ERP Implementation Life-Cycle
Enterprise Resource Planning (ERP) is made to automate any task. With ERP, it is easy to manage every department under one single database. This consumes not much time and is easy and fast way to do work with. Developed in 1990s, Enterprise Resource Planning is foundation system for domestic and global operations, supporting most or all functional areas in their daily operations. Is one of the more common categories of business software, especially with large-scale businesses.
It is business strategy and set of industry-domain-specific applications that build customer and shareholder communities value network system by enabling and optimizing enterprise and inter-enterprise collaborative operational and financial processes. ERP at its core is an effective way of centralizing information and workflow processes through data management. Because ERP keeps all of your workflow data in one place.
Any enterprise’s planning, manufacturing, sales and marketing efforts are put under one management system and then it combines to one single database system.
Different phases of ERP Implementation :
- Pre-evaluation screening :
This phase starts when company decides to go for ERP system. For this, search for package starts. It is time-consuming process because every package has to analyze first before reaching to any decision. As all packages are not same and each has its own strengths and weakness. This process should eliminate those packages that are not suitable for company’s business processes.
- Package Evaluation :
It is the most important phase in implementation. This phase depends on success and failure of entire project with package selection. Most important factor while selecting any package is that not every package can be totally perfect for project but at-least it should be good fit for project.
- Project Planning Phase :
This phase plans and designs implementation process.
- Gap Analysis :
It is the most crucial phase in this implementation. Here, gaps are analyzed between company’s practices and that practices which are supported by ERP package. It has been estimated that even best ERP package only meets 80-85% of company’s functional requirements.
- Re-engineering :
It is the fundamental rethinking and radical redesign of business processes to achieve improvements.
- Customization :
It is the main functional area of ERP Implementation. Arrived solution must match with overall goals of company. Prototype should allow for thorough testing and attempts to solve logistical problem.
- Implementation Team Training :
Now after above processes, implementation team knows how to implement system. This is phase where company trains its employees to implement and later run system.
- Testing :
This is the phase where team break system. Sometimes, system overloads or multiple users trying to login at same time etc. Test cases are designed specifically to find weak links in system. Different types of testing are: Unit testing, integration testing, acceptance testing, security testing, performance and stress testing.
- Going Live :
Once technical and functional side is properly working and testing is done. There comes next phase i.e, “Going Live”. Once system is ‘live’, old system is removed & new system is used for doing business.
- End-User Training :
This is the phase where user of system is given training on how to use system. Employees and their skills are identified and training is given to them in groups based on their current skills. Every employee is provided with training of job which he is going to perform.
- Post-Implementation :
It is the most important and critical factor. Post Implementation is based on two words- Operation and Maintenance of system. Duration of this phase depends on training efficiency. Necessary enhancements & upgrades are made in this phase.