ERP Implementation Life Cycle By Dr Santosh Parakh

ERP Implementation Life Cycle By. Dr. Santosh Parakh

Objectives of ERP Implementation 1. Speed 2. Scope 3. Resources 4. Risk 5. Complexity 6. Benefits

ERP Implementation. Phases 1. Pre-evaluation Screening 2. Package Evaluation 3. Project Planning Phase 4. Gap Analysis 5. Reengineering 6. Customization 7. Implementation Team Training 8. Testing 9. Going Live 10. End-user Training 11. Post-implementation

Fig. ERP Implementation Life Cycle- Different Phases Company Management Pre-selection Screening ERP Vendors Package Evaluation Project Planning Gap Analysis Reengineering Customization Implementation Testing Team Training Going Live Post-implementation Phase End- user Training

1. Pre Evaluation Screening 1. 2. 3. 4. Feasibility study is carried out. This starts to search for the perfect package. In this screening strong and weak points of packages are studied. Following points are studied for package selection. A. History of package. B. Cost - License, Training, Customization, Maintenance etc. C. Past Experience. D. Time required for implementation and training. E. Functional fit with the companies business. F. Flexibility. G. Complexity. H. Feedback from customers. I. Effectiveness. J. Quick implementation. K. Availability of regular updates.

2. Package Evaluation 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Functional fit with company’s business Degree of integration between the various components of the ERP system Flexibility Complexity User friendliness Quick implementation Ability to support multi-site planning & control Technology- client-server capability, database independence Security Availability of regular upgrades Amount of customization required Local support infrastructure Total cost- cost of license, training, implementation. Maintenance, customization & hardware requirement

3. Project Planning 1. 2. This is the phase that designs the overall implementation phase. How to go about implementation, time schedules and deadlines etc. are discussed. 3. Roles are identified. 4. Responsibilities are assigned. 5. Organizational resources are decided and people who are supported to the heads are identified. 6. Everyone’s scope of work is identified. 7. The implementation team members are selected and task allocation is done. 8. Planning phase will decide “when to begin the project”, “how to fit it” and “when the project is supposed to be completed. ” 9. This phase will also plan what to do in case of contingences and how to monitor the progress of the project. 10. This phase is controlled by committee and meet periodically to review the progress and future actions and normally committee headed by CEO or COO (Chief Operating Officer).

Why Do Many ERP Implementations Fail? 1. Lack of Top Management Commitment 2. Improper Planning & Budgeting 3. Lack of Training 4. Work Culture of the Organization

Role of Organization Management and Vendor in ERP implementation 1. Management 2. CEO 3. Executive Committee 4. Project Management Team 5. Project Manager 6. Implementation Team / Work Team 7. Technical Support Team 8. Administrative Support Team 9. Consultant 10. Vendors 11. End Users

Management 1. Management representative will monitor the progress of the project and take corrective decisions to keep the project on schedule and within budget. 2. Top Management is responsible for designing the implementing team on full time basis.