[1] If an organization does not make the best use of current resources, or forgoes investment in productive physical capital or technology, it may produce or perform below an idealized potential.
Gap analysis involves determining, documenting and improving the difference between business requirements and current capabilities.
It can be conducted, in different perspectives, as follows: Gap analysis provides a foundation for measuring investment of time, money and human resources required to achieve a particular outcome (e.g. to turn the salary payment process from paper-based to paperless with the use of a system).
as a means of classifying how well a product or solution meets a targeted need or set of requirements.
At some point, a gap emerges between what existing products offer and what the consumer demands.
For example: the original market for video-recorders was limited to professional users who could afford high prices.
In the public sector, where service providers usually enjoy a monopoly, the usage gap is probably the most important factor in activity development.
However, persuading more consumers to take up family benefits, for example, is probably more important to the relevant government department than opening more local offices.
This option is not generally open to minor players, though they may still profit by targeting specific offerings as market extensions.
On the other hand, product gap can occur by default; the organization has thought out its positioning, its offerings drifted to a particular market segment.