ERP Life Cycle in Brief

ERP Rollout

Start with Request of Proposal (ROP) and vendor selection.It is ending with go live of the ERP system.

   Important concerning :
     Degree of matching ERP product to business need.
     Commitment of the vendor for future development and their financial health.
     Support issues.


Optimization

Due to lack of understanding,a lot of confusion will prevail among users.There may be some bugs in product (in ERP Software).Need to correct that errors or bugs.

Maintenance

Longest period of life cycle.

Organization start realizing value of their investment.

Users will get familiar and start owning the system.

Changes in this phase  - new reports,different workflows,some localization on taxes.

Maintenance will be covered by service level agreement,entailing payment of license fee to the vendor.

Extending Values

Overlap with the maintenance phase

There may be changes (minor or moderate) in the system.

Extensive changes under

 A new accounting system.

 A new regulatory requirement.

 Extending the system with add on products,such as CRM,Business Intelligence (BI)

Decaying Performance

For an enterprise,business need and technological requirement,continue to evolve.

Complexity and difficulty to modify and update the existing system

Fixing existing system is no more viable and provides diminishing return.

Make decision to reimplementation.

Re-implementation

Similar to rollout phase

The organization is better organized now

Initial process will be carriedout more professionally

Next cycle gives a better Return on Investment (ROI).

Can develop better version with minimum need of customization.

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