viewpoint: Business Analysis Explained

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viewpoint: Business Analysis Explained

Business Analysis is a research discipline that provides recommendations to improve an organization’s structure, policies, and operations. It involves understanding how organizations function to accomplish their purposes and defining the capabilities an organization requires to provide products and services to external stakeholders.

From a broad perspective, business analysis can be understood as a set of tasks and techniques used to work as a liaison among stakeholders to understand the structure, policies, and operations of an organization. It recommends solutions that enable the organization to achieve its goals.

Concept of Business Analysis

The concept of business analysis revolves around the idea of making changes in an organization, whether it’s modifying processes, tasks, or systems, or even strategy. The changes might be as simple as implementing a new system or as complex as overhauling the entire structure of the organization.

Business Analysis is a disciplined approach for introducing and managing change to organizations, whether they are for-profit businesses, governments, or non-profits. It is used to identify and articulate the need for change in how organizations work, and to facilitate that change.

Role of a Business Analyst

Business Analysts are responsible for bridging the gap between IT and the business using data analytics to assess processes, determine requirements and deliver data-driven recommendations and reports to executives and stakeholders.

They engage with business leaders and users to understand how data-driven changes to process, products, services, software, and hardware can improve efficiencies and add value. They must articulate those ideas but also balance them against what’s technologically feasible and financially and functionally reasonable.

Importance of Business Analysis

Business Analysis is a crucial tool for the success of any business. It helps businesses do their jobs better. It’s a disciplined approach for introducing and managing change to organizations, whether they are for-profit businesses, governments, or non-profits.

Through the use of Business Analysis, we can ensure a company’s policies, guidelines, and processes are in line with their goals and take advantage of the opportunities that arise in the market. It also helps to guide businesses in improving customer service, product quality, and workflow efficiency.

Key Elements of Business Analysis

There are several key elements involved in successful business analysis. Some of them include communication, understanding capabilities, and understanding the business environment.

Each of these elements involves a certain degree of business analysis, and together they form a comprehensive view of a company’s overall strategy.


Communication is a vital aspect of business analysis. It involves expressing clear expectations, disseminating information effectively, and listening to feedback. It’s about ensuring that all stakeholders have a clear understanding of the project’s objectives and what is required from each of them.

Effective communication also involves understanding the needs and concerns of stakeholders and addressing them appropriately. This can involve negotiating with different stakeholders to reach a consensus on the best way forward.

Understanding Capabilities

Understanding capabilities is another key element of business analysis. This involves understanding what a business is capable of achieving and how it can achieve it. It’s about understanding the strengths and weaknesses of a business, and how these can be leveraged or mitigated to achieve the business’s objectives.

It also involves understanding the resources available to a business, including human resources, financial resources, and technological resources. This understanding can help to identify opportunities for improvement and areas where resources could be better utilized.

Understanding the Business Environment

Understanding the business environment involves understanding the external factors that affect a business’s performance. This can include economic conditions, competition, and customer behavior. It’s about understanding the market in which a business operates and how changes in this market could affect the business.

It also involves understanding the regulatory environment in which a business operates. This can include understanding the laws and regulations that apply to a business and how these could affect the business’s operations.

Business Analysis Techniques

There are several techniques that business analysts use to understand and analyze businesses. These techniques can be broadly categorized into three areas: data analysis, process analysis, and business model analysis.

Each of these areas involves a different set of techniques, and together they provide a comprehensive toolkit for business analysts.

Data Analysis

Data analysis involves examining, cleaning, transforming, and modeling data to discover useful information, draw conclusions, and support decision-making. It involves a range of techniques and methodologies to review data from various sources to gather information, draw conclusions, and make actionable recommendations.

Some of the techniques used in data analysis include statistical analysis, predictive modeling, and data mining. These techniques can help to identify trends, patterns, and relationships in data, which can then be used to make informed business decisions.

Process Analysis

Process analysis involves understanding and documenting the processes within an organization. It’s about understanding how different processes work, who is involved in these processes, and what these processes are designed to achieve.

Some of the techniques used in process analysis include flowcharting, workflow diagrams, and process mapping. These techniques can help to identify inefficiencies, bottlenecks, and opportunities for improvement in a business’s processes.

Business Model Analysis

Business model analysis involves understanding a business’s business model. This includes understanding how a business creates, delivers, and captures value. It’s about understanding the business’s customers, what the business offers to these customers, and how the business makes money.

Some of the techniques used in business model analysis include SWOT analysis, PESTLE analysis, and Porter’s Five Forces analysis. These techniques can help to identify opportunities and threats in a business’s environment, and how a business can leverage its strengths and mitigate its weaknesses to take advantage of these opportunities and threats.


Business Analysis is a critical discipline in today’s business environment. It helps businesses to understand their current situation, identify future needs, and determine solutions for business problems. It’s a crucial tool for making effective changes and achieving strategic objectives.

Whether it’s understanding the business environment, analyzing data, or understanding a business’s capabilities, business analysis provides the tools and techniques to help businesses make informed decisions and drive business success.