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Phases Of ERP Implementation Life Cycle

ERP life cycle

ERP Implementation  Life Cycle An Overview

Imagine we have a complicated business idea. It’s so tricky that we feel stuck and don’t know how to move forward without making a big mess. This is not a common dilemma for modern-day businesses, as many entrepreneurs and business-oriented individuals encounter this problem. However, a well-known technique known as enterprise resource planning (ERP) aims to be a profound solution to all or most of such a problem.

ERP is a process that needs exact tools such as ERP system and ERP software and has a defined strategy, proper planning, and execution. The life cycle of ERP implementation consists of various phases. As for different stages of the life cycle in question, each has some challenges unique to itself.

This article will dive deep into the different phases of ERP Implementation. By beginning with the initial phase towards ending it at the final stage, we shall also provide instances for understanding better the life cycle of implementing an ERP.

Stages Of ERP Implementation Life Cycle

1. Planning Before Doing

To bring any business idea to life, we need to implement ERP. However, before we implement ERP, it is vital to engage in thorough planning. This stage is the first step in the ERP Implementation life cycle. While planning, it is crucial for the people involved to decide their project objectives and to calculate a feasible ERP price to meet these objectives.

Once done, the next step would be to assemble a cross-functional team of skilled individuals willing to help plot a complete business plan to tackle their potential competitors. Following the completion of these steps, the next step would be to start looking for the right stakeholders and obtain their support to ensure that organizational goals align with the capabilities of the ERP system.

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2. Selecting The Right System

One of the most important stages of ERP implementation life cycle, is selecting a feasible ERP system. Now, this selection depends on several factors. The system should be functional, scalable, cost-effective, and adhere to industry-specific requirements. To get this right, one must conduct detailed vendor demos, visit different vendor locations, and obtain feedback from previous users to make an informed decision.

We also need to explore customization and system integration options. If we choose our ERP system while keeping these factors in mind, we would be able to align this system with the unique needs of our organization.

3. Designing And Configuring The System

In this phase, the team coordinates with the selected vendor to design and make the necessary changes to the ERP system. These changes are required to help configure the system according to the organizational workflow and business processes.

Once the system gets designed, the team identifies if any customization to the system is required, after which the implemented system parameters maintain the stability of the overall operation. The goal is to make the system scalable and easy to maintain.

ERP implementation life cycle

4. Cleaning The Data

When we implement ERP, one of the most crucial aspects of this implementation is data migration and the assurance of clean data. The data must be extracted, cleansed, and transformed to ensure the new system remains accurate and consistent.

This process involves many steps, including finding redundant data, resolving corrupted data, and mapping data fields that align well with the structure of the new ERP system. Data cleaning is crucial as it ensures there is no compromise on the system’s efficiency to be designed.

5. Testing And Validating The Data

Once the cleaned data gets loaded, the system goes through different testing environments to determine its functionality and usability in all scenarios. Several types of software testing can be conducted, including integration testing, unit testing, and user acceptance testing, simply termed UAT. These testing schemes are used to identify and address any issues or delays that may arise. After this, all the potential stakeholders will keep up to date with this new system, and their feedback for any suggested improvements will be implemented.

6. Deploying The System

The deployment phase is the last phase in ERP implementation life cycle. During this phase, the system configured and set up is rolled out into production. To lower risks and make the transition easier for end-users, a phased or parallel approach to deployment may be adopted. After the system goes live, continuous monitoring and support are necessary to optimize the system performance and address any issues.

Example Of ERP Implementation

We can better understand the entire process of ERP Implementation life cycle with example. Imagine a manufacturing company called Oscorp willing to implement an ERP system to streamline its operations. Before kicking off the ERP implementation, Oscorp thoroughly evaluates its business plans, identifies issues, and establishes goals for the ERP project. Oscorp decides to explore other vendors, and chooses an ERP implementation process best suited for their business.

Throughout the implementation phase, Oscorp collaborates closely with the chosen ERP vendor to customize the system based on its requirements, including modules for managing inventory planning, production, and handling finances.

To maintain accuracy, data migration from the systems is carried out, followed by conducting testing and training sessions to prepare staff for the transition. With planning and execution, Oscorp successfully implements the ERP system resulting in operational efficiency, improved decision-making abilities, and ultimately driving increased profitability.

Conclusion

The process of implementing ERP systems is intricate and diverse, demanding planning, precise execution, and continuous supervision for results. We explored and went through the different stages of the ERP implementation life cycle and provided a supporting example. Every stage of the ERP implementation life cycle must demand a planned approach for the success of this implementation.

The conclusion that is drawn from these aspects is quite simple. When we follow a structured approach that encompasses complete planning, feasible designs, testing, training, deployment, and optimization, we can maximize the value of their ERP investments and drive impactful business transformations. When it comes to creating a structured approach with the best software, iTrobes, a pioneer in software consulting, comes to the rescue. With the right strategy, resources, and commitment, a company such as iTrobes, ensures that their techniques in ERP implementation can catalyze innovation, agility, and long-term success in today’s evolving business landscape.

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