Explain benefits of ERP in detail.
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Acumatica Cloud ERP System
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www.acumatica.com Blog ERP Implementation Life Cycle — What Is It?
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ERP implementation life cycle is the process of deploying enterprise resource planning software—from planning through go-live and beyond. The typical implementation cycle is six to 12 months. But don’t think it’s all about software. Make sure you’re prepared for these eight stages of ERP implementation.
One question that always comes up very early in the process when considering an ERP implementation is “How long will it take?” While there is no general answer to that question – ERP implementations proceed at their own pace – the process can be outlined by way of a timeline or life cycle. Just for perspective, an ERP implementation can take anywhere from a few months to several years, with the majority ranging from six-to-12 months from kick-off (project planned and funded, team organized and ready to go, ERP technology and ERP system software delivered – if appropriate – and installed) to a live system in full operation.
What is an ERP Implementation Life Cycle?
However long ERP implementations take, the result is the use of cloud-based ERP technology that makes end users’ jobs easier, efficient, and effective. And advanced understanding of the life cycle phases gives you a head start on experiencing a successful ERP implementation.
The 8 of the ERP implementation life cycle
Planning and organization – In this commentary, we’re not counting this phase as part of the time it takes to implement the system as it all occurs before the start of spending money or real physical activity. Nevertheless, a team can be assembled and a decent plan developed in a matter of a few weeks, for a motivated company. More typically, the planning stage might last up to six months or more.
System selection and installation – Selecting the ERP system software and ERP technology can be a challenging endeavor, given its importance to the project and the vast array of choices. From requirements definition and early market surveys through determining the “short list”, gathering proposals, holding demonstrations, final selection and negotiation, this phase typically consumes anywhere from 3-to-6 months.
Installation – Sometimes there is a lead time for delivery of hardware and software, installation of infrastructure components like networking facilities and data collection / display devices, and installation of software that could be anywhere from several days to several weeks or more. Cloud-based ERP may have little or no installation lead time and no software installation requirements.
Data conversion and loading – Once the ERP technology and ERP system software is ready, data must be entered and/or moved into the system’s database. This includes “basic records” like customer, vendor and item master files, bills of material, production facilities and routings, general ledger chart of accounts, and the like. Just before going live, active transactional data is converted or transactional activity is transitioned into the new ERP system software. Some of this activity can be completed in parallel with other tasks like training and validation. IT resources and consultants/contractors can primarily accomplish some of this activity, as well. While a significant amount of time and effort is required, this requirement will not add significantly to the implementation timeline.
User training and procedure development – This is arguably the most important part of ERP implementations; procedure development (and documentation) and user training should take up the majority of the timeline. These requirements consume considerable time and effort from operational employees (actual future users of the system) who are also expected to do their existing jobs at the same time. The duration of this phase depends on the size and complexity of the ERP system software being implemented (number of modules or functional areas involved