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Comparative Study of ERP Implementation

Strategies

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DOI: 10.1109/LISAT.2015.7160177

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 Comparative Study of ERP Implementation
Strategies
Shruti Nagpal Sunil Kumar Khatri Ashok Kumar
Amity Institute of Information Amity Institute of Information Division of Computer and
Technology Technology Technical Sciences
Amity University Uttar Pradesh Amity University Uttar Pradesh Kentucky State University
NOIDA, India NOIDA, India USA
shruti.nagpal@gmail.com skkhatri@amity.edu, ashok.kumar@kysu.com
sunilkkhatri@gmail.com

Abstract— Enterprise Resource Planning, ERP software has Requirements Planning. The platform also shifted to fourth
come a long way since its inception as Inventory Management generation languages. The prime emphasis was on designing
and Control Systems of 1960s. The value of ERP Implementation production supply chain processes.
Strategy has been stressed over the years and it has been
included as an important Critical Success Factor, CSF, as
recorded by previous researchers. Traditional ERP 1990s saw MRP II taking on a bigger role where the focus
implementation followed more or less a sequential approach akin shifted to organization or enterprise-wide processes. Gartner
to the Waterfall Model. Researchers over the years have [2] appropriately coined the term Enterprise Resource
categorized ERP Implementation methodology and developed Planning or ERP for this wholesome software in 1990. It
frameworks. These are based on varied ERP Implementation brought about integration between primary activities of an
observations. Given the variety of methodologies and
enterprise such as production and distribution; with secondary
frameworks available, the real-world ERP implementation
demands the development and adoption of a strategy as a activities of the enterprise such as human resource
guiding principle for underlying methods. This paper suggests a management, finance and accounts, sales and marketing, etc.
new classification approach based on the ERP implementation
strategy that can be categorized as custom-made, vendor-specific The mid to late 2000s saw an expansion in the focus of ERP
or consultant-specific. This research paper also conducts a wherein it not only catered with the Enterprise level processes
comparative study of leading vendor-specific ERP
but also with the peripheral processes. This is when fifth
implementation methodologies along-with their example cases. It
then discusses how the principles of Agile Methodology as laid generation applications like Supply Chain Management
down in the Agile Manifesto [1] are being incorporated in ERP (SCM), Customer Relationship Management (CRM), Sales
implementations. Force Automation (SFA), etc. started to get integrated with
the basic ERP software. The focus was now on the entire
Keywords — Enterprise Resource Planning (ERP; Critical Value Chain of an enterprise providing real-time visibility
Success Factors (CSF; Accelerated SAP (ASAP); Oracle Unified
anytime anywhere throughout the chain. This period also saw
Method (OUM); Microsoft Dynamics Sure Step Methodology;
Agile Methodology. the advent of technologies like Cloud Computing that could
provide Software as a Service (SAAS) environment to the
I. INTRODUCTION ERP processes. ERP thus came to be known as Extended ERP
or ERP II, thus beginning a new chapter in its’ eventful
history. Many small, mid-size and large businesses are
Enterprise Resource Planning (ERP) software has come a
adopting cloud ERP systems. It is predicted [3] that SaaS-
long way since the conventional beginnings of its
based ERP adoption will rise 21percent annually through
predecessors. Precursors of ERP software have their roots in
2015.
erstwhile Inventory Management and Control Systems of
1960s. The platform commonly used way back then was
II. ERP IMPLEMENTATION STRATEGY AS CSF
Mainframes with third generation software like COBOL and
FORTRAN. The main focus was to track inventory of raw
materials and to provide inventory reports. This was then The last one and a half decades have shown considerable
followed by Material Requirement Planning (MRP) software amount of research being done in the sphere of Critical
in the 1970s. Here similar systems were used with focus being Success Factors (CSF) pertaining to the success of ERP
on sales and marketing with the generation of Production and systems vis-à-vis their implementation and subsequent
Operation Planning schedules and inventory management. adoption by their ultimate users. Many such CSF and their
The portfolio got enlarged in the 1980s when the focus shifted relationships have been chronicled, foremost amongst them
to manufacturing strategy and quality control. This is when being the works of Holland and Light [4], Al-Mashari et al
MRP was renamed as MRP II or Manufacturing [5], Somers and Nelson [6], Zhenyu Huang [7], Hedman [8],

978-1-4577-1343-9/12/$26.00 ©2015 IEEE

etc. The study undertaken by Nagpal et al [9] highlights that diligence, comparative analysis of preferred vendors’
the importance of CSF is well understood by ERP Statement of Work (SOW), and final sign-off.
implementers and thus CSF are also monitored during the b. Project Planning – This step includes preparing the
course of ERP Project implementation, but there exists a project schedule, allocation of resources, etc.
lacuna with respect to isolation and utilization of these CSF in c. As-Is Study – Understanding and designing Process
models or metrics to further predict the path of ERP Maps that depict present scenario with regards to data
implementation towards success. Recently work has also and information flow.
embarked on predicting the success of ERP systems (Khatri et d. To-Be Design – Performing Business Process
al [10]) by applying the Utility Theory; Kapur et al [11]. Reengineering on the existing processes to fine tune the
processes by eliminating redundant and overlapping
One of the CSF that has stood-out is the way an ERP processes, thus reducing time and cost for each process;
implementation takes place. There are no standard guidelines and then designing to-be process maps for the new
or rule-book dos and don’ts that provide a comprehensive system.
step-by-step ERP implementation strategy. It usually depends e. Gap Analysis & Customization – Performing gap
on ERP Planning done by the Project Managers in analysis between the to-be maps and the ERP software
consultation with the Steering Committee that provide a and documenting the customization required.
guideline to the steps that would be accomplished; some f. System Configuration – Configuring the new system with
sequentially and some in-parallel for the ERP implementation. initial data and variables.
g. Conference Room Pilot – Showcasing the pilot to the
It has rightly been pointed out by Holland and Light [4] in one steering committee for their approval and acceptance.
of the earliest works done with regards to Critical Success h. User Training – Performing user training for the end
Factors Model for ERP Implementation that the ERP strategy users.
goes along-with the organization’s intention and affinity to i. User Acceptance Testing – Obtaining user sign-off on
change. Thus, the quantum of change anticipated by the each process being implemented through ERP.
organization drives the ERP implementation strategy. j. Installation and Set-Up – Final installation and set up at
various physical locations of the organization, ensuring
Al-Mashari et al [5] in their comprehensive work on the necessary connectivity.
taxonomy of ERP critical factors, have elaborated the k. Data Migration – Migration of data from the legacy
importance of Visioning and Planning as well as Process system to the new ERP system.
Management. These factors together determine the ERP l. Go-Live – Final transition from the legacy system to the
Implementation Strategy. Since ERP systems are process- new ERP system. Users may opt for parallel run with the
oriented tools, vision appropriate planning of the legacy system before the final cut-over.
implementation strategy becomes the foremost goals for ERP m. Post-Implementation – Post implementation support with
success. An exhaustive process management must be in place regards to bug fixes, upgrades and general
for a successful implementation. troubleshooting.

In Hedman’s [8] all-inclusive compilation of 95 CSF required As can be seen that apart from incorporating the essential
for ERP success, atleast 5 CSF point towards proper Planning steps of “As-Is Study”, “To-Be Design” and “Gap Analysis”
and Strategy selection for ERP implementation. ERP Strategy required in ERP implementation; they more or less follow the
including clear implementation plan with goals is a foremost software development life cycle of a software application
Project factor for ERP success. implementation, ignoring the typical requirements of ERP
Implementation.
III. TRADITIONAL ERP IMPLEMENTATION
IV. ERP IMPLEMENTATION METHODOLOGY AND
Traditionally, in a sequential implementation, main steps FRAMEWORKS
followed for ERP Project implementations are enumerated
below. Despite availability of numerous methodologies and Various authors have classified ERP implementations with
frameworks (as enumerated in Section IV), project managers respect to methodology, framework, scope and phases. Kraljic
usually have worked out comprehensive plans in consultation et al [12] have summarized through their literature review
with steering committee members. These plans may not be about the various ERP Implementation methodologies and
fool-proof and can lead to ERP failures, low adoption rates or frameworks. They point out about the existence of ambiguity
budget-time slippage. As an example, the following steps in literature, wherein some methodologies include and lay
have been picked up from an ERP implementation in a stress on phases before the acquisition of the ERP system,
manufacturing organization in India. Some of these steps may while others are more concerned about phases when ERP is in
run parallel to each other. production. Table 1 gives a summarized list of
implementation methodologies followed in scientific
a. Pre-Implementation – This step includes vendor due- community, as prepared by Kraljic et al [12].
 TABLE 1 ground based methodology that has been widely accepted and
tested. In fact, the advent of ERP implementation
Author(s) ERP Implementation Model methodologies being advocated by ERP vendors has led to
(1)Focus, (2)Creating As-Is picture, (3) Creating of their popularity and ready adoption.
Bancroft et al.
the To-Be design, (4) Construction and testing and (5)
(1998)
Actual Implementation V. COMPARATIVE STUDY OF ERP IMPLEMENTATION
(1) Initiation, (2) Requirement definition, (3) STRATEGIES
Kuruppuarachchi
Acquisition/development, (4) Implementation, and (5)
et al. (2000)
Termination
There has always been a debate between the terms “Strategy”
Markus and Tanis (1) Project chartering, (2) The project, (3) Shakedown, and “Methodology”. ‘Strategy’ usually refers to a high-level,
(2000) (4) Onward and upward strategic plan to achieve a long term goal, whereas
(1) Initiative, (2) Evaluation, (3) Selection, (4) ‘Methodology’ refers to a collection of methods which help in
Makipaa (2003)
Modification, Business process Reengineering, and accomplishing the desired goal. In this context, we can say
Conversion of Data, (5) Training, (6)Go-Live, (7) that ERP Implementation Strategy should provide the big-
Termination, and (8) Exploitation and Development
picture and the ERP implementation methodology should
(1) Planning, (2)Project: a.setup, b.reengineer, c.design, complement it. ERP implementations mark a mix of
Parr and Shanks
d.configuration and testing, e.
(2000a)
installation (3) Enhancement technological and organizational interactions [12]. Hence, a
well-defined strategy needs to guide the actions of ERP
(1) Design, (2) Implementation, (3) Stabilization, (4)
Ross (1999) Continues improvement and (5) Implementation, since more than making the ERP system
Transformation operational, it is the successful adoption of the new ERP
Rapid implementation model of three phases and 12 system that determines the ERP implementation success.
Shields (2001)
major activates
(1) Review the pre-implementation process to date, (2)
Install and test any new hardware, (3) One of the traditional ways of categorizing ERP
Install the software and perform the computer room implementation strategies was based on whether all
pilot, (4) Attend system training, (5) Train organizational functions need to be implemented in one go or
on the conference room pilot, (6) Established security
Umble et al and necessary permissions, (7) Ensure in groups, as under:
(2003) that all data bridges are sufficiently robust and the data
are sufficiently accurate, (8) Document a. Big Bang – This implies implementing all ERP modules
policies and procedures, (9) Bring the entire
organization on – line, either in a total cutover or in one go, maybe at a pilot site or at all sites.
in a phased approach, (10) Celebrate, and (11) Improve b. Phased – This implies implementing ERP modules in a
continually phased manner, such that core modules are implemented
Verviell and (1) Planning, (2) Information search, (3) Selection, (4) first followed by peripheral modules. This takes
Halingten Evaluations, and (5) Negotiation advantage of the high cohesive modularity and loose
ERP Implementation Models – Source: Kraljic et al.[12] coupling between ERP modules. There may also be a
phased approach to site implementations.
The way an ERP system gets implemented also depends on a
vital question that “What” needs to be implemented. Or in Parr and Shanks [16] did not agree with categorization into
other words the Scope of the ERP Implementation. Henri Big Bang and Phased. They conducted a comprehensive study
Barki et al [13] viewed ERP scope to consist of three and advised five categories of ERP implementation
dimensions, viz., breadth, depth and magnitude, which can be characteristics that should determine the ERP implementation
objectively assessed. strategy, which took scope into account. These were:

Somers and Nelson [14] proposed a framework which a. Physical Scope – This determines the number of physical
suggested interplay between contextual factors, sites and geographical regions where ERP
implementation process and outcomes. The ERP implementation needs to take place.
implementation process itself followed Cooper and Zmud’s b. BPR Scope – This elaborates whether the BPR effort has
[15] model that consisted of stages as Initiation, Adoption, to be done locally or globally. It also determines whether
Adaptation, Acceptance, Routinization and Infusion. BPR is performed with or without taking the final ERP
selection into consideration.
Al-Mashari et al [5] while giving taxonomy for ERP Critical c. Technical Scope – The extent to which ERP software
Success Factors, suggested a framework that consisted of needs to be customized.
Setting-Up, Implementation and Evaluation that eventually d. Module Implementation Strategy – This takes into
led to operational and organizational success as denoted by account which ERP modules are to be implemented and
ERP Success and ERP Benefits, respectively. how they would get integrated with the existing system.
e. Resource Allocation – This encompasses both Project
As noted by Kraljic et al [12] in their literature review on ERP Schedule and Budget Allocation.
implementation methodologies and frameworks, there is no
Further, ERP Project implementations usually belong to views, it was noted that a strategic level decision is required
following three categories as given by Parr and Shanks [16]: whether to develop ERP from scratch using the typical
organizational scenario or involve consultants who utilize
a. Comprehensive or Chocolate – In this kind of methodology as advocated by ERP vendor or else top it up
implementation major customization activity takes place with consultants’ experienced methods. This leads us to come
and a majority of business processes of the ERP package up with ERP implementation strategy classification as
are attuned to the real time business processes of the follows:
organization.
b. Middle Road – This is the most popular ERP a. Custom-made – The sequential ERP implementation
implementation wherein care is taken to have least steps as described in the previous section fall into this
customization, with the view point that majority of the category. Usually, the implementers can select their own
business processes that come bundled with the ERP Project activities specific and unique to the ERP
package are already best in market benchmarked implementation on hand and come up with a Project
processes. Thus, most of the processes are implemented schedule that is more attuned to the client requirements.
as-is with a few of them being customized to the specific They can add, delete or sub-divide the major Project
requirements of the organization. In this case, Business activities as given in Section III and design their Project
Process Reengineering (BPR) takes an important place timelines. Now-a-days, even custom-made ERP
wherein some of the existing organization’s business implementations have started imbibing the principles of
processes will have to be attuned to the package’s Agile methodology and do not stick to sequential
business processes. implementation steps, rather than they try to incorporate
c. Vanilla – This ERP implementation process is undertaken more iterative and parallel steps and build the system in
when time and money are a major constraint. In this small increments with constant planning and feedback.
implementation, no or miniscule customization takes
place. More emphasis is on configuration of the system to b. Vendor-specific – Major vendors of ERP usually
the organization’s requirements. Here, BPR is done in recommend their product-specific implementation
such a way so as to attune all organization’s business methodologies. They advocate more Vendor-client
processes to those of the ERP package. interaction and hence incorporate iterative and parallel
steps. Some of the typical vendor-specific ERP
The above study by Parr and Shanks [16] defines the big Methodologies from leading vendors are:
picture before getting into the nuts and bolts and hence are an
attempt at categorization of ERP Implementation strategies. i. SAP’s Accelerated SAP (ASAP)
ii. Oracle Unified Method (OUM), previously AIM
Dantes and Hasibuan [17] have compared ERP iii. Microsoft Dynamics’ Sure Step methodology
Implementation Strategy in two organizations, wherein both
the organizations used pilot implementation strategy. Both the c. Consultant-specific – Many consultants involved in
organizations started with implementing only the core implementing ERP projects have also come up with their
modules of the ERP, where one organization continued to use own specific implementation strategies which are a mix
the legacy system and the other organization completely of Vendor-specific and their own best practices learned
replaced the legacy system with the new ERP system. Former over years of experience, thus imbibing it as their core
requires considerable customization whereas the latter competency. Agile methodology has found in-roads into
requires considerable data analysis and data migration. This Consultant-specific ERP implementations too with
research along-with the various options available for selecting consultants imbibing the concepts of Sprints and Scrums
from different ERP strategies and their subsequent in their implementation strategy.
permutations and combinations to arrive at the best-suited
ERP strategy for a particular ERP implementation gives rise In-depth analysis carried out by Nah and Delgado [19]
to a number of ways in which ERP implementation can be illustrates the importance of methodologies and development
planned. tools provided for the purpose of implementation by the
vendors must be used to the greatest extent. This leads to cost
Botta-Genoulaz and Millet [18] comprehended that the impact and time reduction in the implementation. It also results in
of an ERP system on an organization depends upon the better knowledge transfer to the user.
strategy used for ERP Implementation. They proposed a two-
axes classification for ERP systems, viz., software maturity Somers and Nelson [6] have emphasized the importance of
and strategy deployment. ‘Use of Vendor’s Development Tools’ as one of the CSF for
ERP success in the Adaptation stage of ERP implementation.
ERP implementations have seen a sea change over the last The swift implementation technologies provided as part of
decade. After due diligence with current ERP implementation ERP software bundle by the vendors help in reducing cost and
scenario available through research media forums and expert time of implementing ERP systems. They also aid in rapid
knowledge transfer in using the software. helps in streamlining projects by providing a proven,
repeatable, comprehensive and rich implementation
Both Vendor-specific and consultant-specific strategies, make methodology.
maximum use of Vendor Development tools. Gartner report
[20] throws light on the fact that it is the flexibility of the ERP As an example, a Philippines based largest private company
system which makes the system surge forward like a sail and engaging in payroll, time and attendance; finance and
meets ever-changing challenges; rather than being tied down accounting; and talent outsourcing needed to upgrade SAP
like an anchor by not having the appropriate flexibility. This ERP application and also deploy SAP ERP Human Capital
flexibility is now being accommodated not only in the design Management solution for its’ payroll business processes. They
used SAP’s Best Practices and ASAP methodology which
of ERP system but also in their implementation strategies.
ensured a cost-effective and speedy implementation. They
Some of the vendor-specific implementation methodologies
achieved 250 percent increased employee processing by
of leading ERP vendors are being described here.
Human Resources, 99 percent less payroll service errors and a
40 percent shorter payroll close cycle [22]. Head of quality of
SAP’s Accelerated SAP (ASAP) the organization accepted the disciplined approach promoted
and imposed by SAP’s ASAP methodology. The structure led
Accelerated SAP, ASAP, is the implementation methodology to cost reduction and high worth of knowledge transfer for the
advocated by SAP. ASAP applies a reversed logic of analysis product usage. This example shows that in-built
and design in the implementation, where the implementation methodologies help not only in time and cost reduction but
process begins with the design followed by the analysis. also in greater user acceptance.
ASAP is more focused on short implementation projects. The
main stages of ASAP ERP implementation as illustrated by Oracle Unified Method (OUM), previously AIM
Hedman [21] are:
Oracle Unified Method (OUM) is the implementation
a. Phase I: Project Preparation – This includes project methodology as advocated by Oracle. It is a successor to
definition, scope identification and specification, erstwhile Oracle Applications Implementation Methodology
outlining the implementation strategy, project schedule (AIM). Many processes of AIM have been reclassified under
specification and implementation sequence, determining OUM. OUM consists of five phases as against six in AIM.
the constitution of project organization and steering With regards to processes, OUM consists of 15 processes as
committees and last but not the least, resource allocation. against 12 processes in AIM.
b. Phase II: Business Blueprint – Requirements
Specification Phase – It depends upon the database OUM is based on the underlying principle as advocated by the
created through interview sessions. It helps in the leading industry standard, Unified Software Development
creation of Business blueprint that would include Process (UP). OUM extends UP to encompass full scope of
business strategy and organization level structure, inputs Oracle ERP projects. The five phases of OUM as documented
for master data and business process documentation. in [23] are:
c. Phase III: Configuration of the system according to the
Business Blueprint – This is a two-step procedure which a. Inception – This is a critical phase where lifetime
follows a top-down approach. Firstly general objectives of ERP project are assimilated such that all
configuration is undertaken wherein organization stakeholders are in sync. Scope, as has been described
structure is setup with global settings like currency data. before, is determined along-with high level requirements
Next, the business processes configuration takes place. and the risks involved.
This phase requires rigorous testing. b. Elaboration – Here, scope is drilled down to development
d. Phase IV: Final Preparation – System Testing & End- of detailed requirements and solution partitioning.
User Testing – This mainly comprises system testing and Prototype development can take place in this phase to
end-user training. Any gaps are closed and stress testing further the understanding of both implementers and
is performed. various stakeholders. This helps in base-lining the
e. Phase V: Go Live and Support Phase – This is when the architecture for further development.
actual installation takes place and users start to use the c. Construction – In this phase, models developed earlier
system. Initial support is required which slowly comes are used to configure the system according to the
down. standard functionality provided by the software followed
by custom components development, testing and
All these phases are supported by tools and utilities included integration. The system gets ready for the first release
in the SAP bundle. Each phase has a group of work packages often in its beta version such that the system is prepared
that are further divided into activities that include tasks which for further validation and acceptance testing.
need to be completed. These activities may again be d. Transition – This phase readies the system for acceptance
structured into six hierarchical levels. These activities are by the client organization. Systematic testing and
supported by a word editor, spreadsheet, etc. All project validation happens so that client organization is ready to
management activities are assisted by built-in tools. ASAP accept and used the new system. The cutover to the new
 system is planned. f. Operation – This phase encompasses the System Go Live
e. Production – This is when the new system becomes and post-production support for the user.
operational. The system is monitored and full support is
provided to the end users with regards to help requests, Additional Phases
performance tuning, or any bug fixes. A Change Request g. Optimization – This phase helps in optimizing the
procedure is maintained for assigning the defects and solution by finding processes that take longer for
upgrade features for further releases. execution and then fine tuning them.
h. Upgrade – This phase helps to progress from an existing
All OUM tasks are further divided into processes such that solution to a subsequent release of solution. If desired, a
they form a kind of matrix structure, wherein the phases new functionality may be added at this point.
occupy the verticals and processes occupy the horizontals.
These are Business Requirements process; Requirements The Sure Step methodology provides a solution for
Analysis process; Mapping and Configuration process; Traceability by connecting Requirement through Customer
Analysis process; Design process; Implementation process; satisfaction through delivery by means of interconnecting
Testing process; Performance Management process; architectural designs. It has in-built diagnostic tools that
Technical Architecture process; Data Acquisition and provide visibility to the customer early-on in the project start
Conversion process; Documentation process; Organizational up. Sure Step also consists of eight Cross Phase processes
Change Management process; Training process; Transition which are performed across several phases. These include
process; and Operations and Support process. Business Process Analysis, Configuration, Data Migration,
Infrastructure, Installation, Integration, Testing, and Training.
As an example, in a recent implementation of Oracle E- Sure Step consists of in-built tools, templates, guidance, and
business suite along-with Oracle Business Applications and best practices that help deliver the solution to the customer
Hyperion Solution, using the OUM methodology, in a leading more effectively.
Travel and Transportation company, resulted in a highly
successful implementation with high customer satisfaction As an example, Microsoft Dynamics was implemented with
[24]. OUM helped in establishing a framework for Integrated its’ Sure Step methodology in a world’s leading manufacturer
Project Plan and used its’ Iterative and Incremental approach. of folding chairs and tables [26]. They wanted to replace their
Partitioning, as advocated by OUM, was used to break down legacy ERP system with a more flexible and robust system
the project plan into manageable pieces, followed by that would also help in integration with their Customer
integration of tasks at critical points. This resulted in a highly Relationship Management (CRM) system and Product
successful implementation. Lifecycle Management (PLM) for their world-wide
operations. It helped them deliver not only an improved
Microsoft Dynamics’ Sure Step Methodology inventory management system that lowered the production
costs but also assisted them with automated workflow that
Microsoft Dynamics Sure Step methodology is the helped in streamlining business processes. This ultimately led
implementation methodology as advocated by Microsoft. It to improvement in customer service and a highly satisfied
provides a complete methodology which incorporates various client.
project management tools and in-built best practices that aid
in deployment, migration, configuration, and upgradation We can now depict the different phases along-with their
[25]. Sure Step comprises of six main phases and two processes on an ERP implementation continuum with the
additional phases for optimization and upgrade. These are: three vendor-specific ERP implementation methodologies,
Figure 1. As we can see from the continuum, all three pay
a. Diagnostic – Here project initialization is followed by emphasis on initial Project Planning, building of a strong
setting up a project plan. The project strategy and scope customer relationship and completion of Statement of Work
are finalized. during the first phase. This is followed by development of
b. Analysis – Here customers’ business and their processes Business Process Models and Gap analysis. It then progresses
are understood, modelled and documented. into development work which is accompanied by due
c. Design – Customers’ processes are fitted to Dynamics configuration and development of test scripts. Different types
processes. This may involve building prototypes, though of testing and user trainings commence as parallel activities.
prototype is not part of Sure Step. These activities lead to the transition phases wherein the user
d. Development – This involves customization wherein new environment is prepared for final conversion from the legacy
features maybe added or existing features maybe system to the new system. The final phases incorporate the
modified in Dynamics. This phase also includes data “Go-Live” wherein the user accepts and starts using the new
migration and testing. system. This is usually followed by maintenance and support
activities when user issues are resolved and requests for
e. Deployment – This phase includes installation and
enhancements accepted for later releases and upgrades.
configuration at customer sites. This also involves system
level testing, load testing and acceptance testing.
 • Conduct Train the
• Finalize Project Plan • Conduct Core Team Training Trainer (TTT)
• Configure/ Setup solution
and Project Charter • Develop Functional Design Training
• Cultivate Customer • Conduct Process Testing
MS Sure Step

• Execute Functional Documents for • Conduct Use Training • System Go-

Relationship • Conduct Integration Testing
Requirements Configurations (Fits) • Conduct User Live
• Pre-Sales Support • Manage Scope and Resolve
Workshop • Develop FDD’s for Acceptance Testing • Post-
• Execute Decision Issues
• Execute Fit Gap Customizations (Gaps) • Perform Go-Live Producti--on
Accelerators • Complete Solution Design
Analysis • Demo CRP (For Rapid Readiness Activities Support
• Complete SOW Document
• Develop Test Plan Project Type) • Ready Solution for
Production
Deployment

Diagnostic Analysis Design Development Deployment Operation

• Deliver End User

Oracle OUM

• Define Scope • Deliver End-to-End System

Training
• Build Environments Walkthrough
• Execute Conversion • Execute Testing
• Confirm Resources • Develop Business Process Model • Build Maintenance
• Build Integrations • Build Production
• Develop Work plan • Develop Security Model Contract
• Develop Test Scripts Environment
• Develop Project • Develop Integration Schema
• Execute cutover
Financial Plan

Inception Elaboration Construction Transition Production

• Project Management
• Initial Project • Project Management • Project Management
• Organizational Change Management • Migration to
Planning • Organizational Change Management • Training
• Training Production
SAP’s ASAP

• Project Procedures • Training • System Management

• Baseline Configuration & Confirmation Environment
• Training • Develop System Environment • Detailed Project
• System Management • Production Support
• Kick Off • Organizational Structure Definition Planning
• Final Configuration & Confirmation • Monitoring
• Technical • Business Process Analysis • Cutover
• Develop Programs, Interfaces etc • Performance
Requirements • Business Process Definition • Quality Check
• Final Integration Test Optimization
• Quality Check • Quality Check
• Quality Check

Project Preparation Business Blueprintt Realization Final Preparation Go Live & Support

ERP Implementation TimeLine Æ

Figure.1: Comparison of Vendor-specific ERP Implementations

VI. AGILE METHODOLOGY AND ERP each sprint, a small shippable ERP implementation is
delivered which may be worked upon in the next sprint
depending upon the next scrum’s framework.
Agile methodology which is now being extremely used for
software development is also now being used for ERP
As already stated, both Custom-made and Consultant-specific
implementations. Agile methodology departs from the
ERP implementation strategies borrow heavily from Agile
traditional sequential ERP implementations and its’ principles
methodology. If we look at the Vendor-specific ERP
have been incorporated by implementation methodologies
implementation methodologies as advocated by leading ERP
advocated by the vendors. It borrows heavily from the
vendors and as illustrated in Section V, they borrow heavily
principles of Kanban and Lean manufacturing. The
from the Agile methodology. The Agile Manifesto [1]
fundamental difference between traditional developments vs.
highlights the Agile methodology through twelve principles.
Agile development is that in the former the team will deploy
It underlies that anything on the left should be valued more
one increment of software at the end of the project; whereas in
till the time there is still value in the items on the right.
Agile, the team will deploy a very small change of the
Technologies like PowerPoint cannot be abandoned but rather
software more frequently. In traditional methodology, a
their best concepts need to be pulled to support the Agile
process starts after successful completion of another, whereas
design.
in Agile the team plans all the time. One can assess the
direction throughout the implementation lifecycle, in case of
SAP’s release of ASAP methodology in ASAP 8 incorporates
Agile development.
principles of Agile approach into SAP implementation along-
with other tools in the ASAP methodology framework. It
Agile methodology uses the concept of Scrums and Sprints.
includes Agile approach of iterative cycles and frequent
Scrum is an Agile process which defines the project
validation of requirements. It is more lean and agile with
management framework in which the ERP implementation
enhanced visibility and measurable results. Sprints and
moves forward through a series of iterations called Sprints.
scrums are used in the five phases of ASAP methodology.
Each sprint is typically of two to four weeks duration. After
Thus ASAP has imbibed the Agile methodology.
 phases and miscellaneous naming practice employed by
Oracle’s OUM is based on five underlying principles, viz., authors. They justify requirement for further research for
Business process and Use Case driven; Iterative and classification of ERP implementation methodologies and to
Incremental; Architecture-centric; Risk-focused; Flexible and create better understanding of ERP implementation process.
Scalable. Agile methodology [1] also advocates flexibility. This paper delves into real-world adoption of ERP
Agile processes lay more emphasis on flexibility in managing implementation methodologies. The traditional software
projects rather than on detailed planning. It promotes development process has taken in the Agile revolution heads
Adaptive Software Development methodology. This is on while debunking many of the stereotype processes and
reflected in OUM’s principles of ‘Iterative and Incremental’; giving way to a whole new concept of sprints and scrums.
and ‘Flexible and Scalable’. OUM also provides views for ERP implementation process could not have remained
scrums. OUM can be scaled to fit a given situation. Thus untouched by this overwhelming tsunami. As discussed, the
OUM has also imbibed the Agile methodology. ERP implementation strategies can be custom-made, vendor-
specific or consultant-specific. These different types of
Microsoft Dynamics Sure Step methodology comes bundled strategies have all tried to imbibe the Agile principles as best
with different types of project types that can be used to as they can. Leading ERP vendors are coming up with their
implement the ERP solution. One of them being ‘Agile own versions of ERP implementation methodologies that
Project Type’ that, if chosen, provides an iterative approach borrow heavily from the Agile Methodology. There is a whole
utilizing the Sprint cycle approach for solution development. new paradigm shift in ERP implementation strategy that is not
More than a methodology, Sure Step is a framework that only making ERP implementations faster but also increasing
comes bundled with guidelines as well as tools and templates. the overall user acceptance and customer satisfaction levels.
It defines the Agile Execution Phase which incorporates Thus, the marriage of Agile Methodology with ERP
sprints and scrums of Agile methodology. Though the final Implementations is heading for a long innings in the times to
two phases of Deployment and Operation borrow from the come.
traditional waterfall model. Thus, Sure Step has also imbibed
the Agile methodology. ACKNOWLEDGMENT
Authors express their deep sense of gratitude to The Founder
We have seen that Agile methodology can be used to drive President of Amity Group, Dr. Ashok K. Chauhan, for his
ERP implementation. Agile methodology can also be used to keen interest in promoting research in Amity University and
drive the ERP selection process. This was showcased by have always been an inspiration for achieving great heights.
Skielse et al [27]. They came up with a novel method for the
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