Excerpt: There are several strategies to pick from when conducting a company study. This blog discusses the importance of business analysis as well as a variety of approaches. The role of a Business Analyst isn't just to analyze data; it's also to assist the organization in moving forward.
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What is a Business Analyst?
A business analyst analyses, comprehends and secures the requirements for a company's growth by fully changing its policies, internal processes, and information system.
Understanding business problems, recommending solutions, and increasing project returns on investment are all things that a business analyst does. It will assist in the modification of processes, goods, services, and software to meet the company's objectives.
Business analysis is an activity that requires a lot of ideas, expertise, and information to identify and solve business problems. For all of these business difficulties, different business strategies exist, such as what are user needs, qualities, utility, and resources of requirements, and so on.
Techniques of Business Analysis
An appropriate technique is essential for analysing corporate demands, goals, or objectives. The Business Analyst employs a variety of business analysis approaches. The eight most popular techniques are listed below.
- SWOT Analysis
Strengths, Weaknesses, Opportunities, and Threats (S.W.O.T.) is the most common business analysis technique. It is carried out by a group of people in the firm with various mindsets and views in order to access and react to a changing environment.
It's a business paradigm in which internal data components such as strengths and weaknesses are weighed against external data factors such as opportunities and threats.
The acts that perform well for different challenges and bestow major advantages to the company are defined as the company's strength. The firm name, location, trustworthy personnel, strong reputation, customer service, brand name, product, and so on are some examples of strengths.
The company's weaknesses are various activities or disadvantages that cause problems with the company's growth or policies. Bad reputation, an incomplete product, slacker staff, department rivalry, continual negativity, workplace politics, and so on are all examples of shortcomings.
External facts and figures that have the potential to give you an advantage or a leg up on your competition are referred to as opportunities. Any advantage gained as a result of outside circumstances is a chance.
Investing in a startup at an early stage to reap greater profits later is one example of an opportunity. After demonetization, several digital payment firms (an example of digital transformation) received millions of dollars in funding, which is one of the classic examples of opportunity in Indian startups.
External facts or information that can put the company at a disadvantage are also considered threats. Changes in market research and trends, new regulations, new technology such as AI and IoT applications in touch screen mobile phones, which could pose a danger to keypad phones, and cyber threats are just a few examples of risks.
- MOST Analysis
Mission, Objective, Strategy, and Tactics (M.O.S.T.) analysis is a useful tool for conducting business analysis. MOST analysis starts at the top and works its way down. The business analyst should make sure that the organisation's most critical goals are kept in mind.
It helps to gain a better understanding of the organisation's capabilities and vision (purpose), as well as to respond to questions such as what the organisation intends to accomplish in terms of mission and objectives, and how these actions can be achieved in strategies and tactics.
An organisation's mission should be a long-term process. The mission statement is equally contributed to by each department of the company. It establishes a general reason for being in business and the objectives to be met. The more specific a company's objective is, the more likely it is to succeed.
Following the mission, objectives are the next step down. These are defined as precise goals that each department must meet in order to accomplish its mission. For decision-making, smart and defined objectives are required. They should also be attainable and measurable.
The measures that should be followed to achieve organisational goals are referred to as strategies. These are strategies for achieving long-term goals. There are numerous types of actions that can be taken to accomplish at least one of the mission's goals and objectives. The safest approach to move forward in an organisation is through strategies.
The goal of tactics is to carry out the organisation's strategies. They are written in such a way that anyone in the organisation who is unfamiliar with MOST analysis may understand them. These are quick fixes for long-term strategy.
- PESTLE Analysis
Many external macro-environmental elements can have an impact on the success of any firm. PESTLE analysis is also known as the PEST analysis and has been utilised in a variety of corporate applications.
PESTLE is an acronym that stands for Political, Economical, Social, Technological, Legal, and Environmental. These forces or elements can present possibilities or challenges to any corporation, making it a very strong business analysis tool or technique.
The impact of a government's policies and regulations on an organisation is determined by political variables. It's also linked to the government's economic intervention. Tax policies, tariffs, laws, trade control, import limitations, and other government-influenced business issues can all be classified here.
Economic variables have a big influence on how companies manage their businesses and how profitable they are. Economic growth, exchange rate, inflation rate, and interest rate are all elements to consider.
Health awareness, population growth rate, age distribution, cultural trends, and so on are all social factors. These elements assist marketers in comprehending the needs of their customers.
Technological elements that may have an impact on corporate growth include the rate of technological advancements, innovation, automation, and research & development.
Discrimination laws, copyright/patent laws, data privacy regulations, health and insurance laws, and so on are all legal considerations. The company must operate within the confines of the law.
Weather, climate change, air and water pollution, and other environmental issues are all factors to consider. Many businesses, such as tourism, farming, and insurance, are particularly affected by these issues.
- System Analysis
System analysis is a systematic problem-solving process for gathering and evaluating data, identifying system flaws, identifying business challenges, and breaking the system down into smaller sections. It's a method for reducing the number of errors in a variety of situations.
System analysis is the process of examining a company's perspective, determining its goals, and putting together a method to create an efficient system. For example, a problem can be handled in a few hours without fully studying a system, but this can sometimes result in a slew of new issues. As a result, the better you understand the system, the less likely any issues will develop.
- Business Model Analysis
The business model analysis aids us in comprehending the company's operations and clarifies policies, market methods, and procedures. It clarifies a variety of issues, including revenue model, value offering to which client segment, cost of value offering, and the company's impact if the business model changes.
We also strive to gain insight into critical elements such as cost of manufacturing, marketing, and management as part of the business model study. A business analyst ensures the growth of a company's position and revenue by thoroughly studying design, production costs, marketing strategy, and the impact of any future changes.
Brainstorming is a great approach for generating multiple ideas, resolving or finding a solution to complex challenges, and effectively analysing a company.
"A group problem-solving strategy that involves the spontaneous participation of ideas from all members of the group," according to the definition. During brainstorming, each person's suggestion, no matter how out of the box, is encouraged.
Independent brainstorming is brainstorming done by one person only; some business analysts may advocate for this sort of brainstorming because it takes less time to conclude, yet group brainstorming is used in large organisations.
Brainstorming is a technique for thinking creatively about a problem in order to generate fresh ideas, approaches, and solutions. It's a group activity with an entirely different goal of coming up with answers to challenges.
- Mind Mapping
Mind Mapping is a beneficial and successful business analysis tool that allows us to see and grasp many problems, ideas, and thoughts clearly and visually.
Mind Mapping's structure is strikingly similar to the structure of neurons in the brain (one of the primary reasons for its name), and it continues to expand as new ideas and resources are added.
A Business Analyst's job is to look into and assess problems that clients or stakeholders have that can be handled by using mind maps to organise ideas, thoughts, and facts.
The mind mapping technique ensures that all of the aspects that must be analysed have been taken into account. There are various online programmes for creating mind maps, including Freemind, Xmind, Mindmap, Lucidchart, Canva, and others.
- Process Design
A Business Analyst identifies the organisation's process designs and their useful and destructive features as part of the business analysis.
Process designs are necessary for solving challenges and seizing opportunities, as well as monitoring and measuring business effectiveness to assure constant value delivery to customers. A future state of any commercial operation may also be represented as a process design.
A business process analyst examines the existing process architecture and, if necessary, makes adjustments. The business analyst is in charge of comprehending and maintaining a wide range of business processes.
For business analysis, there are numerous methods to choose from. The significance of business analysis is covered in this blog, as well as many methodologies. The Business Analyst's job isn't just to analyse data; it's also to help the company go to the next level. He selects the best technique for the job based on the issues at hand and implements the necessary changes.
A thorough insight of the business process, targeted client segment, market, value system, future state, policies, capabilities, and rivals can all be gained through business analysis.