The document outlines the key phases in an ERP implementation lifecycle. It discusses pre-selection screening of ERP vendors and packages, package evaluation, project planning, gap analysis between current systems and the ERP, reengineering business processes, system configuration, training the implementation team and end users, testing, and post-implementation support. The phases described provide a framework for a successful ERP rollout from initial selection through go-live and ongoing maintenance.

1. CHAPTER 8
ERP IMPLEMENTATION
LIFECYCLE
SONALI CHAUHAN
Dept. of Information Technology - Mumbai University
T.Y.B.Sc (IT)
2008-09
Sonali C. (UDIT TYBSc-IT) 1

2. 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

3. 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

4. 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

5. Cont…
Package Evaluation
Points to be kept in mind while evaluating ERP:
1. Functional fit with the 1. Ability to support multi-
company’s business site planning and control
process. 2. Technology
2. Degree of Integration 3. Availability of regular
between the various upgrades
components of the ERP
system. 4. Amount of customization
required
3. Flexibility and scalability 5. Local support
4. Complexity infrastructure
5. User friendliness 6. Availability of reference
6. Quick implementation sites
7. Total cost
Sonali C. (UDIT TYBSc-IT) 5

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

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