At a very abstract level, business analysis is the practice of investigating business needs and finding the best solutions to address them. Part-science and part-art, it involves deploying a range of investigation, analysis, and communication practices to solve business problems and unlock value for stakeholders.
What activities does business analysis include?
The focus of business analysis can be wide (looking at the business as a whole), or very narrow and specific (such as particular process or system).
Business analysis can be performed at a strategic level: exploring an organisation’s broad goals and the strategic changes that will achieve them.
At a more granular level, business analysis looks at problems and opportunities relating to particular business areas or products/services. This can include the design of processes, the application of technology, or the shaping of roles and responsibilities – and often involves a mix of all of these.
At its most detailed, business analysis examines what an organisation needs from its technology: functionality for users, information structures, and performance or quality needs.
Business analysis activities can include all of the following (and more besides!) activities:
- Strategy analysis and development
- Process analysis and design
- Solution feasibility studies
- Customer journey mapping
- Data and information systems modelling
- Technology requirements definition
- Stakeholder perspective analysis
- Business case development (including investment appraisal)
- Change impact assessment
- Benefits management
With all of these activities, there are many different methods and techniques that could be deployed. These can include different the use of different models and tools. Business analysis practitioners will select the best approaches for the particular business situation, and tailor their choice of techniques and tools to be most effective in that context. Business analysis is often practised in the context of formal project approaches (such as PRINCE2) or product development methodologies (such as Agile frameworks), and these may encourage use of a particular method or adoption of a specific focus.
Who does business analysis?
Those that practise business analysis are often referred to as business analysts, although there are any number of other job titles out there – as well as a raft of other roles that make use of business analysis skills and methods. Business analysts often work within a business change function, or within an IT team; they may be deployed on a number of projects simultaneously, or be dedicated to working on one system or product.
The role of business analysts requires a mix of talents. Much of the “analysis” side of the role requires the crunching of information, drafting of written documents, and some rather nerdy diagramming! An eye for detail and a logical mindset are essential. In contrast, the “business” element of the role is very much people-facing, and can include facilitating workshops with stakeholders, performing interviews, presenting findings, and acting as a liaison between different business areas. BAs must deploy a range of interpersonal and communication skills in their work, including leadership, negotiation, and conflict management.
When is business analysis performed?
There are many different contexts where business analysis can be useful. Organisations may deploy business analysis to help improve customer experience, to improve process efficiency, or in response to a regulatory change. These and other examples are described further here.