ERP implementation includes the ERP life cycle stage. Management will evaluate each cycle that has been completed to decide whether or not the project can be continued.
ERP implementation places a strong emphasis on integrating standard ERP software with business processes and current user requirements.
8 Steps of ERP Implementation Life Cycle
The ERP implementation process requires 8 structured stages to ensure project success and system effectiveness, increase business productivity and profitability, including:
Here's an explanation
Every company has unique requirements. Therefore, choosing the appropriate ERP software for our company is the first and most crucial step.
Choosing the greatest match for a company's business operations can be a little overwhelming given the huge range of options on the market.
This process involves choosing the modules based on the requirements of the business.
Everything needs to be properly thought out before beginning a project. So that nothing harmful happens during implementation. Starting with picking the appropriate tools to assign tasks to team members and the amount of time required for execution. Planning is essential for a successful ERP deployment.
Conducting a GAP analysis to examine and compare the current organizational system and its future position is another crucial step in the ERP deployment life cycle. This makes it simple to pinpoint the key operations that require ERP the most.
Re-engineering is used as a procedure that involves various adjustments based on planning and gap analysis to make the process more valuable and efficient.
Due to the introduction of a new system, it is essential that staff members obtain the correct training before they can begin using their ERP products.
Employee under-preparation, implementation that is not in line with the larger business plan, poor business process redesign, and time and cost overruns are all negative outcomes of a flawed strategy.
One of the important steps in the ERP life cycle implementation. Basically this is done to assess errors and try to resolve before the actual application process.
Step 7 is the stage where the actual implementation of the ERP system occurs. After all data is collected, analyzed and transformed for inclusion in the system, the new implementation is implemented and the old system is discarded.
The final step in the ERP life cycle is maintenance. Once a new system is implemented, it is the responsibility of the employees working on it to stay abreast of the latest technological developments. Employees also need to learn how to keep the system up and running whenever needed.
4 ERP Implementation Approach
There are 4 ERP implementation approaches; Phased, Pilot, Parallel and Big Bang. The following is a brief explanation of each ERP implementation approach:
Phased
This approach is implemented in stages in certain departments first and then implemented in all departments.
Paralell
This approach is implemented by implementing the new system and the old one simultaneously, so that when the new system has a problem, it still has a backup with the old system.
Pilot
This approach is implemented only to a few departments.
Big Bang
This approach is implemented by removing the old system and directly using the new system as a whole.
So, there is a complete explanation of the ERP Life Cycle and ERP implementation approach. In order for the ERP implementation in the company to run well, make sure to follow every step of the ERP Life Cycle!