CH.4 Development Life Cycle

Big bang adv & disadv

Advantages: Integrated configuration and testing Better opportunity for changing organizational structure Disadvantages: Extreme change Complex project management

Phase adv & disadv

Advantages: Less disruptive to business Projects are easier to manage Disadvantages User buy-in wanes More testing and integration issues

Big Bang

All implemented then connected to the existing systems all at once implementing all targeted functionality at same time

Phase 2: Business Blueprint

Assess customer requirements through the interviews, questionnaires, and models of the Business Blueprint Provide training for project team Install development system Review the Business Blueprint

Phase 3: Realization

Customizing Customize the "Baseline" system, which covers 100 % of the organizational structure and 60% of all daily business operations Check that this Customizing realizes your business processes (first integration test) Final Integration Test Check other business processes which may be indirectly affected Design, develop, and test interfaces, reports, and data conversions

ERP Implementation Process

Design ImplementationTeam configuration Build Sandbox to needs of the firm Test and refine the developed instances Quality and Assurance via data conversation Training for end-users System conversion & Production

Phase 1: Project Preparation

Explain roles and procedures Prepare the Project Charter Define schedule, budget, and resources Provide initial training for project team Define technical requirements Prepare executive kickoff meeting

User-Friendly Approach

Focus is shifted from highly complex to user-centric design System is influenced by how users act and think, NOT based on flow of program logic and database structures Encourages modifications to ERP system programs Approach makes system easy for average user to use

Business Rules Approach

Focus is shifted from system requirements to business rules Asks the user how their organization works, NOT what they want system to do Approach encourages BPR to avoid making changes to ERP

SDLC

Goal-Develop a new system to support the organization requirements analysis-Evaluate user needs through observations and interviews and create system requirements design-Develop new system architecture, user interface, and reporting tools implementation-Acquire hardware, software, develop applications, installation, testing, training, and conversion consultant role-Technical support mainly during design and implementation management role-Some oversight and support end-user role-Focus group providing input during various stages with most involvement during Implementation stage operations-Maintains, updates, and provides technical support

ERP Life Cycle

Goal-Implement a packaged system to support the organization requirements analysis-Vendor analysis and evaluation of business process changes due to the implementation design-Installation and Customization plan of ERP software, data conversion, and change management strategies implementation-"Go-Live" conversion or releasing the system to the users, training, and support consultant role-Change management, process change, and technical support from beginning to end management role-Significant oversight and involvement especially in change management end-user role-Multiple groups such as SMEs, advance users, and self-service users are part of implementation team with continuous involvement operations-Maintains, updates, upgrades, monitors change management strategy

other packaged software

Hundreds to Thousands Support or productivity improvement Almost instantly Requires some training and support Requires little or no consulting support or vendor technical support

Comprehensive ERP IMP plan type

Involves implementation of the full functionality of the ERP software in addition to industry-specific modules: As - Is Requires a high level of business process re-engineering.

Middle-of-the-Road ERP IMP plan type

Involves some changes in the core ERP modules and a significant amount of business process re-engineering.

IMPLICATIONS FOR MANAGEMENT

It is critical to have top management commitment because ERP implementations typically address fundamental business operations It is important to have a strong and experienced team with skills in program & project management It is important to empower the implementation team with powers It is critical to emphasize training and change management

ERPLC process 1st stage is the scope and commitment stage

It is similar to the investigation stage of the SDLC. Different scopes are looked at and decisions are made based on these analyses.

ERP

Millions of dollars Mission critical One to several years Requires significant change management strategy from beginning to end for success; business process change, training, communications, etc. Requires in-house employee time, consultants and vendor support in millions of dollars

Discuss the alternatives approaches of SDLC and the benefits of alternatives.

One alternative is the prototyping. This approach skips the analysis and design phase; instead it implements a prototype of the actual system using fake data. This is to see if it generates the wanted results as soon as possible. Another alternative is end-user development, which lets end-users create their own applications. In this approach, the end-users are trained to develop custom applications.

The second stage is the analysis and design stage.

One main part in this stage is to check the differences in the current business process and the process in the ERP software.

Fast Track

Phases: 1. Scope and Planning 2. Visioning and Targeting 3. Redesign 4. Configuration 5. Testing and Delivery Groups: 1. Project Management 2. Information Technology Architecture 3. Process and Systems Integrity 4. Change Leadership 5. Training and Documentation

Phase 4: Final Preparation

Planning for the going live data Training end users Testing: integration, volume, and stress Establishing an internal Help Desk Cutover to production environment

Prototyping is one such

Rapid SDLC approach.

Phase 5: Go Live and Support

Start of production operation Setting up support Verifying the accuracy of the production system Measuring business benefits Optimizing performance

What is the role of systems approach in the SDLC?

Systems approach is used for problem solving. This approach takes complex problems and breaks them down into small manageable problems. It identifies problems from the top-down and then solutions are derived from the bottom-up.

The third stage is the acquisition and development stage.

The entire platform is configured and built.

Compare and contrast the three major ERP implementation categories.

The first is a comprehensive ERP integration plan which is the most expensive and time consuming plan. It involves making sure that the implementation has full functionality. It also involves a high level of Business Process Reengineering. The second plan is called the middle-of-the-road ERP implementation plan. It is not as expensive or extensive as the comprehensive plan, but it is not as clear-cut as the vanilla plan. It also involves a high level of BPR. The last plan is called the vanilla ERP implementation plan. It basically aligns the business processes to the ERP system and minimizes reengineering.

The fourth stage is the implementation stage.

The system is released to end-users and the usage is monitored.

prototyping approach

This approach skips the analysis and design phase; instead it implements a prototype of the actual system using fake data. This is to see if it generates the wanted results as soon as possible.

What is ERP implementation methodology? Give Examples.

This refers to a well thought-out approach to solving a business problem. Some examples are Total Solution, FastTrack, Rapid-Re, ASAP, BIM.

The final and 5th stage is the operation stage.

This stage includes any training needed or patches that are needed for the system.

Rapid Methodologies

Total Solution Fast Track Rapid Re ASAP BIM Many Others

Briefly discuss the key phases of the SDLC methodology.

Traditional SDLC included five phases. The investigation phase checks if the new system is feasible. It also checks the costs associated with the system. The analysis phase determines the user requirements for the system. The design phase produces the technical specifications for the system. The implementation phase starts with gathering the tools and hardware needed to put the system into motion. This includes any testing and training needed to put the system into operation.

What is the role of change management in the ERP life cycle?

Using the gap analysis, the team must develop a design that includes a change management plan. This must be detailed with an execution strategy for the release of the new system. This team must work with the end users on implementing the changes in business processes with the prototype version of the software. Change management is also part of the implementation stage to smoothen the transition. When it gets to the operation stage, the team carefully monitors user feedback from training to make necessary adjustments to the change management approach.

Vanilla ERP IMP plan type

Utilizes core ERP functionality and exploits the best practice business processes built into the software. Business process re-engineering is eliminated.

Traditional ERP life cycle

accomplishes one stage at a time and requires formal milestone approvals prior to moving to the next stage.

The investigation phase

checks if the new system is feasible. It also checks the costs associated with the system.

Critical Success Factors for ERP Impl?

commitment from top management empowered teams with ability to make decisions strong project management leadership adaptable organization defined business direction best people = best results

ERP are becoming more and more ubiquitous in the business landscape as they become

critical to the long term positioning and success of today's businesses

The analysis phase

determines the user requirements for the system.

Systems Development Life Cycle (SDLC)

feasibility analysis design coding implementation operations

ERP Implementation Life Cycle

initiation development implementation operation and maintenance

Enterprise System Implementation Phases

initiation planning analysis and process design realization transition operation

Traditional SDLC included five phases:

investigation, analysis, design, implementation, and maintenance

Another approach is End-User development, which

lets end-users create their own applications. In this approach, the end-users are trained to develop custom applications.

Rapid ERP life cycle

once a company commits to the implementation, employees are empowered to make the decisions to keep the project moving forward.

ERP Module Impl Approaches

phased pilot parallel big bang

The design phase

produces the technical specifications for the system.

Consultants play an important role in

rapid implementation of ERP systems

The implementation phase

starts with gathering the tools and hardware needed to put the system into motion. This includes any testing and training needed to put the system into operation.

An ERP development life cycle provides a__________ approach to implementing ERP software in the changing but limited-resource organizational environment.

systematic

The key limitations of the SDLC process are

that it isn't quick and easy to develop a new system. Sometime by the time it is developed, it becomes outdated. Recruiting a development team is costly, so that makes SDLC very expensive. Another problem is that not all information systems require SDLC. Some smaller applications wouldn't need SDLC. Quicker and less expensive short cuts for this process are called Rapid SDLC approaches.

The traditional information system development process is called

the system development life cycle (SDLC).

BIM Methodology

they do all at the same time: managing, operating, planing and delivering.

Phased

- Connected to existing systems as individual modules are implemented Implementing targeted functionality in phases By module, geography, or business unit

List the major tasks in the scope and commitment phase of ERP life cycle?

1. Gap Analysis - what functions are necessary and can your operation handle it. 2. Physical Scope - geographic location of the sites and the number of users. 3. BRP Scope - what is happening to the current process (changing or ending). 4. Technical Scope - how much the software it changing and will it be customized. 5. Resource Scope - time and money needed for the project. 6. Implementation Scope - how should it be implemented (phase, pilot, parallel, big bang)

List the major differences between ERP life cycle and SDLC.

1. In SDLC the new application is made for the user requirements. In ERP life cycle the business process must be changed to fit the best practices of the ERP software. 2. In SDLC consultants are limited to IT hardware, software, and training. In ERP life cycle consultants are important from beginning to end in advising the organization on software selection, reengineering of business process, and software installation and change management. 3. In ERP life-cycle software is selected very early in the implementation process. In SDLC it is not brought up until the forth stage.

Rapid Re

1. Preparation 2. Identification 3. Vision 4. Solution 5. Transformation

Accelerated SAP (ASAP)

1. Project Preparation 2. Business Blueprint 3. Realization 4. Final Preparation 5. Go Live and Support

List the major tasks in the acquisition and development phase of ERP life cycle?

1. Purchase license for production version of the software. 2. Configure platform with hardware, network, security, software, database, and real production data. 3. Customization of embedded rules, data in the tables, input screens, and reports. 4. Migrating data from old to new system. 5. Configure ERP system with proper security.

Total Solution

1. The Value Proposition 2. Reality Check 3. Aligned Approach 4. Success Dimension 5. Delivering Value

List the major tasks in the analysis and design phase of ERP life cycle?

1. User Requirements 2. Differences between current business process and the embedded process in the ERP software. 3. Data Conversion, System Conversion, and Training. 4. Execution Plan for the new system release. 5. Prototype of the ERP software.