Enterprise Resource Planning

Implementation

Dr. Mrinal Kanti Deb Barma

Associate Professor & HOD
Computer Science & Engineering Department
National Institute of Technology Agartala
Systems Development Life
Cycle (SDLC)
•SDLC includes a systematic process of planning, designing, and
creating an information system for organizations.
•It is often better to have a structured methodology to avoid
mishaps and coordinate the design and development tasks properly
among the members of a large systems development team.
•Systems Approach—Complex problems are broken up into smaller
manageable problems using a systems’ hierarchy, and then
developing a solution for each problem within the hierarchy.
Traditional SDLC Methodology

Fig: 1
SDLC Approach

Fig: 2
Rapid SDLC Approaches
•Prototyping
–This approach does not go through the analysis and design phase.
–It implements a skeleton or a prototype of the actual system with a focus on
data input and output.
–The idea is to demonstrate the system functionality to the users.
–Feedback is incorporated into the new system and demonstrated back to the
users.
–This approach has proven to be very effective with user interactive systems
because the prototype is eventually converted into a full-scale system.
•End User Development (EUD)
–Users are trained to develop their own applications (e.g., a departmental
employee tracking system with an Access database).
Prototype Development

Fig: 3
Difference between ERP and
Other Software
ERP Implementation Plan
•Comprehensive
–Involves implementation of the full functionality of the ERP
software in addition to industry-specific modules.
–Requires a high level of business process re-engineering.
•Middle-of-the-Road
–Involves some changes in the core ERP modules and a
significant amount of business process re-engineering.
•Vanilla
–Utilizes core ERP functionality and exploits the best practice
business processes built into the software.
–Business process re-engineering is eliminated.
ERP Implementation Methodology

•An ERP development life cycle provides a systematic

approach to implementing ERP software in the changing
but limited-resource organizational environment.
•The traditional ERP life cycle accomplishes one stage
at a time and requires formal milestone approvals prior
to moving to the next stage.
•In a rapid ERP life cycle, once a company commits to
the implementation, employees are empowered to make
the decisions to keep the project moving forward.
Rapid Application Development Process

Fig: 4
Traditional ERP Life Cycle (1/6)
•Scope and Commitment Stage
–In addition to conducting the feasibility study, a scope
of the ERP implementation is developed within the
resource and time requirement.
–Characteristics of the ERP implementation are defined.
–Develop a long-term vision for the new system and a
short-term implementation plan and top management’s
commitment.
–Vendor Selection.
Traditional ERP Life Cycle (2/6)

Fig: 5
Traditional ERP Life Cycle (3/6)
•Analysis and Design Stage
–A decision on the software is made and decide on consultants
and SMEs.
–Analysis of user requirements.
–Map the differences between the current business process and
the embedded process in the ERP software.
–Design a change management plan, a list of embedded
processes, user interface screens, and customizable reports in
the ERP software.
–Data conversion.
–System conversion.
–Training.
Traditional ERP Life Cycle (4/6)
•Acquisition & Development Stage
–Purchase the license and build the production version
of the software to be made available to the end-users.
–The tasks identified in the gap analysis are executed
at this stage.
–Change management team works with end-users on
implementing the changes in business processes.
–Data team similarly works on migrating data from the
old system to the new system.
–Finally, the ERP system needs to be configured with
proper security.
Traditional ERP Life Cycle (5/6)
•Implementation Stage
–Focus is on installing and releasing the system to the end
users and on monitoring the system release to the end-users.
–System conversion (4 Phases)
•Phased.
•Pilot.
•Parallel.
•Direct Cut or big bang.

–Feedback received from system usage needs to be funneled to

the post-implementation team for ongoing system support.
Traditional ERP Life Cycle (6/6)
•Operation Stage
–Handover or knowledge transfer is the major activity
as support for the new system is migrated to the help
desk and support staff.
–Training of new users to the system as ERP modules
are released.
–Managing of new releases of the software, installation
of patches and upgrades.
–Managing the software contract with the ERP vendor.
List of Scopes and Commitments
ERP Conversion Approaches

Fig: 6
ERP Life Cycle Phases Summary

Fig: 7
Role of Change Management
•System failures often occur when the attention is not
paid to change management from the beginning
stages.
•A vision for CM needs to be articulated from the first
stage and then revised, monitored, and implemented
on a constant basis.
•SMEs and other internal users have the role of
working with the team and to guide the implementation
team on all the activities of change management.
•Support of the top management as well as skills of the
change management team are essential for successful
implementation.
Methodologies used in ERP
Implementation (1/4)
•Total Solution (Ernst & Young, LLP)
•Phases
–Value Proposition. Does the solution make sound business
sense?
–Reality Check. Is the organization ready for change?
–Aligned approach. Setting the right expectations that deliver both
short-term and long term value.
–Success Dimension. Getting the right blend of people, skills,
methods, and management in the team.
–Delivering Value. Measuring results and celebrating success.
Methodologies used in ERP
Implementation (2/4)
•Fast Track (Deloitte & Touche)
•Phases
–Scoping and Planning: Project definition and scope. Project
planning is initiated.
–Visioning and Targeting: Needs assessment. Vision and targets
identified. As-is modeling.
–Redesign: To-be Modeling. Software design and development.
–Configuration: Software development. Integration test planning.
–Testing and Delivery: Integration testing. Business and system
delivery.
Methodologies used in ERP
Implementation (3/4)
•Fast Track (Deloitte & Touche)
•Areas
–Project Management (project organization, risk management,
planning, communications, budgeting, quality assurance).
–IT Architecture (hardware and network selection, installation,
operations, design, development, installation).
–Process and Systems Integrity (security, audit control).
–Change Leadership (leadership, commitment, organizations
design, change-readiness, policies, performance measurements).
–Training and Documentation (needs assessment, training design
and delivery, management, end-users, operations, and helpdesk.
Methodologies used in ERP
Implementation (4/4)
•Accelerated SAP (ASAP)
–Project Preparation. Proper planning and assessing
organizational readiness is essential.
–Business Blueprint. The engineer delivers a complete toolkit of
predefined business processes.
–Realization. Based on the business blueprint steps are taken to
configure the R3 system.
–Final Preparation. In this phase, the R3 system is fine-tuned.
Necessary adjustments are made.
–Go-Live and Support. Procedures and measurements are
developed to review the benefits of the R3 investment on an
ongoing basis.
Business Integration Methodology
•Business Integration Methodology (Accenture)
–The Planning Phase. Help define appropriate strategies and
approaches for achieving an enduring competitive advantage and
building stakeholder value.
–The Delivering Phase. Translates the business architecture into
a specific business capability.
–The Managing Phase. The Managing Phase directs,
coordinates, and monitors the activities outlined in the other three
phases, in order to achieve improved business results.
–The Operating Phase. Operates the new business capabilities
that were created in the Delivering Phase.
Agile Development
•Agile methodologies start with smaller sets of requirements, they
start small and deliver functionality incrementally in a series of
releases.
•No single release covers all requirements, but every release
delivers more than the previous one.
•Users are able to provide feedback quickly on how the system
meets their needs and also if a requirement is missing or wrong, it
can be corrected quickly.
•Two of the most popular implementations are:
–Scrum- Much is left up to the project team.
–Extreme programming (XP)- Stresses customer satisfaction and
gives working software to the customers quickly and incorporates
their feedback quickly.
Comparing and Contrasting SDLC with
ERPLC (1/2)
Comparing and Contrasting SDLC with
ERPLC (2/2)
Project Management
•A clear project plan and reporting structure will better ensure
that the project receives the attention and accountability needed
to be successful.
•The project owners, a project steering committee, and project
executive must develop the hierarchy and determine
responsibilities.
•Many businesses now have a project management organization
within IT to provide the project management necessary for
company projects.
•The functional, technical, and change management staff for the
project will likely consist of existing staff from the business, new
hires, and consultants.
Project Organization (1/2)

Fig: 8
Project Organization (2/2)
•Project Management Office (PMO)
•Project Leads
–They provide the input to management and coordinate team activities.
•Project Teams
–The Functional Team- Knowledgeable staff from each area.
–The Infrastructure Team- Implements hardware and software .
–The Development Team- Modify the software to meet the goals.
–The Conversion Team- Convert the legacy data to the new system.
–The Reporting Team- Develops a reporting framework and initial set of reports
to be included in the system implementation.
–The Change Management Team- Training and communications plan for the
project. Their role is to provide project implementation information to key areas
within the organization.
Project Roles and Responsibilities

•Identifying and describing roles and

responsibilities for project staff is necessary to
ensure there is accountability within the project.
•Defining roles, often used as job descriptions
on a project, will be the responsibility of the
project management office.
•Each member of the project team will need to
know what is expected of them, who they will
report to, and what they will be evaluated on.
Implications for Management

•It is critical to have solid top management commitment.

•It is important to have strong and experienced program
management.
•It is a good practice to minimize the type and number of
customizations that are implemented.
•It is critical to emphasize training and change
management.
–Effective and frequent communication keeps everyone
on the same page and give the greatest chance of
problems being identified early.
 ERP Components: Hardware
• Servers. ERP systems are very hardware intensive; hence, they
require high-end multiprocessor systems with 64-bit processing. They
also need several gigabytes of RAM, and several terabytes of
secondary storage, which includes hard drives for data storage and
system backup and recovery.
• Clients. People accessing ERP systems use desktop computers,
laptops, or PDA. The current generation of ERP systems uses Web
clients and does not require more than a Web browser for clients to
access the ERP system. IT support staff and developers will require
virtual private network or VPN to access the ERP administration.
• Peripherals. ERP systems also require media for long-term archiving
of all business transactions, backup and recovery RAID and/or
network-attached storage devices. They also require e-mail servers,
printers, backup power supply equipment and networking hardware to
support a multiuser access over the Internet.
ERP Architecture

Fig: 9
ERP Components: Software
• System software. This is the operating system (OS) platform that
is essential for any application software to work efficiently with the
hardware. Key requirements for the OS platform is multiuser and
multitasking capabilities with security, backup, monitoring, and
recovery.
• Database management system (DBMS). A reliable multiuser
DBMS with good authentication, authorization, security, backup, and
monitoring can serve as a strong foundation for the ERP system
which can work with a variety of DBMS (SAP/R3 works with IBM-
DB2, Oracle, Microsoft SQL).
• Application software. These are software utilities that help in the
development, monitoring, and integration of ERP software. Many
ERP implementations require project management s/w,
development s/w, remote access s/w, and automated s/w for
monitoring system traffic, virus protection, and other software
utilities to enhance the quality of experience with the users.
ERP Components: People Resources
• End users can be employees, clients, vendors, and others who
will ultimately use the system for their work. It is very important to
understand the needs, skills, and abilities of this group very early
in the implementation process.
• IT specialists are staff members of the ERP implementation
team. They consist of database administrators, IT operations
support, developers, change managers, trainers, and others in the
IT group that are involved with the development and operation of
the ERP system.
• The Project Manager plays a very important role in the success
or failure of the ERP system. A good project manager is one that
can put together a harmonious team, work with top management
in getting support and resources for the project, and champion the
system implementation and communicate its benefits to the end
users.
Database Requirements (1/3)
Understanding Transactional and Reporting Needs
• For an ERP system to perform up to expectations, the
transactional component and the reporting component must
respond in a timely fashion. Transactional component requires
quick response time to single pieces of information for updating.
• ERP systems are set up to provide rapid response time for single
transactions; but this works in contrast to strategic reporting, which
requires retrieval of large amounts of data for summarization.
• These two components, transactional and report generation, do
not work well with a single database instance and this has led to
the development of data marts and data warehouses.
• These reporting environments currently import data from the
transactional environment and arrange them to produce reports
without having to write complex programs to retrieve the desired
data.
Database Requirements (2/3)
Selecting the Database
• Large ERP system implementations require a robust relational
database system. Oracle, DB2, Sybase and Microsoft SQL gaining
support.
• In selecting a relational database factors such as availability of software
applications using the relational database, availability of skilled and
trained technical staff to implement and maintain the database
environment, and the overall functionality of the database itself need to
be considered
• If a business is purchasing an ERP system, it is best to work with the
selected vendor to address this issue. The ERP vendor will not commit
totally to one database or the other, but they can convey how many
businesses have chosen a specific relational database, which ones
they develop system functions for first, and which ones get early
releases. This is all good information to consider, but the ultimate
decision resides with the IT staff and how a relational database will best
fit with the overall IT infrastructure.
Database Requirements (3/3)
Staffing and Database Administration
• It is a steep learning curve for staff to develop the expertise to
maintain a relational database.
• There is not enough database expertise in the industry today, and
developing organizational expertise requires a significant amount
of training and hands-on use to maintain the ERP database
environment effectively.
• If they do not have expertise in-house, businesses should be
prepared to hire from outside the organization or to develop a
database group from within the existing IT staff. The hiring of
consultants for long-term engagements is usually very costly. It
brings in immediate expertise, but it also has the potential for not
developing the knowledge base within the business.
ERP Approaches: Governance
• Governance is critical in any project that transforms an
organization. In an ERP system implementation, governance
outline and define committees and workgroups that are
responsible for different components of implementation, how the
different groups interact, and the decision-making process.
• The components of governance include technical development,
hardware and software installation, functional components,
communications, reporting, project management, project owners
and sponsors, budget management and issue escalation process.
• It is critical in any ERP implementation that governance be
defined and communicated to all involved in the process.
• A well-defined governance structure with a clearly understood
organization in place, helps to create a comfort level for all
involved as to how the project decisions and priorities will be
addressed.
Sample Governance (1/5)
I. Purpose
• Governance is a framework of processes and underlying
accountabilities that guide the management of the project. This
framework defines the leadership, organization structure and
processes that align decision making with strategies and
direction.
• Leadership provides clear and consistent direction, organization
structure creates the infrastructure to support the implementation
of decisions, and process alignment defines the activities that turn
ideas into action.
II. Roles and Responsibilities
Owners The owners will consist of the senior management. The
owners determine overall policy, budget, and scope of the project.
Sample Governance (2/5)
Project Executive The project executive oversees project activities,
provides broad project oversight, resolves policy-level issues, and
ensures that the project stays within scope. The project executive also
builds consensus on business process changes that impact the
company and provides project status updates to the owners.
The project executive works with the steering committee and project
managers to establish overall project direction, review and evaluate
project progress, and ensure appropriate user involvement for the
duration of the project.
The project executive works directly with the implementation partner
and the steering committee to resolve appeals of decisions made by
project managers, the cross-functional team, or both. The project
executive will represent the project at the project steering meeting,
project management office meeting, and team leads meeting.
Sample Governance (3/5)
Steering Committee: oversee the project’s efforts and ensure
appropriate leadership. The committee will link business leaders
with the project to assure that high-level direction, resource
commitments, and timeframes are consistent and support business
priorities and strategies. Members will include business owners,
information technology leaders, and project management staff.
Application Steward: The application steward is appointed by the
owners cabinet. The steward will work with the other business
owners to develop an overall business direction of the system,
developing consensus, and resolving functional issues raised to the
steering committee.
Chairperson: The chair will oversee the activities of the steering
committee, ensuring that the committee functions in accordance
with the overall project oversight. This includes budget, resources,
deliverables, risk, and expectations management.
Sample Governance (4/5)
Project Management Office The project management office (PMO)
consists of the project executive, business and technical project
manager(s), and the implementation partner. The project managers
manage the day-to-day aspects of the project, ensure that the
project plan is being followed and keep both team members and the
project executive aware of the status of the project.
Project Teams Project team members provide direction and ERP
application knowledge with respect to business process design,
configuration, conversion, testing, training, reporting, and
implementation. The following (module or project) teams will exist:
• Cross-functional component team
• Technical infrastructure team
• Development team
• Change management team
• Conversion team
• Reporting team
Sample Governance (5/5)
Project Team Leads: provide leadership and direction for the
implementation, ensuring quality of deliverables and adherence to
the project plan and milestones. They inform the project managers
all issues that are identified by their respective project team that are
specific to their module, or have cross-module, cross-team, or cross-
campus impacts. The project team leads will represent the project at
the status meeting, issues meeting, and integration meeting.
Cross-Functional Team The integration team will consist of project
team leads from the business modules and the development leads.
This group will resolve cross-module issues. When a project team
identifies a cross module issue, the lead notifies the integration
team. The issue(s) and the impact(s) on the other module should be
documented with solutions. The integration team will discuss each
issue and determine the recommended approach. The solution will
then be communicated back to the project team, for their input.
ERP Approaches: Implementation
Methodology (1/2)
• System implementations are complex, time consuming, and
resource intensive. No ERP system is perfect, “bug free,” or meets
all the user requirements. A business will need to grow, change,
and adapt to ERP systems whether vendor purchased or
developed internally.
• Understanding ERP system life cycles from inception to
operations and the effects on today’s organizations is fundamental
to fulfilling the long-term investment in an ERP system.
• The key to a successful implementation is to use a proven
methodology. When a system implementation does not have a
well-defined methodology, deadlines will likely be missed, budgets
overspent, and the functionality not meet the client’s requirements.
In other words, the results will be less predictable.
• ERP system implementations are very risky, but a well-defined
project methodology will assist in managing those risks.
ERP Approaches: Implementation
Methodology (2/2)
• A proven methodology will better ensure a successful
implementation. Implementation risks will be reduced as the
technology improves and functional staff gain more experience in
ERP systems.
• When selecting a methodology, ensure it addresses all
components including project start-up through system
stabilization. The reason for using a partner is the knowledge
base and process of how to design and implement systems
successfully.
• The Internet and Web allowed connectivity anywhere at anytime,
cheaper and faster servers improved response time and
significant increase in storage capacities made it feasible. It was
difficult to provide connectivity and hardware to support software
technology to realize the goals in an ERP implementation.
Sample Project Methodology

Fig: 10
ERP Approaches: What is Vanilla
Implementation
A Vanilla implementation is the decision to implement an ERP as
is and modify business processes to match the system or to
modify the ERP to match business processes. It is fundamental
to make this decision prior to starting an implementation. A
Vanilla implementation is when the company chooses not to
modify the system but instead to change business practices to fit
the system.
Why would you consider Vanilla
Implementation
• Businesses with relatively straightforward business practices that
are not unique should consider a vanilla implementation.
• Businesses that are not skilled or experienced at building or
changing systems should consider a vanilla implementation.
• In vanilla implementations, all of a company’s branches run the
same system in a single instance and enter and retrieve data in a
similar fashion, thereby reducing hardware, software licensing,
implementation and support costs. This is a cost-control factor.
• We have to know what and where things are around the world with
your business in terms of parts inventory, maintenance agreements,
and processes. If everyone enter and retrieve the same information,
the ability to know inventories and what is needed in a timely
fashion without contacting others creates a competitive advantage
for a business that needs to react to information in a timely manner.
When should you consider modifying an ERP

• Even though there are many reasons to implement a vanilla ERP,

many businesses choose to customize or modify the system to
meet business needs and are very successful.
• Businesses that have highly skilled IT developers and a proven
process for managing modifications can certainly choose to
change the system in areas where a business already has a
competitive advantage. In a situation like this, an ERP system is
too generic to fit the specialized business or specialized process.
Benefits and Drawbacks
• A single-system instance is easier to maintain and support in today’s
worldwide market. System modifications are not one-time changes. If a
system is modified, each modification will need to be analyzed in light of
the upgrade to see if it needs to be incorporated in the upgrade or
removed.
• Vendors sometimes supply a tool to identify conflicts between a
modification and the current release. Those areas identified need either
to be rewritten or removed from the system and tested by IT and the
business analysts to ensure proper functionality. If an ERP is highly
modified, an upgrade can sometimes turn into a reimplementation,
which requires more resources and time to implement the upgrade.
• When there are problems or bugs with an upgraded ERP system, it is
often the modified code that is the issue.
• As with most implementations organizational change is difficult.
Assessing organizational change along with modifying the system to
meet the needs of the business will help to minimize risk. It will have an
effect on change management, training, and system sustainability.
Conclusion (1/3)
•A review of the systems development life cycle—both traditional
and alternative approaches—and points out the benefits and
limitations of the traditional and the newer approaches.
•The ERP life cycle has variations from the SDLC process. The key
reason is that organizations buy ERP as prepackaged software,
and then have to customize them as well as change their
company’s business processes.
•There are three routes for the company in choosing an
appropriate implementation strategy;
•Comprehensive.
•Vanilla.
•Middle-of-the-road.
Conclusion (2/3)
•There are rapid implementation methodologies developed by ERP
consulting firms.
–Total Solution.
–Fast-Track.
–Rapid Application Development.
–ASAP.
–BIM.
•Accelerated implementation approaches are very popular and
require the use of experienced consultants to leverage the
knowledge of techniques that have worked well with other
organizations.
Conclusion (3/3)
•ERP applications generally do not require the rigorous traditional
SDLC process.
•ERP software is mission critical, has a major impact on the
organization business processes, and impacts a lot of people.
•It is the role of the project management office to address
teamwork initially and throughout the project as teamwork is
paramount to the project.
•Each person on the project needs to understand their role and
responsibility, thus making individuals and the project organization
accountable to the project and the project’s success.
All text and images used in this presentation are copyrighted to their
respective owners and are used for education purposes only.

FOR ANY QUERIES, CONTACT:

Dr. Mrinal Kanti Deb Barma
Mobile No. 8974253353
Email ID: [email protected]
URL: https://www.nita.ac.in/fac/cv_mkdb_cse.pdf