What is Business Analysis?

Business Analysis Definition

Business Analysis is the process of analysing and recognizing the business needs and finding solutions to various business problems. It is a set of tasks and techniques which work as a connection between stakeholders. Business Analysis helps to understand the organization’s structure, policies, and operations, also provides solutions to help the business achieve its goals. The Business Analysis process is carried out by a person called Business Analyst.

Who is a Business Analyst?

A business analyst is someone who understands the business needs and provides technological solutions to improve its processes and systems. A business analyst is often thought of as the link between the business and IT departments. There are few steps to follow by a Business Analyst in Business Analysis. We can see it in detail below.

Roles and Responsibilities of a Business Analyst

Business analysts are responsible for bridging the gap between IT and the business using data analytics to evaluate processes, determine requirements and deliver data-driven recommendations and reports to executives and stakeholders. Business Analysts conduct market analysis, analysing both product lines and the overall profitability of the business. Business Analyst typically acts as a liaison between different teams and departments in a company. The Business Analyst should be able to communicate well with these teams within the organization, typically acting as a diplomat, and provides solutions which colleagues and stakeholders can perceive.

The following are the four different types of analysis followed by Business Analysts. They are:

Strategic planning—identifying changing needs of a company
Systems analysis—interpretation of requirements for the IT department
Process design—standardizing workflows
Business model analysis—defining policies and market approaches

Common Business Analysis Techniques

MOST

The term MOST stands for

M – Mission
O – Objective
S – Strategy
T – Tactics

MOST is a powerful business analysis technique which is used to empower the business. It is a clear way to understand what the organization does and plan to achieve the goal. It is a structured technique which can be followed by every working level from top to bottom in an organization.

Let’s look into the four factors in detail.

Mission:
This is the most important factor for an organization which explains its purpose and the goals to achieve in the future. The mission should be designed in a way to help your business succeed. If the mission is specific, then it is easier to analyze and measure the remaining factors.

Objectives:
Objectives are the collection of goals which makes easier to achieve the mission of the organization. Moreover, Objectives must be S.M.A.R.T –

S- Specific
M-Measurable
A-Achievable
R-Realistic
T-Timely

Your goals should be clear and objectives should be met in a short period of time.

Strategy:
You have to plan your strategy. Strategy is nothing but the steps or actions that an organization takes to achieve the objectives and finally to accomplish the mission.

Tactics:
Tactics are methods to understand the objectives. These are the discrete and straightforward methods which an organization follows to carry out the strategies.

PESTLE

There are some environmental factors which influence the strategy of a business. Those factors are commonly known as PESTLE. PESTLE stands for

Political: The current happenings and factors in the political field of the environment where the business operates and how can it affect or change our business.

Economic: Important economic factors such as inflation or meltdown is happening, has happened, or will happen in our business environment and what do they mean to our business

Social: Cultural aspects which are most important that we need to pay attention.

Technological: Trends and innovation in the technology and how they impact the organization or business?

Legal: Analyze the regulations or legislations that directly impact the industry or environment and how it affects the business.

Environmental: Environmental considerations we need to make in our business and organization.
All these factors will influence your Business decision. Analysing all factors before implementing a decision is very important. PESTLE analysis helps to reduce the potential threats of an organization.

SWOT

SWOT Analysis is one of the most popular business analysis technique. It has four quadrants. The term SWOT stands for

Strength
Weakness
Threats
Opportunities

The Business Analyst must answer the questions under each quadrant. SWOT analysis technique is easy to follow and it is not restricted only to business analysis. It can also be used in any stage of the project if needed. It is a widely used technique.

MOSCOW

MoSCoW is an acronym stands for “Must, Should, Could, Won’t.” It’s one of the simplest methods to evaluate the importance of each task. It is also very popular among waterfall-based enterprises. The MoSCoW method helps to rank and classify your product items to get a successful result.

Must – These features must be satisfied
Should – These features have high-priority but not critical
Could – These features are desirable, but not necessary
Won’t – These features will not be implemented

CATWOE

The CATWOE analysis analyzes the different stakeholder’s ideas and perceptions together which provides an understanding regarding assumption, the integrity of the data and ethical angle. It helps a business analyst to prioritize different perspectives of their stakeholders depending on its merits. This CATWOE technique helps to find the areas where the problems are and also it is helpful to know the impact of the solution in business and the stakeholders. The term CATWOE stands for

C – Clients
A – Actors
T – Transformation
W – Weltanschauung or World View
O – Owner
E – Environmental Constraints

The 5 Whys

The five whys technique used to analyze the cause and effect relationships underlying a particular problem. In this technique, the analyst asks the stakeholder repeatedly five times or less “why the requirement is necessary” until the importance of the requirements is established. The answers reveal whether the requirement is really necessary or can be cancelled/postponed once the priority is determined.

Six Thinking Hats

Six thinking hats is a powerful business analysis technique used to find a solution for the problem from different perspectives and ideas of the stakeholders. Six thinking hats represents six different perspectives of thinking. They are

White Hat: White hat thinking represents that you focus on the available data. Look at the information that you have, analyze past trends, and see what you can learn from it. Look for gaps in your knowledge and try to fill them.
Red Hat: Red Hat thinking represents that you look at problems using your intuition, gut reaction, and emotion. Also, think about how others could react emotionally. Try to understand the responses of people who do not know your reasoning.
Black Hat: Black Hat thinking is nothing but focusing on the negative outcomes in the decision cautiously and find out why it might not work. This is important because it highlights the weak points in a plan. It allows you to eliminate them.
Yellow Hat: Yellow Hat helps you to think positive outcomes. It helps to see all the benefits of the decision. Yellow Hat thinking helps you to keep going when everything looks difficult.
Green Hat: Green Hat thinking represents creativity. It is used to find creative solutions to a problem.
Blue Hat: Blue Hat thinking represents process control. It’s the hat worn by people chairing meetings.

Important Steps to Follow In Business Analysis by a Business Analyst

Get Aligned

Everyone expects a Business Analyst to jump into a project and provide a positive impact as soon as possible. But it is important to give them some time to get aligned and to clarify the scope, requirements, and business objectives. This helps them to achieve success in the project, not only them but also helps in the growth of the business. There are some responsibilities a Business Analyst must follow.

Clarifying your role as a business analyst.
Determining the primary stakeholders.
Having a clear understanding and clarity of the project history.
Understanding the existing system and processes.

Understand the Primary Business Objectives

It is very much important to understand the primary business objectives before defining the scope of the project. The responsibilities of a Business Analyst here includes

Identify and understand the primary stakeholder’s expectations.
Merging conflicting expectations helps the business community to begin the project with a shared understanding of the business objectives and are not unique to one person’s perspective.
Understand and ensure that the business objectives are clear and achievable.
Make sure that the business objectives provides the stage for defining a scope.

Define the Scope

Define the project scope clearly which helps the team to recognize the business needs. Defining the scope guides you in all the steps of Business Analysis process. Here a Business Analyst should

Explaining a solution method to find the nature and extent of technology and process changes which should be made.
Drafting a clear scope statement. Reviewing it with the stakeholders until they are satisfied.
Confirming the business case ensure that it still makes sense for your organization to invest in the project.

Build Your Business Analysis Plan

Building your business analysis plan will bring clarity for your Business Analysis process. The responsibilities of a Business Analyst in building the Business Analysis plan are

Choosing the most appropriate types of business analysis deliverables, given the project scope, project methodology, and other aspects of the project context.
Defining the specific list of business analysis deliverables will cover the project scope and helps in identifying the stakeholders who will be part of the creation and validation of each deliverable.
Finding the timelines for finishing the business analysis deliverables.

Define the Project Requirements in Detail

Defining the project requirements in detail is very important to find the solution and to implement it. A Business Analyst should

Collect the information needed
Analyze the information and make a draft containing the detailed requirements for the project.
Review and validate the deliverables
Ask questions to fill the gaps.

Support the Technical Implementation

The technical implementation team helps to build, customize and deploy the software on a typical project. During this process, the key roles of the business analysts are

Reviewing the final solution design whether it fulfills the requirements.
Updating and repackaging requirements documentation.
Working with the quality assurance professionals and ensure that they understand the importance of technical requirements and business process.
Being ready to answer questions and help to resolve certain problems during the technical design, technical implementation, or testing phases of the project.
Managing requirements changes.
Leading user acceptance testing efforts when possible to ensure that the software implementation meets the needs of business end users.

Help the Business Implement the Solution

Sometimes the technology team cannot meet the business solution as planned in an appropriate way. This step is to ensure that all members are prepared to accept the changes. The key roles of a Business Analyst in this step are

Analyzing and developing interim business process documentation. These documents state exactly what changes should be made in the business process.
Training the end users to make sure that they understand all the process and procedural changes. The analyst can also collaborate with training staff.
Working with the business users to update other organizational assets impacted by the business process and technology changes.

Assess the Value implemented by the Solution

To assess the value implemented by the solution,

Evaluate the actual progress.
Convey the results to the project sponsor. Communicate the results to the project team and other members of the company is also essential.
Proposing follow-up projects and initiatives to solve new problems that are discovered while evaluating the impact of this project.

Agile and Business Analysis

The Agile methodology is a way of developing and delivering valuable software to the business. This method assists teams in responding to the unpredictability of constructing software. It uses incremental, iterative work sequences that are commonly known as sprints. Its sequence are mostly done on a weekly or monthly sprints in which at the end of each sprint an evaluation is made to determine where needs to be enhanced based on the feedback from customers. This approach might be tagged the best because it is flexible as clients may not have the exact blue-print of what they want but as the work goes on, adjustments can easily be made. Agile makes use of cross-functional teams which makes it possible for changing requirements over time instead of up-front design and expensive planning. Each iteration is aimed at creating a working product which is demonstrated to the stake-holders and feedback are being added to the next iteration.

Agile Business Analysis is used to discover the users needs, business processes and to determine the changes that value to the business, where agile software development practices are used to deliver it with maximum efficiency. Agile Business Analysis helps to keep the backlog well organized. To keep it prioritized, and to add those estimates and filter through it, removing or adding things so that the team can easily see what needs to be done in the next sprint, and the sprint after that.

Agile Business Analysis adds a great value to the organization when they are used effectively together. Agile Business Analysis plays a lead role in many of the product discovery activities, including qualitative and quantitative data analysis, opportunity assessments, designing product experiments, and much more.

Relationship Between Business Analysis and Project Management

Project Management includes developing the project plan, project budget, ensuring that the project is completed on time, ensuring the project meets stakeholders’ expectations etc. Business Analysis includes analyzing, communicating and validating requirements for changes to business processes, policies and information systems.” Nowadays there is a talk that if Business Analyst is there, then there is no need of Project Manager. The fact is both the Project Management and Business Analysis are necessary for the project’s success as well as the organization’s success. As mentioned above Project Management revolves around the project plan, budget, time etc whereas, Business Analysis revolves around the product of the project, ensuring that the product meets the expectations of the stakeholders. There is also an area of conflict between the Project Management and Business Analysis which is the project scope. Increasing the project scope impact the project cost/schedule in the Project Management, whereas the changes in the project scope helps to meet the expectations of the stakeholders in Business Analysis.

Who can become a Business Analyst?

Fresh graduates and anyone who is interested to enter into the field of Business Analysis, can become a Business Analyst.

Eligibility to Become a Business Analyst:

Management or leadership qualities
Strong communication/interpersonal skills
Proven analytical background
Basic Excel skills
Time management
People skills

Steps to Follow to Become a Business Analyst

Gain the detailed knowledge in Business Analysis
Get Certified in Business Analysis
Gain Work Experience
Join a community

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How Can I Become a Business Analyst?

Skills needed to Become a Business Analyst:

Communication skills
Business knowledge and critical thinking
Problem Solving skills
Technical skills
Methodology skills etc.

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How Can I Become a Business Analyst?

Do you have to be Technical to perform Business Analysis?

Indeed, technical knowledge is important to analyze and solve the problem, and also to communicate with technical stakeholders about the problem. Business analysts could use a large vary of technical programs, including programs in diagramming, data crunching, wireframing, management of requirements, and for presentation of results. A lot of, business analysts are increasing their technical proficiency with knowledge of computer programming, big data mining techniques, database management, and systems engineering.

Business Analysis Certifications

If you are looking to upskill yourself to move up your career ladder, here are some critically acclaimed and globally recognized business analysis certifications to help you prove your credentials.

IIBA’s Entry Certificate in Business Analysis (ECBA™)

This is the entry level certification in Business Analysis designed for individuals, students or anybody who wants to become a Business Analyst but have no prior Business Analysis experience. This exam allows you to understand the core fundamentals of Business Analysis according to the Business Analysis Body of Knowledge (BABOK).

Whether you are looking for a new career, new job opportunities, are a student, or are an individual who manages business analysis professionals, being ECBA certified will demonstrate that you have a solid understanding of the key fundamentals of business analysis.

Eligibility Standards for the ECBA Certification

No previous BA work experience needed
Twenty one hours of professional improvement within the previous four years
Arrangement with ECBA Code of Conduct

IIBA’s Certification of Capability in Business Analysis (CCBA)

CCBA (Certificate of Capability in Business Analysis) certification is offered by IIBA. If you have 2 to 3 years of experience in the field of Business Analysis, this certification is right for you. CCBA certification provides you the ability to handle larger or complex project responsibilities, also it provides you the formal recognition in the field of Business Analysis.

Eligibility to Apply for CCBA Certification

Minimum 3750 hours of business analysis work experience with BABOK Guide knowledge in the last 7 years.
Minimum 900 hours in each of 2 of the 6 knowledge areas or 500 hours in each of 4 of the 6 knowledge areas in the BABOK guide v3.
21 PD (Professional Development) hours are required within the last 4 years.

IIBA’s Certified Business Analyst Professional (CBAP)

The Certified Business Analysis Professional (CBAP) designation is a professional certification from International Institute of Business Analysis (IIBA) for individuals with extensive business analysis experience. CBAP certification acknowledges intermediate to senior business analysts with 5+ years of expertise who can also lead Business Analysts. CBAPs are the recognized experts in the BA field. Candidates should meet the eligibility necessities, together with passing a rigorous exam, to earn the CBAP certification.

Eligibility to Apply for CBAP Certification

Needs 7500 hours of Business Analysis experience in the last 8 years.
Within this 7500 hours, a minimum of 900 hours must be spent in atleast 4 of the 6 core areas in the BABOK guide v3.
35 PD (Professional Development) hours must be earned in the last 4 years.

IIBA’s Certification in Business Data Analytics (CBDA)

This Certification in Business Data Analytics recognizes your ability to effectively execute analysis related work in support of business analytics initiatives.Earning this certification informs employers of your passion for and competencies performing business analysis on analytics initiatives. The certification helps identify skilled business data analytics professionals to organizations seeking these in-demand skills.

Eligibility to Apply for CBDA Certification

Complete a minimum of 7500 hours of Business Analysis work experience in the last 10 years.
35 hours of Professional Development (PD) hours within the last four years.
Provide two references and Agree to the Code of Conduct.
CBDA Exam Duration: 2 hours

IIBA’s Agile Analysis Certification (AAC)

IIBA’s Agile Analysis Certification is a specialized business analysis certification to showcase your experience and knowledge as a professional. This program is designed for BA professionals who work in an agile environment to meet the demand of agile professionals.

Eligibility to Apply for AAC Certification

2-5 years of Agile-related experience

PMI’s Professional in Business Analysis (PMI-PBA®)

The PMI-PBA is explicitly for business analysts who work on projects and programs, as well as project and program managers who perform business analysis as part of their role. According to PMI, the certification spotlights your ability to work effectively with stakeholders related to project or business requirements, and ensure projects drive successful business outcomes.

Eligibility to Apply for PMI-PBA Certification

Minimum of 3 years (4,500 hours) of business analysis experience within the past 8 consecutive years if you have a bachelor’s degree. (Or 5 years/7500 hours of experience if you do not.) (For comparison, the CBAP® requires 7,500 hours of experience and the CCBA® 3,750.)
2,000 hours working on project teams within the past eight consecutive years.
35 business analysis education (contact hours).

Salary and Career Growth of a Business Analyst

According to Payscale.com, “a Business Analyst earns a median remuneration of $58,805 per annum.” Business analysts can expect remuneration increase for the primary 5-10 years, however additional experience doesn’t have an outsized impact on remuneration. More business analysts work in the position for about 1-4 years, and move on to an advanced positions. Promotions embody positions like project manager or senior business analyst.

Business Analysis Training

Business Analysis training will enhance your confidence to identify problems, solutions and opportunities easily. It will provide you better insight about the workplace, employees and customers. You will learn to organize business goals easily. You will be capable to identify the objectives. Business analysis training will train you to read and use the business documents as well as you will gain the practical knowledge too which you can apply in your organization.

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Business Analysis