What is GAP Analysis ?
Answer:
Gap Analysis is a crucial phase for the success of the ERP implementation. It is the process through which organisations create a complete model of where they are now, and in which direction they want to head in the future.
Gap Analysis is a crucial phase for the success of the ERP implementation. It is the process through which organisations create a complete model of where they are now, and in which direction they want to head in the future.
In Gap Analysis, a model is designed which both anticipates and covers any functional gaps. It has been estimated that even the best ERP package, custom tailored to a company's needs, meets only 80% of the company's functional requirements.
The remaining 20% of these requirements present a problematic issue for the company's BPR (business process re-engineering). One of the most affordable, albeit painful, solutions entails altering the business to fit the ERP package.
Of course, a company can simply agree to live without a particular function (the cheap but annoying solution).
Other solutions include:
· Pinning your hopes on an upgrade (low cost but risky).
· Identifying a third-party product that might fill the gap (hopefully it also partners with the ERP packages, keeping interfacing to a minimum).
· Designing a custom program.
· Altering the ERP source code, (the most expensive alternative; usually reserved for mission-critical installations).
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