Gap Analysis in SAP: Understanding Gap Analysis in SAP

In the realm of SAP and information technology, the term “gap analysis” might sound like technical jargon, but its implications are crucial for businesses navigating digital transformations. Simply put, gap analysis involves scrutinizing the disparities between two information systems or applications, often aimed at bridging the divide between the current state( AS IS) and a desired state( To Be). Think of it as the space between where you are and where you want to be in terms of technological efficiency and effectiveness.

What is gap analysis in SAP?

Gap is an easy word for small cracks. When it comes to SAP or IT, gap analysis is the study of the differences between two different information systems or applications. For example, an old system or legacy system with Client New system .

gap analysis in SAP

SAP, the majority of the time determines how to transition between states. A “gap” is defined by some as the space between where we are and where we want to be. The process of improving schools starts with this. Planning how to improve things begins with a thorough examination of the factors that contributed to the existing situation. The gap analysis approach can be used to ensure that the improvement process does not proceed blindly from identifying problem areas to offering remedies without first understanding the causes of the current situation.

Finding the Gap: Establishing the Groundwork for Improvement

Principals and team leaders in charge of creating strategies for improvements have listed the following procedures for conducting a gap analysis in SAP:

Seeing gaps in systemic elements allows for a better understanding of the current status. Openness and honesty among group members can determine their current status. Gathering ratings on stickers and flip charts can strengthen the message, maintaining anonymity. Leaders can document and protect privacy if necessary.

gap analysis

Gap Analysis Guidelines for Improvement Plans

  • Identifying localized requirement or country specific requirement.
  • Identifying gaps in SAP is systemic factors.
  • Scales used to determine current state should be honest and anonymous.
  • Information gathered should be reviewed by the improvement plan team.
  • The process aims to gather information for a future state based on identified business processes.
  • Additional indicators or revisions may be necessary if a need exists.
  • A Business requirement statement summarizing the underlying structural issue is developed.
  • Root cause analysis is conducted to identify crucial factors for improvement.
  • Identified factors are used in the development of goals and objectives for the improvement plan.

Method of Fit Gap Analysis in SAP.

  • Simulation Based – Plan -> Implement -> Analyze -> Capture
  • Brainstorming Discussion Based – Schedule -> Discuss -> Capture -> Analyze
  • Questionnaire Based – Analyze -> Formulate -> Answer -> Extract
  • Hybrid Type – Plan & Schedule -> Discuss & Formulate -> Answer & Analyze ->Extract
  • & Capture

Companies using SAP should follow this advice to get the most out of their upgrade: Keeping up with project simulations and questionnaires Implementation of Project Simulation and Questionnaire Project Hybrid is more intense, so it works. Improving Things Project Idea Generation, Protecting project simulation and brainstorming sheet Questionnaire or Hybrid for the Project

More and more Polish companies are setting up foreign offices that use the SAP system and are even taking ownership of the template system. Both the parent company and the local company will have to work hard on this project, especially if they are in different countries. The parent business wants the local company to follow the same procedures as the corporation and make sure that operations are as cost-effective as possible. But there are two kinds of differences: gaps in the law and the way businesses work in each country. The main company can either make the change in SAP, leave it in an outside system, handle it by hand outside of IT, change the way things are run, or show local businesspeople the chosen method. This method increases faith in the new system and changes how people participate in later project activities. Before the fit-and-gap study, the parent company should choose which parts of the system will be looked at.

How do I find “Gaps”?

We already know that the differences are real, but how do we describe them? How to make sure that problems don’t happen during execution because the local needs weren’t met? The Fit and Gap analysis, which is a normal part of the BCC Go Forward methodology for the rollout project, might be useful. Before the Fit and Gap analysis, the parent business should decide which parts of the system will be analyzed and then put into action at the local level. The main thing that determines this is the type of business that the local company runs. For example, if it’s a dealership, the transportation processes will be looked at, but not the production processes. The Fit & Gap study can be done by either the parent company or the implementation partner. Before the analysis, the consultants may need to be trained on the current template if the partner is in charge of carrying out the plan, especially if the template’s documentation is not available.

Fit & Gap analysis is divided into three stages:

Fit & Gap Analysis Process

Stage 1.

Preparation of a solution template for the trainings. This stage includes gathering of the template documentation (business blueprint, manuals, technical documentation) and preparation of the training system (e.g. on the test system). The sample data (e.g. materials, customers, vendors) should be obtained from the new company and loaded to the training system. It shall enable the employees of the local company to better identify the discussed processes.

  • Preparation of Solution Template
  • Gathering template documentation and training system.
  • Loading sample data from new company to the training system.
  • Enabling employees of the local company to identify discussed processes.

Stage 2.

The project team members are trained in the scope of implemented processes in a template system, with implementation consultants, particularly those familiar with local legal regulations, participating. If communication issues arise in the local company, the training can be divided into two sub-stages: training the consultants in the project language and training the local team members..

  • Training of Project Team Members
  • Training key users in the scope of implemented processes in the template system.
  • Implementation consultants, particularly familiar with local legal regulations, participate in training.
  • Training may be divided into two sub-stages if local company communication issues exist.

Stage 3

Project teams conduct sessions to identify differences between presented processes and local needs. Employees from the local company identify differences between ERP system models and current operations. The decision to implement the difference, require organizational change, or maintain existing form should not affect discrepancies. Differences are registered using project tools like SharePoint or Excel, and described by attributes.

  • Sessions of Project Teams
  • Determining differences between presented processes and local needs.
  • Employees of the local company indicate differences between the ERP system modelled in ERP system and the current process.
  • Differences should be registered using project tools applied in the organization.
  • Each difference should be described by attributes such as ID of the difference, module, process, reporting person, business need, type (legal, local), priority, and estimated workload of the system changes.
  • The tool used for registration should enable the change status change and tracking of the change history.

Difference Registration in SAP System

  • Identification of difference (GAP_ID): Numeric identifier.
  • Module: Specification of identified area.
  • Process: Specification of the difference.
  • Reporting person: Full name of the reporting person.
  • Business need: Justification for the difference.
  • Type: Legal or Local: Legal or local.
  • Priority: High, Medium, Low: Degree of difference significance.
  • Estimated workload: Comparing change significance with implementation workload.
  • Tool for change status and change history tracking.
  • Decision on difference implementation in SAP system or organizational change should not influence registration.

During the Fit & Gap study, it is crucial to consider the language of discussion and the team members’ proficiency in the local language. If a key member doesn’t speak the project language, translation and time to adapt may be required. A local consultant may also be necessary for research in specific locations. Fear of changes in rollout projects can be mitigated by using templates, allowing team members to access the system, and involving local experts to avoid oversimplifications.

Why do we need a local consultant?

The local consultant’s involvement is crucial for the success of Fit & Gap study and the project as a whole, as demonstrated by previous examples. What can and should we expect? Below, we present three important tasks:

Methods of Fit Gap Analysis in SAP

Fit gap analysis can be approached through various methods, each suited to different project types:

  1. Simulation-Based: This method involves planning, implementing, analyzing, and capturing insights iteratively.
  2. Brainstorming Discussion Based: Discussions are held to identify gaps and capture and analyze the findings.
  3. Questionnaire Based: Structured questionnaires are used to analyze, formulate responses, and extract insights.
  4. Hybrid Type: A combination of planning, Discussion, formulation, analysis, extraction, and capture techniques is employed for a comprehensive approach.

Recommendations for SAP Implementation

Implementing SAP requires a meticulous approach to address local needs and ensure alignment with corporate processes. Here are some key recommendations:

  • Project Method Selection: Different project types require different methodologies. Choose the most suitable method based on the project’s nature.
  • Understanding Local Needs: Conduct a thorough fit-gap analysis to identify local legal and business requirements. This will help address specific gaps and ensure alignment with corporate standards.
  • Involvement of Local Consultants: Local consultants are crucial in bridging the gap between corporate standards and local requirements. They provide valuable insights and facilitate effective communication.

Conclusion: Bridging the Divide

Gap analysis in SAP is not just about identifying discrepancies; it’s about unlocking efficiency and driving organizational improvement. By understanding the gaps between current and desired states, businesses can chart a course toward enhanced productivity, streamlined processes, and tremendous success in their digital transformations. So, embrace the gap, analyze it, and bridge it for a brighter technological future.

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