Answer Posted / satish

Gap Analysis is a business resource assessment tool enabling
a company to compare its actual performance with its
potential performance.

If a company or organization is under-utilizing resources it
currently owns or is forgoing investment in capital or
technology then it may be producing or performing at a level
below its potential. This concept is similar to the base
case of being below one's production possibilities frontier.

This goal of the gap analysis is to identify the gap between
the optimized allocation and integration of the inputs and
the current level of allocation. This helps provide the
company with insight into areas that have room for
improvement. The gap analysis process involves determining,
documenting and approving the variance between business
requirements and current capabilities.

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