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Gap analysis

Industrial Engineering

Gap analysis is a management method that compares an organization actual performance with its potential or desired performance, in order to reveal areas that can be improved, in a way similar to an economy operating below its production possibilities frontier. It typically follows benchmarking and other performance assessments, letting a company compare its current operations against industry expectations, and can be applied across human resources and organizational structure, strategic business direction, business processes and operations, or information technology systems. The method provides a foundation for estimating the time, money and human resources an organization would need to invest to reach a particular outcome, such as moving from paper based to digital processes. In product development, gap analysis can also identify the difference between forecast and desired profits, or gaps between what consumers want and what existing products offer, pointing to market opportunities a company needs to address to stay competitive. This description is adapted from Wikipedia contributors under CC BY-SA 4.0; changes were made. https://creativecommons.org/licenses/by-sa/4.0/

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Core Principle
Compare actual performance with potential or desired performance to reveal areas that can be improved. 1
Sources
1. Gap analysis (Wikipedia)
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Quote, Lead paragraph, first sentence
gap analysis involves the comparison of actual performance with potential or desired performance
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