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Chapter 4 • Development Life Cycle 105

Therefore, the key problem that agile methodology tries to solve is changing and unclear require-
ments. By developing smaller portions of the ERP system and releasing them to users, the users
will be able to provide feedback quickly on how this system meets their needs. This also means
that if a requirement is missing or wrong, it can be corrected quickly (often in one iteration,
which may be between two and six weeks), rather than requiring a long and expensive process.
Another key aspect is that new components are not built upon building blocks that are wrong. In
a traditional waterfall implementation, if the first requirement implemented is wrong, an entire
ERP system could be implemented upon that basis. This means that if one thing needs to be
changed, it could cause the entire system, or at least a large portion of the system, to be changed.
This is very expensive and time consuming to undertake and should be avoided at all costs.
An agile methodology has many different types of implementations. Two of the most
popular implementations are Scrum and extreme programming (XP). In Scrum, the methodology
states the following: “Instead of providing complete, detailed descriptions of how everything is to
be done on the project, much is left up to the team. This is done because the team will know best
3
how to solve its problem.” The Scrum methodology works in an agile iterative methodology;
however, it empowers the team (including a Scrum master, product owner, and team members) to
make decisions that will help deliver a successful product deliverable. “Extreme Programming
(XP) is successful because it stresses customer satisfaction. Instead of delivering everything you
could possibly want on some date far in the future this process delivers the software you need as
4
you need it.” In XP, an agile iterative approach is valued because it gives working software to the
customers quickly and incorporates their feedback quickly to build the best product possible.

OTHERS There are industry-specific rapid implementation approaches (e.g., those available
from the Cobre Group’s consulting firm called Implementation Accelerator). This accelerator
facilitates conversions and upgrades by providing a tool to use for data mapping, workflow
analysis, project planning, and end-user training.
Another example is from the Chemical Industry Data Exchange. They have an implemen-
tation accelerator that is divided into phases: plan, assess, enable, test, and go-live. Each phase
has specific tools, templates, and real-world suggestions contributed by members.

ERP Life Cycle Vs. SDLC
Because of their prepackaged nature, ERP applications generally do not require the traditional
SDLC process; however, that does not mean they can be bought from the vendor, installed
(i.e., a PC-based software package), and used as is immediately. ERP packages are complex with
embedded business processes in all major functional areas of business. In addition, they repre-
sent best practices by industry or area of business. These processes and functional activities are
generic in nature and must therefore be adapted for the specific requirements of the company.
This is not an easy course of action. It requires a thorough understanding of the business process
of the company, data requirements, informational flows, system access and security, integration
with existing software applications, and compatibility with current hardware systems of the
company. The ERP life cycle is often therefore as rigorous as is the traditional SDLC life cycle;

3 Introduction to Scrum—an agile process. (2010). Retrieved on October 2011 from http://www.mountaingoatsoftware.
com/topics/scrum
4 Wells, D. (September 29, 2009). Extreme Programming: A Gentle Introduction. Retrieved on October 2010 from http://
www.extremeprogramming.org/