ERP Implementation Life Cycle: Understand the Phases of ERP

ERP implementation is a complex process that requires rigorous planning and coordination between different stakeholders. Therefore, ERP projects should have clear goals, objectives, deliverables, and timelines for completion. Hence, everyone knows what they are working towards during the ERP life cycle. The ERP implementation lifecycle is the sequence of activities required to successfully implement ERP software in an organization.

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. New release and versions appear for underlaying technologiocal platforms like Operating System and Data Base. ERP vendors release patches and versions of their producdts at regular intervals which needed to be incorporated in the existing system. But, problem arises where many softwae objects were customized during implementation. Retrofitting these objects for making them compatiable with later versions, may turn out to be a major migration exercise involving exorbitant cost and effort. After a prolonged period, due to changes in business and technological paradigm, it becomes more and more difficult and expensive to maintain and extend the system.

Cloud ERP Implementation Life Cycle

Gaps between a company’s processes and those supported by the ERP software are examined here. Even the greatest ERP product is expected to only cover 80-85% of a company’s functional needs. At Stabilization moment, the ERP system, that until then was only an abstraction, gains reality and starts to be part of the company and of the people’s daily life.

Cloud-based ERP software has grown increasingly popular over the years due to accessibility and convenience, especially as more businesses embrace remote work opportunities. However, this deployment method is not always appropriate, particularly https://globalcloudteam.com/ for local or small businesses which perform all services on-premise. In the long term, businesses will encounter several unexpected scenarios that will leave them bewildered and irritated, since answers may not be obvious.

• Deciding to upgrade your existing ERP system software or to implement a new ERP system is a major undertaking.
• This person should also be available to help answer the inevitable questions or alleviate possible concerns that may arise during the implementation.
• Users should be included in the design phase since they know business processes best.
• Maybe there are relationship problems with the supplier that demand the attention of the IT manager.
• Once this audit is completed and your wish list is adjusted, begin to map out a timeline for implementing wish list items.

Some shrinkwrap software options will have generic training modules, so it’s important to specify if customization is necessary. A company, regardless of its size, must deal with a variety of activities such as purchasing, sales, inventory management, finance, accounting, and payroll. Having a separate system to handle each of these duties would be a headache, which is why an integrated ERP software solution would be beneficial. Getting Started − Once the technical and functional aspects of the project are completed, testing may begin. The next step is “Going Live.” Once the system is operational, the old system is decommissioned and the new system is utilized to conduct business.

Maintaining the new amended system is the most difficult task where many companies fail. If you’ve partnered with a good ERP consultant, you will retain that relationship for years to come. Your consultant will provide additional training and guidance on the safest and best ways to achieve configuration changes. Information must be recorded into the system at the best-suited moment for the process and not at the best-suited moment for a specific department. ERP Implementation is a complex process that can be overwhelming for any business.

Keep Track of Data

In these stage problems have been easily detected at the implementation stage. Here the company is already relying upon the system for its activities and which causes major pressure for the speedy solution of problems. The length of this period depends on the company and may takes about eight weeks. Any enterprise’s planning, manufacturing, sales and marketing efforts are put under one management system and then it combines to one single database system. Initial investment in acquiring and implementing an ERP system is substantial in terms of both human efforts and financial resources. After, successful implementation, the system goes to maintenance mode and organizations start getting value out of their investment.

In contrast to the traditional linear model, this framework was not sequential but with some assumed circles. As with any large project, it’s imperative that you take an ERP implementation one step at a time. The timeframe for completing these stages also differs from company to company and will depend on your personal decisions about how quickly you want to move forward. For perspective, though, most ERP implementations are completed, from planning to having a fully operational system, in six months to one year.

This is the stage where the actual implementation of the ERP system occurs. Once all the data is collated, analysed and converted to be fed into the system, the new implementation is applied, and the older system is discarded. Since there is a new system in place, it will require for employees to get proper training so they can start using the product, seamlessly.

Business intelligence implementation: A step-by-step guide

Any business seeking to implement an ERP system must select an appropriate methodology. The three most common methodologies are waterfall, agile, and hybrid. The waterfall is the traditional develop erp software approach, and it entails completing all requirements for one phase before moving on to the next phase. Agile is a more modern approach that emphasizes flexibility and rapid delivery.

Because no two packages are alike, each has its unique set of strengths and weaknesses. This procedure should weed out any packages that aren’t appropriate for the company’s operations. 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. 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.

How to choose an IS according to Stefanou’s ERP selection framework?

The project team will put out the project strategy and goal dates, assign necessary resources, make product and design choices, and manage the project day-to-day. Let’s look at the brief description of the reasons an organization needs an ERP system. ERP, at its heart, is a data-driven approach to centralizing information and workflow processes. The exact characterization of this stage is related to the operation-starting mode by the company. Companies that implement the modules in phases, or even in small-bangs, the stabilization stage is less characterized and merges with the implementation stage of the remaining modules. Stabilization stage in the case of implementation by phases starts with the operation of the first module and ends only when the last module implemented, in the last locality of the company.

Finally, the last phase is when you can try out the software and make any final adjustments. While this might not seem like a necessary step of the implementation process, it is vital for your long-term success with your new ERP software. During this phase, the vendor goes over existing data and programs to incorporate into the ERP project. They may identify the best methodology for combining your existing data system with their software. This is sometimes referred to as re-engineering since they are adding and removing elements from the base software to fit your needs. This is the step of implementation where your business recognizes the need for an ERP system.

ERP Implementation Life Cycle — What Is It?

3) The systems approach to problem solving breaks complex problems up into more manageable, smaller problems. It is likely that they will adopt more of a vanilla version with minimum need of customization, so that the next cycle gives a better Return on Investment . This is the longest stage of the ERP life cycle, lasting anywhere from 6-10 years or more. It is during this stage that the value of your system is realized.

A great number of companies are using ERP software in their day-to-day business operations. PayWith’s smooth start and continuing growth is a testament to how important it is to correctly follow the ERP implementation stages we’ve talked about today. Their Acumatica customer success story provides further details. A Project Leader, who is knowledgeable about your business, has previous management experience, and can communicate clearly. The Project Leader represents the team and the project to upper management and is responsible for achieving the implementation objectives. When you are ready to roll out the implementation of the ERP system across your company, it’s time to choose which approach best suits your context.

These is achieved by the adjustment of parameters or software customizing and to the development of programs to modify or complement the existing functions. The decision on how the start of the operation of the ERP system is taken in the implementation stage. The start may also occur in phases and here the approach used to implement an ERP system is an important decision in its implementation project as it greatly affects the configuration of the system. In 2001, Stefanou pointed out the importance of the ex-ante evaluation and selection process of the enterprise systems.

Discovery phase Talk to our business analysis team and start a project with a discovery phase. Custom software development services Get unique software for your business. 34) Deloitte & Touche developed an ERP implementation methodology called RAD.

How to select ERP packages?

Below are a few proven strategies for implementing an ERP system. On-premises deployments usually cost more, and even the maintenance cost is high. So remember that the right UI/UX designer will help you with analyzing and creating exactly what you need. This allows everyone on the team or within the company to have access to that information, depending on what their position or department is.

ERP development life cycle

This person should also be available to help answer the inevitable questions or alleviate possible concerns that may arise during the implementation. The current system may lack visibility into data, making it difficult to make informed decisions. Train the project team and end users on how to use the system. Assemble a strong project team with members from different departments and levels within the organization. Next, determine if there are any other software options available to handle certain tasks. This is also known as gap analysis, as it looks for gaps in coverage.

Benefits and drawbacks

Consider that it usually takes twice as long for employees to adapt to change as it took for you to plan it. Count on a period of at least six months to a year for employees to feel proficient in using the new system. ERP testing is conducted in two phases – system testing and user acceptance testing. System testing verifies that the ERP software functions as designed, while user acceptance testing ensures that end-users meet their workflows and requirements.

Fourth stage of utilizationthe system starts to belong to the day-by-day operations. Its only achieved after a certain period of continued use of the technology, through the ideas that emerge during the utilization process. Therefore, the stage of utilization feeds back the stage of implementation with new possibilities and needs. They can be solved through new modules, parameter adjustments, or software customizing.