Everything You Need to Know About Business Analysis

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Successful and unsuccessful businesses differ in the proper identification and management of their present and future problems. Here is where the need for business analysis comes in.

Business analysis helps companies to perform better, set goals and achieve them. This article will discuss everything you need to know about business analysis, why it is necessary and different approaches to it.

What is Business Analysis?

Business analysis is a professional discipline concerned with identifying business needs and problems, finding solutions to the identified issues, and helping companies achieve their goals. It involves analyzing, understanding, and implementing policies, practices and data management systems to ensure business growth.

Major Differences Between Business Analysis and Business Analytics You Probably Don’t Know About

Business analytics analyse data to assess prior business performance and estimate future business success. Business analysis, on the other hand, concentrates on operations and processes, identifying business requirements and making recommendations.

Furthermore, business analysis is carried out by business analysts, who are also known as “functional analysts.” Business analytics is carried out by data analysts or data scientists.

Duties of a Business Analyst

It is the responsibility of business analysts to carry out business analysis. They gather data to create insights and propose changes in small and large organizations.

Business analysts must possess the following skillsets: data analysis, data visualization, statistical analysis, business acumen, communication, problem-solving, critical thinking, and teamwork.

Moreover, they work alongside other departments to identify operational shortcomings and develop initiatives to correct and improve the organization’s operating module.

Other duties of a business analyst include:

• Planning, budgeting, monitoring, and forecasting market trends. They also assist in the development and implementation of business solutions.
• They carry out feasibility studies and cost-benefit analyses.
• They create and manage business cases and project plans as well as provide support during project testing and implementation phases.
• They conduct data analysis and generate insights to enhance good decision-making and keep up with industry trends and best practices in business analysis.

Business Analysis Techniques 

Approaches to business analysis vary depending on the organization’s needs, size, goals, environmental factors, project scope, complexity, time constraints, and the organization’s culture and preferences.

Business analysis techniques are abundant. Below are brief descriptions of some of them:

1. Brainstorming

Brainstorming is a business analysis technique that involves the coming together of teams or groups of people to come up with creative ideas and solutions for a given challenge. This approach is unconventional as it encourages creative, out-of-the-box thinking, a pool of diverse perspectives, and problem-solving.

For best results, it is crucial that leaders define the objective, create a safe environment, encourage wild ideas, use facilitation techniques, and document the ideas for later evaluation and refinement before commencing the brainstorming session. 

Brainstorming also helps promote team bonding and building as it boosts the confidence of team members.

2. CATWOE

CATWOE is a business analysis technique that helps to analyze a situation or problem by considering Customers, Actors, Transformation Process, Worldview, Owner, and Environmental Constraints. 

It provides a holistic view of stakeholders, processes, and context, facilitating effective solution formulation and decision-making. CATWOE considers all major stakeholders’ varying and opposing interests. It aims to marry all stakeholders’ shared and bordered interests.

3. MoSCoW

MoSCoW stands for Must, Should, Could, and Won’t. It is a prioritization technique used to categorize requirements based on their importance and feasibility study.

The central tenet of MoSCow is prioritizing the project with the highest returns over those with fewer returns. It prioritizes projects based on their potential for profit.

“Must” represents critical requirements. “Should” are necessary but not essential. “Could” are nice to have while “Won’t” are omitted from the project scope.

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4. SWOT analysis

SWOT Analysis helps businesses understand their current position, capitalize on strengths, address weaknesses, leverage opportunities, and mitigate threats for strategic planning and growth.

The acronym SWOT is briefly explained below:

• Strengths: A business intelligence analyst identifies the internal factors that give the organization a competitive advantage or positive attributes. 

• Weaknesses: These are the areas that a corporation can improve on, which could lead to its downfall if not managed adequately. 

• Opportunities: These are the opportunities that exist in the market that organizations can capitalize on and present growth potential.

• Threats: These include both internal and external factors that can negatively influence the success of an organization.

5. Six thinking hats

Six thinking hats is a decision-making technique cum business analysis technique that encourages parallel thinking by considering different perspectives.

The following are the respective perspectives that make up the six thinking hats:

• White Hat: Focus on facts and information available.

• Red Hat: Represent emotions, intuition and feelings.

• Black Hat: This is a cautious sign that draws leaders’ attention to potential risks, problems, and drawbacks.

• Yellow Hat: Points out the benefits, opportunities, and positive aspects.

• Green Hat: This gives room for exploration, creativity, and new ideas.

• Blue Hat: Manages the thinking process and sets agendas.

By using six thinking hats, individuals and organizations can examine various decision aspects in a structured way, promoting efficient and thorough analysis. This in turn leads to better decision-making and problem-solving.

Other business analysis techniques include the 5 whys, root cause analyses, lean approach, prototyping and wireframing, etc. Some businesses may require a combination of different approaches to achieve the best outcomes.

8 Essential Business Analysis Tools

Business analysts use various tools to facilitate their work which involves gathering and analyzing data. Here are some commonly used business analysis tools:

1. Data extraction tool

Data extraction tools are designed to retrieve specific data from various sources, such as websites, databases, and documents. They automate the process of collecting data, making it easier to analyze and use the information for different purposes.

Examples of these tools include:

• SQL
• Talend Open Studio
• Teradata
• Hive

2. Prototyping tools

These tools help stakeholders and developers better understand the requirements and design before development. Prototyping tools include Penal, Balsamiq, etc.

3. Analytics tools

These analytic tools are designed to process and analyze large datasets. They provide valuable insights and patterns businesses can use to create data-driven decisions and improve performance.

Examples are:

• KISSmetrics
• Google
• Microsoft Excel 
• Power BI

4. Data modelling tools

Data modelling tools help stakeholders gain valuable insights into the data requirements and design effective systems and processes.

Examples of data modelling tools are:

• Ms-Vision
• Visual Paradigm
• Enterprise Architect

5. Documentation, collaboration, and note-taking tools

Documentation tools help professionals create, organize, and share project-related information efficiently. Google Docs is a good example of a documentation tool.

Collaboration tools enable team members to collaborate, share ideas, and communicate effectively during business analysis. Examples are Slack and Microsoft Teams.

Note-taking tools aid in capturing and organizing important points, observations, and insights gathered throughout the business analysis activities. Examples include Evernote, Notion, MS One Note, etc.

6. Data visualization tools

Data visualization tools help business analysts create a graphical representation of data. These tools help to visualize insights, patterns, and trends, thereby giving room for making more informed decisions.

Common data visualization tools include:

• Tableau
• Spotfire
• Qlikview
• Lucidchart

7. Automation tools

Automation tools streamline and expedite various tasks related to gathering, analyzing, and interpreting data for business purposes. 

They automate repetitive processes, enabling analysts to focus on higher-value tasks and make data-driven decisions more efficiently. Examples are Python and Github.

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8. Project management tools

Project management tools allow business analysts to manage and track projects, improving efficiency and outcomes. Examples include:

• Jira
• Trello
• Confluence 

The choice of business analysis tools depends on the specific needs of the startup and the organization’s preferences. Business analysts often use a combination of these tools to gather, analyze, and communicate requirements and insights effectively.

Why Business Owners in Nigeria Need the Service of a Business Analyst 

As a business owner, you need the services of a business analyst for several important reasons such as:

• Identifying business needs

Business analysts help you understand your business requirements and needs. They analyze your processes, systems, and operations to identify areas that need improvement or optimization.

• Objective analysis

Business analysts provide an objective perspective. They can see the bigger picture and offer unbiased insights, allowing you to make well-informed decisions based on data and analysis.

• Cost savings and risk assessment

Business analysts can identify inefficiencies and suggest improvements that lead to cost savings and increased efficiency.

Another benefit is conducting risk assessments and identifying potential risks and challenges. They can also propose mitigation strategies to minimize the negative impacts on your business.

• Optimization of business activities 

Business analysts help streamline business operations and ensure optimal resource utilization, making the business run smoothly. They also analyze market trends and customer behaviour. They offer valuable insights for strategic planning, product development, and marketing strategies.

• Project planning and management

When implementing new projects or changes, business analysts assist in defining project scopes, requirements, and timelines, ensuring successful project outcomes.

Other benefits of business analysts include:

• Promote business growth and innovation.
• Facilitate communication.
• Bridge the communication gaps between different teams.
• Compliance and regulation.

Conclusion

Proper business analysis is pivotal in helping you achieve your business objectives and overcome challenges.

By engaging the services of a business analyst, you gain a strategic partner who can help you navigate the complexities of your business, make informed decisions, and drive your organization toward sustainable growth.

Article Edited by Priscilla Ajayi.

About Author

Olateju Oluwatomisin

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