Section outline

    • Introduction and benefits

      Unit 3: Digital transformation - Needs analysis - Step 2 : GAP analysis 

      The initiation of a digital transformation process begins with a needs analysis. In step one, you have already carried out a PESTLE analysis. With the PESTLE you analysed the SME’s external environment. Now, it is time for step two: the GAP analysis. 

      The GAP analysis provides SMEs with a comprehensive overview of their internal strengths and weaknesses. In order to be resilient as an SME and to continue to thrive in a rapidly changing environment, it is essential to identify gaps between the objectives and actual performance, and to understand the underlying reasons for any deviations. This is precisely where the GAP analysis comes in.

      In this learning unit, you will familiarise yourself with the GAP analysis, apply it in part and receive valuable tips for using the GAP analysis in your daily work in your SME. 

      Why read on? What are the 5 advantages of the GAP analysis?

      • You will identify your internal strengths and weaknesses. This is a crucial prerequisite for your digital transformation process.

      • You identify the gaps between your current state and your desired target state. This helps you to enhance your strengths and mitigate your weaknesses effectively.

      • You will be capable of designing and implementing necessary adjustments both operationally in your daily business activities and strategically.

      • You will receive reliable information for better decision-making. 

      • You will have strong quantitative and qualitative indicators available to evaluate the progress of your measures and to respond if the implementation does not meet the intended goals.

    • Resources 

      1. emcra - Co-shaping Europe et al. (2019) Extended GAP Analysis: How do I examine my internal situation with the GAP analysis? Available at: https://digital-transformation-tool.eu/training/mod/hvp/view.php?id=40 (Accessed: 2 April 2025).
      2. emcra - Co-shaping Europe et al. (2023) Is your organisation ready for Europe? Handbook. Available at: https://upgrade2europe.eu/media/upgrade2europe_handbook_en.pdf (Accessed: 2 April 2025).