Transparent Requirements Evaluation & Prioritization Framework
Building on the pre-sales methodology, I'll now develop a specific FITGAP analysis framework that creates transparency and helps prioritize customizations based on business value.
I've created a comprehensive FITGAP Analysis Playbook that builds on the pre-sales methodology to provide a transparent, structured approach for evaluating Odoo requirements against standard functionality. This framework helps both customers and vendors accurately assess customization needs and make informed decisions.
The playbook includes:
- Standardized Requirements Documentation - Templates and processes for clearly capturing business needs
- Structured Gap Identification - A systematic approach to categorize gaps based on fit status (Full, High, Partial, Low, None) and gap type (Data, Functional, Interface, etc.)
- Impact Analysis Framework - Methods to assess both technical complexity and business impact for each gap
- Multi-point Estimation Technique - A transparent approach using optimistic, most likely, and pessimistic estimates to create accurate cost projections with confidence ranges
- ROI Calculation Framework - Templates for quantifying business value, calculating payback periods, and determining ROI for each customization
- Prioritization System - A multi-criteria evaluation matrix and quadrant analysis to objectively prioritize development based on value, cost, and strategic alignment
- Implementation Wave Planning - Guidelines for grouping customizations into logical implementation phases
The playbook emphasizes transparency throughout the process with collaborative workshops, clear documentation templates, and objective evaluation criteria. It also includes best practices, common pitfalls to avoid, and a case study demonstration.
This approach helps bridge the gap between customer expectations and vendor capabilities, ensuring that customization decisions are based on business value rather than assumptions or urgency alone.
Introduction
The FITGAP analysis is a critical component of any successful Odoo implementation, helping to identify where standard functionality meets business requirements and where customizations are needed. This playbook provides a structured approach to conducting transparent, collaborative FITGAP analysis that accurately identifies requirements, estimates customization costs, calculates ROI, and prioritizes development efforts.
FITGAP Analysis Framework Overview
The FITGAP process follows these key steps:
- Requirements Documentation: Capture detailed business requirements
- Standard Functionality Assessment: Evaluate Odoo's out-of-box capabilities
- Gap Identification: Document gaps between requirements and standard functionality
- Impact Analysis: Assess business impact and technical complexity of each gap
- Estimation: Determine effort and cost for addressing each gap
- ROI Calculation: Calculate business value vs. cost for each gap
- Prioritization: Rank customizations based on value, cost, and strategic importance
- Finalization: Agree on final scope and implementation approach
This structured approach ensures transparency and collaboration throughout the process.
Step 1: Requirements Documentation
Standardized
Requirement Template
Each business requirement should be documented using a standardized template:
Requirement ID: [Module]-[Number] (e.g., SALES-001)
Title: [Brief descriptive title]
Description:
[Detailed description of the requirement]
Business Process: [Related business process]
User Roles: [Who will use this functionality]
Frequency: [How often this functionality will be used]
Volume: [Expected transaction volume]
Current Solution: [How this is handled today]
Business Value:
[Description of the business value this requirement delivers]
Compliance/Regulatory: [Yes/No]
If yes, specify: [Details of compliance requirements]
Acceptance Criteria:
- [Criterion 1]
- [Criterion 2]
- ...
Priority:
[ ] Critical - Business cannot operate without it
[ ] High - Significant operational impact
[ ] Medium - Important but workarounds exist
[ ] Low - Nice to have
Requirements Collection Process
- Module-specific workshops with business process owners
- User interviews to understand day-to-day operations
- Current system analysis to identify features being used
- Documentation review of existing process documentation
- Observation sessions watching users perform their tasks
Classification of Requirements
Classify requirements into the following categories:
- Core Business Requirements: Essential to business operations
- Efficiency Requirements: Improve operational efficiency
- Reporting/Analytics Requirements: Support decision-making
- Compliance Requirements: Meet regulatory obligations
- Integration Requirements: Connect with other systems
- User Experience Requirements: Enhance usability
Step 2: Standard Functionality Assessment
Demo and Validation Process
For each module and requirement area:
- Preparation: Configure a demo environment with relevant data
- Demonstration: Show standard Odoo functionality to stakeholders
- Hands-on testing: Allow users to test functionality themselves
- Documentation: Record capabilities and limitations
- Q&A session: Address questions and clarify understanding
Configuration vs. Customization Assessment
Determine if requirements can be met through:
- Standard functionality: Available out-of-the-box
- Configuration: Achievable through system settings without coding
- Extension: Minor customizations using inheritance
- Custom development: Significant new functionality
- Process adaptation: Changing business processes to fit Odoo
Documentation Template for Functionality Assessment
Requirement ID: [Requirement ID]
Standard Functionality Assessment:
[ ] Full Match - Requirement completely satisfied by standard functionality
[ ] Configurable Match - Can be addressed through configuration
[ ] Partial Match - Some aspects covered, some requiring customization
[ ] No Match - Requires custom development
Standard Features Available:
- [Feature 1]
- [Feature 2]
- ...
Configuration Options:
- [Configuration option 1]
- [Configuration option 2]
- ...
Limitations:
- [Limitation 1]
- [Limitation 2]
- ...
Demo Notes:
[Notes from demonstration session]
Stakeholder Feedback:
[Feedback from business users]
Step 3: Gap Identification
Gap Analysis Matrix
Systematically document gaps using a comprehensive matrix:
Requirement ID |
Requirement |
Priority |
Fit Status |
Gap Type |
Resolution Approach |
Process Impact |
Notes |
SALES-001 |
[Description] |
High |
Partial |
Extension |
Custom field + automation |
Low |
[Notes] |
Gap Classification System
Classify each gap using standardized categories:
Fit Status:
- Full Fit: 100% met by standard functionality
- High Fit: 80-99% met, minor configuration needed
- Partial Fit: 40-79% met, some customization needed
- Low Fit: 1-39% met, significant customization needed
- No Fit: 0% met, complete custom development needed
Gap Type:
- Data: Missing fields, tables, or data structures
- Functional: Missing business logic or processing capabilities
- Interface: User interface limitations
- Workflow: Process flow limitations
- Integration: Connectivity with other systems
- Reporting: Output or analysis capabilities
Resolution Approach:
- Configuration: Settings adjustment
- Field Addition: Adding custom fields
- View Modification: UI customization
- Report Customization: Custom reports or modifications
- Workflow Extension: Adding or modifying workflow steps
- Business Logic: Custom code for business rules
- Integration Development: Building connectors or APIs
- Module Development: Creating new module functionality
- Process Change: Adapting business processes
Step 4: Impact Analysis
Technical Complexity Assessment
Rate each gap's technical complexity:
- Level 1 (Simple): Configuration, field additions, simple reports
- Level 2 (Moderate): View customizations, workflow adjustments, simple integrations
- Level 3 (Complex): Custom business logic, complex integrations, performance-impacting changes
- Level 4 (Very Complex): Architectural changes, core modifications, multi-system integrations
- Level 5 (Extreme): Changes affecting multiple modules, high-risk modifications
Business Impact Assessment
Rate the business impact of each gap:
- Critical: Directly affects revenue, compliance, or core operations
- High: Significantly impacts efficiency or customer experience
- Medium: Moderately affects business processes or decision-making
- Low: Minor impact on operations or convenience features
Risk Assessment
Identify potential risks associated with each gap:
- Upgrade Impact: How the customization might affect future Odoo upgrades
- Performance Impact: Potential effect on system performance
- Integration Risk: Complexity of integration with other systems
- Data Integrity Risk: Potential impact on data quality or consistency
- User Adoption Risk: Potential challenges in user acceptance
Impact Analysis Documentation Template
Gap ID: [Requirement ID]-GAP-[Number]
Technical Complexity:
Level: [1-5]
Justification: [Explanation for complexity rating]
Business Impact:
Level: [Critical/High/Medium/Low]
Justification: [Explanation for impact rating]
Risk Assessment:
- Upgrade Impact: [High/Medium/Low] - [Description]
- Performance Impact: [High/Medium/Low] - [Description]
- Integration Risk: [High/Medium/Low] - [Description]
- Data Integrity Risk: [High/Medium/Low] - [Description]
- User Adoption Risk: [High/Medium/Low] - [Description]
Overall Risk Level: [High/Medium/Low]
Mitigation Strategies:
- [Strategy 1]
- [Strategy 2]
- ...
Step 5: Estimation Process
Work Breakdown Structure
For each identified gap:
-
Break
down implementation into detailed tasks:
- Analysis and design
- Development
- Testing
- Documentation
- Training
- Deployment
- Document assumptions and constraints
- Identify dependencies with other requirements
Multi-point Estimation Technique
Use three-point estimation for each task:
- Optimistic (O): Best-case scenario
- Most Likely (M): Most probable scenario
- Pessimistic (P): Worst-case scenario
Calculate the weighted average: Estimate = (O + 4M + P) / 6
Calculate standard deviation to assess uncertainty: SD = (P - O) / 6
Estimation Matrix Template
Gap ID: [ID]
Task Breakdown:
1. [Task 1]
- Optimistic: [Hours]
- Most Likely: [Hours]
- Pessimistic: [Hours]
- Weighted Average: [Calculated]
- Standard Deviation: [Calculated]
2. [Task 2]
- Optimistic: [Hours]
- Most Likely: [Hours]
- Pessimistic: [Hours]
- Weighted Average: [Calculated]
- Standard Deviation: [Calculated]
Total Effort:
- Base Estimate: [Sum of weighted averages] hours
- Confidence Range: [Base Estimate ± 2*SD] hours
- Experience Factor: [% modifier based on developer experience]
- Final Estimate: [Adjusted estimate] hours
Cost Calculation:
- Developer Hours: [Hours] at $[Rate] = $[Amount]
- QA Hours: [Hours] at $[Rate] = $[Amount]
- Project Management: [Hours] at $[Rate] = $[Amount]
- Total Cost: $[Total]
- Confidence Range: $[Lower bound] - $[Upper bound]
Historical Data and Benchmarking
Maintain a repository of past customizations with:
- Requirement description
- Complexity level
- Actual hours spent
- Challenges encountered
- Lessons learned
Use this data to validate new estimates and improve accuracy over time.
Collaborative Estimation Approach
Conduct estimation workshops with:
- Technical leads
- Developers
- Business analysts
- Project managers
Use Planning Poker or similar techniques to reach consensus on estimates.
Step 6: ROI Calculation
Quantitative Business Value Assessment
For each gap, document:
-
Revenue
Impact:
- Potential increase in sales
- New revenue opportunities
- Faster collection cycles
- Cost
Reduction:
- Labor savings (hours × rate)
- Error reduction
- Inventory optimization
- Reduced waste
- Productivity
Improvement:
- Time savings per transaction
- Increased throughput
- Reduced training time
- Risk
Mitigation:
- Compliance penalties avoided
- Reduced error costs
- Security breach prevention
ROI Calculation Template
Gap ID: [ID]
Implementation Cost:
- One-time Development: $[Amount]
- Testing and Deployment: $[Amount]
- Training: $[Amount]
- Total Implementation Cost: $[Total]
Ongoing Costs:
- Maintenance (annual): $[Amount]
- Additional infrastructure: $[Amount]
- Support: $[Amount]
- Total Annual Cost: $[Amount]
Business Benefits:
1. [Benefit 1]:
- Annual Value: $[Amount]
- Calculation Method: [Description]
- Confidence Level: [High/Medium/Low]
2. [Benefit 2]:
- Annual Value: $[Amount]
- Calculation Method: [Description]
- Confidence Level: [High/Medium/Low]
Total Annual Benefit: $[Total]
ROI Calculation:
- Simple Payback Period: [Implementation Cost / Annual Benefit] years
- 3-Year ROI: [((3 × Annual Benefit) - Implementation Cost - (3 × Annual Cost)) / Implementation Cost] × 100%
- 5-Year ROI: [((5 × Annual Benefit) - Implementation Cost - (5 × Annual Cost)) / Implementation Cost] × 100%
Intangible Benefits:
- [Benefit 1]
- [Benefit 2]
- ...
Sensitivity Analysis
Perform sensitivity analysis to account for uncertainty:
- Best case scenario (highest benefits, lowest costs)
- Most likely scenario
- Worst case scenario (lowest benefits, highest costs)
Document results in a sensitivity matrix to show potential outcome ranges.
Step 7: Prioritization Framework
Multi-criteria Evaluation Matrix
Score each gap on multiple dimensions (1-5 scale):
Criterion |
Weight |
Description |
Strategic Alignment |
25% |
Alignment with business strategy and objectives |
Business Value |
25% |
Quantified ROI and business benefits |
Implementation Cost |
20% |
Development and ongoing maintenance costs |
Technical Risk |
15% |
Complexity and risk of implementation |
Time Sensitivity |
15% |
Urgency and timeline considerations |
Calculate weighted score: Total Score = Sum(Criterion Score × Weight)
Prioritization Quadrant Analysis
Plot gaps on a 2×2 matrix:
- X-axis: Implementation Effort/Cost (Low to High)
- Y-axis: Business Value (Low to High)
Creating four quadrants:
- Quick Wins (High Value, Low Effort): Implement immediately
- Major Projects (High Value, High Effort): Plan carefully and prioritize
- Fill-Ins (Low Value, Low Effort): Implement opportunistically
- Thankless Tasks (Low Value, High Effort): Avoid or reconsider
Implementation Wave Planning
Group prioritized gaps into implementation waves:
- Wave 1: Foundation capabilities and quick wins
- Wave 2: High-value, moderate-effort items
- Wave 3: Nice-to-have and longer-term items
- Future Consideration: Lowest priority items
Collaborative Prioritization Workshop
Conduct a workshop with key stakeholders to:
- Review evaluation scores
- Discuss business priorities
- Consider dependencies
- Reach consensus on prioritization
- Finalize implementation waves
Document decisions and rationale for future reference.
Step 8: Finalization and Agreement
FITGAP Summary Report Template
Executive Summary:
[Overview of the FITGAP analysis process and key findings]
Requirements Analysis:
- Total Requirements: [Number]
- Full Fit: [Number] ([Percentage]%)
- Configurable Fit: [Number] ([Percentage]%)
- Partial Fit: [Number] ([Percentage]%)
- No Fit: [Number] ([Percentage]%)
Gap Summary:
- Total Gaps Identified: [Number]
- By Complexity:
- Simple: [Number] ([Percentage]%)
- Moderate: [Number] ([Percentage]%)
- Complex: [Number] ([Percentage]%)
- Very Complex: [Number] ([Percentage]%)
Implementation Approach:
- Phase 1 (Immediate): [List of gaps]
- Phase 2 (Secondary): [List of gaps]
- Phase 3 (Future): [List of gaps]
- Excluded from Scope: [List of gaps]
Cost Summary:
- Total Implementation Cost: $[Amount]
- By Phase:
- Phase 1: $[Amount]
- Phase 2: $[Amount]
- Phase 3: $[Amount]
ROI Summary:
- Overall 3-Year ROI: [Percentage]%
- Payback Period: [Time period]
Next Steps:
[Description of next steps in the implementation process]
Statement of Work Integration
Incorporate the FITGAP analysis results into the Statement of Work:
- Define clear scope based on prioritized gaps
- Include detailed specifications for each gap
- Establish acceptance criteria
- Define testing methodology
- Document assumptions and constraints
Change Management Process
Establish a process for handling new requirements and changes:
- Document the change request
- Perform impact analysis
- Estimate effort and cost
- Calculate ROI (if applicable)
- Evaluate against existing priorities
- Make decisions based on value vs. impact
- Update the project plan accordingly
Practical Application Guide
Conducting the FITGAP Workshop
Preparation:
- Configure demo environment with sample data
- Prepare requirement documentation
- Schedule appropriate participants
- Distribute pre-reading materials
Workshop Structure:
- Introduction and objectives (30 minutes)
- Business process overview (60 minutes)
- Requirement review (90 minutes)
- Standard functionality demonstration (120 minutes)
- Gap identification discussion (90 minutes)
- Initial impact assessment (60 minutes)
- Next steps and action items (30 minutes)
Facilitation Tips:
- Use a dedicated scribe to document findings
- Visually record gaps on a shared screen
- Use a "parking lot" for unresolved questions
- Set timeboxes for each requirement discussion
- Focus on business requirements, not technical solutions
Example FITGAP Scorecard
Requirement ID |
Description |
Priority |
Fit Status |
Resolution |
Complexity |
Business Value |
ROI (3yr) |
Score |
Wave |
SALES-001 |
Custom discount approval workflow |
High |
Partial |
Workflow customization |
Moderate |
High |
180% |
4.2 |
1 |
INV-003 |
Batch picking by zone |
Medium |
No Fit |
Custom module |
Complex |
Medium |
90% |
3.4 |
2 |
FIN-007 |
Currency revaluation report |
High |
Configurable |
Report customization |
Simple |
High |
210% |
4.5 |
1 |
Common Pitfalls and Best Practices
Pitfalls to Avoid
- Incomplete requirements: Failing to capture all relevant details
- Demonstration bias: Showing only what works well in standard Odoo
- Optimistic estimation: Underestimating complexity and effort
- Qualitative ROI: Relying on vague benefits without quantification
- Excessive customization: Customizing when process change would work
- Ignoring technical debt: Not considering long-term maintenance costs
- Isolated analysis: Conducting FITGAP without involving all stakeholders
- Static document: Treating the FITGAP as a one-time exercise
Best Practices
- Involve all stakeholders: Ensure representation from all affected areas
- Question requirements: Challenge whether each requirement is truly needed
- Consider alternatives: Explore multiple ways to address each gap
- Focus on business processes: Map requirements to end-to-end processes
- Document assumptions: Clearly state what is assumed in the analysis
- Validate with users: Get user feedback on proposed solutions
- Calculate TCO: Consider the total cost of ownership, not just implementation
- Review regularly: Revisit the FITGAP analysis throughout the project
- Learn and improve: Use actual results to improve future estimations
Tools and Templates
Requirements Management Tools
- Spreadsheet-based tracking (for smaller projects)
- Dedicated requirements tools (Jira, Azure DevOps, etc.)
- Collaborative documentation (Confluence, SharePoint, etc.)
FITGAP Analysis Tools
- FITGAP Matrix Template (spreadsheet)
- Prioritization Calculator (spreadsheet)
- ROI Calculator Template (spreadsheet)
- Gap Visualization Dashboard (spreadsheet or BI tool)
Version Control
Maintain clear versioning of the FITGAP analysis:
- Document version number and date
- Track changes between versions
- Require formal approval for significant changes
- Archive previous versions for reference
Case Study: Manufacturing Company FITGAP Analysis
Company Profile
A medium-sized manufacturing company implementing Odoo for operations management.
Requirements Overview
- 150 total requirements identified
- 85 fully met by standard Odoo (57%)
- 35 configurable matches (23%)
- 20 partial matches requiring customization (13%)
- 10 no matches requiring custom development (7%)
Key Gaps Identified
- Custom production scheduling algorithm
- Quality control module extensions
- Integration with specialized equipment
- Custom costing methodology
- Industry-specific compliance reporting
Prioritization Results
- Wave 1: Core functionality and high-ROI customizations
- Wave 2: Important enhancements with moderate complexity
- Wave 3: Nice-to-have features and complex customizations
- Excluded: Low-value, high-complexity items
Financial Summary
- Implementation budget: $150,000
- Expected 3-year ROI: 220%
- Payback period: 16 months
Success Factors
- Thorough process documentation before FITGAP analysis
- Active participation from all departments
- Willingness to adapt some processes to standard Odoo
- Clear prioritization based on business value
- Transparent communication throughout the process
Conclusion: Keys to Successful FITGAP Analysis
Successful FITGAP analysis requires:
- Thoroughness: Detailed requirements and careful analysis
- Transparency: Open communication about capabilities and limitations
- Collaboration: Active involvement from all stakeholders
- Objectivity: Honest assessment of fit and gaps
- Quantification: Data-driven evaluation of costs and benefits
- Prioritization: Clear framework for decision-making
- Documentation: Comprehensive recording of decisions and rationale
- Flexibility: Willingness to adapt as needed
When done properly, FITGAP analysis creates a shared understanding between customer and vendor, establishes realistic expectations, supports accurate budgeting, and provides a roadmap for successful implementation.
By following this playbook, both customers and vendors can develop a transparent, collaborative process for evaluating requirements, estimating customizations, calculating ROI, and prioritizing development efforts.
This FITGAP Analysis Playbook is provided by OdooPlanet as an educational resource. Operating on our "pay as you wish" model, your contributions help us continue developing objective, detailed resources for the Odoo community.