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ERP Manager meets SDLC and CMMI


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Software development lifecycle (SDLC) has traditionally been used for in-house systems
or custom-developed software. Capability Maturity Model Integration (CMMI) has been
used specifically in software engineering to demonstrate the maturity of an organization's
software development process. Implementations of packaged enterprise software bring a
unique set of challenges that need to be viewed from the different perspectives of SDLC
and CMMI. This presentation demonstrates how ERP managers can articulate their
development and support process within the context of SDLC and CMMI.

Published in: Technology

ERP Manager meets SDLC and CMMI

  1. 1. Mahesh VallampatiMahesh Vallampati
  2. 2. About the Speaker Mahesh Vallampati Career Director, Oracle Applications and Technologies at Coach America Senior Practice Manager at SmartDog Services Senior Sales Consulting Manager at Hotsos (2 years)Senior Sales Consulting Manager at Hotsos (2 years) Director of DBA Services at Eagle Global Logistics (2 years) Practice Manager at Oracle in Consulting(9 years) Papers Several papers presented at Collaborate and at 3 Oracle Open Worlds Published in Oracle Magazine Education Master’s in Electrical Engineering, Texas A&M University
  3. 3. Contact Information Mahesh Vallampati
  4. 4. Agenda The Solution Perspective ERP Manager Challenges SDLC Overview ERP Manager to SDLC MappingERP Manager to SDLC Mapping CMMI Overview ERP Manager to CMMI Mapping Adapting to SDLC and CMMI Defining Complexity Next Steps Q&A
  5. 5. Acronyms But First, some Acronyms SDLC – Software Development Life Cycle CMMI – Capability Maturity Model Integration CMF – CMMI Model FoundationCMF – CMMI Model Foundation ERP – Enterprise Resource Planning CRM – Customer Relationship Management AIM – Application Implementation Method
  6. 6. Solution Perspective What is an ERP Solution? ERP Solution is a combination of Standard Functionality Customization to Standard FunctionalityCustomization to Standard Functionality Extended Functionality Key Difference between a customization and an extension Customization Impacted by App Upgrade Extension Not Impacted by App Upg.
  7. 7. Ownership Challenge The Biggest Challenge – Ownership Who owns the solution Is it the Software VendorSoftware Vendor Implementation Partner ERP Manager
  8. 8. The History Challenge • ERP Implementation history – Missing Documentation/Information • Requirements • Gap Mapping to Requirements • Business Justification for the Gaps • Customization Mapping to Gaps• Customization Mapping to Gaps • History of Req., Gaps and Customizations • Resource Mapping to Customizations • Comprehensive List of Customizations • Be able to establish the causal connection – Requirements Gaps Customizations Programs
  9. 9. Ongoing Challenge • Estimation – History of effort levels for maintaining customizations – Activity Based Costing for customizations – Cost Per Customization • Activity Categories – Software Development Life Cycle– Software Development Life Cycle – Support – Work Requests • Method – Be able to evidence a method for managing customizations - SDLC – Be able to evidence capability and maturity- CMMI
  10. 10. What is SDLC? SDLC – Software Development Life Cycle Process for creating or altering software Used in System Engineering Information SystemsInformation Systems Software Engineering Outcome of SDLC A high quality system Meets or Exceed customer expectation Focus Development only historically Includes Maintenance also
  11. 11. SDLC Wikipedia - SDLC
  12. 12. SDLC Wikipedia - SDLC
  13. 13. SDLC Any SDLC Method is usually Comprehensive SDLC is usually “tailored” for each organization A new focus on Maintenance and Support SDLC traditionally ended with deploymentSDLC traditionally ended with deployment Uses the waterfall method of software development
  14. 14. AIM and SDLC Oracle AIM Method
  15. 15. AIM and SDLC Again AIM is usually tailored for an implementation Important documents in the implementation are usually identified ahead of time These documents are maintained during the course ofThese documents are maintained during the course of the project
  16. 16. Iterative CRP and Flows Approach Even Oracle AIM which is focused on Oracle ERP can be quite cumbersome. Oracle AIM is a waterfall method based on traditional SDLCSDLC Waterfall method can be time consuming and expensive Iterative CRP Method has become a de-facto method Flows based implementation which mimic an entire business process has become the norm
  17. 17. Iterative CRP Method– Define Resolutions to Exceptions – Revise Configurations – Revise Test Scripts – Revise Process Documents – Identify Test Data – Define Resolutions to Exceptions – Revise Configurations – Revise Test Scripts – Revise Process Documents – Identify Conversion Data – Project Team Training – Define Instance – Business Flow Review Pre-CRP Activities – Project Team Familiarized – Exceptions Identified – Process Decisions Made – Configurations and Processes Unit Tested – Remaining Exceptions Identified – Integrated Testing of Configurations and Processes Completed – Production-Ready Configuration Identified CRP 1 – Familiarization and Exception Identification CRP 2 – Unit Testing CRP 3 – Integration Testing CRP Outcomes
  18. 18. Iterative CRP Method ConfirmationDefinition TransitionValidationElaboration Process Solution and Configurations Pre-Live Testing Production Acceptance and Migration To Production Future Business Model Business Flows R E Q U I R E M To Production Production Integration Training Conv. CRP 2 CRP 3CRP 1 M E N T S FIT/GAP Business Systems Testing (BST) Systems Integration Testing (SIT) User Acceptance Testing (UAT)
  19. 19. A high level SDLC Process for ERP
  20. 20. Other SDLC like Processes Rapid Application Development (RAD) Joint Application Design (JAD) Software prototyping Extreme Programming (XP)Extreme Programming (XP) Object Oriented Programming (OOP) End User Development (EUD) Open Source Development Agile Development
  21. 21. Iterative CRP Iterative CRP has become the de-facto approach Gives the user a “feel” of the system Manual steps that need to be automated can be setup as custom RICE componentsas custom RICE components Issues and show stoppers can be identified early Business Process flows and training documents can be aligned
  22. 22. A note on O&M Operations and Maintenance have become important Cost reduction and efficiencies are getting a renewed focus Success criteria has begun to include these costs asSuccess criteria has begun to include these costs as well A system that meets expectations but add significant O&M costs is now deemed a failure
  23. 23. SDLC Summary ERP Implementations have evolved into an iterative CRP Approach with select AIM/SDLC deliverables If you are not implementing iterative CRP, you will have cost overrunshave cost overruns Operations and Maintenance costs have a renewed focus
  24. 24. CMMI CMMI A process improvement Approach Used mostly in software engineering Enables organization to identify where they areEnables organization to identify where they are Provide a roadmap to get to a higher level of performance or competence or capability
  25. 25. CMMI CMMI - Wikipedia
  26. 26. CMMI CMMI - Wikipedia
  27. 27. CMMI Evolution CMMI for Development – August 2006 CMMI for Acquisition – November 2007 CMMI for Services – February 2009 CMMI Product Suite 1.3 – in 2010CMMI Product Suite 1.3 – in 2010
  28. 28. CMMI Components CMMI Component ERP Manager Role Development Describes how products and services need to be developed. This can be used toneed to be developed. This can be used to define approach for developing and maintaining customizations and enhancements Acquisition This can be used to define how software components can be acquired when replacing existing systems Services Can be used to define how services will be developed and delivered.
  29. 29. ERP Development CMMI Maturity 25% 30% 35% 40% 45% %ofMarket 0% 5% 10% 15% 20% 25% %ofMarket Level 0 Level 1 Level 2 Level 3 Level 4 Level 5 CMMi Levels Our estimation Bell Curve
  30. 30. ERP Manager Responsibilities Ongoing Support Usability (How do I do something?) Break Fixes (Things are Broke) CustomCustom Standard Customization to standard Work Requests Net New Functionality Business Support Assisting with Business Operations
  31. 31. ERP Manager Responsibilities Requirements Management Configuration Management Maintain additional setups Maintain integrity of setupsMaintain integrity of setups RICE List Maintenance Upgrade Planning Manage cost of system operations
  32. 32. CMF and ERP Manager Abbr. Name Area ERP Manager Role REQM Requirements Management Engineering Gather, Track and Maintain requirements over lifecycle PMC Project Monitoring and Control Project Management Maps to Project Management and PMP Framework PP Project Planning Project Management Maps to Project Management and PMP Framework CM Configuration Management Support Maintain Setups MA Measurement and Analysis Support Measure and Manage various aspects of delivery PPQA Process and Product Quality Assurance Support Related to testing and compliance OPD Organizational Process Definition Process Management More of an assist in this area than responsible CAR Causal Analysis Support Root cause analysis of issues
  33. 33. Does CMMI Matter for ERP Managers? An increasing number of implementation vendors are being appraised at various CMMI Levels Appraised not certified CMMI Benchmarking will reveal new insightsCMMI Benchmarking will reveal new insights Support efficiencies Configuration consistency Cost of support as a function of complexity The higher the complexity, the harder to achieve CMMI and hence costs are higher
  34. 34. Does CMMI Matter for ERP Managers? It depends CMMI is frequently used as a benchmarking tool Proactively benchmarking yourself reveals two things It indicates awareness and an approach to understandIt indicates awareness and an approach to understand what is being delivered It provides a roadmap for ongoing improvement Any ERP Manager who wants to achieve the two objectives need to evaluate CMMI
  35. 35. Does CMMI Matter for ERP Managers? ERP issues tend to have these root causes Business Process maturity that is implemented Configuration does not match to business process executionexecution Customizations and enhancements do more harm than good The ERP software itself has stability issues Quality of Support not up to par Being able to triage it is crucial for survival
  36. 36. Why complexity matters SDLC and CMMI seems rational and tends to make sense However measuring an ERP System without the complexity perspective would be sub-optimalcomplexity perspective would be sub-optimal Complexity can characterize an implementation in many ways and impact Schedule Success ROI Maturity as perceived by SDLC and CMMI
  37. 37. Complexity of ERP Systems Factors that impact complexity of ERP Systems Maturity of ERP Software User willingness to adopt new processes Capability of implementation partnerCapability of implementation partner Maturity of the IT organization supporting it Business Operations Management capability to adopt new processes Completeness of solution Interface t o other systems Customization to the ERP System
  38. 38. Why Complexity matters Before embarking on SDLC and CMMI, understanding the complexity is important The underlying symptoms will have to be addressed Applying SDLC and CMMI to unhappy users,Applying SDLC and CMMI to unhappy users, incomplete solutions, immature implementation, software that is not ready but yet being used could be an exercise in travesty
  39. 39. ERP Implementations
  40. 40. Managing Expectations Source: Panorama Consulting Group
  41. 41. Next Steps Understand the complexity of the system Perform activity based costing of the work performed App UI Support App SupportApp Support Data Fixes Work Request Trouble Tickets More categories Strive for a Level 2 CMMI which will provide a basic level of sanity if chaotic
  42. 42. Next Steps Adopt the SDLC method that makes most sense to your organization Traditional SDLC is simply just not possible Iterative CRP adoption will be keyIterative CRP adoption will be key Pragmatism is key in the whole approach Good luck!!