The gap analysis process involves determining, documenting 
and approving the variance between business requirements 
and current capabilities.
It is the comparison study of general expectation of 
performance in the industry and the level of performance at 
which the company currently functions.

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).

Such analysis can be performed at the strategic or 
operational level of an organization.
'Gap analysis' is a formal study of what a business is 
doing currently and where it wants to go in the future. It 
can be conducted, in different perspectives, as follows:

Organization (e.g., human resources) 
Business direction 
Business processes 
Information technology