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Unit 8: ERP Implementation Lifecycle

stage 2: implementation stage notes

It mainly deals with change management, project management, IT infrastructure management
and the implementation approach due to the implementation of ERP a lot of change occur in
the company structure and the existing business process to cope up with this change, training
programmes are conducted, visits to ERP sites are arranged and workshops are held to educate
employees about the change process and also about the ERP pakage and its effective utilization
project management schedules are made in which the project orientation time cost and quality are
considered. After assessing the company’s readiness, decision for the implementation approach
is taken, as to whether it should be a phased one or a big bang approach.

stage 3: post-implementation stage

The ERP life cycle does not end when the project goes live. After that the post impact analysis of
the project is done, generally After 1-2 years of implementation. Analysis is carried out regarding
the optimum utilisation of resources in the project. The impact such as financial, operational,
organisational etc. Which ERP implementation had on the total business is calculated and the
profitability is measured there of. It is studied whether further improvements can be done on the
project for future upgradation and benefits.

8.2 erp implementation methodology

Broadly, the steps involved in a total ERP implementation can be listed as follows:
1. Identification of the needs for implementing an ERP package
2. Evaluating the “as-is” situation of your business

3. Deciding upon the desired would-be situation for your business
4. Reengineering of the business processes to achieve the desired results
5. Evaluation of the various ERP packages
6. Finalizing of the ERP package
7. Installing the requisite hardware and networks

8. Finalizing the implementation consultants
9. Implementation of the ERP package
We now briefly discuss these steps:

Identification of the needs for Implementing an ERP Package

The first step for implementing an ERP package is to identify the reasons for going in for an ERP
solution for your business. This step prepares you for some basic questions like:
1. Why should I implement an ERP package?
2. Will it significantly improve my profitability?
3. Will it lead to reduced delivery times for my products?
4. Will it enhance my customer’s satisfaction level in terms of cost, delivery time, service and
quality?
5. Will it help reduce the costs of my products?

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