Find the right cloud ERP system with a fit gap analysis
The cloud is the biggest technology enabler for mid-market organizations. It opens the door to scalable solutions with better security and helps organizations become more efficient and competitive. Additionally, the benefits of cloud are expanding as advanced capabilities, such as data analytics, robotic process automation (RPA), artificial intelligence (AI) and multi-channel customer experience management, become common components of a successful business model.
It is no wonder more and more organizations are migrating their core business system from on-premise versions to cloud application platforms. Once you have committed to implementing cloud ERP, the next big decision is to find the right solution. A fit gap analysis often is used at this point to help plan the scope, approach, resources, and timing for the delivery of the solution.
Why conduct a fit gap analysis for cloud ERP?
Generally, a fit gap analysis determines both fits and gaps in functionality when comparing an organization’s operating or business requirements to the system’s capabilities. Companies use it to define both the project plan and the stakeholders who ultimately will drive tactical and strategic decisions. The process also includes discovery workshops, where end users from each organizational department are interviewed to define their business requirements.
Gathering these requirements provides visibility into software vendors’ applicability and potential gaps with the current systems in use. Once the workshops and documentation have been completed, organizations then review the initial vendor proposals and prior system evaluations. Important inquiries around the deployment plan, technical architecture, and cost will help refine the initial business requirements into key requirements.
After the discovery phase, the requirements matrix is used to analyze how it applies to the vendor proposals by assigning ratings for the fit gap analysis. This helps guide the cost-benefit analysis that confirms cost estimates and assumptions. During this analysis phase, the vendor proposals are updated to develop the deployment plan for each option.
This roadmap is an iterative approach, and the stakeholder group will help refine the deployment plans with their feedback and adjust the final fit gap analysis report. Ultimately, these finishing adjustments will help organizations determine which cloud ERP solution best fits their needs.
After the final deliverable is assessed, companies will schedule demonstrations with each vendor so they can present their capabilities and benefits as well as answer any questions on how to address functionality gaps. These meetings will help determine the final vendor selection and conclude the fit gap analysis process.
Prevent cloud migration risk with a fit gap analysis
A fit gap analysis provides an in-depth examination of a company’s business functions and suggests realistic implementation approaches for each software vendor. No business can afford to risk day-to-day operations to incorporate a wide-scale IT implementation without careful preparation. A fit gap analysis takes out the guesswork and mitigates potential threats to a successful integration.
Once you’ve conducted a fit gap analysis, the next step is to prepare for a successful implementation. Learn about these seven things to consider.
Are you ready to choose the right software and implementation partner for your ERP cloud migration? RSM has developed a Cloud ERP Selection Guide to help you explore options.