27 System Implementation

Ms.Vinodini Kapoor

epgp books

 

 

 

1.    Learning Outcome:

  • Develop an understanding of the Implementation Stage of the SDLC Cycle.
  • List the steps involved in the implementation phase.
  • Understand types of implementations and their applicability.
  • Outline important considerations for System Implementation.
  • Discuss the key elements of Successful System Implementation.

 

2.  Introduction

 

If a customer wants a new gaming application, the developers must program the application to perform the customer’s gaming requirements. As the team develops the code, they must adhere to specific coding requirements. Customer requirements call for specific computer programming language or upgrades, and developers need to run the applications to ensure they function properly.

 

Hence, there lies a need to ensure why any application or software or information system should function as per its objectives. The implementation phase is the fifth stage of the System Development Life Cycle and follows the development stage. During implementation, the project develops the actual product. Product implementation can be an exciting phase for the customer, because their idea for the project becomes somewhat tangible. Project developers begin building and coding the software.

 

Hence, implementation of a system is as much important as the creation of the system itself. Unsuccessful implementation can easily negate the work done in the initial phases and bring the system to a halt. Technical and managerial skills are essential for implementers to work as change agents. The sequence of steps in the various stages together that makes the new system operational.

 

Implementation as an activity should be carefully managed. It requires client intervention and interaction at every stage. The implementers need the full support and cooperation of the end user and the IS department to successfully execute the implementation. The theory gets converted into practical use at this stage as it requires putting a planned system into action. The stage of systems development in which hardware and software are acquired, developed and installed, the system is tested and documented and people are trained to operate and use the system. Implementation takes all possible steps to ensure that the upcoming system deployment and transition occurs smoothly, efficiently, and flawlessly.

 

Any technological change leads to numerous challenges to be dealt with and requires work of competent project management. Frequently, the managers responsible for galvanizing a technical innovation into routine use are much better equipped in terms of experience to guide that innovation’s development than to manage its implementation. Organizations constantly have to adapt to a competitive landscape, increase productivity and reorganize workforce, the global business environment and e-commerce development. Studies indicate that one of the most important reasons that differentiated organizations from each other was mitigation with Information Technology.

 

  1. Steps Involved in the Implementation Phase

 

Systems implementation describes how the information system platform should be built (i.e., physical system design). It ensures that the information system is operational and meets quality standards (i.e., quality assurance).

 

After user acceptance and testing of the new system, the implementation phase begins. Implementation is the stage of a project during which theory is turned into practice.

 

The major steps involved in this phase are:

 

  • The hardware and the relevant software required for running the system must be made fully operational before implementation. The system is built and tested to ensure that it performs as designed. Since the cost of fixing bugs can be immense, testing is one of the most critical steps in implementation. Most organizations spend more time and attention on testing than on writing the programs in the first place.
  • Conversion is also among the most critical and expensive activities in the system development life cycle. The data from the old system needs to be converted to operate in the new format of the new system. The database needs to be secured with necessary backups available. During this phase, all the programs of the system are loaded onto the user’s computer.
  • After loading the system, training of the user starts. Main topics of such type of training are:
  1. How to execute the package
  2. How to enter the data
  3. How to process the data (processing details)
  4. How to take out the reports

 

Implementation is a very crucial phase just as installation. The new system may get installed but inadequate training of users may render it of no use. The focal point of the implementation phase is installation and hand-holding part of the transition process. Prior to training, needs assessment is done to understand the training needs of the users. A training program is planned and the required training given to users. This is an important part of the implementation process and helps in reducing the resistance to change related behavior among the user community. The training also helps users to appreciate the new features of the new system and helps build trust and appreciation for the new system.

  • System Documentation – This includes all technical documentation delivered during the project.
  • The implementation notice is an official written approval for change management.
  • The readiness document consolidates summary information regarding the current status of the system and the project and provides decision makers with the information necessary. It comprises of a checklist of all work orders, acceptance test results, other indicators of success measures and deliverable acceptance.
  • A post implementation review report is a written summary of the assessment of activities at the end of the implementation Phase. It also evaluates the effectiveness of the system after it has been in production. It helps determine if the system does what it was designed to do.
  1. Types of Implementation

 

Once the software is developed it requires proper installation and implementation on site. Different methods are discussed in which a new system may be implemented depending on what business and the organizational climate demands. Usually implementation will involve conversion from an old system to the new system it is designed to replace.

 

The four methods of conversion or implementation are mentioned in figure 3.

 

  1. Direct Cut Over – This method involves the old system to be completely terminated and the new system being completely implemented at the same time. The old system is no longer available which makes it important for the new system to be fully functional. This conversion method is used when it is not feasible to continue operating two systems together. Any data to be used in the new system must be converted and imported from the old system. Users must be fully trained in the operation of the new software system before the conversion takes place.
  1. Parallel – The parallel method of conversion deals with the simultaneous involvement of both systems together for a designated period of time. This allows any major road block with the new system to be mitigated without the loss of data. Parallel conversion makes users to get well versed with the new system. In essence, the old system remains operational as a failover to the new system. Once the new system is found to be meeting requirements then operation of the old system can stop. The parallel method involves double the workload for users as all functions must be performed on both the old and new system. This method of implementation is useful when the product is of a critical nature. By continuing the operation of the old system, the crucial nature of the data is protected.
  1. Phased – The phased method of implementation (or converting) from the old system to a new system involves a gradual introduction of the new system and whilst the old system is progressively discarded. This can be achieved by introducing new parts of the new product one at a time while the older parts being replaced are removed. Often phased conversion is used because the product, as a whole, is still under development. Versions or upgrades are released to customers as they become available. Phased conversion helps in better management of the complete process. Parts of the total system are introduced systematically across the business, each part replacing a component of the old system. Over time the complete system will be converted.
  1. Pilot – With the pilot method, the new system is installed for a small number of users. These users learn, use and evaluate the new system. Once the new system is deemed to be performing correctly then the system is installed and used by all. This method is particularly useful for new products, as it ensures functionality at a level that can perform in a real operational setting. The pilot method also allows a base of users to learn the new system. These users can then assist with the training of the others once the new system had been fully implemented. The pilot conversion method is the final testing of the product. Both the developer and the customer are able to evaluate the product in an operational environment prior to its full implementation.
  1. Important considerations for system implementations – The interaction of a technology platform with processes of an organization is a concept that surfaces many other factors for consideration. User understanding, training and involvement is crucial to ensure success of the implementation.

 

Various factors essential to be considered are discussed below:

  • Choosing System Analysts – Experts who man the technological change must have a great deal of understanding of the intricacies. Largely, while one organization develops the technology, it may then hands it off to users, who are less technically skilled but quite knowledgeable about their need or expectation from the system. Accompanied by installation engineers it is important to choose system analysts who may detail out the system features to be understood by all stakeholders. It is important to draft a formal handover at the customer site for smooth functioning of the system and this activity is to be monitored and carried by the analyst.
  • Adopting the Business Perspective – Adoption of a business perspective encourages implementation managers understand the end user and market expectation from the system. It involves an early identification and enhancement of the fit between a product and user needs, preparation of the user organization to receive the innovation, and shifting of “ownership” of the innovation to users.
  • Planning – Planning is well incorporated by designating project managers for the end to end project lifecycle and final sign off. Also, successful implementation is mandated by investment by developers not only early in the project but also a sustained level of investment in the resources of user organizations.
  • Implementation managers – The implementation experts should be patient to deal with iterative and interactive plan to guide decisions about when and how to collect needed information from all groups affected by an innovation. What information is important at what point of time may vary at different stages of the implementation process, but someone must coordinate the iterative work of gathering it.
  • Effective maintenance management – A maintenance engineer although assigned the task of maintenance should be well versed with details of the system implementation project. He should work closely with both project managers. At times, there are two project managers on the project a business side project manager and a system side project manager. The project manager coordinates the activities of all of the team members, manages the project plan and reports to the steering committee.
  • Vendor Selection – Software products should not decided and purchased impulsively. Companies need to weigh the implications of various options. They should spend time interacting, negotiating and surveying what is available in the market first. Decision like should the system be purchased or leased? Will the current hardware be scalable? Will the organizational technology be compatible with the new system? For this an expert or consultant can be designated. Once a prospective buyer has narrowed the choice to the best solutions, a consultant can help the company compare alternatives and negotiate the most favorable terms with the most suitable solution provider.
  • Hiring Consultants – Organizations should engage consultants for the implementation and integration. Internal IT resources may have successfully managed internal development projects, but implementing a business-focused, packaged application suite requires a different skill set. A consultant can help think about implication beyond usual thinking or if certain parameters are overlooked. This helps in better decision making, early project closures and real-time information related to key metrics, better-informed decision-makers, and an improved bottom line.
  • An organization’s characteristic like size and scale of operation also influence the adoption of MIS application in organization. The adoption of robust technologies may appear more appropriate for the larger firms because of the large capital investments and the skilled human resources involve in the implementation and operation of such technologies. On the other hand, smaller firms may even work best with hosted platforms and revenue share models between different service providers Ready to use software and less expensive equipments of MIS application are more attractive to smaller firms.

Background: “Hershey’s from its inception in 1876 is among the most popular chocolate manufactures in North America. They implemented a trilogy of SAP R3 ERP software, Manugistics SCM and Seibel CRM. The technology and service partner, IBM Global service was shortlisted to manage integrations between the various systems. This was worth a whooping cost of $10Million.

The recommended project implementation time for the project was 4 years while Hershey’s demanded 2.5 years. They decided to go with the Big Bang Approach instead of the phased approach of implementation.

 

Impact of ERP Failure: Problems pertaining to order fulfillment, processing & shipping started to emerge. They could not meet the commitment of delivery on time. Several distributors who had ordered the products could not supply them to the retailer in time. The result of this is they lost their creditability in the market. When they announced that this was because of malfunctioning of ERP systems their stock prices plunged 8% on a single day, profit dropped by 19% and sales declined by 12% which shook the company.

 

Reasons of Failure: Dismissing the stated timelines and the implementation schedules and ineffective project management was the main reason for this failure. The other reason was of sacrificing system testing for the sake of expediency.

Lessons: System implementation should not be forced onto an unreasonable timeline. Over squeezing the implementation schedules is a sure way to overlook critical issues. Testing phases should also never be compromised. When companies time their cut over during slow business periods, the companies give itself more slack time to iron out system kinds. This is aimed at minimizing exposures due to damages caused by undetected errors and less than perfectly trained users.

Source: https://www.pemeco.com/wp-content/uploads/2013/09/Hershey_ERP_Case_Study.pdf

Case of GE: When GE set up its state-of-the-art dishwasher plant, it originally justified the costs on the basis of savings over time, but the plant has experienced payoffs from the investment in unexpected ways.

 

The quality of the products improved and lower manufacturing costs led to an expansion of market share, and the plant proved able to serve as a manufacturing site for other products. Each time managers document such nontraditional benefits, they make it easier to justify similar investments later.

 

Key Elements for Successful Systems Implementations

  • Communication – It plays a vital role in the implementation and without proper communication especially, from the top management on the installation and implementation of the new system the change management will be difficult.
  •  Upper Management Support – Upper management is always involved in the financial support of a systems project. Some executives focus only on the financial justification and the payback of the project. However, the key to a successful implementation is to also convince them of the business advantage of a systems change. Success of the project depends on the executive team believing that the new system will provide the company with a new competitive advantage to service customers better.
  • Operations Leadership – There should be a broad representation of groups in the project to ensure that all perspectives are accounted for during the design and implementation.

 

  1. Testing – To make sure that the system is functioning as designed, it must be thoroughly tested. A test plan should be detailed as soon as designs are completed, and testing resources should be focused on the main functionality of the system. Avoid the common error of focusing too much of your testing efforts on complex functionality that may only be used a small percentage of the time.
  2. Training – After the system functionality passes operational testing, final training can begin. Ideally, users have been given some overview classes prior to actual hands-on training. The hands-on end user training is most effective when delivered as close to the cutover as feasible, in order to achieve optimal information retention.
  3. Metrics – The project was likely justified because it would make improvement to processes.Utilizing points of comparison can provide valuable tools in diagnosing problem areas, so it is necessary to validate the baseline metrics well before conversion.

 

  1. Summary

Management information systems one of the most remarkable achievements in the area of office automation, which aims to provide reliable, accurate, relevant and complete information to managers toward enhancing of organizational performance in organizations. However the MIS is as competent and efficient as it is implemented and rolled out. A successful implementation requires a complex blend of skills, ranging from technology integration to organizational transformation. Clearly, implementing new business processes along with new technology adds complexity to the initiative, and process issues should be given as much consideration as technology concerns — if not more — throughout this exercise. Implementation is engagement management i.e., pulling together IT and the technical requirements, the business end users and their functional requirements, the vendor and its product expertise, and additional third-party experts while overseeing everyone’s priorities, deliverables, and schedules. At the same time, companies need to be sure not to shortchange end-user education and system rollout. The sooner key personnel are using the system to its fullest, the more quickly the organization will realize the project’s benefits. Initial and ongoing training needs, as well as system oversight and service (e.g., help desk), should be planned before the software is rolled out to users.

you can view video on System Implementation

Web Resources

  • https://www.pemeco.com/wp-content/uploads/2013/09/Hershey_ERP_Case_Study.pdf
  • http://oer.nios.ac.in/wiki/index.php/Phases_of_System_Development_Life_Cycle
  • 3.http://businessfinancemag.com/business-performance-management/implementation-challenge-key-considerations-choosing-bpm-consultant