this is reflection i have posted the questions and slides also
CHAPTER 3 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 CHAPTER 4 DEVELOPMENT LIFE CYCLE Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2 Learning Objectives • Review the Systems Development Life Cycle (SDLC). • Examine the problems and alternatives with SDLC. • Know the key issues in ERP implementation strategy. • Understand ERP Implementation Life Cycle. • Examine the rapid implementation methodologies. • Compare and contrast SDLC and ERP Life Cycles. • Examine the role of people like top in the ERP Life Cycle. • Understand the importance of the PMO and the project organization to a successful ERP implementation. • Know the components of a project organization and the roles and responsibilities of each. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 3 Systems Development Life Cycle (SDLC) • SDLC includes a systematic process of planning, designing, and creating an information system for organizations. • It is often better to have a structured methodology to avoid mishaps and coordinate the design and development tasks properly among the members of a large systems development team. • Systems Approach—Complex problems are broken up into smaller manageable problems using a systems’ hierarchy, and then developing a solution for each problem within the hierarchy. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4 Figure 4-1 Traditional SDLC Methodology Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 5 Figure 4-2 SDLC Approach Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 6 Rapid SDLC Approaches • Prototyping – This approach does not go through the analysis and design phase. – It implements a skeleton or a prototype of the actual system with a focus on data input and output. – The idea is to demonstrate the system functionality to the users. – Feedback is incorporated into the new system and demonstrated back to the users. – This approach has proven to be very effective with user interactive systems because the prototype is eventually converted into a full-scale system. • End User Development (EUD) – Users are trained to develop their own applications (e.g., a departmental employee tracking system with an Access database). Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7 Figure 4-3 Prototype Development Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 8 Differences between ERP and Other Software ERP Other Packaged Software Millions of dollars Hundreds to Thousands Mission critical Support or productivity improvement One to several years Almost instantly Requires significant change management strategy from beginning to end for success; business process change, training, communications, etc. Requires some training and support Requires in-house employee time, consultants and vendor support in millions of dollars Requires little or no consulting support or vendor technical support Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9 ERP Implementation Plan • Comprehensive – Involves implementation of the full functionality of the ERP software in addition to industry-specific modules. – Requires a high level of business process re-engineering. • Middle-of-the-Road – Involves some changes in the core ERP modules and a significant amount of business process re-engineering. • Vanilla – Utilizes core ERP functionality and exploits the best practice business processes built into the software. – Business process re-engineering is eliminated. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 10 ERP Implementation Methodology • An ERP development life cycle provides a systematic approach to implementing ERP software in the changing but limited-resource organizational environment. • The traditional ERP life cycle accomplishes one stage at a time and requires formal milestone approvals prior to moving to the next stage. • In a rapid ERP life cycle, once a company commits to the implementation, employees are empowered to make the decisions to keep the project moving forward. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 11 Figure 4-4 Rapid Application Development Process Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 12 Traditional ERP Life Cycle • Scope and Commitment Stage – In addition to conducting the feasibility study, a scope of the ERP implementation is developed within the resource and time requirement. – Characteristics of the ERP implementation are defined. – Develop a long-term vision for the new system and a short-term implementation plan and top management’s commitment. – Vendor Selection. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 13 Figure 4-5 Traditional ERP Life Cycle Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 14 Traditional ERP Life Cycle (Cont’d) • Analysis and Design Stage – A decision on the software is made and decide on consultants and SMEs. – Analysis of user requirements. – Map the differences between the current business process and the embedded process in the ERP software. – Design a change management plan, a list of embedded processes, user interface screens, and customizable reports in the ERP software. – Data conversion. – System conversion. – Training. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 15 Traditional ERP Life Cycle (Cont’d) • Acquisition & Development Stage – Purchase the license and build the production version of the software to be made available to the end-users. – The tasks identified in the gap analysis are executed at this stage. – Change management team works with end-users on implementing the changes in business processes. – Data team similarly works on migrating data from the old system to the new system. – Finally, the ERP system needs to be configured with proper security. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 16 Traditional ERP Life Cycle (Cont’d) • Implementation Stage – Focus is on installing and releasing the system to the end-users and on monitoring the system release to the end-users. – System conversion (4 Phases) • Phased. • Pilot. • Parallel. • Direct Cut or big bang. – Feedback received from system usage needs to be funneled to the post-implementation team for ongoing system support. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 17 Table 4-2 List of Scopes and Commitments Gap Analysis Evaluation of the functions provided by the ERP system compared with the operational processes necessary to run your business Physical Scope Establishes which sites will be addressed, the geographical locations of the sites, and the number of users. BPR Scope Will the current processes be refined, replaced, or eliminated? What users, departments, sites will be affected? Technical Scope How much modification will be done to the ERP software? What processes will be utilized as is and which will be customized? Resource Scope How much time and budget is allocated for the project? Implementation Scope Which modules should be implemented? How should the modules be connected to the existing system? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 18 Figure 4-6 ERP Conversion Approaches Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 19 Traditional ERP Life Cycle (Cont’d) • Operation Stage – Handover or knowledge transfer is the major activity as support for the new system is migrated to the help desk and support staff. – Training of new users to the system as ERP modules are released. – Managing of new releases of the software, installation of patches and upgrades. – Managing the software contract with the ERP vendor. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 20 Figure 4-7 ERP Life Cycle Phases Summary Role of Change Management • System failures often occur when the attention is not paid to change management from the beginning stages. • A vision for CM needs to be articulated from the first stage and then revised, monitored, and implemented on a constant basis. • SMEs and other internal users have the role of working with the team and to guide the implementation team on all the activities of change management. • Support of the top management as well as skills of the change management team are essential for successful implementation. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 21 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 22 Methodologies used in ERP implementation • Total Solution (Ernst & Young, LLP) • Phases – Value Proposition. Does the solution make sound business sense? – Reality Check. Is the organization ready for change? – Aligned approach. Setting the right expectations that deliver both short-term and long-term value. – Success Dimension. Getting the right blend of people, skills, methods, and management in the team. – Delivering Value. Measuring results and celebrating success. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 23 Methodologies used in ERP implementation (Cont’d) • Fast Track (Deloitte & Touche) • Phases – Scoping and Planning: Project definition and scope. Project planning is initiated. – Visioning and Targeting: Needs assessment. Vision and targets identified. As-is modeling. – Redesign: To-be Modeling. Software design and development. – Configuration: Software development. Integration test planning. – Testing and Delivery: Integration testing. Business and system delivery. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 24 Methodologies used in ERP implementation (Cont’d) • Fast Track (Deloitte & Touche) • Areas – Project Management (project organization, risk management, planning, communications, budgeting, quality assurance). – IT Architecture (hardware and network selection, installation, operations, design, development, installation). – Process and Systems Integrity (security, audit control). – Change Leadership (leadership, commitment, organizations design, change-readiness, policies, performance measurements). – Training and Documentation (needs assessment, training design and delivery, management, end-users, operations, and helpdesk. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 25 Methodologies used in ERP implementation (Cont’d) • Accelerated SAP (ASAP)