ERP Development: Technologies, Flow, Cost, and Timeline

Implementation is the second stage of the ERP systems’life cycle, although the term is also used to represent the full life cycle. The implementation is the process by which the system’s modules are put into operation within a company. This stage encompasses the tasks from the end of implementation plan’s concept to the beginning of the operation. In SDLC the new application is made for the user requirements.

After the first release, developers continue to gradually add new features, improvements, and fix issues. Time, needed for ERP application development from scratch, totally relies on the size of the company, needed functionality, number of users, etc. It is almost impossible to guess how much time will be needed without performing the analysis of each specific case. However, taking into consideration our rich experience in building these systems we can try to define approximated timeframes. A suite of Banner applications as provided by the vendor Ellucian is the primary enterprise wide administrative system, also known as an ERP. For example, the project team may test specific modules and features, develop fixes or adjustments based on the results, and retest.

It may also include developing integration with any of the organization’s other existing business applications that won’t be replaced by the ERP system. If you’re using an on-premises ERP system, the organization will need to install the necessary hardware and software. A flowchart of the six phases of an ERP implementation A typical ERP implementation plan can be divided into six phases, each with specific objectives. Every business is unique, so the phases may vary somewhat depending on the company, and they also may overlap. The six-part ERP implementation phase lifecycle includes discovery and planning, design, development, testing, deployment and support. An enterprise ERP development is a never stopping process.

To reduce these costs, there should be fewer major changes and integrations required by the development of a dynamic system. From the case study, it was evident that the two implementations had both similarities and differences. One of the available alternatives for SDLC is prototyping (Pandey & Batra, 2013). As such, any challenges in the implementation process can be detected prior to the actual project. An ERP development life cycle provides a__________ approach to implementing ERP software in the changing but limited-resource organizational environment.

Discussion: ERP Implementation

Careful work in these areas will allow your organization to realize the full benefits of the system. Armed with clear design requirements, the development phase can begin. This involves configuring and, where necessary, customizing the software to support the redesigned processes.

erp development life cycle

But in addition to vendor support, the organization should make good use of the training materials created in the development phase. There is real value in resources that specifically cater to your end-users’ day-to-day responsibilities. An in-house system that has complex functionality is also likely to consume more finances and time as compared to a simple system. Sophisticated custom software takes time to write codes for application, data integration, and migration. Also, extra costs are incurred due to the unavailability of all designs for development thus it requires an extra fee in finding complementary products for completion of fully functioning software. Testing of the bespoke in-house ERP is a mission-critical stage of the implementation.

ERP Implementation Life Cycle: Understand the Phases of ERP

Therefore, the stage of utilization feeds back the stage of implementation with new possibilities and needs. They can be solved through new modules, parameter adjustments, or software customizing. The already implemented modules may impose restrictions upon new modules caused by already defined parameters or customizations in the case of implementation in phases. New modules should not imply in changes of already configured and operational modules, usually a difficult task. If you’re planning an ERP implementation, and if you want it to be a rewarding process, contact us today or hear our customers talk about their successful ERP implementation journeys. Deciding to upgrade your existing ERP system software or to implement a new ERP system is a major undertaking.

erp development life cycle

Or, it may test one ERP module while another is still in development. This phase should also encompass testing of the migrated data and include introductory end-user training. Successfully navigating all those steps on schedule requires careful planning and a structured, phased implementation approach.

As such, the needs, tastes, and preferences of the end user must be factored in during the ERP implementation process. Such consideration ensures that there is no end user resistance whenever the project is completed. For this reason, the end user can regularly provide feedback and suggestions during the course of ERP implementation to ensure that the product released to the market is user-centered. Get your customized and 100% plagiarism-free paper done in as little as 3 hours Let’s start 322 specialists online Vanilla category of the ERP involves low risk and low ambition implementation approach. Usually, vanilla implementation focuses only on one site and core ERP functionality unlike in the case of the comprehensive category where full functionality is ensured.

Modularity and system functionality

PayWith chose Acumatica’s ERP system over SAP because they wanted a cloud-based platform that was agile, was cost-effective, and would scale with their as-yet undetermined business model. Once they chose Acumatica, their implementation project took only five months. The ERP implementation process doesn’t end at Go Live. From there, as your employees use the software and as your business evolves over time, you’ll gather user feedback and make ongoing improvements and adjustments to the system.

What is the Software Development Life Cycle (SDLC)? – CIO Insight

What is the Software Development Life Cycle (SDLC)?.

Posted: Sat, 30 Apr 2022 07:00:00 GMT [source]

The advantage here is that the business can learn from the first implementation. The experience of using an ERP system ensures that the initial vanilla assessments will be more suited to business needs. At some point, it is going to be evident that the cost and time needed to maintain the system are too much. It becomes painfully clear the system no longer fills business requirements and complexities make continued maintenance unviable. Ongoing maintenance will be necessary and vital to your business. Once your staff takes ownership of your ERP, new reports will need configuration as will further tweaks.


You want a mixture of end users, compliance, and maintenance staff to give you a full 360-degree picture on your future ERP. Your infrastructure can’t keep up with the large swathes of data you should be using for business intelligence. Major headaches and glitches in workflow start to occur and agility evaporates and your organization falls behind. For instance, you might have to rely on the ERP vendor for setup. Otherwise, you or your IT team might have to dedicate months of time on figuring out the new software rather than focusing on equally important day-to-day tasks. The fifth phase is when the software is actually implemented at your place of business.

  • Its built-in reporting system allows you to predict market movements and get insight into stock patterns, gaps, and low-yielding items, among other things.
  • Accountants and auditors can play a great role in developing ERP system because both are know the nervous system of business.
  • The fundamental goal of MRP is to figure out which materials are needed, in what quantities, and by when they are needed.
  • Different workflows, tax localization will need implementation too as business needs change and or new laws need factoring in.
  • Cloud-based ERP software has grown increasingly popular over the years due to accessibility and convenience, especially as more businesses embrace remote work opportunities.
  • Developers re-configure legacy apps, develop and implement new applications.

The phase of Project Planning −This phase is responsible for planning and designing the implementation procedure. This phase depends on success and failure of entire project with package selection. Most important factor while selecting any package is that not every package can be totally perfect for project but at-least it should be good fit for project. If you have an on-premises ERP system, you’ll need to install periodic software updates and may even need to upgrade hardware over time. If you’re using a cloud-based ERP system, your vendor may update the software automatically.

ERP Software Pricing Guide

As such, it involves multiple sites and works to ensure ERP implementation for a selected core ERP module. In this case, the level of BPR is very important, though its significance cannot much the case of the comprehensive implementation category. The implementation of systems based on the middle-road approach can take 3-5 years. Is the system’s functionality aligning with the set requirements for the project?

Think about core modules, accounting, and management system hierarchies. So, it will be necessary to develop it after deep thinking otherwise, you will just waste your money in your hardware and software. Accountants and auditors can play a great role in developing ERP system because both are know the nervous system of business. They take the taste of water in different business industry, so, they explain better what should be in the ERP system than a developer. Developer is just designer but accountant and auditors are real user. So, if they will not adjust in the ERP system, business can not get good return on the investment on ERP System.

Rethinking ERP-outsourcing decisions for leveraging technological and preserving business knowledge

Or contact our support team who will be happy to help. We aren’t just automotive aftermarket ERP software experts – PC Bennett Solutions is passionate about the automotive industry. It is prudent when assessing the viability of a vendor offering to take into account the maintenance factor. Being able to easily maintain the system prolongs the life of the ERP providing more ROI. Current workflows may have to change to fit the new system.

Thirdly, ExploreCO employed the services of a qualified project champion, who ensured that the project achieved the set goals and objectives. In addition, the project champion was identified in the case of ExploreCO, and always available to oversee the progress of the project. This ensured that the project champion detected and implemented any necessary changes whenever it was needed. However, the champion was not as identified as in the case of ExploreCO, and thus different people handled the project, thereby lacking consistency. An exploratory study sets out to identify other costs related to ERP systems during their life-cycle through the different phases of the life- cycle, and defines and categorizes the various costs.

Learn How NetSuite Can Streamline Your Business

Brainyard delivers data-driven insights and expert advice to help businesses discover, interpret and act on emerging opportunities and trends. Nevertheless, the good news is that a properly designed and implemented custom system has positive returns and pays off fast. The database is the most important part of the ERP application.

Besides, they will deliver their vision to all multi-functional level. One of the most crucial elements of ERP software is accounting and financial management. ERP software lets you handle accounting and financial demands effectively because of its built-in automation and sophisticated features. Billing, as well as critical accounting operations including accounts receivables, payables, cash flows, foreign currency transactions, and forex, can all be simply controlled. Also, when required, provides you with reliable and timely information.

The team can present the gaps to its implementation partner or supplier and ask them to identify potential solutions. The cost and timeframe of ERP software development are based on the number of modules and the expected functionality. A system that is to be frequently released as prototypes are more expensive due to the incurred cost and time taken to develop and implement the modules. An organization’s data is today their greatest asset therefore in the development of a custom system there should be affirmed validity, safety, and integrity of the database system. ERP developers have to be familiar with the available variety of database technology such as storage procedures and triggers. They are tasked with choosing the most suitable database technology for the company’s data, easy data migration and transaction to the system.

Try and implement all modules at the start of the process. It is easier to implement modules at the start than after rollout develop erp software has occurred. Accounting systems, new regulations, updates to the system and patches need implementation too.

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