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Two ERP Implementation Approaches: Fit to Standard vs. Fit & Gap
To successfully implement an ERP (Enterprise Resource Planning) system that supports and enhances your business operations, two primary approaches are available:
- Fit & Gap: Custom development is used to fill functional gaps in the ERP system, allowing existing business processes to continue.
- Fit to Standard: Standard ERP features are maximized with minimal customization, aligning business processes to the system.
The key characteristics of each approach are as follows:
| Fit to Standard | Fit & Gap | |
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| Characteristics |
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| Function Utilization |
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| Upgrade Costs |
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| Suitable Systems |
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| Adaptability to Business Changes |
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| Responsiveness to Market Changes |
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| Maintenance Costs |
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The traditional Fit & Gap approach, which relies on custom development tailored to existing processes, often struggles to keep pace with market changes and technological advancements. Upgrading becomes complex, and the risk of deviating from the original implementation plan increases due to customization.
In contrast, Fit to Standard enables organizations to fully leverage the flexibility and efficiency of SaaS-based ERP systems, including future enhancements. This leads to improved productivity, reduced implementation risk, and long-term competitiveness.
While Fit to Standard implementation can be challenging, its importance continues to grow as businesses shift from on-premises systems to cloud-based environments.
Despite its advantages, Fit to Standard may not always deliver the expected results. Common challenges include:
- Poorly defined requirements and validation in early project stages
- Operational disruptions due to gaps between business practices and ERP functionality
- Limited involvement of frontline staff in implementation activities
To overcome these challenges, focus on the following:
Users should actively participate from the beginning of the project with a mindset of reevaluating current operations. Visualizing and optimizing existing processes is essential for successful implementation. When selecting a vendor, carefully assess their experience with the relevant ERP system.
Avoid excessive customization to address gaps between business practices and ERP functionality. Instead, consider using complementary services such as SaaS or PaaS, or low-code development platforms. Shared templates applicable across multiple companies can also be a practical solution.
Frontline teams tend to favor Fit & Gap to maintain current operations. To shift this mindset, top management must clearly communicate the purpose and goals of ERP adoption—and actively lead the change.
Effective change management helps stakeholders understand the need for transformation and engage in the project.
- Proven global experience with Microsoft Dynamics 365
- Deep expertise in manufacturing, especially assembly-based industries
- Skilled Dynamics 365 professionals
- Successfully implemented Dynamics 365 internally in just six months
- Certified Microsoft Solutions Partner (Business Applications) – 2023(Business Application )
In 2022, FUJIFILM Pacific Business Consulting transitioned its core system from SAP to Microsoft Dynamics 365 using the Fit to Standard approach, achieving implementation in only six months. We bring this experience and expertise to support your rapid ERP deployment.
Implementation of Dynamics® AX at Domestic Production Sites
To modernize its core system and enable timely information sharing, Nidec Elesys selected Dynamics AX. By leveraging our implementation templates, the company successfully minimized add-on development.
Implementation of Dynamics® AX at Two Overseas Production Sites
HOYA standardized operations and integrated data using Dynamics AX. The company rebuilt its production management system based on Microsoft Dynamics AX.
Transition to Microsoft Dynamics 365 Ahead of Group-Wide Rollout
Successfully implemented Dynamics 365 in just six months through the Fit to Standard approach.