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                                    CHAPTER 8
                 ERP IMPLEMENTATION
                       LIFECYCLE

                                        Sonali C.
                                    UDIT -T.Y.B.Sc (IT)
                                         2008-09


        Sonali C. (UDIT TYBSc-IT)                                                1




        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

        Sonali C. (UDIT TYBSc-IT)                                                2




                                     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


        Sonali C. (UDIT TYBSc-IT)                                                3




Sonali C. (UDIT-TYBSc-IT)                                                                   1
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


        Sonali C. (UDIT TYBSc-IT)                                       4




        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

        Sonali C. (UDIT TYBSc-IT)                                       5




        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




        Sonali C. (UDIT TYBSc-IT)                                       6




Sonali C. (UDIT-TYBSc-IT)                                                          2
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

        Sonali C. (UDIT TYBSc-IT)                                      7




                                               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


        Sonali C. (UDIT TYBSc-IT)                                      8




        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



        Sonali C. (UDIT TYBSc-IT)                                      9




Sonali C. (UDIT-TYBSc-IT)                                                         3
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.




        Sonali C. (UDIT TYBSc-IT)                                             10




                                                    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



        Sonali C. (UDIT TYBSc-IT)                                             11




                       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

        Sonali C. (UDIT TYBSc-IT)                                             12




Sonali C. (UDIT-TYBSc-IT)                                                                 4
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

        Sonali C. (UDIT TYBSc-IT)                                    13




                                                       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



        Sonali C. (UDIT TYBSc-IT)                                    14




                                          End-User Training

            Actual user is given training on how to use system.
            Starts much before system goes live




        Sonali C. (UDIT TYBSc-IT)                                    15




Sonali C. (UDIT-TYBSc-IT)                                                        5
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.


        Sonali C. (UDIT TYBSc-IT)                                     16




                                    Any Questions????

                               THANK YOU
        Sonali C. (UDIT TYBSc-IT)                                     17




Sonali C. (UDIT-TYBSc-IT)                                                         6

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Chapter 7 E R P Implementation Lifecycle Alexis Leon

  • 1. Lifecycle CHAPTER 8 ERP IMPLEMENTATION LIFECYCLE Sonali C. UDIT -T.Y.B.Sc (IT) 2008-09 Sonali C. (UDIT TYBSc-IT) 1 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 Sonali C. (UDIT TYBSc-IT) 2 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 Sonali C. (UDIT TYBSc-IT) 3 Sonali C. (UDIT-TYBSc-IT) 1
  • 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 Sonali C. (UDIT TYBSc-IT) 4 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 Sonali C. (UDIT TYBSc-IT) 5 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 Sonali C. (UDIT TYBSc-IT) 6 Sonali C. (UDIT-TYBSc-IT) 2
  • 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 Sonali C. (UDIT TYBSc-IT) 7 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 Sonali C. (UDIT TYBSc-IT) 8 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 Sonali C. (UDIT TYBSc-IT) 9 Sonali C. (UDIT-TYBSc-IT) 3
  • 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. Sonali C. (UDIT TYBSc-IT) 10 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 Sonali C. (UDIT TYBSc-IT) 11 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 Sonali C. (UDIT TYBSc-IT) 12 Sonali C. (UDIT-TYBSc-IT) 4
  • 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 Sonali C. (UDIT TYBSc-IT) 13 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 Sonali C. (UDIT TYBSc-IT) 14 End-User Training  Actual user is given training on how to use system.  Starts much before system goes live Sonali C. (UDIT TYBSc-IT) 15 Sonali C. (UDIT-TYBSc-IT) 5
  • 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. Sonali C. (UDIT TYBSc-IT) 16 Any Questions???? THANK YOU Sonali C. (UDIT TYBSc-IT) 17 Sonali C. (UDIT-TYBSc-IT) 6