The process of implementing ERP system is called as ERP implementation life cycle:-
Objectives of ERP implementation
a. Speed: Speed of ERP system is directly related to time used for implementation or ERP System
b. Scope: Scope of project is functional and technical features that the company wants to implement.
c. Resources: Resources includes hardware systems human resource. Software system technical support and consultants.
d. Risk: The risk of a project is a factor which affects the overall success of ERP implementation.
e. Complexity- meaning of complexity here is level of difficulty in implementation operating and maintaining the ERP system
f. Benefits: To get the maximum benefit out of an ERP implementation the software should be built according to the software development process and all organizational needs
Different stages of ERP implementation
1. Pre evaluation screening- Once enterprise has decided to apply ERP system the search for perfect package start. But there are several of ERP vendors-off many sizes and shapes. Analyze all the packages before reaching a decision is not an easy process, its very time consuming.
2. Package Evaluation: The selection process is the most important stage of the ERP implementation because the selection will decide the success or failure of the project. ERP system cost huge investment, once a package is purchased then it is not easy to switch to another one.
3. Project planning phase: The project planning phase is the phase that designs the implementation process. This phase directs about how follow implementation. Such as time schedules, deadlines etc. In this phase roles are identified and responsibilities assigned.
4. GAP analysis: In the gap analysis stage companies create a complex model of their current status It is also estimated that ERP package is fulfilling companies need or not.
5. Reengineering: Implementation of an ERP system involves reengineering of the existing business processes to the best business process standard. ERP system built upon best processes followed in the industry. Reengineering exhibits the existing way of doing business.
6. Customization: This is the main functional area of the ERP implementation. In this process the existing business processes synchronized with ERP package.
7. Implementation team training: In this phase of ERP life cycle implementation team is being trained. In the training, company trains its employees to implement and later run the system. The ERP vendors and consultants will leave after the implementation of ERP system is over.
8. Testing: This is the phase where you try to test and break the system. Test case should be designed in such a way that it can identify the weak links in the system. All the problems should be fixed before living.
9. Going live: In this phase ERP is made available for all and for the entire organization. The technical side is almost complete, database is ready and running on the functional side the model is fully configured and tested and ready to go operational.
10. End-user training: In this phase the actual users are given training how to use the system. The phase starts much before the system goes live. This training is very important for the ERP System because now its in the hand of end users.
11. Post implementation/operation and maintain: This post implementation phase is the most important phase and critical also. Once the implementation is over the vendors and the hired consultants will go. To get full benefit from the ERP system. It should get enterprise wide acceptance. There should be sufficient employees who are trained to handle problem that might arise after implementation.
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