UNIT III
ERP IMPLEMENTATION
• Planning Evaluation and selection of ERP systems
- Implementation life cycle - ERP implementation,
Methodology and Frame work- Training – Data
Migration. People Organization in implementation-
Consultants, Vendors and Employees.
Planning Evaluation and Selection
of ERP Systems
• A successful ERP project requires selecting an ERP
solution, implement the solution, manage changes
and examine the practicality of the system.
• Evaluation of ERP is primary.
• Evaluation based on technical and Cost aspects.
• Ensure technically advanced and cost effective.
• Evolution of ERP match with the trend in the
market.
• Most enterprises often jump into looking at ERP
functions and features rather than examining the
strategy and business processes.
Evaluation of ERP
Evaluation process
considerations
1. Determine system requirements. ...
2. Ensure the support of senio management. ...
3. Establish a project roadmap.
4. Consider the total cost of ownership (TCO).
5. Consider peer references. ...
6. Establish a relationship with the vendor. ...
7. Evaluate deployment flexibility
ERP Evaluation Criteria
ERP software should meet most or the following criteria,
depending organizational needs:
• Customer Relationship/Account Management
• Accounts Payable Reporting
• Bank Reconciliation
• Benefits Administration
• CRP (Capacity Requirements Planning)
• MRP (Material Requirements Planning)
• BOM (Bill Of Materials)
• Logistics Management
• BI (Business Intelligence)
• Email Tools
• B2C Commerce
• Tax Administration: Payroll & Tax Filing
•
ERP Evaluation Criteria
• Engineering Change Management
• Customer Credit Management
• Available-To-Promise (ATP)
• Advanced Planning System (APS)
• Lean Manufacturing
• Business Process Management (BPM)
• Flexible Network Design
• Module/API Integration
• Installation Type
• Support
• Training
• Previous Experience With Vendor
• Financial Stability
ERP Implementation Methodologies
• Phase 1 Understanding the Problems
• Phase 2 Defining Solutions
• Phase 3 Getting Down to work
• Phase 4 Going Live
ERP Implementation
Approaches
• Big Bang Implementation
• Phased Implementation
• Parallel Implementation
• Pilot Implementation
• Process Line Implementation
• Hybrid Transition Strategy
Selection Process of ERP Systems
1. Assemble project Team
• Strong executive sponsor
• Strong project team leader
• Project team members
2. Define the business vision
3. Define the business requirements
• Build or Buy
• Integrated vs Best of Bread
• Initial Vendor Selection
• Vendor Viability
• Functionality
• Scalability
• Technology
4. Requirement and selection Criteria
5. Develop Scripted Demonstration Scenarios
6. Finalise Selection Decision
7. Transition to Implementation
Some important points to be kept in mind while
evaluating ERP software include:
a) Functional fit with the company’s business process.
b) Degree of integration between the various components of the ERP
system.
c) Flexibility and scalability
d) Complexity
e) User friendliness
f) Quick implementation
g) It is better to have a selection committee that will do the
ERP Implementation
Life cycle
1. Pre evaluation screening
2. Package evaluation
3. Project planning phase
4. Gap analysis
5. Reengineering
6. Configuration
7. Implementation Team Training
8. Testing
9. Going Live
10. End User Training
11. Post Implementation
1. Pre-Evaluation Screening
When the company has decided to implement the ERP the
search for the convenient and suitable ERP package begins.
Refers to the discussed previous lecture (“ERP Selection”) to
understand the criteria used in selecting particular ERP package.
2 Package Evaluation
The objective of this phase is to find the package that is flexible
enough to meet the company’s need or in other words, software
that could be customized to obtain a ‘good fit’.
Once the packages to be evaluated are identified, the company
needs to develop selection criteria that will permit the evaluation
of all the available packages on the same scale
3 Project Planning Phase
a. This is the phase that designs the implementation process.
Time schedules, deadlines, etc. for the project are arrived at.
b. The project plan is developed in this phase.
c. In this phase the details of how to go about the
implementation are decided.
d. The organizational resources that will be used for the
implementation are decided
e. The implementation team members are selected and task
allocation is done.
f. The phase will decide when to begin the project, how to do it
and when the project is supposed to be completed.
g. The phase will also plan the ‘What to do’ in case of
contingencies; how to monitor the progress of the
implementation;
h. The phase will plan what control measures should be
installed and what corrective actions should be taken when
things get out of control.
4 Gap Analysis
• This is the most crucial phase for the success of the
ERP implementation.
• Simply it is the process through which companies
create a complete model of where they are now,
and in which direction they want to head in the
future.
• The trick is to design a model which both
anticipates and covers any functional gaps.
5 Reengineering
• In ERP implementation settings, reengineering has two
connotations.
• In this case ERP is purchased with aim of reducing the number
of employees.
• Every implementation will involve some change in job
responsibilities as processes become more automated and
efficient.
• However it is best to regard ERP as investment and cost-
cutting measure rather than a downsizing tool.
• ERP should endanger business change but not endanger the
jobs of thousands of employee.
• The second use of the word ‘reengineering’ in the ERP
field focus in Business Process Reengineering (BPR)
6. Configuration
• It is important for the success of ERP
implementation that those configuring the system
are able to explain what won’t fit into the package
where the gaps in functionality occur.
• ERP vendors are constantly make efforts to lower
configuration costs. Strategies that are currently
being done include automation and pre –
configuration.
7 Implementation Team Training
• Synchronously when the configuration is taking place, the
implementation team is being trained.
• This is the phase where the company trains its employees
to implement and later, run the system.
• For the company to be self-sufficient in running the ERP
system, it should have a good in-house team that can
handle the various solutions.
• Thus the company must realise the importance of this
phase and selects right employees with good attitude.
8 Testing
• This is the point where you are testing real case
scenarios.
• The test cases must be designed to specifically to find
the weak links in the system and these bugs should be
fixed before going live.
• Going Live
• This is the phase where all technicalities are over, and
the system is officially declared operational.
• In this phase all data conversion must have been done,
and databases are up and running; and the prototype is
fully configured and tested.
9 Going Live
• The implementation team must have tested and run the
system successfully for some time. Once the system is ‘live’
the old system is removed and the new system is used for
doing business.
10 End-User Training
• This is the phase where the actual users of the system will
be trained on how to use the system.
• The employees who are going to use the new system are
identified and their skills are noted.
• Based on their skill levels are divided into groups.
• Then each group is given training on the new system
• This training is very useful as the success of the ERP system
is in the hands of end-users.
11 Post –
Implementation
• This is the very critical phase when the implementation
phase is over.
• There must be enough employees who are trained to
handle the problem that might occurred when the
system is running
• There must be technical people in the company who
have the ability to enhance the system when required.
• Living with ERP systems will be different from installing
them.
• Projects for implementing the ERP systems get a lot of
resources and attention.
Training of ERP Implementation
• End-user training refers to the process of
ensuring that the final users of the ERP
software are well-versed in it and are able
to utilize it to its fullest potential.
Training Process
• Identify changed Business processes.
• Identify need of the user
• Deliver preliminary training
• Deliver basic technology training
• Integrate super users
• Prepare business process training
• Prepare curriculum
• Prepare end user documentation
• Review testing documentation to identify problems.
• Identify the trainer
• Deliver business process and ERP system training
• Integrated with business- process training is ERP System-
specific training
• Evaluate training effectiveness.
Data Migration
What
• ERP data migration is the process of transferring
data from its original sources to the ERP system's
database.
• It often involves moving data from a variety
of different systems, formats and storage
types into a single, common structure.
How
• Data migration is the process of moving data
from one location to another, one format to
another, or one application to another.
Generally, this is the result of introducing a new
system or location for the data.
Data Migration Challenges
1. Data redundancy and integrity:
Multiple departments may store their own copies of information
about the same customers or products
2. Data migration cost:
The cost of extracting, cleaning and restructuring data can add up
to a significant part of the overall ERP implementation budget. The
cost of data migration can add 10–15% to the overall cost
3. Stakeholder buy-in:
The company’s top managers have many priorities,
and ERP data migration may not be at the top of the
list. However, buy-in from the top is necessary to
avoid internal conflicts.
4. Regulatory issues:
A growing number of regional and industry-specific
regulations affect the way organizations can store and
use data. When transferring data, make sure you
comply with those regulations.
Date Migration Process
• Analysis
• Design
• Cleansing
• Extracting
• Transfer
• Load
• Verification
People organization in Implementation
Consultant in ERP
• A good consultant will also suggest best
practices from outside of the industry that
could be of help to the business if
incorporated.
• Providing Specialized Skill Set:
• The role of an ERP consultant also involves
project management, functional expertise, risk
mitigation and scores of other specific skills.
Important skills for an ERP consultant
• Information technology skills.
• Effective computer literacy.
• Management skills.
• Leadership.
• Analytical skills.
• Data analysis.
• Organizational skills.
• Effective communication skills.
Role of Consultant in ERP
Implementation
1.Offering Experience, Independence:
2.Sharing Industry Knowledge:
3.Providing Specialized Skill Set:
4.Leading Business Process Transformation:
5.Driving Change Management:
6.Managing Implementation:
7.Providing Training:
The Role of an ERP
Consultant:
The Place to Start
• Current State:
• Education:
• Future State:
• Moving to Evaluation, Selection:
• Uncanny Consulting Services LLP, an ERP
consulting and SI company, is based in Rajkot,
India.
• Mobikul is a mobile app development company
launched in 2010. Their midsize team is in Noida,
India and focuses on mobile app development,
other application development, and AR/VR
development.
• Aktiv Software is a business solution provider
company based in Ahmedabad, India, with offices
in Saint Quen, France, and in New York. The
company, founded in 2015, has more than 40
employees and provides ERP consulting and SI
• Narola Infotech Solutions LLP is an IT
outsourcing company based in Surat, India. Their
team of fewer than 500 employees serves mostly
small to midmarket companies.
Role of Vendors
Vendors are the people who develop ERP packages
ERP vendors spent a large amount of money so that they
become experts to develop flexible ERP Package.
Roles of Vendors:
• The vendors should supply product and its
documentation as soon as the contract is signed.
• Vendor is responsible to fix bugs that are found during
implementation process.
• Vendor also provides training to the company’s users
and also to the people who are involved in
implementation process.
• Vendors take care of quality control factors while
developing ERP.
• Vendors participate in all phases of an implementation in
which he gives advice, answers to all technical questions
about product and technology.
1.Microsoft.
2.SAP.
3.Oracle.
4.Sage.
5.Epicor.
6.Infor.
Roles Of End Users:
• End users are the people who are doing
functions that are automated by ERP
System.
• They analyze and provide suggestions
where customization needs to take place.
• They should be able to balance their
loyalty to the client and project.
• Consultant should create a knowledge
base and train people so that knowledge
stays in the organization when
consultants leave the project.
Role of Employees
Reasons for employee resistance
Fear of being redundant
Fear of failure
Fear of future
Dealing with employee resistance
Training and resistance
Creating ERP champions
Pilot projects
Involvement of employees in ERP process
Managing expectation
