Performing a Gap Analysis

A Gap Analysis is a critical tool for identifying the differences between the current state of the architecture and the target state, which could include both functional and non-functional requirements. It helps identify what is missing or what needs to change to achieve the desired outcomes. The analysis should consider both immediate needs and future scalability, ensuring that strategic decisions are aligned with business objectives.

Having conducted numerous gap analyses in financial services environments, I’ve learned that certain areas require particular attention in highly regulated industries.

Here are some key areas to consider when performing a Gap Analysis:

  • Business Capabilities

    • Current State: What business capabilities does the current architecture support?
    • Target State: What business capabilities are required to meet the future objectives?
    • Gap: Identify any areas where the current architecture is not enabling the business capabilities needed for growth.

  • Data Architecture & Management

    • Current State: How is data currently managed within the architecture? What types of data are stored, and where is it stored (e.g., on-premise, in the cloud)?
    • Target State: What data needs to be collected, stored, and processed to meet future business goals?
    • Gap: Assess gaps in data management practices, including:
      • Data Silos: Are there areas where data is not easily shared or integrated across the enterprise?
      • Data Quality: Is the data accurate, consistent, and reliable?
      • Scalability & Storage: Can the current data architecture support future data growth?
      • Data Access & Security: Are sensitive data handling practices up to standard?
      • Analytics & Insights: Does the existing architecture support advanced analytics or AI/ML?
      • Data Governance: Is there a clear governance model to ensure data integrity and compliance?

  • Technology Stack & Infrastructure

    • Current State: What technology stack and infrastructure are in place?
    • Target State: What changes are required to accommodate future demands?
    • Gap: Identify any gaps between the current technology stack and what will be required to meet future objectives.

  • Performance & Scalability

    • Current State: What is the current performance level (speed, response times, availability, etc.)?
    • Target State: What performance levels are needed to support projected growth or usage?
    • Gap: Identify any performance bottlenecks or areas where the system may fail to scale effectively.

  • Security & Compliance

    • Current State: What security measures and compliance standards are currently in place?
    • Target State: What additional security and compliance measures will be necessary as the system evolves?
    • Gap: Identify any areas where security practices may be outdated or incomplete.

  • Regulatory Architecture

    • Current State: How does the current architecture handle regulatory reporting and compliance?
    • Target State: What new regulatory requirements are on the horizon?
    • Gap: Can the system adapt to new regulations without fundamental redesign?

  • Market Risk Architecture

    • Current State: How does the system behave under market stress?
    • Target State: What volume/volatility scenarios must the system handle?
    • Gap: Are there architectural bottlenecks that could fail during market events?

  • Audit and Traceability

    • Current State: Can the system provide complete audit trails for regulatory review?
    • Target State: What additional traceability might regulators require?
    • Gap: Are there gaps in transaction lineage or decision audit trails?

  • Integration & Interoperability

    • Current State: How well does the current system integrate with other systems, both internally and externally?
    • Target State: What future integrations will need to be implemented?
    • Gap: Identify systems or data sources that are difficult to integrate.

  • User Experience & Interface Design

    • Current State: What user interfaces and experiences are currently in place?
    • Target State: What improvements are needed in terms of usability, accessibility, or mobile responsiveness?
    • Gap: Identify areas where the user interface or experience needs to be enhanced.

  • Documentation & Knowledge Management

    • Current State: How well-documented are the existing systems, architecture, and processes?
    • Target State: What documentation will be required for future expansion?
    • Gap: Assess gaps in documentation and knowledge management, such as missing architectural diagrams or outdated manuals.

  • Resource Allocation & Skills

    • Current State: Do we have the right skills and resources in place to support the current architecture?
    • Target State: Are new skills or resources needed?
    • Gap: Identify skill gaps and resource constraints that might affect the architecture’s scalability.

  • Cost & Time-to-Market

    • Current State: What are the current project costs and timelines for delivering features?
    • Target State: What resources, timelines, and budgets are required for the target architecture?
    • Gap: Identify areas where cost overruns or delays may occur.

  • Vendor & Third-Party Dependencies

    • Current State: What external vendors or third-party services are part of the current architecture?
    • Target State: Are new vendors or services needed to support the future vision?
    • Gap: Identify any gaps related to vendor capabilities, contract limitations, or dependence on third-party services.