1. ERP Implementation Lifecycle
UNIT - 2
ERP Implementation Lifecycle

2. There are two basic characteristics to all ERP implementation projects
1.Objectives
2.Phases ( or events)

3. Objectives of ERP implementation
The objectives include characteristics such as:
Speed
Scope
Resource
Risk
Complexity
Benefits

4. Different Phases of ERP implementation Life Cycle
Pre-Evaluation Screening
Package Evaluation
Project Planning Phase
Gap Analysis
Reengineering
Customization
Implementation Team Training
Testing
End-User Training
Going Live
Post Implementation Phase

5. ERP implementation Lifecycle
Company Management
ERP Vendors
Pre-Evaluation Screening
Package Evaluation
Project Planning
Gap Analysis
Reengineering
Configuration
Implementation Team Training
Testing
End-User Training
Go ahead
Going Live
Post Implementation Phase
ERP implementation Lifecycle

6. Life cycle

7. Pre-Evaluation Screening
Pre-Evaluation Screening is the phase which starts when company decides to go for a ERP System, the search for perfect solution starts.
It is very time consuming process to select few where all claims be the best, it is just external study of package.
Each package has its own weakness and strength.
While making the analysis it is good to investigate the origins of the different packages.
Some packages can be good in some areas while in other sectors they may not.
Once few packages are screened , detailed evaluation process starts.

8. Package Evaluation
Package Evaluation process is one of the most important phase of the ERP implementation , because the package you select will decide failure or success of project.
There is little room for error in this as ERP packages are so expensive once purchased can not switch to another.
While making the analysis the important point is nothing is perfect , important here is whether it is a perfect fit or good fit.
It is impossible to get a system which will perform exactly as the company does business but aim is to get least no of differences.

9. Few important points to remember while evaluating software include:
Flexibility & Scalability.
Degree of integration between the various components
Complexity
User Friendliness
Technology
Quick Implementation
Amount of Customization Required
Ability to support multi-site planning & control.
Local support infrastructure .
Total cost i.e license , training, customization etc.

10. Project Planning Phase
This is the phase which plans and designs the implementation process.
Details of how to go about implementation ,Time schedules and deadlines are decided.
Roles and responsibilities are identified and assigned.
This phase will decide when to begin, how to do it and when the project is supposed to be completed and what to do in emergency.
Their is a committee for this and which is supposed to meet periodically through out cycle to review process and chart future course of action .

11. PROJECT PLANNING PHASE
Project schedule
Decision of phase
Team leader
DESIGN IMPLEMENTATION PROCESS
TIME SCHEDULES, DEADLINES, ETC
RESOURCES ARE NEEDED AND IMPLEMENTATION IDENTIFIED
CONTINGENCIES, MONITOR THE PROGRAM, CONTROL MEASURES , CORRECTIVE ACTIONS
PLANNING IS DONE BY TEAM LEADERS
COMMITTEE WILL BE HEADED BY INCHARGE
The committee will meet periodically to review the progress & chart the future course of action

12. Importance of Gap Analysis
Gap analysis is a phase in the ERP implementation, where the organization tries to find out the gaps between the company’s existing business practices & those supported by the ERP package.
This is the process through which companies create a complete model of where they are now & where they want to head in the future.

13. GAP ANALYSIS
Importance
Main objective
Different ways of finding
FIND OUT THE GAPS BETWEEN BUSINESS AND ERP PACKAGE
ALTERING THE BUSINESS TO FIT THE PACKAGE
DESIGN A MODEL
LIVE W/O A FUNCTION
COVERS ANY FUNCTIONAL GAP
UPDATING SOFTWARE
COMPANY CREATES A MODEL
IDENTIFYING A PRODUCT
DESIGNING A PROGRAM
ALTERING SOURCE CODE

14. RE-ENGINEERING:
It is in this phase that the human factors are taken into account.
Two different connotations (association or suggestion )
1st one is the controversial, involving the use of ERP to aid in downsizing efforts.
4. The 2nd use of the word re-engineering in the ERP field refers to an ERP implementation model initially designed & used.ton

15. The BPR approach to an ERP implementation implies two separate, but closely linked implementations involved on an ERP site i.e. a technical implementation & a business process implementation.
The BPR approach emphasis the human element of necessary changes within the organization, which is generally more

16. RE-ENGINEERING
Human factor taken into account
Downsizing effort
bPR APPROACH

17. CONFIGURATION
IMPORTANCE OF CONFIGURATION
This is the main functional area of the ERP implementation.
Business processes have to be understood & mapped in such a way that the arrived solution matches with the overall goals of the company.
THE PROTOTYPE
A prototype (a simulation of the actual business processes of the company) will be used.
The prototype allows for thorough testing of the ‘to be’ model in a controlled environment.

18. As the ERP consultants configure & test the prototype they attempt to solve any logistical problems inherited in the BPR before the actual go-live implementation.
STRENGTHS & WEAKNESSES
Configuring a company’s system reveals not only the strengths of a company’s business process but also- & perhaps more importantly- its weakness.
It is vital to the health of the company & to the success of the ERP implementation that those configuring the system are able to explain what won’t fit into the package & where the gaps in functionality occur.

19. CONFIGURATION
Main functional area
Solution match with goals
Prototype-allows for thorough testing
Attempt to solve logistical problem
Configuring reveals strengths & weaknesses
Important for success of ERP implementation

20. IMPLEMENTATION TEAM TRAINING
Implementation team is being trained not how to use the system, but how to implement it.
This is the phase where the company trains its employees to implement & later run the system.
The ERP vendors & the hired consultants will leave after the implementation is over.
Good in-house team
For the company to be self sufficient in running the ERP system, it should have a good in-house team that can handle the various situations.
Thus, it is very vital that the company recognizes the importance of this phase & selects those employees who have the right attitude- people who are willing to change, learn new things & are not afraid of technology- & good functional knowledge.

21. IMPLEMENTATION TEAM TRAINING
Team is being trained for implementation of system
Run the system
Vendors & consultants leave after implementation is over
Good in-house team for handling various solutions
Select employees who have:
RIGHT ATTITUDE
WILLING TO CHANGE
LEARN NEW THINGS AND NOT AFRAID OF TECHNOLOGY

22. 8. TESTING: This is the phase where you try to break the system.
Here we reach a point where we are testing real case scenarios.
The system is configured & now we must come up with extreme case scenarios- system overloads, multiple users logging on at the same time with the same query, users entering invalid data, hackers trying to access restricted areas & so on.
The test case must be designed specifically to find the weak links in the system & these bugs should be fixed before going live.

23. 9. GOING LIVE
On the technical side, the work is almost complete- data conversions is done, databases are up & running, & on the functional side, the prototype is fully configured & tested & ready to go operational.
The system is officially proclaimed operational, even though the implementation team must have been testing it & running successfully for some time.
But once the system is ‘live’, the old system is removed & the new system is used for doing business.

24. 10. END USER TRAINING: Success & failure
The success or failure of an ERP system depends on how the actual users use the system.
The most successful implemented ERP packages fail due to lack of end user training.
People are divided into groups
ERP system changes the job descriptions of the people, so it is important to identify the people who are going to use the system. The current skills of the people are identified & they are divided into groups.
Every group is provided training on the new system.
Training sections
The training section gives the overall view of the system & how the individual actions will be affecting the entire system.

25. Every employee is also provided with the training of the job profile which he is going to perform.
The training section should address about the new technologies & how people will be successful in making the change over.
Atleast the end user training is important because the success of an ERP system depends upon it & this phase is equally difficult.

26. END USER TRAINING
Success or failure
Lack of training
Change job description
Groups all formed & training provided
Training gives over all view of system
Employee provided training
Address new technologies
Important & equally difficult

27. POST IMPLEMENTATION (MAINTENANCE MODE):
Important factors
One important factor that should be kept in mind is that the post implementation phase is very critical.
Once the implementation is over the vendors & the hired consultants will go.
Necessary enhancements & upgrades
There should be people within the company who have the technical processes to make the necessary enhancements to the system as & when required.
The system must be upgraded as & when new versions or technologies are introduced.
Training is needed
Everyone who uses these systems needs to be trained on how they work, how they relate to the business process & how a transaction ripples ( flow) through the entire company whenever they press a key.
The training will never end; it is an ongoing process; new people will always be coming in & new functionality will always be entering the organization.
Maximum value for these input
Living with ERP system will be totally different from installing them.
However, an organization can only get the maximum value of these inputs if it successfully adopts & effectively uses the system.

28. POST IMPLEMENTATION
Most important & critical factor
Vendors & consultants will go
Necessary enhancements & upgrades are made
Training is needed for those who use the system
Training is an ongoing process
Maximum value for this input

29. Why ERP implementation fails?
Lack of top management commitment and support
Improper planning and budgeting
Use of wrong ERP tool
Lack of training
Work culture of the organization