Gap analysis is performed during ERP implementation to identify differences between a company's current ("as is") business processes and desired future ("to be") processes after ERP implementation. The gap analysis evaluates the functions provided by the ERP system against the company's operational needs. There are three types of gaps: those that can be addressed with minor programming, those requiring extensive programming and extra resources, and those that cannot be addressed in the system. Performing a thorough gap analysis is crucial to a successful ERP implementation as it ensures a smooth transition and that the new system meets the company's requirements.

1. GAP ANALYSIS AND ERP
MBA FT
SCHOOL OF MANAGEMENT STUDIES CUSAT

2. INTRODUCTION
● Gap analysis is a phase in ERP
implementation.
● GAP analysis in ERP implementation is to
identify and suggest the ways to bridge
the gap between 'As is' and 'To be'.
● Gap analysis is the evaluation of the
functions provided by the ERP system
compared with the operational processes
necessary to run your business.

4. ● In absence of GAP analysis in ERP
implementation even the best ERP will not
be able to deliver the benefits it claims to
give to its users.
● Most crucial phase.
● Model help the company to cover the
functional gap.
● Process through which company can
create a model of where they are standing
now and where they want to go.

6. Types of GAP:
(1) Gaps which can be taken care of with a
little programming effort. This type of gaps
are resolved by the project team directly.
(2)Gaps which involve an extensive
programming effort and hence require
extra resources.
(3)Gaps which cannot be taken care of in
the system.
Steering committee decides on the extra
resource allocation/process change for the
2nd
and 3rd
categories.

7. Steps for performing gap analysis :
1)To make a note of the existing business
system. Here the flaws and positive
aspects of sytem is listed out. This is an
attempt to have an idea of what is
currently happening given the scenario in
question so as to help in ERP
implementation.

8. 2)Evaluate and decide the additions that
need to be made to the business in view of
ERP implementation. The aim is to make
sure that there is not even a thin line of
difference between erp and the
organisations commercial activities. It will
be oriented to ERP function.
3)Rating the existing level of performance to
set a benchmark or standards for the
business as on date.

9. 4)Having an in-depth study of the regulations
and statements in the organizations and
suggesting modifications. This also will
decide ERP implementation.
5)Clearly defining the roles of individuals in
the organisation so that the priorities are
met and the structure remains undisturbed.
This is to make things clear for ERP function.

10. 6) Checking if the objectives in discharging
duties are met because it is the ultimate
solution to any issue. If they are not met the
gaps should be made known and
corrected. Only then the organisation can
achieve the benefit of ERP.
7) Ensuring that functions are executed
properly and if need be personnel can be
rewarded to boost up and encourage
performance.

11. 8) Comparisons are to be made for every
other factor that draws relation in one way or
other. These results are to be complied for
ERP gap analysis.
9) The gap analysis takes into account all
the factors of study and gives the results. It
either recommends the implementation of an
ERP system or the idea in totality.

12. comparision between current
And
standard ERP system
Gaps are found
Correcting the gaps without
disturbing the
structure of ERP
The obtained results
Are analysed again
For gaps

14. Benefits of GAP analysis:
● The GAP analysis wil provide a complete
overview of the erp system.
● It will tell the organisation or business just
how effective implementing the new
system will actually be. It is a customized
approach, as the ERP system will match
the needs of the company preciously,
maximizing the efficiency of the system.
● Keep in mind the ramifications of the
process, as n some instances users may
discover that the ERP is not actually worth
the time to implement.

15. CONCLUSION:
● GAP analysis is an important phase in
ERP implementation which hepls to
deliver the expected results from ERP
system. It is the most crucial stage in
implementation process.

16. REFERENCES:
● ENTERPRISE RESOURCES PLANNING,
GAGANDEEP S. MAKKAR
● ERP, Alexis Leon
● Enterprise Systems for Management, Luvai F.
Motiwalla, Jeff Thompson

17. THANK YOU