What is Gap Analysis? Current State & Future State - Business Analysis Live by IIBA

Susan and Scott discuss Gap Analysis, and how it’s useful for changing a business. Susan describes this as a formula where Future State minus Current State equals the Gap. Gap analysis provides insights into areas to investigate for changes that need to be made to achieve a future state.
Another analysis technique that can complement gap analysis is SWOT analysis. See our Business Analysis Live episode about What is SWOT Analysis? • What is SWOT Analysis?...
Business Analysis Live is hosted by:
- Susan Moore, Community Engagement Manager at IIBA
- Scott Bennett, Manager, Business Analysis at IIBA
We discuss business analysis topics and answer questions from our live audience. We have a backlog of upcoming topics and we’re happy to take suggestions. Add a comment to one of our videos to suggest a topic you would like us to cover in an upcoming Business Analysis Live!
The International Institute of Business Analysis (IIBA) is a non-profit professional association serving the field of business analysis. As the global thought leader and voice of the business analysis community, IIBA actively supports the recognition of the profession, and works to maintain global standards for the ongoing development of the practice and certifications. Learn more at www.iiba.org/
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[@amitbastani]

Hi Susan and Scott, Greetings from Brisbane, Australia! I'm continually impressed by the valuable insights you share in your vodcasts, especially the recent one on Gap Analysis. As I navigate my way from academia to the BA profession, your discussions have become a key learning resource for me, bridging theoretical knowledge with real-world scenarios. In my experience teaching strategy to undergraduate and postgraduate students, I've found that while competitor analysis is a popular tool, VRIN (Value, Rarity, Inimitability, Non-substitutability) also plays a significant role in identifying competitive advantages. In fact, creating a unique value proposition could hold as much, if not more, importance as understanding what competitors are doing. We should aim not to simply mimic others, but rather to focus on innovating and offering something unique. For those interested in exploring these concepts further, I recommend J. Barney's 'Firm Resources and Sustained Competitive Advantage' for a deep dive into VRIN, and A. Osterwalder and Y. Pigneur's 'Value Proposition Design: How to Create Products and Services Customers Want' as a comprehensive guide on crafting a compelling value proposition. Despite the time difference that makes joining live sessions challenging for me, I eagerly await each new vodcast or podcast and always find them well worth the wait! Keep the enlightening discussions coming. Cheers, Amit

[@iiba]

Thank you for sharing that Amit! We will pin your comments so others can find tehse resources. Appreciate your thoughts on this.

[@lololomy1]

Amazing

[@iiba]

Glad you like it! Thank you for subscribing to our channel!

[@ukbulldog2024]

Here in the UK. Academics mention about Gap Analysis (GP) but the scope and depth is very shallow. Many of these Academics do not have the necessary computing programming skills to write code to bring out the "numbers". It is a lot of waffle "talking a lot" but no application. This video is academic but lacks depth and a structured format with example to explain the pedagogy of the gap analytics. When I did my gap analysis for my DBA Dissertation I identified 4 gaps filtered from may be 20 gaps ranked the the gaps that answered my research questions. At every step of my journey I had to reference to academic peer literature. During my "viva voce" the external examiner asked numerous questions why my research and what I was seeking to answer and how this would add to the body of knowledge. Today I work with a Multi National Airline Company in Asia. My mantra is management by numbers (using a scoring techniques) and my gap analysis is continuous every 3 months. Keeping it simple allows deliverables and doerable and not a dream. There are financial and marketing constraints that needs consideration. For Asians who READ very little compared to the Westerners are handicaped. I am continuously learning and appreciate the video's effort.

[@iiba]

Thanks for sharing your experience. Yes, data analytics provide evidence for making decisions and making comparisons. Good point

[@michellesirico9583]

how to address gaps in customer analysis to fulfill needs across various geographic locations to determine that one insight / resolution doesn’t match all needs

[@iiba]

Interesting question Michelle. It sounds like a universal need won't resonate with different geographies. This isn't uncommon. For example, the KITKAT chocolate bar comes in different varieties around the world. It's still a candy bar, but it has different flavours in different regions. Digging deeper to understand the regional customer preferences/needs/values for your product will allow you to assess where your product may need to have regional differences or potentially geographies where it won't sell. Does that help?

[@michellesirico9583]

yes, thank you.

[@lucreciabenjamin8037]

Agree, you need to "localise" according to customer preferences