Like any other project, ERP implementation goes through various interconnected phases. These phases may be sequential but at occasions overlap. Normally, every phase has entry criteria, which needs to be fulfilled before the commencement of the phase. A phase is deemed to have completed when pre-determined deliverables are achieved.

Various phases of ERP implementation, for a typical ERP project, are mentioned below:

1. Project Establishment

   Project Establishment will comprise of the following activities:

   • Mobilization.
   • Project teams formation
   • Project plan detailing and fine tuning

   For a successful implementation, several types of skills are required. To ensure that the requisite expertises are available to the project, different teams are formed, consisting of members from the organization and vendor.

   • Project board
   • Competence center team, mostly represented by IT personnel of the organization.
   • Key users team.
   • Consultants’ team.
   • Project Implementation Committee.
   Entry Criteria
   • Vendor Project Team on site.
   • Organizations implementation team tentatively identified.
   Deliverables
   • Project Administration Plan.
   • Project standards document.
   • Project board formation.
   • Project Implementation Committee formation.
   • Competency Centre Team formation.
   • Key Users Team formation.
   • Delivery and Installation of vanilla ERP Application.

2. Procedure Development

   In this phase, key users and competence center team map the existing functional processes with the functions available in the vanilla ERP application, in conjunction with the vendor team. The following activities will occur in an iterative manner.

   • Process mapping
   • Gap detection
   • Work-around identification
   • Organizational impact analysis
   Deliverables
   • Business Model through flow chart.
   • Customization Design Specification document for identified modifications.
   • Draft Procedure Manual
   • Acceptance Test Plan and Data

3. Application Software Customisation

   This phase includes program development for all modules using the Customization Design Specification Document, unit testing and system testing of all modules. The individual programs will be unit tested, based on test plans developed by the vendor. This phase may be carried out at offshore.

   Next, the developed and unit tested application software will be system tested during this phase. The system testing will be based on the acceptance test plan and test data provided by the organization. Thereafter it will be installed on the Designated Computed System.

   Entry Criteria
   • Acceptance Test Plan and Test Data
   • Customization Design Specification Document for identified modifications
   Deliverables

   Customized unit and system tested application software.

4. Acceptance Testing

   The focus of user acceptance testing is to exhibit that the system works. From the user’s point of view, acceptance testing is the final quality control procedure to determine whether the software product is performing as expected.

   Entry Criteria

   Availability of customized unit and system tested application.

   Deliverables
   • Tested Application Software
   • Updated procedure manual

5. End User Training

   All identified end users will be trained in the specific functions they are required to work. The training will be conducted by vendor.

   Entry Criteria
   • Tested Application Software
   • Updated procedure manual
   Deliverables
   • End users trained as per training plan

6. Conference room trial

   This phase deals on the simulation of the actual business environment. The following activities will occur iteratively during this phase:

   • Identification and entry of representative data
   • Simulation of the business model
   • Business Model enhancement
   • Finalization of procedure manual

   As the team reviews the data model, the business model that is prepared in the Procedure Development stage may undergo some changes.

   Entry Criteria
   • Tested Application Software
   • Updated procedure manual
   Deliverables
   • Final Procedure Manual
   • Final Business Model

7. Data Loading

   This is the migration phase where data from existing manual/legacy operations are transferred to System’s database using interface programs or utilities available within the ERP package. The following activities will occur:

   • Data conversion loading
   • Establishment of Access Rights and Passwords
   Entry Criteria
   • Final Procedure Manual.
   • Final Business Model
   Deliverables
   • Data Loading Completed

8. Live trial

   Once the Final Business Model is ready and database is loaded, the system is ready to go live. This phase will allow users to work on the application software with real time data.

   Entry Criteria
   • Data Loading Completed
   • Trained End Users.
   Deliverables
   • Live Trial completed