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18 Chapter 1 • Introduction to Enterprise Systems for Management

Vendor Support
Vendor Support
High

Med
Release 1 Supported Product Life Release 3 Supported Product Life
Release 3 Supported Product Life
Release 1 Supported Product Life
Release 4 Supported Product Life
Release 2 Supported Product Life
Release 2 Supported Product Life Release 4 Supported Product Life
Low
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Year 1
Year 7
Year 8
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
Year 2
Year 6
Year 5
Year 3
Year 4
FIGURE 1-9 ERP Life Cycle
ERP system implementations are very risky, and using a well-defined project plan with a proven
methodology will assist in managing those risks.
There must be a strong well-communicated need to make the change from the existing
information systems/applications to an ERP system before starting any ERP development or
implementation. There should also be clear and well-defined business objectives written and
communicated to the organization. The project methodology needs to be documented, reviewed,
and fully understood by everyone involved in the project once objectives are outlined.
There are many methodologies documented and used in system implementations. Figure 1-10
shows a sample ERP implementation methodology in which there are five phases of the life cycle
from requirement gathering analysis to stabilization and production support, which are applied to the
three levels of ERP implementation: functional, technical, and organizational. When selecting a
methodology, make sure it is robust and addresses issues at all components and levels of the enter-
prise system. If an external implementation partner or consultant is involved, be sure to review their
methodology and determine whether it is appropriate for your organization. Implementation partners
may have good expertise in the functional areas, but their most important criteria are a knowledge
base of how to design and implement systems successfully.
ERP Implementation Strategies

Implementing an ERP system is problematic without first considering current business
processes and changes to those processes based on the functionality of the new system. If
business processes are not analyzed and compared with what the new system can do, it is very

Requirements Stabilization
Gathering/Gap General System Build and Test Implementation and Production
Analysis Design Support

Functional

Technical

Change Management

FIGURE 1-10 ERP Implementation Methodology