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ERP Life Cycle
ERP Life Cycle
helps streamline business operations and reduce unnecessary expenses. The process of its
implementation to automate business processes is referred to as ERP implementation
life cycle.
Step 4: Re-engineering
To make the process more efficient and worthy, re-engineering is implemented as the process
involves several changes and alterations based on the planning and gap analysis.
Step 5: Training
Since there is a new system in place, it will require for employees to get proper training so
they can start using the product, seamlessly.
Step 6: Testing
This is another crucial step in ERP implementation life cycle. It is basically carried out to
assess the errors and try to resolve them before the actual application process.
Step 7: Application
This is the stage where the actual implementation of the ERP system occurs. Once all the data
is collated, analysed and converted to be fed into the system, the new implementation is
applied, and the older system is discarded.
Step 8: Maintenance
The last and the final step, of the ERP life cycle is maintenance. Now that the new system is
in place, it is the responsibility of the employees working on it to stay updated with the latest
technology offerings. Employees also need to learn how to keep the system up and working
whenever the need arises.
ERP success factors
KPI validation is the most critical success factor of the planning phase. That is where you
evaluate the business advantages and key performance indicators (KPIs) established prior to
ERP selection. When analysing KPIs, you should ensure they are measurable and realistic.
3) Team involvement
Your ERP implementation core project team should incorporate the most skilled employees
from across your organization including a project manager. These internal resources should
have the capability to understand the overall requirements of the company and be committed
to important decision-making responsibility and authority. You also need to know a set of
resources from the different areas of the business to provide subject matter expertise. If a
consulting integrator is involved, then the project team to have a good working relationship
with the consultants as well.
4) Change management
ERP project implementations not only change the way people do their jobs but also process
and organizational changes. It’s essential to have adequate time to train people on new
processes and systems. Here, a change management team becomes necessary for the
organization to deal with the impact. You should encourage good communication between
the organization and the project team. Key users should be included with the project and its
development, for smoother acceptance of the changes.
5) Budget carefully
Implementation of your ERP system will bring some significant costs, which would include
software license charges, system support, training, and the help of an integrator. It’s essential
to keep an account of the cost. You can add these costs and budget accordingly so that a lack
of resources does not interrupt your ERP plan. You must also keep in mind the cost that you
will need for post-installation.
1. Lack of Governance
A successful ERP implementation requires strong governance and oversight from the
beginning. A good framework for decision rights with accountability. Without a clear and
concise governance framework in place, it can be challenging to make the right decisions,
track progress, and manage expectations during ERP implementation.
5. Lack of Training
Many ERP implementations fail because employees are not adequately trained on using the
new system. A lack of training can lead to resistance from employees, which can, in turn,
lead to data entry errors, missed deadlines, and other problems.
a. Plan Ahead
It is essential to begin training employees well before the actual implementation date. This
will give employees enough time to learn the new system and adjust to any changes that may
occur.
8. Implementation Overruns
One of the most common problems with ERP implementations is that they often take longer
and cost more than expected. This can be due to a number of factors, including
underestimating the scope of the project, unrealistic schedules, and unanticipated changes.
9. Over-reliance on Technology
ERP implementations often fail because companies rely too heavily on technology and not
enough on people. The success of an ERP implementation depends on the people who will be
using the system, so it is important to invest in training and change management.
1. SAP
SAP has long been a frontrunner for large enterprises. Although the implementation process
can be lengthy, it is often well-tailored to any business. SAP is fully featured and offers an
ERP solution for any size enterprise.
SAP’s standout ERP platform is the SAP S/4HANA Cloud which features built-in AI,
machine learning and analytics for intelligent automation. These tools enable
organizations to free up their IT resources and improve operational efficiency.
All SAP ERP platforms include key features such as asset management, supply chain
management, finance management, sales tools and more.
Just like SAP, Oracle has been a leader in ERP for quite some time. And in 2021, Oracle was
named a Gartner Magic Quadrant Leader for Cloud ERP for Product-Centric Enterprises for
the third year in a row.
Oracle’s Fusion Cloud ERP includes a full range of capabilities that make it a perfect
solution for organizations across industries. These capabilities include financial
management, project management, compliance, procurement, supply chain
management and robust analytics.
Oracle Fusion Cloud ERP delivers additional features for organizations looking to future-
proof their tech stack. These features include AI automation and automatic updates.
3. Microsoft
For businesses that are already using Microsoft’s technology, choosing Microsoft for ERP
could be a smart idea. Microsoft offers robust products for small and mid-sized
organizations and is becoming a growing force, looking toward larger organizations as well.
Microsoft Dynamics 365 is a complete suite of products organizations can choose from to fit
their specific needs. Some of the products include Dynamics 365 Finance, Dynamics 365
Business Central and Dynamics 365 Supply Chain Management.
The option to choose one product or all of them makes Dynamics 365 completely
customizable and scalable. From customer relationship management to financial
management, it’s all available through Microsoft’s ERP solutions.
4. Infor
Medium and large companies, both national and global, should consider Infor, which is an
emerging solution for the enterprise, offering a set of applications specific to particular
organizations.
For example, Infor M3 was designed specifically for enterprise manufacturers and
distributors, featuring capabilities such as global financial visibility, robust analytics and
supply chain management. For other businesses within the general service industry, Infor
provides a wide range of solutions for managing operations, including payroll,
workforce management, financial management and more.
5. IFS
IFS is dedicated to serving organizations within complex industries such as aerospace
and defence, construction and engineering, manufacturing and telecommunications.
The IFS ERP solution is built on the IFS Cloud, which provides a completely composable
environment. This means the solution is completely customizable to fit your workflow.
The IFS ERP solution provides many functionalities critical for all organizations, including
financial management, human capital management, CRM, supply chain management,
procurement, project management and commerce.
6. Workday
Workday is a full suite of enterprise-level apps that promises to help organizations “move
beyond ERP.” Workday combines finance and HR functions into one streamlined
platform, eliminating the need for disparate systems.
Workday’s core technology includes a flexible business process framework (BPF) that
enables organizations to configure Workday in a way that works best for them, without any
coding required. This includes the ability to connect to third-party apps and services
and integrate them into any workflow.
7. Epicor
Epicor provides ERP solutions to small and medium-sized enterprises within industries
such as manufacturing, automotive, retail and distribution. Epicor offers several
platforms, each with their own specific use, ensuring organizations select an ERP platform
that fits.
For example, Epicor Eagle was built for retailers and includes capabilities such as point-
of-sale (POS), payment processing, back-office management and omnichannel
management. Epicor Eclipse was developed for leading HVAC, electrical, plumbing and
PVF distributors and includes capabilities such as supply chain management, analytics,
warehousing and inventory management.
8. abas
abas offer an ERP platform designed specifically for mid-sized manufacturers within
industries such as metalworking, automotive, electrical engineering and plastic
technology. For these industries, abas is comprehensive and includes tools for scheduling,
accounting, sales, purchasing, reporting, order processing, invoicing and project
management.
Manufacturing organizations will benefit from several additional, niche-specific features
using the abas platform such as Internet of Things (IoT), plant data collection, service
assignment planning, quality management (QM) and warehousing.
Just like the other ERP platforms included here, abas also offers simple platform
customization, enabling manufacturers to tailor their ERP to fit their unique workflows. Plus,
customization is completed using low-code tools.
9. Deltek
For project-based businesses within industries such as accounting, IT and marketing,
Deltek’s ERP solutions are some of the best available on the market. Deltek provides unique,
niche-specific tools depending on each organization’s needs. Plus, these tools are available in
the cloud or on-premises.
For example, WorkBook is a management system designed for agencies and in-house
teams. It provides project management tools, resource management tools, finance
management tools and business intelligence in one solution.
ComputerEase is another product offered through Deltek for construction companies. This
solution provides features such as construction accounting, job costing, field mobility
and service management.
10. Sage
Sage delivers robust ERP apps and tools through the Sage Business Cloud. These apps are
perfect for small businesses looking for simple and cost-effective solutions for accounting,
procurement, customer service, production, sales and workforce management.
Sage also offers ERP solutions for medium-sized, established businesses that need a bit more
than the apps can give. Sage X3 delivers everything from production management to
financial management. Plus, Sage X3 is completely customizable and can be connected with
many other integrations and apps.