UNIT 4

DEVELOPMENT LIFE
CYCLE

1 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

 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.

2 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

 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.
3 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Figure 4-1 Traditional SDLC Methodology
*******

4 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Figure 4-2 SDLC Approach

5 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

 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).
6 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Figure 4-3 Prototype Development
*******

7 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

 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.
8 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
 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.

9 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Figure 4-4 Rapid Application Development Process

10 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

 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.

11 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Figure 4-5 Traditional ERP Life Cycle

12 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

 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.

13 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

 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.

14 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

 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.

15 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

 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.

16 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

 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.

17 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

 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.

18 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

 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.
19 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
 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,
20
end-users, operations, and
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
 Methodologies used in ERP implementation (Cont’d)
*******
• Accelerated SAP (ASAP)
– Project Preparation. Proper planning and assessing
organizational readiness is essential.

– Business Blueprint. The engineer delivers a complete toolkit of

predefined business processes.

– Realization. Based on the business blueprint steps are taken to

configure the R3 system.

– Final Preparation. In this phase, the R3 system is fine-tuned.

Necessary adjustments are made.

– Go-Live and Support. Procedures and measurements are

developed to review the benefits
21
ofCopyright
the R3 investment on an
© 2012 Pearson Education, Inc. Publishing as Prentice Hall
ongoing basis.
 Project Management
********
• A clear project plan and reporting structure will better
ensure that the project receives the attention and
accountability needed to be successful.
• The project owners, a project steering committee, and
project executive must develop the hierarchy and
determine responsibilities.
• Many businesses now have a project management
organization within IT to provide the project management
necessary for company projects.
• The functional, technical, and change management staff
for the project will likely consist of existing staff from the
business, new hires, and consultants.

22 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Figure 4-8 Project Organization

23 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

 The Project Organization
*******
• Project Management Office (PMO)
• Project Leads
– They provide the input to management and coordinate team
activities.
• Project Teams
– The Functional Team- Knowledgeable staff from each area.
– The Infrastructure Team- Implements hardware and software .
– The Development Team- Modify the software to meet the goals.
– The Conversion Team- Convert the legacy data to the new system.
– The Reporting Team- Develops a reporting framework and initial
set of reports to be included in the system implementation.
– The Change Management Team- Training and communications
plan for the project. Their role is to provide project implementation
information to key areas within the organization.
24 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
 Project Roles and Responsibilities

• Identifying and describing roles and responsibilities for

project staff is necessary to ensure there is
accountability within the project.
• Defining roles, often used as job descriptions on a
project, will be the responsibility of the project
management office.
• Each member of the project team will need to know
what is expected of them, who they will report to, and
what they will be evaluated on.

25 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

 Implications for Management
**************
• It is critical to have solid top management commitment.
• It is important to have strong and experienced program
management.
• It is a good practice to minimize the type and number of
customizations that are implemented.
• It is critical to emphasize training and change
management.
– Effective and frequent communication keeps everyone on the
same page and give the greatest chance of problems being
identified early.

26 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

 Summary

• A review of the systems development life cycle—both

traditional and alternative approaches—and points out
the benefits and limitations of the traditional and the
newer approaches.
• The ERP life cycle has variations from the SDLC
process. The key reason is that organizations buy ERP
as prepackaged software, and then have to customize
them as well as change their company’s business
processes.
• There are three routes for the company in choosing an
appropriate implementation strategy;
• Comprehensive.
• Vanilla.
• Middle-of-the-road.
27 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
 Summary (Cont’d)
• There are rapid implementation methodologies
developed by ERP consulting firms.
– Total Solution.
– Fast-Track.
– Rapid Application Development.
– ASAP.
– BIM.
• Accelerated implementation approaches are very
popular and require the use of experienced consultants
to leverage the knowledge of techniques that have
worked well with other organizations.

28 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

 Summary (Cont’d)

• ERP applications generally do not require the rigorous

traditional SDLC process.
• ERP software is mission critical, has a major impact on
the organization business processes, and impacts a lot
of people.
• It is the role of the project management office to address
teamwork initially and throughout the project as
teamwork is paramount to the project.
• Each person on the project needs to understand their
role and responsibility, thus making individuals and the
project organization accountable to the project and the
project’s success.
29 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.

Copyright © 2012 Pearson Education, Inc.  

Publishing as Prentice Hall

30 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall