Author Topic: Basics of Gap Analysis  (Read 7317 times)

Venkatesh Lathkar

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Basics of Gap Analysis
« on: May 25, 2017, 11:40:13 pm »
A gap analysis is a method of assessing the differences in performance between a business' information systems or software applications to determine whether business requirements are being met and, if not, what steps should be taken to ensure they are met successfully. Gap refers to the space between "where we are" (the present state) and "where we want to be" (the target state). A gap analysis may also be referred to as a needs analysis, needs assessment or need-gap analysis.


What is there in a gap analysis template?
While a gap analysis can be either concrete or conceptual, gap analysis templates often have in common the following fundamental components:

A.   Identifying the current and future states:-
Current state: A gap analysis template starts off with a column that might be labeled "Current State," which lists the processes and characteristics an organization seeks to improve, using factual and specific terms. Areas of focus can be broad, targeting the entire business; the focus instead may be narrow, concentrating on a specific business process, depending on the company's outlined target objectives. The analysis of these focus areas can be either quantitative, such as looking at the number of customer calls answered within a certain time period; or qualitative, such as examining the state of diversity in the workplace.
Future state: The gap analysis report should also include a column labelled "Future State," which outlines the target condition the company wants to achieve. Like the current state, this section can be drafted in concrete, quantifiable terms, such as aiming to increase the number of fielded customer calls by a certain percentage within a specific time period; or in general terms, such as working toward a more inclusive office culture.

B.   Describing the gap:-
Gap description: This column should first identify whether a gap exists between a company's current and future state. If so, the gap description should then outline what constitutes the gap and the factors that contribute to it. This column lists those reasons in objective, clear and specific terms. Like the state descriptions, these components can either be quantifiable, such as a lack of workplace diversity programs; or qualitative, such as the difference between the number of currently fielded calls and the target number of fielded calls.

C.   Bridging the Gap:-
Next steps and proposals:  This final column of a gap analysis report should list all the possible solutions that can be implemented to fill the gap between the current and future states. These objectives must be specific, directly speak to the factors listed in the gap description above, and be put in active and compelling terms. Some examples of next steps include hiring a certain number of additional employees to field customer calls; instituting a call volume reporting system to guarantee that there are enough employees to field calls; and launching specific office diversity programs and resources. Examples and scenarios can be different based on individual’s assumptions above.

Gajanan Sharnappa

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Re: Basics of Gap Analysis
« Reply #1 on: June 12, 2017, 08:44:13 pm »
Gap analysis is used to verify whether business requirements are satisfied or not.
It analyses any loopholes in the process or need for necessary development.
Gap analysis shortlists the drawbacks or setbacks in achieving companies strategic goals and objectives.
It helps in achieving project deliverables within time frame. Also assists in formulating a desired action plan.
A gap analysis can help prioritize the business needs.

171525904

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Re: Basics of Gap Analysis
« Reply #2 on: July 04, 2017, 12:37:08 pm »
Gap analysis: It differentiate between the organization current state and future state.gap analysis is conducted  to idendtify the gap ( lackness) in organization
capabilities,process,technology,resources,strategy etc.A gap which is  stopping them to achieve its goal.Gap analysis defines what is required to make organization achieve its objective or goals.GAP can occur anywhere in organization whether it is process,resources,technology, organization structure.

GAP defines Current state of organization and its need.Different stages of Gap.

1) Review system,review business process, review business performance etc
2)Develop requirement
3)comparison
4)Implication and recommendation
5)Recomendation

170422303

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Re: Basics of Gap Analysis
« Reply #3 on: July 07, 2017, 03:03:07 pm »
GAP ANALYSIS, is typically performed by Business Analysts or Project Managers. It is performed by comparison of current state and desired future state of the organisation to find the differences that need to be applied.

*) GAP ANALYSIS revolves around:
-> Where we are?
-> Where we want to be?

Few main points to remember for GAP ANALYSIS:-

*) Clarity and understanding of the current process.
*) No several interpretation in the requirements and future prospects.
*) All the business influencing factors must be well defined.     

172732205

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Re: Basics of Gap Analysis
« Reply #4 on: July 09, 2017, 10:36:43 am »
Gap analysis refers to the process through which a company compares its actual performance to its expected performance to determine whether it is meeting expectations and using its resources effectively. Gap analysis seeks to define the current state of a company or organization and the target state of the same company or organization. By defining and analyzing these gaps, a business management team can create an action plan to move the organization forward and fill the gaps in performance.

172624703

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Re: Basics of Gap Analysis
« Reply #5 on: July 17, 2017, 11:49:51 am »



Gap Analysis is a strategic planning tool to help you understand where you are, where you want to be and how you’re going to get there.
Here’s a simple Gap analysis chart:
 
Here's an example of a GAP analysis for profit
Here’s the Gap Analysis process:
Step 1: Decide the topic you’re going to do the Gap Analysis on? This is the challenge you’re trying to tackle.
Gap Analysis sample topics include:
•   Revenue
•   Profit
•   Market Share
•   Product Functionality/Features
Step 2: Identify where you are right now based on metrics or attributes.
Examples:
•   Revenue — We’re at $10 million in annual sales right now
•   Profit — We’re at $1.5 million in annual profit right now
•   Market Share — We have 7% of the market share right now
•   Product Functionality/Features — Our product has was just launched so it has limited features
Step 3: Identify where you’d like to be over a specific time frame?
Examples:
•   Revenue — We’d like revenue to grow to $25 million in annual sales by 2021
•   Profit — We’d like profits to grow to $8 million per year by 2021
•   Market Share — We’d like to own 15% of a particular market by 2021
•   Product Functionality/Features — We’d like our product to have industry leading features by 2021
Step 4: Identify the gap between where you are and where you want to be.
•   Revenue — They gap is $15 million per year in annual sales by 2021
•   Profit — The gap is $6.5 million in annual profit by 2021
•   Market share — The gap is 8% market share by 2021
•   Product Functionality/Features (let’s use Web site as an example) — The gap is that you’d like to have the following features by 2021: a blog, a sign-up form to let visitors follow your business on Facebook and Twitter and a way for customers to buy products directly.
Step 5: Determine how the Gap should be filled.
•   “6 M’s”
o   Manpower — The people resources you need.
o   Methods — The processes you need.
o   Metrics — The measurements you need.
o   Machines — The automation or technology you need.
o   Materials — The material items (such as physical goods or marketing collateral) you need.
o   Minutes— The time you need.


172031605

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Re: Basics of Gap Analysis
« Reply #6 on: August 02, 2017, 04:22:18 pm »
Gap analysis is a formal study of what a business is doing currently and where it wants to go in the future. It can be conducted, in different perspectives, as follows:

    Organization (e.g., Human Resources)
    Business direction
    Business processes
    Information technology

Gap analysis provides a foundation for measuring investment of time, money and human resources required to achieve a particular outcome

Pranjal Dutta

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Re: Basics of Gap Analysis
« Reply #7 on: September 04, 2017, 11:42:01 am »
Gap analysis in layman language is nothing but to compare the current state and the desire future state of the organisation/ or its specific process (es)/ any department(s). Gap Analysis helps to identify the differences that need to be addressed. The Gap Analysis is basically performed by the Business Analyst and Project Manager to know:

a) Where are we?
b) Where do we want to be?
c) and what kind of investment we need to make to achieve the desire state in terms of money, man-power and time.

So, GAP analysis is one of the best practice followed by any organization to identify and improve the lacking process (es).

1170220109

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Re: Basics of Gap Analysis
« Reply #8 on: October 18, 2017, 05:38:08 pm »
GAP Analysis:
Gap analysis refers to the process through which a company compares its actual performance to its expected performance to determine whether it is meeting expectations and using its resources effectively. Gap analysis seeks to define the current state of a company or organization and the target state of the same company or organization. By defining and analyzing these gaps, a business management team can create an action plan to move the organization forward and fill the gaps in performance.
Steps in GAP Analysis:
The first step is to accurately outline and define the organizational goals. All goals need to be specific, measurable, attainable, realistic and timely.
The second step is to use historical data to measure the current performance of the organization as it relates to its outlined goals.
 The third step is to analyze the data that was collected, which seeks to understand why the measured performance is below the desired levels.
The fourth and final step is to compile a report based on the quantitative data collected, the qualitative reasons why the data is below the benchmark, and to identify action items needed to achieve the organization's goals.

170832105

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Re: Basics of Gap Analysis
« Reply #9 on: October 19, 2017, 12:05:13 pm »
Gap Analysis is the process of comaring the current state and future state of an Organization in orfder to identify differences that need to be addressed.

Gap Analysis provides a foundation for measuring investment of time,money and human resources required to achieve particular outcome.
Some important points are
•   Good understanding on the current process
•   Business factors need to be well defined
•   Line of business within Organization.

Different stages of Gap Analysis  are as follows:
(1)   Review system
(2)   Develop requirements
(3)   Comparision
(4)   Implications
(5)   Recommendations

171034206

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Re: Basics of Gap Analysis
« Reply #10 on: October 25, 2017, 09:33:20 pm »
Gap analysis is a comparison of the current state and the desired future state of an organization. This is done to identify the differences that is need to be addressed. Gap analysis answers two different questions: 1) where are we and 2) where do we want to be. GAP analysis is a process typically performed by business analysts and project managers. Gap analysis one of the best practices followed by any organization to improve the process and recognize the process which needs improvement. Gap analysis is an assessment tool used to find the deviation or gap between what exists versus what is needed or desired.

1171921109

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Re: Basics of Gap Analysis
« Reply #11 on: January 21, 2018, 09:57:44 pm »
Gap Analysis is the process of comparing two things in order to determine the difference or “gap” that exists between them.   Once the gap is understood, the steps required to bridge the gap can be determined.

Most often gap analysis is used to compare two different states of something; the current state and the future state. 

Gap analysis can be conducted on:

1) a system – features that exist in the system now versus the features that need to exist in the future
2) a system interface – data that a system provides to an interface now versus data that will need to be provided in the future
3) a business process – activities and steps of a current business process versus the activities and steps that will be supported by the business process in the future
4) business goals and metrics – how well a business meets certain goals and metrics now versus the targeted goals and metrics at some point in the future.

1173025809

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Re: Basics of Gap Analysis
« Reply #12 on: January 22, 2018, 11:09:05 pm »
Any exercise that involves comparing the present state of the business with a conceptual and desired future state, with the objective of “closing the gap” can be called Gap Analysis.
As far as business definition is concerned, gap analysis can be defined in a number of ways, which more or less point towards the same meaning:
1. It is the process through which a company compares its current or actual performance to its expected performance to determine whether it is meeting its objectives and using its resources effectively.
2. It is a technique that businesses use to determine what steps need to be taken in order to move from their current states to their desired future states.

Gap Analysis can be done in three stages -

1. Accurately defining the required changes/future goals: If you are not clear about the organization’s goals, all your efforts will be in vain. The first and foremost thing to be done is to identify what exactly the goals of the business are and the changes needed to achieve these goals. If the goal is not clear, the improvement exercise will keep on deviating from its desired path.

2. Identifying the current scenario and associated issues: In order to reach ‘where you want to be’, you have to first assess ‘where you stand.’ For example, a failure to see the real reason behind the poor performance of the relevant units of your business may affect profit and growth on the long run. At this stage, the analyst may organize brainstorming sessions, employee interviews, document review sessions to gain insight into present challenges. Only after a comprehensive definition of present challenges can one get a clear picture of the situation.

3. Devising the action plan: Now that you know the present and future expectations, you can think of the how factor, which is in form of a plan. How will you implement the action plan to close the identified gaps? The solutions may include a number of steps like hiring more employees, procuring extra machines and equipment, offering perks and incentives to get the best out of employees and so on.

1171948312

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Re: Basics of Gap Analysis
« Reply #13 on: February 13, 2018, 06:43:39 pm »
Simply gap analysis can be explained as the gap between AS-IS and TO-BE process of the organization.

AS-IS- It is the current state of the Organization, it includes the complete process of the current application or the system.

To- Be:- If any update happened in the market we can analyze our process or application with the updated one so that we can see in which  area we are lagging behind. So that we can work on it and we can update it. Also, we have to check how the latest version or updated application system is going to benefit our current system.

1170944412

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Re: Basics of Gap Analysis
« Reply #14 on: March 10, 2018, 01:04:15 pm »
GAP analysis is an enterprise analysis technique that is used to compare the current state of an enterprise with the desired future state. This technique essentially identifies the differences that are in need to be addressed. This process is typically performed by BA or PMs. The entire process revolves around two questions- ‘Where we are?’ and ‘Where do we want to be?’
GAP analysis helps get an estimation of the time, money and human resource required to achieve the desired outcome.
While performing GAP analysis, one should have a good understanding of the current business, all the factors affecting the business, no ambiguity in the requirements and future prospects. Use graphs, charts or images to address the gaps, include feedback from stakeholders. Once the gap is identified, all concerned parties must be informed.
The different stages of GAP analysis are as below-
•   Review system
•   Develop requirements
•   Comparison
•   Implications
•   Recommendations
GAP analysis is one of the best procedures to improve process within the enterprise and also identify the processes that need improvements so the enterprise can attain their business goals