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Gap Analysis

Business Analyst Techniques #4 GAP Analysis

Gap analysis is the technique used to define the difference between the current state and the proposed state of any business and its functionalities. This technique comes under Enterprise Analysis, knowledge area of business analysts. The technique revolves around two basic questions:

1. Where are we?

2. Where do we want to be?

Gap AnalysisUnder the first question, the present situation of the business is explained. It consists of the current factors like business attributes, competencies of the people involved in the business, performance factors etc. And the second question explains the future of these current factors. The delta between these two is known as gap and the technique which is used to fill this gap is known as Gap Analysis. It can also be defined as the process to identify the delta between the proposed and existing functionalities in any application. A gap analysis helps bridging that delta by highlighting which requirements are being met and which are not.

There is no formal method to conduct gap analysis and it can be performed in different perspectives like organization structure (HR processes), business processes, information technology etc. Gap analysis provides a foundation for measuring investment of time, money and human resources required to achieve a particular outcome.

In IT industry, Business Analysts or Project Managers have been given this task of performing gap analysis to identify the variation in the future processes or techniques and comparing it with the current ones. As I mentioned above there is no formal way to conduct this analysis, thus an excel-sheet can be used to draw tables with the details of the current and future processes and the delta found, if any. The same template can be embellished in different ways and many organizations have their set template for this process. The important points to be noted before performing any Gap-analysis can be listed as below:

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