Gap Analysis: In simple terms: Gap means small cracks. In SAP world or in Information Technology world, gap analysis is the study of the differences between two different information systems or applications( ex; existing system or legacy system with Client and new is SAP), often for the purpose of determining how to get from one state to a new state. A gap is sometimes spoken of as "the space between where we are and where we want to be."
Gap Analysis is undertaken as a means of bridging that space. Actual Gap Analysis is time consuming and it plays vital role in Business Blueprint[AS IS Process] stage.
A through Gap Analysis will identify the gaps between how the business operates and its needs against what the package can can't do. For each gap there will be one of three outcomes which must be recorded and actioned,
1. GAP must be closed and customised software can be developed
2. GAP must be closed but software cannot be written therefore a workaround is required
3. GAP does not need to be closed.
A point worth mentioning here is that at time people confuse between user-exits and Gap Analysis. User exits are standard gate ways provided by SAP to exit the standard code and we can write our own code with the help of ABAP workbench, its not new functionality which we are trying to build in sap but its slight enhancement within the same code.
Gap analysis is start point of Realization and once business Blueprint is finished we have to find the realization of sap system for client requirment and there will be certain gaps when compared to system fit. Those gaps can be closed either by re-engineering of business process to fit with SAP or we have to use USER exits in case of small deviations or complete enhancements with the help of ABAP to fit with the SAP system.
The Gaps can differ from company to company. Most commonly, however, missing functionality is industry-specific.