screening is done on the basis of product literature of the
vendors, external consultants etc.
• Once you select a few packages after the screening, you can
start the detailed evaluation
Package Evaluation

• This is one of the important phase of the ERP implementation

because the package that one selects will decide the success
or the failure of the project.

• Implementation of ERP system involve huge investment, so

once a package is purchased, it is not an easy task to switch
to another one. So it is a ‘do-right-the first time’ proposition.

• The objective is to find a package that is flexible enough to

meet the company’s needs, that is it may not be a perfect fit
but a ‘Good Fit’.
Contd..

• Once the packages to be evaluated are identified, the company

needs to develop a selection criteria that will be permit the
evaluation of all the available packages on the same scale.

• While evaluating the following points must be kept in mind :

- Should be user friendly
- Regular updates must be available.
- Complexity
Contd..

• It is always better to form a selection committee for the

evaluation of the packages.

• This committee should comprise of people from the various

departments like the functional experts etc.
Project Planning

• In this phase the implementation process is designed.

• In this phase the details of how to go about the
implementation are decided.
• Time schedules, deadlines etc. for the project are decided.
• Roles are identified and the responsibilities are assigned.
• The implementation team members are selected and the task
allocation is done.
• This phase decides WHEN to begin the project, HOW to do it,
and WHEN it should be completed.
• This phase is usually carried out by a committee constituted
to the team leaders of each implementation group.
Gap Analysis

• This is the most crucial phase in the ERP implementation.

• This is the process through which the companies create a

complete model of where they are now, and in which direction
will they opt in the future.

• The model helps the company to anticipate and cover any

functional gaps.
Contd..

• It has been estimated that even a best ERP package, custom

tailored to meet the company’s needs, meets only 80% of the
company’s functional requirements. The remaining 20% of
these requirements present a problematic issue for the
company’s BPR.
Configuration

• This is the main functional are of the ERP implementation.

• Here in this phase a simulation a PROTOTYPE – that is the
simulation of the actual business processes of the company
will be used, so that the company can carry on with their work
when the mapping process is taking place. The prototype
allows for the thorough testing of the “ to be “ model in a
controlled environment.

• Through this the consultants configure and test the prototype

and attempt to solve any inherent problem in the BPR before
going live.
Contd..

• This also helps to reveal the strength and the weakness of a

company’s business process which enables those who are
configuring the system to point out what fits into the package
and where the functional gaps occur.
 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

• In this phase, we try to break the system.

• That is we try to find the weakest link to that it can be

rectified before going live.
 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 and the
new system is used for doing the business.
 End User Testing

• In this phase, the actual users of the system are identified

and trained on HOW to use the system.

• This training is very important because the success of the

ERP system lies in the hands of the End-users.

• This makes the phase very crucial.

 Post Implementation

• Once the implementation is over, the vendor and the hired

consultants will go.

• To reap the fruits of the implementation it is very important

that the system has wide acceptance.

• There should be enough employees who are trained to handle

problems those crops up time to time.

• The system must be updated with the change in technology.

Contd..

• The Post – ERP organization will need a different set of roles

and skills than those with less integrated kind of system.

• However, an organization can only get the maximum value of

these inputs if it successfully adopts and effectively uses the
system.
Thank you