Gap analysis is a comparison technique used by businesses to determine, document and approve the procedures that should be followed to move from their present-day state to their desired state. Gap analysis is also referred to as needs analysis, need-gap analysis and need assessment.
This technique is really useful when a business venture is at the initial stages, since it allows the businessperson to identify all the tasks required to complete and deliver the product or project. It provides a basis for measuring investment of money, time and human resources needed to achieve a specific outcome. Gap analysis can be performed at both operational and strategic level.