Enterprise resource planning Enterprise resource planning (ERP) covers the techniques and the methods employed for the integrated management of businesses as a whole from the viewpoint of the efficient use of the management resources, to improve the efficiency of an enterprise. ERP packages are integrated software packages that support the above ERP concepts.
ERP LIFE CYCLE ERP lifecycle highlights the different stages in implementation of an ERP. The ERP implementation project goes through the different phases of the ERP lifecycle implementation.
Different phases of ERP1. Pre-evaluation Screening2. Package Evaluation3. Project Planning phase4. GAP analysis5. Reengineering6. Configuration7. Implementation Team Training8. Testing9. Going Live10. End-User Training11. Post Implementation
Pre-selection Process Package Evaluation Project Planning Gap Analysis Reengineering Configuration Implementation Testing End- user Training Team Training Going Live Post – implementation PhaseERP implementation Life Cycle
Pre evaluation screening andPackage Evaluation Screening eliminates the packages that are not at all suitable for the company’s business processes and selecting package suitable for our business process.
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.
Project Planning (cont….) 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 of 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.
Gap Analysis (cont….) 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 problematic issues for the company’s BPR.
Re-engineering One of the tremendous benefits of an ERP implementation project is that it represents an opportunity to make necessary process or workflow changes. While change is usually hard, keep the big picture in mind and embrace changes that can help you achieve breakthrough improvements.
Realization Actual customization needs are chalked out and actual work starts.
Team Training Takes place along with the process of implementation. Company trains its employees to implement ERP first and then the smooth functioning of the ERP. Employee becomes self sufficient to implement the software after the vendors and consultant have finished their role.
Testing This phase is performed to find the weak link so that it can be rectified before its implementation.
End User Training 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 this phase very crucial.
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.
Post Implementation This is the maintenance phase. Employees who are trained enough to handle problems which crops up time to time. The post implementation will need a different set of roles and skills than those with less integrated systems.
Post Implementation (Cont….) An organization can get the maximum value of these inputs if it successfully adopts and effectively uses the system.