Enterprise Resource Planning

Session V - VIII : Implementation Cycle

Learning Objectives

1 Traditional SDLC

2 ERP vs Traditional Systems – Differences in SDLC

3 ERP Implementation Lifecycle

4 ASAP Methodology – Phases and Workstreams

Traditional SDLC 1

What is SDLC

SDLC is a systematic process of planning, designing, and creating an information system for organizations.
Traditional SDLC 1

Why SDLC

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.
Traditional SDLC 1

How ?

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.
ERP vs Traditional SDLC – Differences 2

Traditional SDLC ERP

• Thousands of dollars • Millions of dollars

• Supports a specific requirement or • Mission critical and supports all business
productivity improvement processes
• Implementation happens in few months • Several months to years
• Requires training and support • Requires extensive training and support
• Little or no consulting • Consultants play a vital role
• Consulting is technical in nature • Consulting is technical and management in
• Evaluate user needs by observation and nature
interviews • Interact with SMEs, focus groups, all-levels of
• Develop system architecture and design, managers
interface and reporting tools • As-Is and To-be process maps
• Acquire Hardware / Software and implement • Involves several phases such as realization,
system final preparation and go-live
• Minimal role of management, consultants and • Extensive role of management, SMEs,
end-users during implementation consultants, super-users and end-users during
implementation
ERP Implementation Cycle – From Various Vendors 3

ERNST & YOUNG DELOITTE & TOUCHE SAP ACCENTURE

(Total Solution) (Fast Track) (ASAP) (BIM)

• Value Proposition • Scoping and Planning • Project Preparation • The Planning Phase
• Reality Check • Visioning and Targeting • Business Blueprint • The Delivering Phase
• Aligned approach • Redesign • Realization • The Managing Phase
• Success Dimension • Configuration • Final Preparation • Configuration
• Delivering Value • Testing and Delivery • Go-Live • The Operating Phase
• Run and Operate
ERP Implementation Cycle – ASAP Introduction 3

What Proprietary Implementation Cycle for SAP-ERP

Why It is a well-structured approach and ensures predictable outcomes

• Prescriptive and Comprehensive

Characteristics
• Scalable
• Innovative
• Sound Practices
• Knowledge Capture and Reuse

Business • Enables consistency

Implications • Supports all types of implementation
• Offers accelerators (work products and procedures) for
• Project managers
• Teams
ERP Implementation Cycle – ASAP Introduction 4

Project Business Final Run &

Realization Go-live
Preparation Blueprint Preparation Operate

The solution
Project is formally receives
The solution is built,
initiated, and confirmation,
and integration
planning is ongoing support is
tested
underway in place and the
project is closing

Project team gathers End users are

requirements and trained, this is the
Operability of the
conducts the final check before
solution ensured.
conceptual design of cut-over to new
the solution system solution
ERP Implementation Cycle – ASAP Introduction 4

Project Business Final Run &

Realization Go-live
Preparation Blueprint Preparation Operate

This phase provides initial The purpose of this phase The purpose of this phase is The purpose of this phase The purpose of this phase During this phase the
planning and preparation is to achieve a common to implement all the is to complete the final is to move from a project- system is operated with the
for the project. Each understanding of how the business process preparation (including oriented, pre-production help of the central operation
project has its own unique company intends to run requirements based on the technical testing, end user environment to live platform, SAP Solution
objectives, scope, and SAP to support their Business Blueprint. The training, system production operation. Manager, with the
priorities. The business. In Standard system configuration in management and cutover documented solution based
deliverables described in ASAP 8 Methodology Standard ASAP 8 activities) to finalize your on the transferred project
this phase assist in the result is the Business Methodology is done in two readiness to go live. The documentation.
completing the initiation Blueprint, a detailed work packages: Baseline Final Preparation phase
and planning steps in an documentation of the configuration (major scope); also serves to resolve all
efficient and effective results gathered during and Final configuration critical open issues. On
manner – like setup of requirements workshops (remaining scope). During successful completion of
project governance, this phase the solution is this phase, you are ready
project plan and project also tested. to run your business in
schedule are prepared at your live SAP System.
this stage.
ERP Implementation Cycle – ASAP Introduction 4

Project Business Final Run &

Realization Go-live
Preparation Blueprint Preparation Operate

Task1 XXX Task1 XXX Task1 XXX

Task2 XXX Task2 XXX Task2 XXX
Task3 XXX Task3 XXX Task3 XXX
. . .
. . .
Taskn XXX Taskn XXX Taskn XXX

Deliverables Deliverables Deliverables

Task1 XXX Task1 XXX Task1 XXX
Task2 XXX Task2 XXX Task2 XXX
Task3 XXX Task3 XXX Task3 XXX
. . .
. . .
Taskn XXX Taskn XXX Taskn XXX

Deliverables Deliverables Deliverables

 ERP Implementation Cycle – ASAP Introduction 4

Project Business Final Run &

Realization Go-live
Preparation Blueprint Preparation Operate

Task1 XXX Task1 XXX Task1 XXX

WS1 WS1
Task2 XXX WS1 Task2 XXX Task2 XXX

Task1 XXX Task1 XXX Task1 XXX

WS2 WS2 WS2
Task2 XXX Task2 XXX Task2 XXX

Task1 XXX Task1 XXX Task1 XXX Task1 XXX Task1 XXX
WSN Task1 XXX WSN WS1 WSN WS1
Task2 XXX Task2 XXX Task2 XXX Task2 XXX Task2 XXX
WS1 Task2 XXX

Deliverables Deliverables Task1 XXX Deliverables Task1 XXX

Task1 XXX WS2 Task2 XXX WS2
WS2 Task2 XXX
Task2 XXX

Task1 XXX Task1 XXX

Task1 XXX WSN WSN
WSN Task2 XXX Task2 XXX
Task2 XXX
Deliverables Deliverables Deliverables
Work streams 4

The ASAP Methodology is structured around the key project work

streams. For each work stream, the methodology provides the number of
deliverables that are to be produced in each phase of the project.

ASAP Implementation Roadmap – 12 Work Streams

PM – Project Management
BPM – Business Process Management
DM – Data Migration
DA – Data Archiving
ISM – Test Management
TRN – Training
Cutover – Cutover Management
OCM – Organizational Change Management
ALM – Application Lifecycle Management
VM – Value Management
TSM – Technical Solution Management
OMP – Opportunity Management
Work streams 4

Project Mgmt Provides Essential Proj Mgmt methodology processes that are appropriate to requirement planning and execution and controlling
(PM) of implementation

Organisation Change Structured approach to transitioning individuals, teams and organisations from current state to new state (training of members,
Mgmt (OCM) users, stakeholders)

Data Management
Data Migration and archival
(DM)
Business Process
Focus on to-be process design and considering business goals and supporting processes for these goals
Management (BPM)

Training (TRN) The purpose of training is to ensure that the identified project team has the skills and knowledge required to actively participate in
the implementation from start to finish.

Test Management The purpose of the test management deliverable is to support test management activities for an SAP implementation. This is part
(ISM) of the management with focus on the data to be created in development and quality assurance systems.

Cutover Mgmt Cutover is the process of planning, managing and executing ALL of the tasks and activities that allow the impacted
(COM) business/function to 'cutover' to the SAP system.
ERP Implementation Cycle – Role of Workstream : PM 4

Project Business Final Run &

Realization Go-live
Preparation Blueprint Preparation Operate

Project Initiation Phase Initiation Phase Initiation Phase Initiation Improvement Roadmap
Project Governance Production Support
Project Charter
Kick-off workshop
Scope statement
Project Schedule
Project Mgmt plan
Project Standards
Execution / Control Execution / Control Execution / Control Execution / Control Execution / Control
Monitoring Monitoring Monitoring Monitoring Monitoring
Phase Sign-off Phase Sign-off Phase Sign-off Phase Sign-off Project Sign-off
ERP Implementation Cycle – Role of Workstream : PM 4

Project Business Final Run &

Realization Go-live
Preparation Blueprint Preparation Operate

Project Charter Project Initiation Project Governance Project Scope Kick-off Meeting

Project overview The purpose of this to Project Organization needs, Location Scope The kick-off meeting is the
formally recognise that a roles and responsibilities are Business Scope first milestone in the
Project Scope new project exists. It defined. Process Scope project. It’s purpose is to
supports the decision to Application Scope gather the whole team,
Project goals and objectives accept the project, align Roles are defined for both Interface Scope including remote resources
stakeholders around a client and consultant side Report Scope and kick-off the project.
Project deliverables project, and its scope, Data migration Scope Also explains the approach
provide updated User Scope of the project preparation
Business case summary information and planning, Technology Scope phase.
and obtain a commitment to
Estimated cost proceed. It ensures
alignment between SAP, the
Implementation strategy customer’s strategic
direction, and the
Stakeholders satisfaction of operational
requirements.
Risk assessment
ERP Implementation Cycle – Role of Workstream : PM 4

Project Business Final Run &

Realization Go-live
Preparation Blueprint Preparation Operate

Project Mgmt plan Project Standards Execution, Control, Phase Sign-off Improvement road-map
Monitoring
Activity, Deliverables and Change request standards Lessons learnt
Milestone plan Risk Management Road-map for operation and
Issue management standards maintenance
Resource plan Identify risks
- No prototyping
Project communication
- New technology Production Support
Training plan standards
- Inexperienced core team
- Computer literacy of Project sign-off
Testing plan Project monitoring and
reporting standards employees
- Aggressive time frame
Data management plan
- Frequent change in scope
Testing standards
- Organisational politics
Change management plan
- Lack of top management
System configuration
standards support

Development standards Analyse the impact

Assess the probability
Documentation standards Prioritize
Risk mitigation plan
ERP Implementation Cycle – Role of Workstream : PM – Implementation Strategies 4

Big Bang and Rollout and

Decision Parameter Big Bang Roll-out
Modular Modular

Location All Selected All Selected

Modules All All Selected Selected

Risk High

Time Low

Learning Scope Average

Change Management

Resources
ERP Implementation Cycle – Role of Workstream : PM – Customization plans 3

•Comprehensive
• Involves implementation of the full functionality of the ERP software in addition to industry-specific modules
• Requires extensive customization of the software
• BPR is extensive

•Middle-of-the-Road
• Involves some amount of customization and changes in BPR

•Vanilla
• Utilizes core ERP functionality and exploits the best practice business processes built into the software
• Minimizes time and cost
• BPR is least
ERP Implementation Cycle – Role of Workstream : PM – Governance Structure 4

Reference: Fig 6.1 of textbook

ERP Implementation Cycle – Role of Workstream : PM – Process Scope 4

Reference: Fig 7.1 of textbook

ERP Implementation Cycle – Role of Workstream : PM – Application Scope 4

Reference: Fig 7.2 of textbook

ERP Implementation Cycle – Role of Workstream : PM – Resource Plan 4

Reference: Textbook
ERP Implementation Cycle – Role of Workstream : PM – Timelines and milestones 4

Reference: Fig 7.3 Textbook

ERP Implementation Cycle – Role of Workstream : BPM 4

Project Business Final Run &

Realization Go-live
Preparation Blueprint Preparation Operate

Business process map Gap analysis Configure general settings

Detailed design Configure organizational structure

Visualization Configure master data

Complete blueprint Complete core configuration

Complete testing

Complete delta configuration

Complete testing
Develop and test RICEF objects
Complete code review
Complete interfaces/test run
ERP Implementation Cycle – Role of Workstream : BPM 4

Business process map GAP analysis Detailed Design Visualization Complete Blueprint

1. Consult scope
documents. KT 1. Define organisation
from sales 1. Functional gaps structure 1. Demo standard 1. Functional
2. Prepare demo 2. User experience gaps 2. Define general settings functionality and check specification for
workshop (scope 3. Report gaps 3. Define enhancement if standard RICEFW objects
refinement) 4. Conversion gaps designs functionality needs to 2. Technical
3. Capture business 5. Interface gaps 4. Define user role be changed specification
scenarios concepts
4. Process hierarchy

Configure general settings Complete core configuration Complete delta configuration

Configure organizational structure

1. Prepare unit test cases
Configure master data
2. Prepare integration test
1. Prepare regression test
cases
cases
3. Prepare defect resolution
documentation
ERP Implementation Cycle – Role of Workstream : BPM 4

Functional Gaps User Experience Gaps Understanding functional gaps

1. ERP supports process but organisation

does it a different way w/o any reason
2. Org. follows non-standard process for 1. May not like three screens to
some reason [enhancements] work 1. Why is the process performed?
3. ERP does not support the process 2. May need additional fields 2. Which objects (PO, SO etc., are used, modified or
[developments] 3. Sometime new module needs produced?
4. ERP needs additional bolt on to be developed 3. What technology will enable the process execution?
5. ERP can support process, but it is a wish 4. By what media do the processes interact?
list 5. Which rules govern the business process?
6. Which process precedes or follows this process?
7. How is process performance measured?
Interface Gaps Conversion Gaps Report Gaps 8. Who is responsible for the process ?
9. Which roles or positions are involved in the process?
1. Standard reports do 10. Which organizational units contribute to the process
1. ERP with Siebel, Ariba etc.
1. Programs to not support existing execution?
(readily available)
convert data requirements 11. What tasks are necessary to ensure compliance?
2. Homegrown (have to be
formats so that 2. New fields in
developed)
ERP may existing reports
3. Partially available (most
understand it 3. Completely new
third-party solutions will
reports from
work with SAP / ORACLE)
scratch
ERP Implementation Cycle – Role of Workstream : DM 4

Project Business Final Run &

Realization Go-live
Preparation Blueprint Preparation Operate

Business process map Plan – Legacy data migration QA Environment Prod. Readiness check

Data Migration Approach Plan – Legacy data archival Pre. Cutover plan Prod. Cut-over

Plan – Testing Strategy Legacy data migration

Legacy data archival

Prod. Env. Ready

ERP Implementation Cycle – Role of Workstream : DM 4

Business process map Plan – Legacy data migration QA Environment Legacy data archival Prod. Readiness check
Common Understanding of
1. Master Data, what format 1. Analysis 1. Set up QA and Perform archival of 1. Defects
How much data? load data data that is needed for resolved?
and when is it required ? Which system? historical analysis but 2. QA passed.
2. Prepare for DM Who will verify? not remain in SAP 3. Validate if master
Pre. Cutover plan
workshop Which ETL Tools data support
3. Assignment of roles & Which data to transfer when 1. Ensure data processes are
2. Design Prod. Env. Ready established
responsibilities quality
4. Architectural Diagram Manual 2. Sequence of
Automatic (ETL tools) Prod. Cut-over
of the environment loading data 1. Set up Prod. Env.
3. Data verification plan 2. Ensure readiness
Data Migration Approach 4. Classification of data 1. Load data into
Legacy data migration prod. env. to
Master data accept data production
1. Data migration Open transaction data Perform ETL, Develop 2. Ensure process is
workshop programs operational
2. Understand technology,
Plan – Legacy data archival Cleaning
platforms and tools
3. Understand load • Standardizing data
Plan – Testing strategy
methods • Matching
4. Assign resources and • Consolidating
responsibilities • Correcting
5. Architectural diagram • Enriching
of the environment • Profiling
• Parsing
ERP Implementation Cycle – Role of Workstream : ISM (Testing) 4

Project Business Final Run &

Realization Go-live
Preparation Blueprint Preparation Operate

Testing Policy Testing Strategy Unit Testing User Acceptance Testing Regression Testing

1. Configuration of
1. Methods of testing 1. Config Ok 1. Approval
testing tools
2. Testing plan 2. Development Ok 2. Sign-off
2. Roles and
3. Test resources responsibilities
4. Test analytics & 3. Test documentation Integration Testing Performance Testing
metrics - Test description
5. Defect management - Test catalog 1. Business Regression Testing
- Pre-requisites scenarios Ok
- Expected result Technical Testing
- Person
responsible 1. Disaster recovery
- Test package 2. Restoration
- Test report 3. Sign-off
- Duration
4. Test Management
- Decision makers
ERP Implementation Cycle – Role of Workstream : Training 4

Project Business Final Run &

Realization Go-live
Preparation Blueprint Preparation Operate

Proj team training plan End-user training plan Educational Readiness Pre-Golive Training Knowledge support
Develop a comprehensive
1. Who needs training? Purpose is to determine Strategy for identifying and
training strategy that 1. Set up training
2. What kind of training is the potential issues in addressing ongoing learning
provides all team members environment
required? before training. Capture needs, refresher courses.
phase-based learning path 2. Perform training of
for acquiring skills and 3. What should be training feedback on training
end-users. Train new people coming
knowledge needed to method? material. Identify issues
3. Make helpdesk team into the organisation
complete project 4. Whether to outsource and propose solutions
4. Conduct training to
successfully including training?
helpdesk team Continuous improvement of
certification of team 5. How many days of Consistent appearance of
training? training materials and training content
members
6. Training the trainer. documentation Assessment
Proj team training
Key / core users training Knowledge Transfer Assess if end-users are ready
Provide overview of SAP
software to be implemented Train core team members on for adoption of the system
to all project team members solution scope and features Ensures that key users get
including core team. a good view of the Get feedback of trainer and
End-user training content implemented solution. training material
Identify core team and Curriculum plan for end-user.
members who will conduct Validate training material.
the training. Prepare training material in
system env. used for training
ERP Implementation Cycle – Role of Workstream : Training 4

Reference: Fig 16.1 of textbook , Target Groups for training

ERP Implementation Cycle – Role of Workstream : Training 4

Reference: Fig16.3 Training Approach Structure

Training Methods

1. Face-to-face : Instructor lead

Training Roles
2. Face-to-face : Workshop
mode
1. Training manager
3. Face-to-face : Seminar
2. Training delivery coordinator
4. Self-paced: e-learning
3. Training content developer
5. Self-paced: self-study
6. Self-paced: simulations
7. Self-paced: study guides

Reference: Table 16.3 and 16.4 of textbook

Reference: Table 16.2 A model training plan
ERP Implementation Cycle – Role of Workstream : OCM 4

Project Business Final Run &

Realization Go-live
Preparation Blueprint Preparation Operate

Project Charter Stakeholder analysis Org. Allignment Org and Prd. Support Post go-live end user
Readiness Check training
OLM Roadmap Change impact analysis Pre. Cutover plan Pre-golive end user End-user acceptance
training delivery survey
Communication plan
ERP Implementation Cycle – Role of Workstream : OCM 4

OCM Roadmap Stakeholder analysis Communication plan Pre. Cutover plan Post go-live end user training

The purpose of OCM road Identify comm. manager and Assess the level of preparedness of
Purpose is to detect the level How prepared are the uses about
map is to provide a Communicate to stakeholders, the organisation.
of acceptance or the general independently manage operations in
overview of all change key users and end users at a
attitude regarding the the implemented system
management activities. It regular frequency Assess the level of support needed
project by all stakeholders.
guarantee that all activities
are related to each other and
Conduct classification of Identify and communicate key Org and Prd. Support End-user acceptance survey
to the overall project plan. message - benefits of Readiness Check
stakeholders
implementing ERP to each Gather indictors of success or failure
Collect all data for OCM group Validate the outcome of role
Identify key users and the reasons behind it.
roadmap and document in mapping and change impact
suitable format for Focus of communication to be analysis. Get the approval of
communication and Change impact analysis gain trust, interest and buy-in sponsors. Why people resist change ? (Ref
inclusion Fig 17.2 of textbook)
Assess the pulse of the
Org. Allignment organisation and determine general
• Identify OCM sponsors at Ensure that org and tech. - Whether my job will remain
every location or business changes are identified and Execute role mapping and comfort level with upcoming - What will be my new job role
unit documented. transition planning from changes. - Whether it be different? Will the
• Assign people to core impact analysis workload be more?
team roles Analyse level of impact for Ensure that resources and support - Whether I will be able to run the
• Create extended change each stakeholder. It creates Ensure smooth transition to is available erp system ?
team transparency in OCM. new job roles and - Will I be penalized if I cannot ?
Pre-golive end user training
• Develop OCM plan responsibilities. - Can I cope up with new
delivery
technologies
Get pulse check - Will the skills sets be valuable else
Ensure that identified users have
where?
receive pre-go live training
Refine communication plan
ERP Implementation Cycle – Role of Workstream : Cutover 4

Project Business Final Run &

Realization Go-live
Preparation Blueprint Preparation Operate

Pre. Cut over plan Production Cut over Production Support

Document that covers the Cutover rehearsals to be Confirm that resources are in
scope and timelines for completed (simulations) place to support the on-going
moving as-is to the to-be solutions and complete the
solution and the care period Validate and document the steps to close the project and
immediately following the go- sequence of activities that complete documentation
live needs to be performed.

Prepare document and review Duration of each task has to be

plan with customer defined in the plan

Technical Integration Plan Coordinate and communicate

even during rehersal

Identify integration touch

points and possible issues
related to business process,
solution landscape and
interfaces with erp and non-
erp systems
ERP Implementation Cycle – Role of Workstream : Value Management 4

Project Business Final Run &

Realization Go-live
Preparation Blueprint Preparation Operate

Start with selecting Determine what process Determine how to measure Identify metrics that are Governance model to
significant value drivers changes are required to help key process changes. meaningful in measuring Move to production continue managing the
from the business case realize that business and supporting the value of investment once
opportunity Implement in ERP systems attainment of key benefit the project is completed
opportunities
Document process Develop dashboards to
requirements measure success Identify KPI baselines
ERP Implementation Cycle – Role of Workstream : ALM 4

Project Business Final Run &

Realization Go-live
Preparation Blueprint Preparation Operate

Establish Project and Design System Implement System Move to production Solution documentation
Readiness check Template management
operational standards Administration and Control Administration and Control Knowledge transfer
Test management
Change control
management
Technical operations
Upgrade management
Incident management
Annexure – Sample Blueprint Documents (Courtesy: Slideshare.net)

SD Blue Print

https://www.slideshare.net/chandu1231/sudheer-reddy-business-blue-print
https://www.slideshare.net/azhadkhan/sap-sd-business-blueprint

HR Blueprint

https://www.slideshare.net/lavmemories/steel-india-limited-business-blue-print

MM Blueprint

https://www.slideshare.net/eddai/sap-mmconfigdocumentreallifeproject