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Chapter 4 • Development Life Cycle 107

There are similarities between the ERP life cycle and SDLC. For example, the feasibility stage
in the ERP life cycle is similar to the SDLC. ERP implementation requires scoping the project
requirements and conducting a proper feasibility study from operational, economic, technical, and
strategic perspectives like any other system. The new ERP system must be strategically aligned with
an organization’s long-term strategy and vision. Top management support will be available only
when the new system fulfills the long-term vision of the company. With top management support
there is also a long-term commitment of resources for the project. The ERP implementation life
cycle is an expensive long-term investment for the company with a return on investment that is intan-
gible and spread over a long period of time. In addition to the feasibility, other similarities occur at
the conversion stage. The company can either go for a phased approach or a big bang conversion that
replaces the old system with the new on a fixed date and time. ERP implementations similarly
require extensive data conversion, proper software testing and quality assurances, end-user training,
and post-implementation IT support in terms of installing software patches and product upgrades.

PROJECT MANAGEMENT
ERP projects take on their own organizational duties and job functions separate and apart from the
day-to-day business functions. A clear project plan and reporting structure will better ensure that
the project receives the attention and accountability needed to be successful. Figure 4-8 shows a
sample organization structure for an ERP implementation.

Owners

Project
Executive

Steering Project
Committee Management
Office

Information Change
Cross-Functional
Technology Management

Functional Team Functional Team Functional Team Training and Communications
Component 1 Component 2 Component 3 Documentation

Technical Development Conversion Reporting
Infrastructure and Interfaces

FIGURE 4-8 Project Organization