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Effective business analysis can have a positive impact on an organization’s bottom line. Projects can be completed on-time or ahead of schedule, and on or under budget. Requirements are clear, and teams stay well focused and don’t waste time spinning their wheels. Potential problems are anticipated and contingencies prepared so changes get implemented seamlessly; allowing the project timeline to continue to advance. Stakeholders stay informed and better understand a project’s risks. The objective of business analysis over all is to help an establishment reach its goals more efficiently—at lower cost; thus generating a higher ROI, and ultimately, better profitability.

What is Business Analysis

Business analysis is the technique of analyzing a company or organization and interacting with its stakeholders in order to help the establishment achieve its goals. It is a disciplined approach to introducing and managing change to an establishment, with the goal of maximizing the value delivered to stakeholders. Business analyses reviews the structure, policies, and operations of an organization, and recommends solutions, and how best to integrate the necessary changes (1).

Business analysis works across all levels of an organization, which could include a number of areas, such as defining strategy, creating enterprise architecture, leading to define goals and requirements, or supporting a continuous program of improvement. Business analysis can help lead an organization through unmapped territory in order to get to a desired place. Along the way, effective business analysis assists in the realization of benefits, avoidance of unnecessary costs, and the identification of new opportunities. Business analysis can help an organization achieve a better understanding of the capabilities required for current and future missions and can assist in remodeling the organization; improving the way it does business (1).

Business analysis services can be subdivided into six sub-disciplines, as explained below:

1 — Business Analysis Planning and Monitoring

Business analysis planning and monitoring describes the necessary activities required to complete a proper business analysis. It forms a key input to a project plan and includes organizing and coordinating business analysis activities with the other activities of a project team. Business analysis planning identifies stakeholders, which business analysis techniques apply to a project, which processes will be used to manage a project, how progress will be monitored, and how changes will be integrated when necessary. Its purpose is to plan the execution of required business analysis tasks, update or change the approach as required, and improve the business analysis process as needed (4).

2 — Enterprise Analysis

Enterprise analysis focuses on understanding the needs of the business as a whole. It helps concentrate the strategic direction of an establishment and identifies initiatives that will enable it to meet strategic objectives (“Business analysis,” 2013). Enterprise analysis facilitates problem definition and analysis, business case development, feasibility studies, and definition of a solution scope. It describes how a business need is refined and clarified, so a solution scope can be readily implemented by an organization (4).

3 — Requirements Elicitation

Elicitation tasks include coordinating with stakeholders to define needs and outline requirements. Efforts are made to explore, identify, and document stakeholder needs. Requirements are then issued and validated (4).

4 — Requirements Analysis

Requirements analysis is the progressive elaboration and clarification of requirements so a project team can design and build a solution that meets the needs of the stakeholders. Requirements analysis explores the stated requirements of the stakeholders to ensure they are correct, and assesses an establishment’s current state in order to recommend improvements. After requirements are assessed, the ultimate goal is to verify and validate them (4).

5 — Solution Assessment and Validation

Solution assessment and validation examines proposed solutions to find those best suited to a business need. It also identifies gaps and shortcomings, and outlines workarounds or changes to the solution. It examines deployed solutions to see how well they meet the original need, assessing the effectiveness and performance of a project (4).

6 — Requirements Management and Communication

Requirements management and communication encompasses conflict-resolution and the issuance of changes to ensure that the stakeholders and project team remain on the same page for the solution scope for a project. Depending on the complexity of a project, this may require management of formal approvals, tracking of requirements documents, and the tracing of requirements from their origination through implementation (4).

The Benefits of Business analysis

Effective business analysis creates value, leading to a positive return on investment (ROI). ROI is the impact of the business value, typically realized as increases in revenue or decreases in cost, compared to the cost of implementation the change.

The typical ROI formula looks like this:

Business analysis tries to increase the value of the solution to the problem and can work to effectively reduce costs; ultimately having a positive impact on an organization’s ROI. Business analysis increases the value of the solution in a number of ways. It analyzes the solution and helps the project team come to a better understanding of what is needed for the solution to be successful. It prioritizes things so the team and stakeholders stay focused on the requirements which will yield the most benefit. It uses clarity and alignment to help the team prepare for change, allowing for effective implementation of new solutions. It allows a project to scale and grow to a larger entity when the timing is right (2).

Business analysis reduces costs by keeping a team focused in the right direction, thereby reducing the need to rework and redo things. Requirements churn is reduced by driving logical and efficient decision-making; thereby keeping the team and stakeholders from following down rabbit-holes and blind-alleys. Business analysis also looks for more cost-effective solutions as the project proceeds (2).

Next Step

To learn more, call (323)546-7873 and ask about small business consulting. These services are open to any size company and really help micro businesses (1-10 employees) and small businesses (up to 200) and the phone call is free.

References

*1 Business Analysis. (n.d.). In Wikipedia. Retrieved January 31, 2013, from
http://en.wikipedia.org/wiki/Business_analysis

*2 Brandenburg, Laura. (2013). How does business analysis create value? Retrieved from http://www.bridging-the-gap.com/how-does-a-business-analyst-create-value/

*4 IIBA.org. (2009). The Guide to the Business Analysis Body of Knowledge™. Version 2.0 Framework. Retrieved from http://www.genevach.iiba.org/download/BABOK20overview.pdf