GAP analysis helps the company to assimilate data at one place under common platform and bring in new changes in the functioning of the company. ERP is an out-of-box solution and when a company goes for implementation there are many differences in the needs of the company and the functioning of the prospective software. During ERP selection the company will have to change a few business processes, work profiles, shift employees from one department to other and bring in change in organization structure to meet the new business needs. GAPs refer to the differences between the new solution provided by the software package and the needed way of working.
Identify and Resolve Gaps
The software designed by companies are very flexible and it can be adjusted easily in a number of ways to meet the needs of the organizations. There are a number of complex working ways followed by companies which has to be removed due to automation but there are certain critical processes which cannot change and therefore, during ERP implementation, the companies first try to find out the differences between the proposed software and the critical processes, and then a number of alternative ways are identified which can be used to fix these gaps.
As the workflows and business processes are designed - the new system, employees and stakeholders conduct meeting and have the conference room pilot to see if the software can suit the new requirements or not. At the conference room pilot the customized software is produced by the ERP vendors and the GAP are identified, and a resolution is proposed. The GAPs are identified and modified to make the software package meet the needs of the buyer.
There are a number of stages of the analysis. Initially it is done during ERP selection stage and then it is done after the implementation.
Some of the steps followed during the process
1. The first step is to list out the positive aspects and the similarities between the current procedures and then the differences in the business processes are identified.
2. The changes are noted and modified as per the business needs, and it is made sure than even small differences do not exist.
3. The existing performance is set up as standard and the new changes are aimed to improve the performance. The various regulations and standards followed by the company are identified and suggestions are taken to integrate it to the new software.
4. Employees are given their roles and the priorities are set up. Objectives are designed and it is ensured that the employee discharge their work well.
5. All the GAPS should be analyzed and corrected, and the company should be able to benefit from the ERP. The result is compiled and after the analysis the company can find the ROI for the new package.
Basically, GAPs can be controlled by two methods either by changing the business processes of the company or by developing new package. Most of the companies make a selection for the ERP package after conducting this analysis and ensuring that the vendor can find ways to resolve the critical differences.