The Gap analysis is the tool that allows companies to analyze and examine their actual performance from the performance that was desired by them. Gap analysis is the difference between both the performances. A gap analysis is assessed as the space between where we are right now and where we want to be in future. If utilization of resources and finances is not admired seriously by the company, than that company is performing at a decreased level. The company has to take some measures in order to reduce this difference in the performances.
The goal of the gap analysis is basically to describe about the internal situations so that the company can work out the areas where it is lacking and thus can improve its status and functioning. It provides judgment criteria about the allocated inputs and provides reports that can help in getting the desired output. It includes the enforcement of certain steps that can bridge the differences in the outcome and help the company achieve its goal.
The gap analysis process involves determination, documentation and accepting the conflict between the requirements of the business and current capabilities. The term "GAP" can also be used as a parameter for determining whether the performance is Good, Average or Poor. It helps us in the management of time and money. The objective of using a Gap Analysis tool in various industries is to identify the gap between the regular requirements that assist the company operations and the practices and processes the company is using.
The gap can be identified by the examination of profits, market share and sales at time to time basis. After this, some strategic or tactical steps can be taken by the concern officials to fill up the gap. Some gap analysis tools may include questioning about the different aspects of the project. Answering these questions will guide us to the gap that is present.
Once the gap has been identified, its need to be filled up. For this purpose, process development plans has to be formed and their implementations has to be done in order to fill it. Each plan sorts the remedial actions that must be taken to fill the gap. Introduction of support processes, that are transparent, can be done which includes the stake holders. They can guide the company without insuring their own interest. Gap analysis provides the benefit of indication of the various lacking inputs that has to be worked up on.
The company has to understand the importance of the gap analysis and should be made compulsory process that has to be indulging up by the officials. In the competitive market, it is necessary to satisfy the customers but if the gap in the product desired by the customer and the one offered by the company is too high, the customer would show negligence about such products. Gap analysis will enhance their survival chance and eventually will contribute in their growth.