What is Fit-Gap Analysis?
An evaluation process comparing ERP system capabilities against business requirements to identify gaps that need customization.
Definition
Fit-Gap Analysis is a structured evaluation process used during ERP selection and implementation to compare an ERP system's out-of-the-box capabilities against the organization's specific business requirements. For each requirement, the analysis categorizes it as: Fit (fully supported), Partial Fit (supported with configuration), Gap (requires customization or workaround), or Not Applicable. The results inform customization scope, implementation effort, and total project cost.
How Fit-Gap Analysis Works in ERP
Fit-gap analysis is performed during ERP selection (comparing vendors) and during implementation (detailed design phase). Implementation partners use fit-gap workshops to walk through business processes with key users, demonstrating how the ERP handles each scenario and documenting where customization is needed. Minimizing gaps reduces implementation cost and risk.
Frequently Asked Questions
When do you perform a fit-gap analysis?
Fit-gap analysis is done twice: first during ERP selection to compare vendors against your requirements, and again during implementation to detail exactly what needs configuration vs customization for your chosen vendor.