Business analysis glossary
Gap Analysis
What it is
Gap analysis compares the current state with a desired future state and lists the differences, called gaps, in processes, skills, data, systems or policy. Each gap is then assessed and an action is proposed to close it. Typical columns are current state, desired state, the gap, its impact, an action to close it and an owner.
Why it matters
It turns a vague wish to improve into a concrete list of what must change. It also helps estimate effort and decide which gaps are worth closing. Writing the gaps down also exposes wishful thinking: a target that looks easy may hide several unresolved data or skills gaps that change the cost.
Example
Cedar Credit Union wants same-day loan decisions. Gap analysis shows that credit scoring is already automatic, but document checks are manual and income verification needs a new data feed. Those two gaps become the project work. Instead of rebuilding everything, the team targets the real gaps and avoids paying for features that already work.