Fit Gap Analysis – The Role of Business Process Reference Models

Summary:

            In this article, the authors describe that enterprise resource planning system is used by the companies to achieve different goals like staying competitive, make improvement, finding solutions for business processes, and changing standard business strategies so that business operations can be performed effectively. ERP system uses different business practices which can be elaborated by the reference models. The role of these reference models is to formalize and then recommend those practices which are accepted by certain business domains. ERP system provides so many advantages like their solutions for different processes include sales, finance, procurement etc. all these processes can be well understood and practiced with the help of reference business models. One important thing to consider while implementing any ERP system is that organizations needs are well integrated with the ERP model. During this process, a fit and gaps analysis is developed, which is very essential. This model helps to identify that which things fit well into organization ERP system and what are the gas to be filled.

            In this article, the authors have examined various aspects of business reference models like what methods can be used & applied in an ERP system, and what fit-gap analysis is obtained from the exercise. In this article, ERP system, its reference models are described in detail to understand the concepts. Once all reference models are explained in details, then it had been reviewed that what methods are possible to use these reference models in ERP system. During selection of appropriate models, first step is the construction, where reference model methods are developed, and then second step is application of those constructed reference model methods. Once all these steps are completed, then here comes the process of fit-gap analysis. In this step, the theory of task technology fit is used to understand the concepts involved between technology and processes. After calculating a fit gap analysis, now the time comes to review that which capabilities ERP system has, and what are the actual business needs. In last part of the article, the authors have described the process comparison approach. Company’s supply chain process is also included in the model. The authors have included that this paper contributes in two ways, first in fit gap analysis presentation with business processes, and second is comparison approach between reference model of ERP system and supply chain.

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