How to Perform a Capabilities Gap Analysis

In the previous blog in this series, we showed how to align the IT Vision with Business Strategy and objectives.  The next step in developing IT Strategy is to understand how current capabilities stack up against the IT Vision, i.e. perform a capabilities gap analysis.

Performing the capabilities gap analysis involves a few key steps:

1. Review the IT Vision:  Identify the key capabilities that will be required to support the IT Vision in terms of organization, process and technology
2. Perform a SWOT Analysis:  Identify the Strengths, Weaknesses, Opportunities and Threats for the current Organization, Processes and Technology solutions.
3. Establish the Gaps:  Compare the required capabilities against the SWOT analysis and prioritize the critical gaps

These few steps will ensure that the full extent of the gaps in IT capabilities is known.  This is one of the most important steps and it is critical to perform this activity with complete impartiality and without bias so as to unearth the true nature of the gaps.
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In summary, IT strategy needs to be aligned with business drivers and objectives to be effective.  While understanding the business context is the first step in the development of IT Strategy, the next step is to do a gap analysis between the capabilities that are required to fulfill the IT Vision and the current state of IT capabilities.  The next step to frame the IT Strategy will be explored in the next blog in this series.

How do you go about assessing your IT capabilities?​

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Sai Balakrishna

About the Author
 
Sai Balakrishna is the Managing Partner and Chief Executive Officer for ProcureVision, LLC. An expert in strategy development, business process optimization, program and portfolio management, Sai has over 25 years of management and leadership experience from Fortune 100 companies including American Airlines and Verizon. ​