Fit Gap Strategies

A fit-gap analysis is a vital part of selecting and successfully implementing an ERP software solution. Without knowing where the software complements existing processes and, even more importantly, where there are gaps between requirements and functionality, the risk of a failed ERP implementation rises dramatically. Organizations can take different approaches to a fit-gap analysis, including brainstorming, questionnaire-based inquiry, and simulation.

Brainstorming

In a brainstorming approach, stakeholders are gathered to discuss topics that scope out the needs of the entire organization. Before starting the sessions, the organization must be very clear about what the software can and cannot do. This is where working with a knowledgeable consultant is invaluable. It can be a waste of valuable resources to gather stakeholders without being able to determine whether the software fits the requirements or not, and to do so while the stakeholders are still gathered. Effective brainstorming sessions need to be focused on specific topics to avoid wandering conversations that don’t end in identifying requirements. In addition, there must be knowledge capture strategies in place to avoid losing valuable insights into the organization’s processes.

Questionnaire-based Inquiry

Using a questionnaire-based inquiry to gather requirements and information about current workstreams has benefits. It is sometimes impossible to gather all the required stakeholders together. And while a brainstorming session can get off track, a questionnaire is very focused and concrete. The key is asking the right questions and getting buy-in from stakeholders so they treat the exercise as fundamentally important to the success of the company. A consultant who is an expert in effective business processes as well as ERP software can help ask the right questions. Remind the recipients of the inquiry that they will be ‘living with’ the ERP software that is implemented, so taking the time upfront to fully participate in the fit-gap analysis will directly affect their department’s future workstreams. In the end, the results of the questionnaire are compared to the available ERP offerings to see what fits current practices and whether the gaps should be closed through software modification or process improvements.

Simulation

If an organization has identified the top contender for its ERP software selection, the vendor can set up a test environment that stakeholders can ‘play with’ to identify the fits and gaps. It can really help to get out of abstract concepts and into how an actual software implementation will interact with current workstreams. Stakeholders can attend a workshop that helps compare the offered functionality with their department’s processes. A company should be open to stakeholders’ concerns that go outside the scope of the simulation and be prepared to follow up as needed.

All three approaches have their benefits, and it is sometimes most appropriate to use a hybrid approach. For example, a simulation can be used in a brainstorming session to spark discussions based on manageable chunks of the functionality. Gathering information from a questionnaire can focus discussions during a follow-up brainstorming session or inform the vendor on which pieces of the software package should be simulated. The most important thing is to get stakeholders invested in the fit-gap analysis and have a plan to make the most of their input.