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Unit 11: Enterprise Resource Planning – II

implementation intimidating. Proper ERP implementation follows certain guidelines that can Notes
help people to organise their own rules for better implementation of the technology.

11.1.1 The Prior-implementation Stage

A decent plan must be drawn out before executing the ERP system. There has to be specific goals
to attain and you must test the capabilities of your ERP project before going for the real thing.
Also, do not forget to collect the required resources before going for project implementation.
Resources mean not only the equipments but also the skills needed to make things happen. An
important aspect of planning is projection and always remember not to over-project, especially
in areas of finances and costs.
If you are planning to hire a third party consultant for the implementation procedure, then you
need to completely trust the person who is implementing the system and let him have high
security access to the ERP hosting server. Another important thing is the evaluation of the
project in order to ascertain the effectiveness of the product. This evaluation report is not only
necessary for improving the standards in ERP execution project but also serve as important
information to the clients. Several researches have shown that flawed implementation of ERP
have resulted in severe problems of the company, right from litigation to misinterpretation in
business media. Thus, the implementation phase is very important.
11.1.2 Various Stages of ERP Implementation

The process of ERP implementation should be carried on by a group of trained and competent
personnel in order to ensure perfection, accountability and transparency. In reality, very few
companies succeed in their first attempt of ERP implementations. Actually, it is very essential to
implement the necessary changes in the organisation to combat ERP.
Another thing you need to remember is that ERP is not an answer to errors in business plans and
tactics but it is an I.T. tool that assists and facilitates the business process by being a part of it. ERP
gap analysis and business process re-engineering should be performed properly, too. IT facilities
in the business should be at par with market trends and international reputation. This will
permit the operation people to constantly adapt and update as and when it is necessary in order
to adjust with the competition. In fact, ERP should become a part of your daily routine. The
varied stages of ERP execution include Pre-evaluation Screening, Evaluation Package, Project
Planning, GAP analysis, Reengineering, Team training, Testing and Post implementation.

Notes The process of ERP implementation is actually referred to as life cycle. Selection of
an ERP package needs a thorough analysis of the various aspects. This usually involves
choosing a few suitable applications for the company from an assortment of vendors.
There are different stages in which the ERP system is implemented. The stages of the ERP life
cycle process are discussed as below:
1. Pre-screening of the chosen packages: A team of experts with specialised knowledge in the
field is made to study the basis of different parameters. The experts perform tests to
determine whether the package is apt for the range of application in their field. Further,
they ascertain the level of coordination that the software would be able achieve in working
with different departments. This plainly means that they ensure whether the various
departments would offer an increased output due to ERP implementation.

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