What does gap analysis help to identify?

Gap analysis is a strategic tool used to assess the difference between the current state and desired future state of a business or its processes. It focuses on identifying the disparities between actual performance and the performance that is required or expected. By conducting a gap analysis, organizations can clearly define their current capabilities as well as the goals they wish to achieve, thereby pinpointing the specific areas that need improvement or enhancement.

This method helps to uncover what is lacking in terms of skills, resources, processes, or technologies that are essential to achieve organizational objectives. Recognizing these gaps is crucial for strategizing and implementing effective solutions to bridge them.

In contrast, while examining potential new markets for expansion can be important for business growth, it does not directly relate to the identification of performance gaps. Similarly, while trends in customer preferences can provide valuable insights for product development and marketing strategies, they are not the focus of gap analysis. Technological advancements could be evaluated for their potential impact on performance, but gap analysis specifically targets the differences between present and ideal performance levels rather than the latest trends or innovations.