‘Analysis’ is the backbone of what a business analyst does and before understanding anything else, let’s get what analysis is?
Simply put, Analysis is a detailed examination and evaluation of the elements or structure of something.
We carry out analysis all the time and sometimes without even realizing!
For instance, you want to buy a Digital SLR camera. Now, you will first make yourself aware of what is focus, aperture, exposure, and all the related terminologies. Then, you will research the best DSLRs available in the market and shortlist some based on your need. Thereafter, you will head on over to Amazon to read reviews about your shortlisted DSLRs and finally, after much research and investigation, you will buy your Digital SLR.
Did you realize what were you doing all this time? Yes, you were Analyzing!
What is Business Analysis?
Now, let’s understand Analysis from the perspective of Business.
Business analysis is a multi-step process aimed at identifying and defining the requirements that must be fulfilled in order to achieve the business objectives of an Organization.
You might ask, what are these Business Objectives?
Sure.
Every organization either provides services or products to external stakeholders and they strive to be the best at what they offer! Thus, business objectives are the goals and targets set by the organization that they wish to achieve in order to excel.
So, simply put, Business analysis is recognizing the business needs and problems that are preventing an organization from attaining its business goals and; defining the solutions that help the organization overcome these problems.
Now, let’s see how IIBA, the world’s leading Institute of Business analysis, defines the term:
Business Analysis is the practice of enabling change in an organizational context, by defining needs and recommending solutions that deliver value to stakeholders.
A systematic approach is followed for conducting Business analysis and it involves:
- Planning the business analysis process
- Determining the project scope
- Eliciting Requirements
- Analyzing Requirements
- Documenting Requirements
- Validating requirements
Why is Business Analysis Required?
Business analysis is carried out in every project irrespective of the industry to which the project belongs, project size, project complexity or project type.
There must be a reason why it’s being done?
Let’s see and discuss all the merits of carrying out Business Analysis.
a) To understand the present state of an Organization
You see, if you wish to improve a product or a solution, you need to know its present state, and the same is true for organizations. You must carry out business analysis to understand what is the current state of the process and procedures of an Organization.
b) Creating or maintain the business architecture of the organization
Every company is driven by some fundamental goals and objectives (for e.g. Increase revenue by 15% annually). Business Analysis may be used to achieve or maintain these strategic objectives and tactical demands of an organization.
c) Conduct feasibility studies before implementing any new project
If an Organization is thinking about executing a new project, wouldn’t it be logical to analyze all the advantages and demerits before committing any time and resources to the project?
Business analysis is used to do just that.
d) Identify new business opportunities
By analyzing the present state of affairs of an Organization, new business opportunities may be identified which may further help the Organization attain new heights. These opportunities may either be technological changes, organizational changes or process changes.
e) Most important – To define solutions that meet business objectives
One of the primary objectives of carrying out business analysis is to define and validate the solutions that will help an Organization meet its business objectives and goals.
Business analysis is a collaborative process which involves eliciting requirements from all the stakeholders and thus it helps gain a common understanding of the needs of the organization. Further, it involves defining a solution that has the consensus of all the stakeholders and in-turn helps the organization achieve its business objectives.
Summary
Business analysis is recognizing the business needs and problems that are preventing an organization from attaining its business goals and; defining the solutions that help the organization overcome these problems.