ERP Implementation Life Cycle

From: eresource Infotech Pvt Ltd
Published: Wed Jan 20 2010

THE process of ERP implementation is referred as "ERP Implementation Life Cycle". ( The following are the steps involved in completing the lifecycle.

Shortlist on the basis of observation
Selecting an ERP package for the company can nevertheless be compared with the process of "Selecting the right Person for the Right Job". This exercise will involve choosing few applications suitable for the company from the whole many.

Assessing the chosen packages
A team of Experts with specialized knowledge in their respective field will be asked to make the study on the basis of various parameters. Each expert will not only test and certify if the package is apt for the range of application in their field but also confirm the level of coordination that the software will help to achieve in working with other departments. In simple terms they will verify if the synergy of the various departments due to the advent of ERP will lead to an increased output. A choice is to be made from ERP implementation models.

Preparing for the venture
This stage is aimed at defining the implementation of ERP in all measures. It will lay down the stipulations and criteria to be met. A team of officers will take care of this, who will report to the person of the highest hierarchy in the organization.

Gap Analysis
This stage helps the company to identify the gaps that has to be bridged, so that the company practice becomes akin to ERP environment. This has been reported as an expensive procedure but it is inevitable. The conglomerate will decide to restructure the business or make any other alterations as suggested by GAP analysis in order to make ERP user friendly. Click here for a detailed study on GAP analysis. A choice is to be made from ERP implementation models.

Business process reengineering
Changes in employee rolls, business process and technical details find place in this phase of restructuring most popularly referred as business process engineering. For more details on BPR click here.

Designing the System
This step requires lot of meticulous planning and deliberate action. This step helps to decide and conclude the areas where restructuring have to be carried on. A choice is to be made from ERP implementation models.

In-house Guidance
This is regarded as a very important step in ERP implementation. The employees in the company are trained to face crisis and make minor corrections as well because the company can neither be at liberty nor afford the bounty to avail the services of an ERP vendor at all times.

This stage observes and tests the authenticity of the use. The system is subjected to the wildest tests possible so that it ensures proper usage and justifies the costs incurred. This is seen as a test for ERP implementation.

Preparing the employees to use ERP
The employees in the organization will be taught to make use of the system in the day to day and regular basis so as to make sure that it becomes a part of the system in the organization.

Post Implementation
The process of implementation will find meaning only when there is regular follow up and proper instruction flow thereafter and through the lifetime of ERP. This will include all efforts and steps taken to update and attain better benefits once the system is implemented. Hence an organization has to perform ERP implementation safely and correctly.

Errors in ERP implementation

ERP implementation failure is a major concern for companies. ERP implementation needs to be done without allowing any scope for limitations and mistakes. If it is not done perfectly then the success of ERP system will remain a question mark. The first and foremost factor that discourages ERP in an organization is the exorbitant costs and investment. The second one is the drafting of an ERP implementation plan to ensure ERP implementation success.

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