What is a fit-gap analysis and why is it critical in Dynamics 365 solution design?

A fit-gap analysis is the process of comparing business requirements with the capabilities of the proposed or existing solution to identify gaps.
It is critical because it helps solution architects:

• Identify which requirements are already met (fit)

• Avoid unnecessary customizations

• Understand where configuration, customization, or alternate solutions are required

• Control project scope, cost, and timeline

In Dynamics 365, where rich out-of-the-box (OOB) functionality exists, fit-gap analysis ensures that existing features are reused rather than rebuilt.