11 Most Effective Business Analysis Techniques

business analysis definition

Business analysis is an umbrella term that describes the combination of knowledge, techniques, and tasks used to identify business needs, then propose changes and create solutions that deliver value to stakeholders. While a large number of today’s business analytics solutions include elements based on software and digital data, many professionals in the field may also end up advising on organizational change, improving processes, developing new policies and participating in strategic planning.

Therefore, business analysts stimulate change within an organization by assessing and analyzing needs and vulnerabilities, then creating and implementing optimal solutions. Much of the information used to draw these conclusions comes from data collected through various means, often falling under the term “big data.”

What is business analysis technology

Business analysis techniques are the processes used to create and implement plans necessary to identify a company’s needs and deliver optimal results. There is no “one size fits all” technology because every business or organization is different.

Best Business Analysis Techniques

The following are the most important business analysis techniques. Keep in mind that business analysts who want to become project managers should be familiar with most, if not all, of these.

1. Business Process Modeling (BPM)

BPM is typically used during the analysis phase of a project to understand and analyze the gaps between current business processes and any future processes against business goals. This technology consists of four tasks:

1. Strategic planning

2. Business model analysis

3. Define and design the process

4. Technical analysis of complex business solutions

Many industries, especially the IT industry, prefer this technique because it is a simple, straightforward way to present the steps of an execution process and show how it will work in different roles.

2. Brainstorming

There’s no better way to generate new ideas, identify root causes of problems, and come up with solutions to complex business problems than traditional brainstorming. Brainstorming is a group activity technique often used in other methods such as PESTLE and SWOT.

3.Cat Voy

CATWOE identifies key actors and beneficiaries, gathering the perspectives of different stakeholders onto a unified platform. Business analysts use this technique to thoroughly assess how any proposed action will impact all parties. The abbreviation stands for:

• • Customers: Who benefits from the business?
  • Actor: Who are the players in this process?
  • Transformation process: What is the core transformation of the system?
  • Worldview: What’s the big picture? What is its impact?
  • Owners: Who owns the affected system and what is their relationship?
  • Environmental constraints: What constraints are there and how do they affect the solution?

4.MoSCoW (must or should, can or will)

MoSCoW works by providing a framework to evaluate the priority of each requirement relative to other requirements. This process forces you to ask questions about the actual necessity of any given element. Is this item a must-have or a should-have? Is the requirement something that will make the product better, or is it a good idea in the future?

5. MOST (Mission, Objectives, Strategy and Tactics) analysis

MOST is a powerful business analysis framework considered one of the best techniques for understanding an organization’s capabilities and purpose. This technique involves a detailed, complete internal analysis of the organization’s goals and how to achieve them. The abbreviation stands for:

• • Mission: What is the purpose of the organization?
  • Objectives: What are the key objectives that help achieve the mission?
  • Strategy: What are your options for achieving your goals?
  • Strategy: What methods will the organization follow to execute the strategy?

6. Pestle analysis

Business analysts use the PESTLE model (sometimes called PEST) to identify environmental factors that may affect their company and how to best address them when making business decisions. These impacts are:

• • • Politics: Financial support and subsidies, government measures and policies.
    • Economics: labor and energy costs, inflation and interest rates.
    • Sociology: education, culture, media, life and population.
    • Technology: New information and communication system technologies.
    • Legal: Local and national government regulations and employment standards.
    • Environment: waste, recycling, pollution and weather.

By analyzing and studying these factors, analysts can better understand how they will impact the organization’s narrative. This understanding, in turn, makes it easier for analysts to develop strategies to address these issues.

7.SWOT analysis

One of the most popular techniques in the industry, SWOT can identify strengths and weaknesses within a company’s structure and view them as opportunities and threats. This knowledge can help analysts make better decisions regarding resource allocation and recommendations for organizational improvements. The four elements of SWOT are:

• • Strengths: The qualities of a project or business that give it an advantage over the competition.
  • Disadvantage: A business characteristic that disadvantages a project or organization compared to competitors or even other projects.
  • Opportunity: An element in the environment that a project or business can exploit.
  • Threats: Elements in the environment that could hinder a project or business.

SWOT is a simple, versatile technique that is equally effective for a quick or in-depth analysis of any size organization. It is also useful for assessing other topics such as groups, functions or individuals.

8. Six Thinking Hats

This business analysis process guides the team’s thinking by encouraging them to consider different ideas and perspectives. The “six hats” are:

• • White: Focus on data and logic.
  • Red: Use intuition, emotion, and intuition.
  • Black: Think about potential negative outcomes and what could go wrong.
  • Yellow: Focus on the positive; maintain an optimistic perspective.
  • Green: Get creative.
  • Blue: Consider the overall situation and process control.

The Six Thinking Hats technique is often used in conjunction with brainstorming as a means of guiding a team’s thinking process and prompting them to consider different perspectives.

9. 5 Whys

This technique is common in both Six Sigma and business analysis circles. While journalism uses the “five Ws” (who, what, when, where and why) in reporting, the 5 Whys technique simply operates on the “whys” in a series of guiding questions. This approach can help business Analysts first identify the source of the problem. Ask why the problem exists, then ask another “why?” question related to the first answer, and so on. Here is an example:

• • Problem: Customer refuses to accept delivery of certain 3D printers.
    • Why? Because the model shipped is wrong.
    • Why? Because the product information in the database is incorrect.
    • Why? Because not enough resources have been allocated to modernize database software.
    • Why? Because our manager doesn’t think it’s a priority.
    • Why? Because no one knows how often this problem occurs.
  • What to do: Improve incident reporting, ensure managers read the reports, and allocate budget funds to modernize database software.

10. Non-functional requirements analysis

Analysts apply this technique to projects where technical solutions have been replaced, changed, or built from scratch. This analysis defines and captures the required characteristics of a new or modified system, and typically addresses requirements such as data storage or performance. Non-functional requirements analysis usually includes:

• • • Record
    • Performance
    • reliability
    • Safety

Non-functional requirements analysis is usually performed during the analysis phase of the project and implemented during the design phase.

11. Design Thinking

Design thinking is a business analysis technique used primarily for problem solving and innovation. It is a human-centered approach that emphasizes empathy, collaboration, and creative thinking to develop solutions that meet user needs and create a positive user experience. Design thinking is often used to solve complex, ambiguous, or user-centered problems by focusing on understanding the end-user’s perspectives, motivations, and pain points.

Do you want to become a business analyst?

If you are looking for a more rewarding and higher-paying career, you should consider business analysis. Higher demand for business analysts means security, marketability, and excellent financial returns. According to Salary.com, the average annual salary for a business analyst is $75,400. Simplilearn offers business analytics certification training courses designed to make the first step easier.

The Postgraduate Business Analytics course provides you with expert knowledge of the latest BA tools and techniques (as mentioned earlier). You will master planning and monitoring, data analysis and statistics, visualization, agile Scrum methods and SQL databases. This course complements your training with real-life case studies and helps you become an AI-driven business analyst.