ERP development life cycle

Enterprise Resource Planning (ERP) systems are integrated information systems. They are developed as commercial software packages. Here the aim to support most of the operations of a company. ERP include standard models of business processes   have a large functional scope.  When deciding to use such ERP systems, companies hope to achieve manifold benefits which include the integration of business processes, the increase of possibilities to control the company’s operations, the technological updating, IT cost reduction and access to quality information in real time for decision taking.

The life cycle of information systems represents the various stages which include project  development and utilization of information systems passes through. Systems development life cycle encompasses project definition, system study, design, programming, installation and post-implementation stages. Waterfall model and protyping are the two different approaches for system development. In waterfall model the stages are executed sequentially and only once for each system, and prototyping, where the stages are repeated, refining an initial solution.

Implementation is the second stage of the ERP systems’ life cycle, although the term is also used to represent the full life cycle. The implementation is the process by which the system’s modules are put into operation within a company. This stage encompasses the tasks from the end of implementation plan’s concept to the beginning of the operation. Implementation entails adjustment of the business process to the system then eventual customizing of the system and also the loading or conversion of initial data, hardware and software configuration, training of the users and managers and the offer for support and help etc. Difficulties are mainly due to the organizational changes due to the changes of the tasks and responsibilities of individuals and department, transformations in the relationships among the different departments.

ERP system implementation  is generally for the optimization of the global processes of the company. They may cause as a counterpart changes in the activities in most of the departments involved. The process of adjustment of the ERP system is part of the implementation stage. These is achieved by the adjustment of parameters or software customizing and to the development of programs to modify or complement the existing functions. The decision on how the start of the operation of the ERP system is taken in the  implementation stage. The start may also occur in phases and here the approach used to implement an ERP system is an important decision in its implementation project as it greatly affects the configuration of the system.

The integration of processes by ERP systems include certain difficulties for the implementation stage. These difficulties are related to three types of changes in the way people do their work. At first the integration aspect transfers to departments that produce the information the responsibility to insert it properly. Here there includes data used by other departments only and as a consequence, the users feel that their tasks are increased. Second one is that the information must be recorded into the system at the best-suited moment for the process and not at the best-suited moment for a specific department.

There is a need to change the order and form in which tasks are carried out and other departments begin to demand the information they rely upon.Also  the activities of a department become transparent to all others and this has the inconvenience to require explanations for everything it does.However, once these shortcomings are over, users can feel that they grew as professionals, since they start to have a broader view of the company’s activities and to have a clearer perception of their role and importance in business processes. One of the important consideration for the success of the implementation process is the training of end users for the work at an integrated system, taking into account the quoted aspects.

At Stabilization moment, the ERP system, that until then was only an abstraction, gains reality and starts to be part of the company and of the people’s daily life. This is when the highest amount of energy is required. In these stage problems have been easily detected at the implementation stage. This is a particularly critical stage. Here the company is already relying upon the system for its activities and which causes major pressure for the speedy solution of problems. The length of this period depends on the company and  may takes about eight weeks.

Difficulties of the end users and problems of the ERP system in programs and their adjustment to the company are the two critical aspects may be highlighted at this stage. Besides the difficulties of adjustment to the functions of the new system, there is another issue of the cultural adjustment of people to the requirements of work in an integrated environment. While users face these difficulties, the detection of errors in customized programs and parameter settings also take place, making trouble in the normal operation. Occurrence of use difficulties and system faults, associated with the recent familiarity of the project team to the new system, make the identification of the problems real causes even more difficult at this stage.

The exact characterization of this stage is related to the operation-starting mode  by the company. Companies that implement the modules in phases, or even in small-bangs, the stabilization stage is less characterized and merges with the implementation stage of the remaining modules. Stabilization stage in the case of implementation by phases starts with the operation of the first module and ends only when the last module implemented, in the last locality of the company. This longer implementation and stabilization time in general entails loss of focus of the project. They viewed as a risk factor for the implementation in phases.

Finally, at the fourth stage of utilization the system starts to belong to the day-by-day operations. Its only achieved after a certain period of continued use of the technology, through the ideas that emerge during the utilization process. Therefore, the stage of utilization feeds back the stage of implementation with new possibilities and needs. They can be solved through new modules, parameter adjustments, or software customizing. The already implemented modules may impose restrictions upon new modules caused by already defined parameters or customizations in the case of implementation in phases. New modules should not imply in changes of already configured and operational modules, usually a difficult task.

There observed that some time after the beginning of the operation, the implementation of customizations or new modules becomes more difficult. The introduction of an ERP system changes the focus of whole IT area. developed systems. There are also new challenges at the day-by-day management of IT. Maybe there are relationship problems with the supplier that demand the attention of the IT manager. The IT areas adopt alternative procedures to keep their updating efforts at levels consistent with their possibilities. stage.

History shows that implementation of ERP systems is not a simple matter since there are some reported failures also. ERP systems life cycle tries to encompass the complexities involved in implementing ERP systems in companies. To achieve this purpose, several aspects relating to the decision and selection, implementation, stabilization and utilization stages were needed. For more