The installation of the system can only take place after  it has been completely coded and tested and when any known bugs have been eradicated.  In this phase it is important that the users have been adequately trained on all the features of the system .  Users can be extremely helpful in revealing errors in programs and processes, and can even offer advice on how to correct the system problems they have encountered.  If all goes well then the system can go into production.

One of the main decisions needed within the implementation phase concerns the choice of change over strategy.  Some of the choices are as follows :
 

1. direct cut-over        This can be cheap but is very risky as the old system is simply cut off, and total reliance is immediately placed on the new system.

1. parallel running        The old and the new systems are run in parallel for a period of time.  This gives added security, but it is an expensive choice.  It has the disadvantage that users can become reliant on both systems and are therefore reluctant to 'let go' of running both systems.

1. pilot running            This strategy uses a combination of both parrellel running and direct cut-over.  The cut-over only takes place in one section of the business, and only when it is successful and any problems have been ironed out does the change over take place throughout the organisation.