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Fit to Standard
When a company implements new software or similar systems, rather than customizing the system to fit its existing business operations as was traditionally done, it now adopts the idea of adjusting its business processes to the standard functions of the newly introduced system. This enables reductions in development costs and implementation time and is expected to eliminate dependency on individual employees through the standardization of operations, while also ensuring that the system operates reliably.
© Hiroyuki Hayashi
By aligning business operations with standard functions, we can solve the problems associated with ERP implementation
As the need for digital transformation (DX*1) increases, Enterprise Resource Planning (ERP) plays a crucial role in corporate systems. ERP is a system that covers a wide range of business operations, including accounting, human resources, production, and sales, and centrally manages key corporate resources such as people, goods, money, and information. As a system that supports both productivity improvement and management decisions, it plays an indispensable role for many companies.
Until now, a method called "Fit & Gap" has been commonly used in ERP implementation. In this method, the company analyzes the compatibility of its business processes with the ERP's standard functions, customizes the system for any incompatible parts, and, if necessary, develops add-ons to supplement the system. However, this approach has faced challenges such as prolonged preparation time, high costs, and reliance on individual personnel.
Against this background, the concept of Fit to Standard has been gaining attention in recent years. Instead of customizing the system to match its own business operations as in the past, a customer adapts its business processes to the system's standard functions that ERP vendors have developed over many years based on their proven track records. This approach is supported by the fact that modern ERP systems are highly functional and capable of meeting many business requirements, even with standard functions.
An effective approach to sustainable operations that delivers many benefits through business process standardization
Fit to Standard offers many advantages over the traditional Fit & Gap method when implementing and operating business systems. For example, since compatibility analysis and add-on development are no longer required, systems can be introduced more quickly, smoothly, and at lower cost. Furthermore, after implementation, it helps prevent situations where only certain staff members understand the system specifications, thereby avoiding dependence on individuals. As a result, it becomes easier to establish a system that can be managed and operated stably, even in the event of personnel changes.
In addition, ERP vendors regularly update their platforms through major version upgrades, which involve significant additions to functionality, and minor version upgrades, which occur in shorter cycles and include new features, improve existing functions, and respond to legal changes. When add-ons are developed using the Fit & Gap method in response to these updates, companies must invest considerable time and cost to verify whether the add-ons will continue to function properly after each version upgrade.
On the other hand, with Fit to Standard, the system is built using standard functions, so add-on verification becomes unnecessary or is kept to a minimum. This enables companies to respond flexibly to version upgrades and functional improvements provided by vendors, allowing them to quickly incorporate the latest features into their operations.
Standardization creates an organization that is resilient to change, leading to corporate growth
However, there are some important points to keep in mind when applying Fit to Standard. For example, changing business processes that contribute to a company's competitive edge—such as proprietary technologies and know-how, brands, and customer relationships that the company has cultivated independently—in order to conform to ERP standards may risk undermining its strengths and is not necessarily a wise strategy. Therefore, when implementing Fit to Standard, it is important to distinguish between competitive areas and general business areas common across the industry (collaborative areas) and to apply standard functions to the collaborative areas.
Furthermore, when replacing an existing system with a new one using the Fit to Standard approach, it is anticipated that certain impacts may affect internal stakeholders, such as business personnel, managers, and executives, due to changes in operability and other factors. These changes may lead to employee dissatisfaction or decreased motivation, and in some cases, raise concerns that the system may not be fully utilized. Therefore, during the system migration, it is necessary to thoroughly communicate to all employees the significance of building the system based on Fit to Standard and to devote sufficient time to change management that encourages a shift in mindset.
Standardizing operations contributes to improved operational quality for companies. By eliminating inconsistencies in procedures, stable operations enhance the accuracy and reliability of outputs, and the unification of rules facilitates smoother collaboration and information sharing between locations and departments.
These initiatives are also effective in increasing operational transparency and strengthening organizational control, contributing to improved corporate governance. The introduction of Fit to Standard is not merely a matter of system compliance but also serves as an opportunity to reconsider the way business is conducted and to rethink the organization itself, leading to sustainable growth.
- *1: Digital transformation (DX)
Transforming people's lives and business models for the better by spreading advanced digital technology throughout society.
- *This article was translated from the Japanese version of the article published on October 23, 2025.
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