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Unit 8: ERP Implementation Lifecycle

evaluation of the various erp packages notes

In this step various ERP packages available in the market are evaluated with respect to the
following aspects:
Global presence: Check the performance and acceptability of the package globally.
Local presence: Check how the package is performing in the local market – this gives an idea as
to how well a package is taking care of the country specific business needs.
Investment in R & D: Evaluate the package from the point of view of investments the ERP vendor
is making in R & D to continuously upgrade their product. A good investment in R & D is a
healthy indication of the longevity of the package.
Target market: See which segment of the industry the package is basically aiming at. Some
packages, for example, are specific to process industry type of applications whereas others cater
specifically to discrete manufacturing. Choose a package that has a strong hold in your type of
industry.

Price: This is of course the main criterion that decides what package you will finally go in for
Modularity: This aspect needs to be considered when you want to implement only some
particular functions in the ERP package. The availability of the package as independent modules
is a must in this case.
Obsolescence: While considering a package it is essential to see what would be the active life of
the product before it become obsolete. As mentioned above the investments in R & D directly
contribute to upgrade a package from time to time thus increasing its useful life.
Ease of implementation: This factor needs to looked into in detail because a quick, smooth and
hassle-free implementation is the key to successful transition from the legacy system. This in turn
ensures that your business is not adversely affected in the transition period.
Cost of implementation: With large-scale integration of ERP packages and the consequent
complexity built into them, it has become essential to consider the cost of implementation which
in some cases can be phenomenal.
Post-implementation support: Before deciding on an ERP package, it is advisable to check the
quality and range of the post-implementation support that the vendor provides for his package.

finalizing of the erp package

After a thorough evaluation of all the ERP packages vis-a-vis the key factors of your business, the
package best suited to your business needs is selected. The process of finalizing can be simplified
by making a matrix of the key factors. You can then rate all the packages under these heads.

installing the requisite Hardware and networks

In this step one has to install the hardware and networks required for the chosen ERP package.
The installation of the hardware has to be well planned because generally the hardware arrives
in time and lies idle due to the delays in implementation. Also, the induction of the hardware
should be in a phased manner to avoid blocking of capital.

finalizing the implementation consultants

The factors which go into the selection of the consultant are:
1. Skill – set available with the consultant (application area)
2. Installation base of the consultant

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