It’s a competitive market out there, and businesses that want to succeed need to take advantage of every tool and resource within their reach. Smart decisions help businesses thrive, and reliable information is the key to intelligent decisions.
Enter business analysis. You are about to get a primer on business analysts—learning what they are, why they are needed, what they do, and how to become one. If you’re running a business, you may realize why you need one in your organization, while those of you who are looking for a good career may have just found one!
Let’s take our first steps into a business analyst’s world by first understanding what is business analysis.
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What is Business Analysis?
Business analysis is a combination of gaining insight from data using specific techniques, and performing tasks to identify the needs of a business—then, recommending changes and providing solutions that produce value for the stakeholders. Many of the solutions potentially have software and digital data-based components, but can also incorporate organizational changes, like improving processes, developing new policies, and engaging in strategic planning.
What Does a Business Analyst Do?
Business analysts are agents of change—professionals who analyze a business or organization, by documenting its systems and processes, assessing its business model, identifying vulnerabilities, and devising solutions.
Business analysts go by many other job titles, including:
- Business Architect
- Business Intelligence Analyst
- Business Systems Analyst
- Data Scientist
- Enterprise Analyst
- Management Consultant
- Process Analyst
- Product Manager
- Product Owner
- Requirements Engineer
- Systems Analyst
Bear in mind that some organizations also use the term “IT Business Analyst.” Although there seems to be no clear consensus regarding the differences between the two positions (and, in fact, many organizations use them interchangeably), some circles note that the IT Business Analyst works more with software methodologies.
Once the business analysis definition is locked down, the more curiosity-driven reader may follow up by asking, “In that case, what is business impact analysis?” Business impact analysis is a practice that’s of particular relevance in these days of pandemic-induced business shutdowns. Business impact analysis, or BIA, aims to predict and identify the financial and operational impacts of business disruption. You can be sure that before many businesses closed temporarily due to the coronavirus, they launched business impact analysis studies.
Now that we have gone through to understand what is business analysis, let us next look at the difference between business analysis and business analytics.
Difference Between Business Analysis and Business Analytics
We should take a moment and clarify the distinction between these two concepts. Business analysis is more concerned with functions and processes, while business analytics covers data and reporting. Still, many organizations use the terms interchangeably.
As we have learned what a business analyst is, let us understand business analysis uses.
Why Use Business Analysis?
Thanks mostly to the breathtaking pace of today’s technological advancements, the 21st century’s business world is one of rapid, constant change. Innovations change the way we live and work, and businesses must be able to adapt to these changes or get left behind.
Business analysts are the ideal professionals to shepherd any organization through the tricky terrain of change. Once they navigate through those changes, businesses emerge more robust, more competitive, and better equipped to handle the ever-evolving world of digital-based business.
After having understood what is a business analyst, let us next look at the business analysis process.
What is the Business Analysis Process?
These are the widely accepted steps in the business analysis process. Each company’s needs and situations are different, however, so there may be some variance.
- Get orientedMake sure to clarify the business analyst’s role, determine the stakeholders’ perspective, and get familiar with the project’s history.
- Name the primary business objectives. Identify the primary stakeholders’ expectations, reconcile conflicting expectations, and make sure the objectives are clear and actionable.
- Define the project’s scope. You need a clear and complete statement of the project’s scope—a rough roadmap of all the steps the project participants must follow.
- Create a business analysis plan. List timelines, steps, and deliverables.
- Define requirements. You need concise, clear, and actionable requirements, based on analyzing the information gathered so far.
- Support the technical implementation. Since many solutions require using software, the business analyst needs to work closely with IT teams.
- Help implement the solution. This step involves creating clear documentation and training end-users.
- Assess value. Did the project work? How much progress did the organization make? Are there any needed follow-ups?
While looking into the various aspects of business analysis, we have learned what is business analysis so let us next learn its various techniques.
What are the Different Techniques of Business Analysis?
Countless hurdles and obstacles face any company that wants to stay on top of the heap. Fortunately, there are also a handful of varying business analysis techniques—brace yourself for a flood of acronyms.
- CATWOE (Customers, Actors, Transformation Process, World View, Owner, and Environmental Constraints). This technique identifies the main parties and processes potentially affected by any action the business undertakes. This technique helps business analysts to thoroughly evaluate how a proposed action will affect a collection of different parties and elements.
- MoSCoW (Must or Should, Could or Would). This process prioritizes requirements by presenting a framework where every single demand is evaluated compared to other requirements. Is it a must-have or a should-have? Is it something that could improve the product or something that would be an ideal future element?
- MOST (Mission, Objectives, Strategies, and Tactics). Business analysts use these elements to conduct a detailed and complete internal analysis of an organization’s goals and how to handle each one.
- PESTLE (Political, Economic, Sociological, Technological, Legal, and Environmental). Business analysts use the PESTLE model to evaluate the various external factors that can potentially affect their company and how best to address them.
- SWOT (Strengths, Weaknesses, Opportunities, and Threats). This technique identifies a corporate structure’s areas of strength and weakness, translating them into opportunities and threats. The knowledge gained helps determine proper resource allocation.
- Six Thinking Hats. This analysis process directs a group’s line of thinking by brainstorming alternate perspectives and ideas. The ‘six hats’ in question are White (focus on your data, logic), Red (uses gut feelings, emotions, intuition), Black (potential negative results, what can go wrong), Yellow (focus on positives, optimistic), Green (creativity), and Blue (process control, the big-picture overview).
- The 5 Whys. Commonly found in Six Sigma and business analysis techniques, this series of leading questions, all posed with “Why?”, helps business analysts identify a problem’s origin by asking why a situation exists, then raising another “why?” question to the answer, and so on.
We have understood so much about business analysis, beginning from what is business analysis, the process, uses, and more. Let us next look at the benefits.
How Does a Company Benefit from Business Analysis?
Business analysts bring a disciplined approach to creating and managing change within an organization. They identify vulnerabilities, define needs based on feedback and stakeholder communication, organize and implement solutions, and monitor the results.
In today’s competitive environment, businesses of all sizes need every possible advantage that they can get, and the business analyst is a valuable resource for identifying the best moves to make, on both a tactical and strategic scale. Furthermore, business analysts make ideal project managers.
By employing a business analyst, companies gain a better understanding of themselves and their needs, and how best to meet them. As we have learned what is a business analyst, the various techniques, the business analysis process, and more let us look into the benefits of getting certified.
The Benefits of Certification
The certification process yields advantages to the professional and organization alike. For the individual, certification imparts skills and training that any good business analyst needs to succeed. Business analysis is not a career where you can mostly learn as you go! Entering a new position with a complete and robust skillset is the only way you will succeed.
Certification also grants you a tangible milestone, an easily measured achievement that tells prospective employers, “I know what I’m doing.” When you sit down for that interview, your certification is a verification of your qualifications. Certification helps you open the door to a better, more lucrative career in business analytics.
For the organization, certification assures the business that they have the right choice for the position. The interview process can be tricky, fraught with uncertainty. It’s also time-consuming and costly, so the organization should strive to make the right choice the first time by ensuring a mutually beneficial fit. Certification assures the candidate’s competency in the subject matter.
We have learned what is business analysis, next, let us look at the skills and qualifications of a business analyst.
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What Skills and Qualifications Does a Business Analyst Need?
When we talk about what is business analysis and what makes a good business analyst, we must focus on the relevant necessary skills. Business analysts required a range of soft and hard skills, including experience in either IT or business-related backgrounds. For the IT side, that means knowing how to pull, analyze, and report on data trends, as well as sharing that information in a clear way. For the business side, you need to have at least a basic understanding of how systems, tools, and products work.
Business analysts should have a bachelor’s degree in Business or a related field, or alternately, an MBA. Furthermore, most businesses want the candidate to have some work-related experience in business analysis or a related field, usually about five years’ worth.
According to the Institute of Business Analysis, a good analyst needs the following skills and knowledge:
- Analytical thinking and problem solving
- Communication skills (oral and written)
- Interpersonal and consultative skills
- Costs benefit analysis
- Facilitation skills
- Detail-oriented and able to deliver at a high level of accuracy
- Organizational skills
- Processes modeling
- Knowledge of business structures
- Stakeholder analysis
- Requirements engineering
- Understanding of how networks, databases and other technologies work
How Would You Like to Become a Business Analyst?
Business analysts are in high demand and fetch excellent compensation. Salary.com reports an annual average of USD 75,400. If this sounds like a smart career move to you, then check out Simplilearn’s new Post Graduate Program in Business Analysis in partnership with Purdue University.
The program is designed to hone your expertise in the latest business analytics tools and techniques, including planning and monitoring, data analysis and statistics, visualizations, Agile Scrum methodologies, and SQL databases.
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What is business analysis in simple words? ›
Business Analysis is the practice of enabling change in an organizational context, by defining needs and recommending solutions that deliver value to stakeholders.What does a business analyst actually do? ›
Managing projects, developing project plans, monitoring performance, and ensuring timely turnover of deliverables. Communicate changes, recommendations, and procedures to business teams. Remain engaged with business leaders to help them understand how changes impact the goals of the organization.What are the three main roles of a business analyst? ›
Business analyst job description
Creating a detailed business analysis, outlining problems, opportunities and solutions for a business. Budgeting and forecasting. Planning and monitoring. Variance analysis.
Business analysis is the process of developing information, knowledge and plans for business change. This generally involves information gathering, measurement & calculation, solution design and resolution of issues. The following are common examples of business analysis.How do you do a business analysis? ›
- Get Well Oriented. ...
- Identify the Primary Objectives of the Business. ...
- Define the Scope. ...
- Create Your Business Plan. ...
- Define and Detail the Requirements. ...
- Support the Technical Implementation.
Critical thinking, problem-solving, and decision-making are three crucial strengths that are required from a good business analyst. Having industry or business knowledge and management skills are also a plus.What does a business analyst do on a daily basis? ›
A business analyst's daily job duties include identifying business issues, collecting and recording data, analyzing data, and evaluating and presenting data solutions. They work with several groups including customer service management, product development, business operations, and business clients.What is the difference between business analyst and business analytics? ›
The BA Times explained the primary way business analytics professionals differ from business analysts: “A business analyst doesn't work with data and is mostly concerned about processes and functions. On the contrary, reporting and data are the key components of a business analytics professional's job.”Who is a good business analyst? ›
Great BA's are good communicators, problem-solvers, and think critically. They can create requirements specifications, analyze requirements, create visual models, facilitate elicitation sessions, and use the necessary business analyst tools.Why do we need business analysts? ›
Business analysts help facilitate solutions to current or future problems for stakeholders. Business analysts act as information conduits, translating “business stakeholders' needs into a language their IT or development team can understand,” wrote Skracic.
Does a business analyst do testing? ›
ANSWER. Of the various types of testing, the business analyst is usually most involved with Functional Testing, Regression Testing, and Usability testing.What are the four stages of business analysis? ›
Steps involved in Business Analysis Process
Enterprise analysis. Requirement planning and Management. Requirement Elicitation.
The definition of analysis is the process of breaking down a something into its parts to learn what they do and how they relate to one another. Examining blood in a lab to discover all of its components is an example of analysis.What is most in business analysis? ›
What is MOST Analysis? MOST is short for Mission, Objectives, Strategies, and Tactics. MOST analysis is used to improve internal processes and company culture by analysing the organisation's internal environment.Who reports to business analyst? ›
Rather than placing a business analyst as someone who “reports to X and manages Y,” most companies give business analysts a direct report (typically at a director or VP level) and let them work with people at all levels of the organization.How do you introduce yourself in a business analyst interview? ›
Business Analyst - Tell Me About Yourself - YouTubeHow can I improve my BA skills? ›
- Know Why You Are Looking. ...
- Use A Variety of Tools. ...
- Consider Positives and Negatives. ...
- Look for Underlying Causes. ...
- Understand Your Organization. ...
- Present Conclusions Meaningfully.
Business Analyst in the IT industry
IT business analysts are knowledgeable in both business and information technology. Liaising between IT and the executive branch, enhancing the quality of IT services, and understanding business needs are among their major roles.
What Does an Analyst Do? An analyst gathers, interprets, and uses complex data to develop actionable steps that will improve processes and optimize results. Day-to-day, he or she assesses company and client needs, receives robust information, and analyzes it, looking for telltale trends or areas for improvement.Which is best business analyst or business analytics? ›
Every time, a business analyst will first begin with the business questions but not with data. They are also the domain experts who manage the project from the beginning till the end. On the other hand, a business analytics professional begins to solve the business problem making use of data first.
Which is best business analysis or business analytics? ›
The aim of business analytics is data and reporting—examining past business performance and forecasting future business performance. On the other hand, the business analysis focuses on functions and processes—determining business requirements and suggesting solutions.Which is best business analyst or data analyst? ›
Data analysts tend to work more closely with the data itself, while business analysts tend to be more involved in addressing business needs and recommending solutions. Both are highly sought-after roles that are typically well-compensated.What is an example of analysis? ›
The definition of analysis is the process of breaking down a something into its parts to learn what they do and how they relate to one another. Examining blood in a lab to discover all of its components is an example of analysis.What is a key role the BA plays? ›
Business analyst role
The key role a business analyst plays when conducting an analysis of a business is requirements management. The modern business environment is complex and the business analyst's role is to maintain requirements through constant change by using innovation to do so.
Answer Questions that Explain and Expand on the Evidence
Questions can take the form of explaining the evidence or expanding on evidence; in other words, questions can give context or add meaning. Asking both kinds of questions is crucial to creating strong analysis.
- Read the whole question twice. It is important that you interpret the question accurately and clearly. ...
- Look for instruction words. ...
- Look for topic words (or keywords) ...
- Look for any other words that restrict the topic in any way. ...
- Rewrite the question.
Analysis means breaking something down into its various elements and then asking critical thinking questions such as WHY and HOW in order to reach some conclusions of your own.What is another name for a business analyst? ›
On the one hand, «business analyst» is an umbrella term for all roles in this list and many more (like “data analyst,” “enterprise analyst,” “process analyst,” “system analyst”). On the other hand, this role has a formal definition in the industry.Who is a good business analyst? ›
Great BA's are good communicators, problem-solvers, and think critically. They can create requirements specifications, analyze requirements, create visual models, facilitate elicitation sessions, and use the necessary business analyst tools.What does a business analyst do on a daily basis? ›
A business analyst's daily job duties include identifying business issues, collecting and recording data, analyzing data, and evaluating and presenting data solutions. They work with several groups including customer service management, product development, business operations, and business clients.