ERP IMPLEMENTATION METHODOLOGIES

Presented by: Bindu Thushara. N IGTC Date: 19-10-2013

AGENDA
Need of Methodologies ERP Implementation Strategies ERP Implementation Methodologies

Examples
References

NEED OF METHODOLOGY
A good implementation methodology provides structure and control, and allows for a degree of flexibility to meet the operational requirements of the business. The methodology will include tools and templates to help with planning, decision making, data mapping, meetings, project reporting and cost control. A good implementation methodology means a supplier will deliver an ERP solution on time and within budget, and be able to deal with external factors that may arise that affect the progress of the project.

ERP IMPLEMENTATION STRATEGIES

Big bang - Implementation happens in a single instance. All users move to the new system on a given date. Agile methods- emphasizes rapid and flexible adaptation to changes in the process, product, business, and deployment environment Phased rollout - Changeover occurs in phases over an extended period of time. Users move onto new system in a series of steps. Parallel adoption - Both the legacy and new ERP system run at the same time. Users learn the new system while working on the old.

FORMATION OF TEAM FIT GAP ANALYSIS

PREPARATION OF PLAN

MAPPING OF PROCESSES USER SPECIFIC REPORTS

CUSTOMISATION

DATA UPLOADING

TEST RUNS

METHODOLOGIES

USER TRAINING

PARALLEL RUN

USER SATISFIED SYSTEM

NEW SYSTEM MIGRATION

USER DOCUMENT ATION

OPERATIONS, SUPPORT & MONITORING

METHODOLOGIES

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It is of great importance to form an implementation team consisting of knowledge users from all functions along with IT personnel and personnel from implementation consultant. From the people chosen , the project manager and project leaders and the module leaders should be identified and also a steering committee should be formed .
Formation of implementation team

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An important task is preparation of detailed implementation plan that covers the total implementation process.

Here various project management techniques like CPM, PERT charts can be used

Preparation of Implementation plan

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This is a crucial stage where the reengineering processes are mapped on to the software .

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In mapping the implementation team tries to fulfill the user requirements by making use of standard functionality available in the software .
However if the requirement are not covered by software fully , then next step of implementation i.e. gap analysis comes into picture.
Mapping business processes

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The gaps then are classified into following three heads:

Gaps which can be taken care of with little programming. Gaps which involve extensive programming efforts and hence require extra resources Gaps which can not be taken care of in the system
GAP ANALYSIS

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Once the process mapping and gap analysis is done , the actual customizing starts. In this step first the customizing needs are chalked out and then the actual job is handed over to the respective functional teams.

CUSTOMIZATION

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As mentioned under gap analysis any user requirements not covered by standard systems need to be provided by extra programming efforts. In this step the required reports and transactions are created.

DEVELOPMENT OF USER REPORTS

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With customizing in place , the system is now ready to receive the master and transaction data from the existing system.

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In this step programmed transfer of data takes place from the existing system to new system.
To avoid wrong tabulation of master data transfer process needs to be thoroughly checked in the trial runs at times it to involves a lot of programming efforts.
DATA UPLOADING FROM EXISTING SYSTEMS

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The test runs on the system are started . Sample transactions are tried to see whether the customizing and the master data uploading is error free.

The result of sample transaction is evaluated and any changes required in setting to get the desired results are incorporated
TEST RUNS

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Users belonging to different functionalities are trained in their respective functions .

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Normally user training includes: Logging in and logging out, Getting to know the system, Navigating through the various menu paths & Trying sample transaction in respective function
USER TRAINING

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With the successful test runs and user training in place , the parallel run of the system can now started. In the parallel run , the business transactions are carried out in both through the existing as well as through the new system.

The implementation team then takes care of problems which comes to light during the parallel run.
PARALLEL RUN

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If the parallel run is the satisfactory and error free , error that have come up have resolved , the user may be asked for their final approval.

USER CONCURRENCE

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When the parallel run has been successfully tried for reasonable length of time and when the user and the implementation team fell absolutely confident , it is time to go live.

MIGRATION TO NEW SYSTEM

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User Documentation includes the details on how to carry out the various transactions .

It is different from regular ERP package documentation in the sense that it is more specific in nature than general documentation.
It only covers alternatives that are being used in particular business so as to make it easy for the user to understand and use them.

USER DOCUMENTATION

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Post implementation Support usually involves queries from user, minor changes in the report formats , as well as small changes in layout of various printed formats like purchase orders etc. In this phase the IT people monitor the system closely to see the performance aspects and fine tune the database and other administrative aspect of the system so that the user can derive the best performance from it.
OPERATIONS,SUPPORT & MONITORING

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EXAMPLES

Sage ERP X3 from The Sage Group SAP Business All-in-One from SAP SAP Business ByDesign from SAP Baan ERP from Infor Global Solutions Oracle E-Business Suite from Oracle Oracle Fusion from Oracle

REFERENCES
http://blog.softwareadvice.com/articles/manuf acturing/erp-implementation-strategies1031101/ http://www.aptean.com/en/Solutions/ByApplication-Area/Enterprise-Resource-PlanningERP/Resources-Folder/ERP-System-Examples http://en.wikipedia.org/wiki/List_of_ERP_softw are_packages#Proprietary_ERP_software