Fit Gap Analysis in ERP Implementation: A Novel Management Science Approach

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Authors

1 Dept. of Ind. Eng., Faculty of Engineering, Alzahra University, Tehran, Iran

2 Faculty of Engineering, Alzahra University, Deh-e-Vanak St., Tehran, Iran,

Abstract

This paper addresses the critical challenge of improving success rates in enterprise resource planning (ERP) implementation by introducing a novel management science approach that replaces the commonly used judgment-based and qualitative methods in fit-gap analysis. Traditional methods are often employed due to the significant confidentiality surrounding ERP vendors and the limited availability of data and procedures, which restricts management scientists' contributions as effectively as they do in other fields. To overcome these limitations, this study develops two alternative methods: a bi-objective optimization model and a game-theoretic model, specifically tailored to the information system platforms of target organizations. These innovative methods take into account several critical factors, including organizational legacy structure, resource availability, budget constraints, and two competitive strategies: ERP software customization and organizational redesign. By addressing the competitive and cooperative dynamics inherent in ERP implementation, this research aims to provide a more systematic and quantitative framework for decision-making. The effectiveness of this quantitative approach is illustrated through a comprehensive industry case study, demonstrating its practical applicability and potential to enhance ERP implementation success rates.

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Advances in Industrial Engineering

Articles in Press, Accepted Manuscript
Available Online from 09 February 2025

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