A gap analysis can provide companies with the information necessary to make decisions that are most beneficial for the company by looking at the company's current state and showing where the company may be X years from today.
The gap analysis approach recommends that top management view IT as a strategic implementation that requires a vision of the future organization. This is a three-step process: evaluating the current state of the organization, proposing a vision of the future, and conducting an analysis of the steps necessary to achieve the future vision. From this, management can develop and implement action plans that encompass all aspects of the organization. Some experts recommend adding a fourth step before embarking upon implementation: assessing the strengths and weaknesses of the vision to minimize unwanted side effects. (Thach & Woodman, 1994, 17)Companies that opt not to perform a gap analysis may make decisions that later prove to be disastrous.
The daily newspaper provides startling information relating to the layoff being implemented by Global Communication. Could a gap analysis have prevented such an event from occurring? The information presented below will reveal the results of a gap analysis recently performed for Global Communications.
Situation AnalysisIssue and Opportunity IdentificationThree years ago, Global Communication's stock traded at nearly $28 per share. As of today, their stock has depreciated by nearly 60% and now trades at $11 per share. One of the reasons for the decline in shares is due to increased competition stemming from Cable Company's partnership with telecommunication companies. While most telecommunication companies offered packages and features relating to telephone services such as local and long distance plans, the cable company enticed consumers and businesses with their bundled offer of internet service, television programming, calling plans that include calling features, unlimited local and long distance with an...