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May 19, 2016Finance & Accounting Services

The Benefits of Performing Fit-Gap Analysis

The Benefits of Performing Fit-Gap Analysis for Workday Financials

In the last two decades, technological advances in the field of finance and accounting have advanced in leaps and bounds. Slowly but surely (as is the steady pace of a meticulous financials expert), CFOs and finance professionals are beginning to consider, or are taking steps toward, automating their financial tasks in the cloud. It’s a decision not to be taken lightly. There are still a lot of questions around the cloud, its advantages and limitations. Such a move requires a thorough assessment of a cloud application’s pros and cons and careful consideration over whether your organization is prepared for such a significant shift.

The greater challenge is in evaluating a cloud application’s abilities, understanding how it can mitigate risk, and identifying where it can improve financial processes and where it may fall short. If your company is thinking about moving to Workday Financials, there’s a simple way to assess these issues.

What is a Fit-Gap Analysis?

A Fit-Gap analysis is a formal process identifying how well an organization’s current or planned system fits its day-to-day operational requirements. A Fit-Gap analysis is just as important for cloud ERP as it is for on-premise systems. In addition, a Fit-Gap analysis can be performed on software your company is considering using or is currently in use.

Why do you need a Fit-Gap Analysis for Workday financials?

A comprehensive Workday Fit-Gap analysis provides an understanding of how well Workday’s finance functionality aligns with your organization’s current finance business needs. It also serves to identify what workarounds are necessary to bridge any gaps, so there is a high confidence level when adopting Workday Financials. If your already using Workday Financials, a Fit-Gap analysis can help you clarify issues and take appropriate action through objective metrics.

How do you use what you learn from the workdayfit-gap analysis?

The outcome of a Workday Fit-Gap analysis provides readiness for those considering the move to Workday Financials, and a roadmap for evaluation for those already deployed. From this foundation, informed decisions can be made around processes and configuration enhancement.

Workday is many things, but it does not consider itself a full-fledged tax system, supply chain solution or treasury system. Through analysis and benchmarking, we’ve found that Workday logs a respectable 92 percent against standard financial requirements with an 8 percent gap in areas such as advanced procurement and financial planning and analysis. And many of those functionality gaps are road mapped for the coming years. This is clearly enough of a fit to run the finance and accounting for a typical company.

No SaaS software or service will ever provide 100 percent of your requirements. The goal in any implementation is standardization, not customization. After all, it’s this model that allows you to enjoy value and cost savings, and this is especially true about cloud financials. The key to offering a suitable cloud platform solution is understanding what you have in your current legacy ERP, what your finance application provides as standard functionality and the gaps that exist between the two. Gaps will no doubt always exist, but performing a Workday Fit-Gap analysis allows your organization’s CFO to evaluate the time, money and resources required to bridge those gaps and minimize risk.

If you would like more information, please watch our video: Automate Invoice Processing on Workday.

Marney Edwards

OneSource Virtual’s Senior Vice President for Finance & Accounting Sales Marney Edwards leads a team dedicated to evangelizing “as-a-service” solutions for Workday customers.