ERP Implementation Life Cycle

Software TestingAutomation TestingTesting Tools

ERP stands for Enterprise Resource Planning, and it is designed to automate any job. ERP makes it simple to administer all departments from a single database. This takes very little time and is a simple and quick method of working. Enterprise Resource Planning (ERP) is a foundation system for domestic and worldwide operations that supports most or all functional areas in their daily operations. It was developed in the 1990s. Is one of the most prevalent types of business software, particularly among major corporations.

It is a business strategy and collection of industry-domain-specific apps that enable and optimize enterprise and inter-enterprise collaborative operational and financial processes to create a value network system for customers and shareholders. ERP, at its heart, is a data-driven approach to centralizing information and workflow processes. Because ERP centralizes all of your workflow data.

Consider the following scenario − The planning, production, sales, and marketing operations of any business are grouped into a single management system, which is then linked into a single database system.

ERP Implementation at Different Stages

  • Screening for pre-evaluation − When a corporation chooses to implement an ERP system, this phase begins. The search for a package begins as a result of this. It's a time-consuming procedure since each product must be thoroughly examined before any judgment is made. Because no two packages are alike, each has its unique set of strengths and weaknesses. This procedure should weed out any packages that aren't appropriate for the company's operations.

  • Evaluation of the Package − It is the most crucial stage in the implementation process. This phase is critical to the project's success or failure since it involves package selection. The most crucial consideration when choosing a package is that although no package can be completely ideal for a project, it should at the very least be a decent match.

  • The phase of Project Planning −This phase is responsible for planning and designing the implementation procedure.

  • Analysis of the Gaps − This is the most essential stage of the process. Gaps between a company's processes and those supported by the ERP software are examined here. Even the greatest ERP product is expected to only cover 80-85% of a company's functional needs.

  • Re-engineering − Re-engineering is a term that refers to the process of redesigning something to accomplish improvements that entails a deep rethinking and dramatic restructuring of corporate processes.

  • Personalization − It's the most important aspect of ERP implementation. The final solution must be in line with the company's overall objectives. The prototype should allow for extensive testing and efforts to resolve logistical issues.

  • Training for the Implementation Team − Now that the aforementioned steps have been completed, the implementation team understands how to put the system into place. This is the stage in which the firm instructs its personnel on how to deploy and manage the system.

  • Examining − This is the point at which the team's system is broken. System overloads, several users attempting to connect at the same time, and other issues may occur. Test cases are created to identify weak points in a system. Unit testing, integration testing, acceptance testing, security testing, performance, and stress testing are examples of different kinds of testing.

  • Getting Started − Once the technical and functional aspects of the project are completed, testing may begin. The next step is "Going Live." Once the system is operational, the old system is decommissioned and the new system is utilized to conduct business.

  • End-User Instruction − This is the stage in which the system's users are taught how to utilize it. Employees and their capabilities are recognized, and they are trained in groups depending on their present abilities. Every employee receives training for the work he will be doing.

  • Post-implementation − Following the implementation, there is a period called the post-implementation period.

It is the most crucial component. The terms "operation" and "maintenance" are used to describe the post-implementation phase. The length of this phase is determined by the effectiveness of the training. During this phase, necessary improvements and upgrades are done.

ERP System Evolution

ERP stands for Enterprise Resource Planning, and it is designed to automate any job. ERP makes it simple to administer all departments from a single database. This takes very little time and is a simple and quick method of working.

Consider the following scenario − The planning, production, sales, and marketing operations of any business are grouped into a single management system, which is then linked into a single database system.

ERP System Evolution

1. MRP (Material Requirement Planning)

MRP (Material Requirement Planning) is the first step in the material requirement planning process.

Material Requirement Planning (MRP) is a commonly used technique for production planning and scheduling in an industry that was developed in the 1970s. Many commercially accessible software programs use this method.

MRP's purpose is to ensure material availability, which means it is utilized to create required amounts on time. This procedure comprises the automated generation of procurement proposals for purchase or manufacturing based on stock and demand monitoring. The fundamental goal of MRP is to figure out which materials are needed, in what quantities, and by when they are needed.

2. MRP II (Manufacturing Resource Planning)

Manufacturing Resource Planning (MRP) is an extension of closed-loop MRP for managing a complete manufacturing organization that was developed in the 1980s. This system offers information to all functional areas and facilitates cross-functional collaboration.

It helps sales and marketing by allowing them to place orders with confidence. It's a broad-based resource coordination system that includes marketing, finance, and human resources in planning procedures.

3. Enterprise Resource Planning (ERP)

Enterprise Resource Planning (ERP) is a foundation system for domestic and worldwide operations that supports most or all functional areas in their daily operations. It was developed in the 1990s. is one of the most prevalent types of business software, particularly among major corporations.

It is a business strategy and a collection of industry-domain-specific apps that enable and optimize company and inter-enterprise collaborative operational and financial processes to create a value network system for customers and shareholders. ERP, at its heart, is a data-driven approach to centralizing information and workflow processes. Because ERP centralizes all of your workflow data.

4. ERP II (Enterprise Resource Planning)

ERP II is the moniker that is presently used to describe ERP, which was developed in the 2000s. In essence, it is the ERP's replacement. It is an internal and external company strategy as well as a set of collaborative operational and financial procedures.

These new business models indicate a greater emphasis on internal integration inside the company. It has a domain that spans all industries and divisions. This data is released and subscribed to both internally and publicly. Departmental modules, CRM, SCM, and other stakeholders modules are all included. It places a strong focus on intangible aids.

How do you choose ERP software?

A company, regardless of its size, must deal with a variety of activities such as purchasing, sales, inventory management, finance, accounting, and payroll. Having a separate system to handle each of these duties would be a headache, which is why an integrated ERP software solution would be beneficial.

You may gain a full perspective of the company by allowing all of the functions or modules to operate together. More significantly, it enables your team to access and consume data from a single system, eliminating the disparities caused by numerous sources of data. The following are some of the major aspects to look for while selecting ERP software

Accounting and financial administration

One of the most crucial elements of ERP software is accounting and financial management. ERP software lets you handle accounting and financial demands effectively because of its built-in automation and sophisticated features. Billing, as well as critical accounting operations including accounts receivables, payables, cash flows, foreign currency transactions, and forex, can all be simply controlled. Also, when required, provides you with reliable and timely information.

The ability to handle a variety of company processes with flexibility

Your procedures tend to get more complicated as your company expands. As a result, the ERP software you choose must be able to scale with your business and enable you to run your company the way you want. With TallyPrime, you may print or examine reports while entering vouchers, load another business into a report without leaving the activity you were doing, and learn about any inconsistencies or weird facts from any report you read, among other things. You no longer need to know shortcut keys since you now have an easy and consistent workflow that allows you to complete tasks quicker.

Forecasting in the business world

In the long term, businesses will encounter several unexpected scenarios that will leave them bewildered and irritated, since answers may not be obvious. Company forecasting, on the other hand, becomes a far more smooth exercise when you have an intelligent ERP system in place that knows your business as well as you do. By visualizing alternative business situations and analyzing preliminary data for smart financial planning, an ERP system may help you enhance business forecasting. TallyPrime does this by simulating several business situations to assist you in dealing with uncertainty.

Inventory control is important

Inventory management is critical to any company's success. The better you handle it, the more successful your firm will be. It may make or ruin your firm, much like cash flow. ERP software assists you in maintaining optimal inventory levels by automating the inventory management process. Its built-in reporting system allows you to predict market movements and get insight into stock patterns, gaps, and low-yielding items, among other things. ERP software should be able to give timely, accurate, and actionable data, which is critical for making decisions.

Enlightening reports

Business expansion needs additional business data, such as lucrative items, fast-moving products, the age of stock in the warehouse, cost-cutting opportunities, and so on. It becomes even more difficult to guarantee that information is exchanged and that various departments communicate efficiently, which is why ERP software reports are a key area. ERP software delivers full information that assists you and your team in making the best choice possible by combining all functions and processes into a single system. ERP software minimizes the time spent manually collecting data, reconciling it, and formatting it into a comprehensible manner by automating report production.

On-the-go data access

With the advancement of technology, the necessity to access corporate data outside of the office has grown. Most ERP software's are created with robust net features that enable you to access data remotely, including critical information on mobile, to meet the expanding demands. While having access on the road is more convenient, you can't afford to overlook data security. This is one of the most important considerations when obtaining data through the internet.

raja
Updated on 30-Nov-2021 06:23:16

Advertisements