What is gap analysis

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In management literature, gap analysis involves the comparison of actual performance with potential or desired performance. If an organization does not make the best use of current resources, or forgoes investment in capital or technology, it may produce or perform below an idealized potential. This concept is similar to an economys production being below the production possibilities frontier. This concept is similar to an economys production being below the production possibilities frontier. Gap analysis is the means by which a company can recognize its current stateby measuring time, money, and laborand compare it to its target state. Whichever tool you choose, visualize and document each step of your gap analysis to keep your organization moving forward. Swot analysis is perhaps one of the oldest textbook-marketing assets. Swot stands for strengths, weaknesses, opportunities, and threats. Gap analysis a technique that businesses use to determine what steps need to be taken in order to move from its current state to its desired, future state. Also called need-gap analysis, needs analysis, and needs assessment. Gap analysis consists of (1) listing of characteristic factors (such as attributes, competencies, performance levels). A gap analysis is process that compares actual performance or results with what was expected or desired. Gap analysis process means that you will have more data on how to improve. For example, when it is used in manufacturing it can help manage resources. What we mean by resources is money, material, or human resources. Conducting a gap analysis can help you improve your business efficiency, your product, and your profitability by allowing you to pinpoint gaps present in your company. Once its complete, youll be able to better focus your resources and energy on those identified areas in order to improve them. Swot analysis and gap analysis can be used in different context and they might give a different meaning in those contexts. Below is a breakdown of swot analysis vs gap analysis in the context of a company. Swot analysis evaluates a company against its peers, while gap analysis is an internal evaluation to identify performance deficiencies.   gap analysis is particularly useful at the beginning of a project, or when youre developing a business case. But it can be used at any stage of a project (to assess your teams progress) or applied to any area of your business (to compare your actual performance with your desired or potential one).

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