ERP

Implementation

Different Phase of ERP implementation are Pre-Evaluation

Screening
Package Evaluation
Project Planning Phase
Gap Analysis
Reengineering
Configuration
Implementation Team Training
Testing
End-User Training
Going Live
Post Implementation Phase

Company
Management

Go ahead

Pre-Evaluation Screening

ERP Vendors

Package Evaluation

Project Planning

Gap Analysis

Implementation Team Training

Reengineering

Testing

Going Live

Post Implementation Phase

ERP implementation Lifecycle

Configuration

End-User Training

1.

Pre-Evaluation Screening

Pre-Evaluation

Screening is the phase which

starts when company decides to go for a ERP
System, the search for perfect solution starts.
Not all packages are same each has its own
weakness and strength.
While making the analysis it is good to
investigate the origins of the different packages.
Some packages can be good in some areas while
in other sectors they may not.
Once few packages are screened detailed
evaluation process starts.

2.

Package Evaluation

Package

Evaluation process is one of the most

imp phase of the ERP implementation , because
the package you select will decide failure or
success of project.
There is little room for error in this as ERP
packages are so expensive once purchased can
not switch to another.
While making the analysis the imp point is
nothing is perfect , imp here is whether it is a
perfect fit or good fit.

Few imp points to remember while evaluating

software includes.
Flexibility

& Scalability.
Complexity
Ability to support multi site planning & control.
Local support infrastructure .
Total cost i.e license , training, customization
etc.

3.

Project Planning Phase

This is the phase which plans that designs the

implementation process.

In this phase details of how to go about

implementation , schedules and deadlines etc are
decided.

Roles and responsibilities are identified and assigned.

This is phase which will decide when to begin, how to

do it and when the project is supposed to be
completed and what to do in contingencies.

Their is a committee for this and which is suppose to

meet periodically through out cycle to review process
and chart future course of action .

a.
This

Project schedule

is the phase that designs the implementation

process.
In this phase the details of how to go about the
implementation are decided.
Time schedules, deadlines, etc for the projects are
arrived at & the project plan is developed.
Roles are identified & responsibilities are assigned.
The resources that will be used for implementation
efforts are decided & the people who are going to
be in-charge of implementation are identified.
Planning is done by the committee constituted by
team leaders.

b. Decision of the phase

This phase plans what to do in case of contingencies,

how to monitor the progress of the implementation.

This phase also decides what control measures should

be installed & what corrective measures or actions
should be taken when things get out of control.

c. Team leader

The project planning is usually done by a committee

constituted by the team leaders of each implementation
group.

The committee will be headed by the ERP in-charge

(i.e. the CIO or COO).

The committee will meet periodically to review the

progress & chart the future course of action.

PROJECT PLANNING PHASE

Project schedule
DESIGN IMPLEMENTATION PROCESS
TIME SCHEDULES, DEADLINES, ETC
RESOURCES ARE NEEDED AND IMPLEMENTATION IDENTIFIED

Decision of phase

CONTINGENCIES, MONITOR THE PROGRAM, CONTROL

MEASURES , CORRECTIVE ACTIONS

Team leader
PLANNING IS DONE BY TEAM LEADERS
COMMITTEE WILL BE HEADED BY INCHARGE

4.

GAP ANALYSIS

Importance of Gap Analysis

Gap analysis is a phase in the ERP implementation, where

the organization tries to find out the gaps between the
companys existing business practices & those supported
by the ERP package.

This is the process through which companies create a

complete model of where they are now & where they want
to head in the future.

Main objective

The main objective is to design a model, which both

anticipates & covers any function gap.

It has been estimated that even the best ERP package

meets only 80% of the companys functional gaps.

Different ways of finding gaps

a.

One of the most affordable, but most difficult, solutions entails altering the
business to fit the ERP package.

b.

Another solution is that the company can simply agree to live without a
particular function.

c.

Other solutions include:

Pinning your hopes on an upgrade or updating of software.

Identifying a third-party product that might fill the gap.

Designing a custom program.

Altering the ERP source code.

GAP ANALYSIS

Importance
FIND OUT THE
GAPS BETWEEN
BUSINESS AND ERP
PACKAGE
COMPANY CREATES
A MODEL

Main objective

Different ways of finding

DESIGN A MODEL
COVERS ANY
FUNCTIONAL GAP

ALTERING THE BUSINESS

TO FIT THE PACKAGE
LIVE W/O A FUNCTION
UPDATING SOFTWARE
IDENTIFYING A PRODUCT
DESIGNING A PROGRAM
ALTERING SOURCE CODE

5. RE-ENGINEERING:
1.
2.
3.
4.

5.

6.

7.

It is in this phase that the human factors are taken into

account.
Two different connotations
1st one is the controversial, involving the use of ERP to aid in
downsizing efforts.
There have been occasions where high level executives have
invoked the reengineering slogan & purchased an ERP package
with the aim of reducing number of employees.
While every implementation is going to involve some change in
job responsibilities, so it is the best to treat ERP as an
investment as well as cost-cutting measure, rather than a
downsizing tool.
Downsizing is a business practice that may have its place, but it
should not be cloaked within the glossier slogan of
reengineering.
The 2nd use of the word re-engineering in the ERP field refers to
an ERP implementation model initially designed & used.

The BPR approach to an ERP implementation

implies two separate, but closely linked
implementations involved on an ERP site i.e. a
technical implementation & a business process
implementation.
The BPR approach emphasis the human
element of necessary changes within the
organization, which is generally more
Time consuming & has received its share of
criticism for creating bloated budgets &
extended projects.
The ERP market shifts to a mid-market focus &
as all implementation are becoming more cost
sensitive; the BPR approach has come under
some real scrutiny.

RE-ENGINEERING

Human factor taken into account

Downsizing effort

bPR APPROACH

6. CONFIGURATION
IMPORTANCE OF CONFIGURATION

This is the main functional area of the ERP implementation.

Business processes have to be understood & mapped in such a way that the
arrived solution matches with the overall goals of the company.

THE PROTOTYPE

a.

A prototype- a simulation of the actual business processes of the company- will

be used.

b.

The prototype allows for thorough testing of the to be model in a controlled

environment.

c.

As the ERP consultants configure & test the

prototype they attempt to solve any logistical
problems inherited in the BPR before the actual
go-live implementation.

STRENGTHS & WEAKNESSES

a.

b.

Configuring a companys system reveals

not only the strengths of a companys
business process but also- & perhaps
more importantly- its weakness.
It is vital to the health of the company &
to the success of the ERP implementation
that those configuring the system are
able to explain what wont fit into the
package & where the gaps in
functionality occur.

7. IMPLEMENTATION TEAM TRAINING

When the configuration is taking place the implementation

team is being trained not how to use the system, but how to
implement it.
This is the phase where the company trains its employees to
implement & later run the system.
The ERP vendors & the hired consultants will leave after the
implementation is over.
Good in-house team
For the company to be self sufficient in running the ERP
system, it should have a good in-house team that can handle
the various situations.
Thus, it is very vital that the company recognizes the
importance of this phase & selects those employees who have
the right attitude- people who are willing to change, learn
new things & are not afraid of technology- & good functional
knowledge.

8. TESTING:
This

is the phase where you try to break the

system.
Here we reach a point where we are testing real
case scenarios.
The system is configured & now we must come up
with extreme case scenarios- system overloads,
multiple users logging on at the same time with
the same query, users entering invalid data,
hackers trying to access restricted areas & so on.
The test case must be designed specifically to find
the weak links in the system & these bugs should
be fixed before going live.

9.

GOING LIVE

On the technical side, the work is almost completedata conversions is done, databases are up &
running, & on the functional side, the prototype is
fully configured & tested & ready to go operational.

The system is officially proclaimed operational, even

though the implementation team must have been
testing it & running successfully for some time.

But once the system is live, the old system is

removed & the new system is used for doing
business.

10. END USER TRAINING:

Success & failure

People are divided into groups

The success or failure of an ERP system depends on how the

actual users use the system.
The most successful implemented ERP packages fail due to lack of
end user training.
ERP system changes the job descriptions of the people, so it is
important to identify the people who are going to use the system.
The current skills of the people are identified & they are divided
into groups.
Every group is provided training on the new system.

Training sections

The training section gives the overall view of the system & how
the individual actions will be affecting the entire system.

POST IMPLEMENTATION (MAINTENANCE MODE):

Important factors

Necessary enhancements & upgrades

There should be people within the company who have the technical
processes to make the necessary enhancements to the system as & when
required.
The system must be upgraded as & when new versions or technologies
are introduced.

Training is needed

One important factor that should be kept in mind is that the post
implementation phase is very critical.
Once the implementation is over the vendors & the hired consultants
will go.

Everyone who uses these systems needs to be trained on how they work,
how they relate to the business process & how a transaction ripples
through the entire company whenever they press a key.
The training will never end; it is an ongoing process; new people will
always be coming in & new functionality will always be entering the
organization.

Maximum value for these input

Living with ERP system will be totally different from installing them.
However, an organization can only get the maximum value of these
inputs if it successfully adopts & effectively uses the system.