What is gap analysis and how does it work?

What is gap analysis?

Gap analysis is a tool to compare the current performance of a product against the desired performance benchmark. By specifying exactly what’s missing that impacts product performance, dev teams can work toward those exact areas of improvement. A thorough meticulous evaluation of the gaps between the present state and the expected state helps engineering managers identify the bottlenecks that are blocking the road to the target state. With the help of insights from a gap analysis, dev teams can formulate strategies to bridge the identified gaps, enhancing the quality of a product.     

Types of gap analysis

Depending on specific objectives, the different types of gap analyses are:

• Market gap analysis: The focus is on evaluating market demands and identifying areas where there’s potential for the business to expand.

• Performance gap analysis: It assesses the difference between the actual performance and the predefined performance metrics. 

• Product gap analysis: The focus is on identifying the disparity between the current features of a product and present market demands. 

• Technology gap analysis: It reviews current technological infrastructure against industry standards to determine areas for technological advancements.

• Skills gap analysis: It assesses the current skill set of the dev teams against the required skills for optimal performance.  

Benefits of gap analysis 

Gap analysis is a powerful tool offering a range of benefits, such as:

• Increased customer satisfaction

• Refinement of the present strategy 

• Identification of weaknesses in the team

• Assessment of resources for projects

Increased customer satisfaction

One of the biggest advantages of conducting a gap analysis is that it allows teams to pinpoint the exact reasons affecting product sales. By conducting a market gap analysis of a product, engineering managers can specify the features that the customers are not satisfied with and identify what’s lacking in their present model. In this manner, dev teams can implement changes in the development process to meet customer demands and stay ahead of the competitors in the market.  

Refinement of the present strategy 

Gap analysis provides a clear view of the present state of the product. By meticulously analyzing the differences that exist between the current state and the desired one, dev teams can gain a clearer perspective of the areas that require improvements. With the help of these insights, managers can brainstorm innovative ideas to craft a strategic plan to address the gaps. This further aids in aligning team operations with overall organizational objectives.   

Identification of weaknesses in the team

With the help of gap analysis, dev teams can identify the areas in their performance that didn’t yield satisfying results. Sometimes it so happens that some teams social loaf which can impact the overall team performance. This analytical approach highlights underperforming areas and provides a structured framework to work on them. When dev teams address these underlying issues, their performance drastically improves and productivity is enhanced. An efficient dev team bestows a competitive advantage to the organization.  

Assessment of resources for projects

Tech projects often encompass a vast scope and consequently demand substantial budget requirements. Although great care is ensured so that all project operations produce maximum results, sometimes an aspect of the project doesn’t deliver as expected. Gap analysis can provide comprehensive insight into where resources were deployed and managed. This can help businesses gain a deeper understanding of the areas of efficiency and potential wastage. Dev teams then can realign their priorities and modify strategies to make informed decisions about resource management. 

How to perform gap analysis

Performing a gap analysis involves adopting a systemic approach. The general steps for conducting a gap analysis are: 

1. Evaluate current performance 

2. Identify obstacles 

3. Formulate an action plan 

Evaluate current performance 

The first step to conducting a gap analysis is collecting data—both qualitative and quantitative data—about the current state of the product/project. Subsequently, we assess the standard metrics for performance and compare the two against each other to gain an understanding of areas that fall short on those metrics. 

Identify obstacles 

Next up, we thoroughly examine the root causes of the gaps identified in the previous steps. From assessing internal workflows to studying market dynamics, the underlying causes vary depending on the specific issues organizations are dealing with. This also involves collaborating with other teams to gain a wider perspective on the operational obstacles and discuss ways to solve them. 

Formulate an action plan 

Once the gaps are identified and studied in detail, it’s time to prioritize resolving the gaps based on their potential impact on the organization. Managers need to properly allocate resources to address the gaps and ensure that the desired outcomes are finally achieved. They’re also required to establish key performance indicators to monitor the progress of the action plan. It’s imperative to regularly review the progress report so any modifications are implemented on an immediate basis. 

Final word

The use of gap analysis is instrumental in improving an organization’s overall performance. With the help of gap analysis, dev teams can identify the areas where improvement is required based on priority. This also ensures that resources are efficiently allocated and the development processes are effectively streamlined, which ultimately improves the overall user experience as well.