Are you wondering if you are in need of an ERP system for your business but confused whether you are really in need of it?
Just simplify check yourself with the five common problems that we list below in order to examine whether you really need of an ERP solution.
1) Firstly check whether your business suffers from poor communication syndrome. Introspect whether your department remains deficient to real-time communication from other associated departments. Inspect your employees whether they pass the information effectively and on time. All the above, literate yourself on the negative outcomes of these actions like missing of leads and opportunities, order loosing, inefficient client communication etc.
2) Secondly, check the time or the duration taken to complete each of your business processes. Analyze whether any time-consuming manual data entry or repetitive tasks is hampering the business workflows.
3) Thirdly check, whether your standalone applications bring forth unnecessary complications in your business workflow?
4) Fourthly, make sure you really equipped with a deep understanding of your customer base. Check your potentiality in tracking customer records to serve your best.
5) In last, unearth the reason behind your failure in deriving efficient business decisions. Inquest the answers of those big question that evade you from making those strategic business decisions pertaining to sales or marketing.
If you find yourself suffering from these distresses, it’s high time to decide prudently on ERP implementation for your business.
But before getting into an ERP implementation, one has to take care of many aspects as it directly affects the business. One such major aspect to overlook is the conduction of gap analysis.
You might be thinking why to go for a gap analysis when we already made the mind on implementing an ERP solution for business. Well, there is a big reason behind.
We know, any company, no matter whether it’s a small or big one, is always prone to new challenges on a daily basis. And for this reason, continuous evaluation is demanded on the current work process and future implications. Also, a gap analysis helps in identifying whether the company is equipped with the right tools to accomplish the desired objectives and goals of a business.
So, the following question is how to do a conduct gap analysis. What are the different areas that one need to look into while doing gap analysis?
One can focus on the essentialities behind:
a) Streamlining day to day business operations
b) Enhancing future productivity and profitability
d) Collaborating with new business partners
e) Generating more insights to trigger decision making
f) Meeting regulatory requirements
g) Further adaptations and scalability of business
The need for GAP Analysis in ERP Implementation
If we observe, it is seen that major companies rely on their legacy applications, working within a blended platform of manual and automatic workflows. For current being, these systems may seem perfectly pitching to current business requirements but may fail in offering the very same efficiency in future subjecting to business operational changes.
Lack of scalability eventually leads to productivity gaps, dragging the organization or the business far behind its competitors. This, in turn, will seriously affect the business ROI.
Conducting gap analysis prior to ERP implementation thus can help in digging out the pitfalls of current workflows, the relevance of current system with respect to present business changes, ascertaining the fulfillment capacity of the current system, getting insight on the cost of upgradations and value additions etc.
In short gap analysis in ERP implementation helps in listing out all the essentialities that a company should overlook before transacting from its current state to the desired state of operations. A gap analysis comes highlighting company’s current situation, limitations in achieving desired objectives, future plans to effectively accomplish desired objectives and finally key steps to bridge the gap between the current and desired state of operations.
Gap Analysis in ERP implementation will answer all the following questions for you
1) Does there a need of business to comply with government regulations?
2) What are the key steps to improve productivity and profitability?
3) Is there a maximized allocation and integration of your business resources?
4) How to frame reports that influence key decision makers?
5) How to manage effective and hassle-free communication?
6) How to accommodate the growth of your business in the future?
7) Whether to grow your business globally? If yes, what all to address.
In short, the gap analysis will precisely bring into action, various business strategies and pertaining processes that can turn revolutionary steps for the growth of a company and its productivity. It suggests all the ways to get your business integrated and upgraded for radical changes.
GAP analysis helps the company in finding out the best and the easiest option to change the current practices and bring in more improvements to the day to day business activities. It thus acts as an indispensable tool to recommend the best and positive needs for your business.
The role of techno-functional consultants in ERP implementation Gap Analysis
a) Helps you in identify gaps in minor and major business areas.
b) Understanding the project timeline.
c) Identifying the need and advocating relevant customizations.
d) Getting a modest project price estimation to decide
e) Comprehensive documentation of organizational hierarchy and workflows.
f) Identification of various departments and users.
g) Helps to reduce the risk while doing implementations.
h) Insight to understanding the ROI post-implementation.
i) Explaining in detail the implementation approach carried.