2. 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.
3. 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.
4. Different phases of ERP
1. Pre-evaluation Screening
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
5. Pre-selection Process
Package Evaluation
Project Planning
Gap Analysis Reengineering Configuration
Implementation
Testing End- user Training
Team Training
Going Live
Post – implementation
Phase
ERP implementation Life Cycle
6. Pre evaluation screening and
Package 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.
8. 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.
9. 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.
10. 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.
11. 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.
12. 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.
14. Business Blueprint
It is detailed document of company’s
requirement along with solutions
provided by consultant . As-Is, To-Be
and Gap analysis is documented.
16. Realization
Actual customization needs are chalked
out and actual work starts.
17. 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.
19. Testing
This phase is performed to find the weak link
so that it can be rectified before its
implementation.
20. 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.
22. 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.
23. 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.
24. Post Implementation (Cont….)
An organization can get the maximum
value of these inputs if it successfully
adopts and effectively uses the system.