Business analysts use popular business analysis techniques to help organizations analyze problems, identify business needs, and design practical solutions for the business. There are many different methods of business analysis and choosing the right one is easier once you have a detailed understanding of different aspects of business analysis.
Business analytics is an important field. Global business analytics software sales were $67 billion in 2019. You can use business analytics ideas to improve the actual work environment, team member communication, and customer satisfaction. We’ve put together a list of commonly used business analysis techniques and tips for learning business analysis.
Best Examples of Business Analysis Techniques
There is a wide variety of business analysis techniques that you can learn as a professional business analyst. According to the Bureau of Labor Statistics, the number of jobs for operations research analysts will grow by 25 percent over the next decade. If you want to get a job with one of the best companies hiring business analysts, you need to have these effective techniques at your fingertips.
Business Process Modeling
Business process modeling (BPM), also known as business process mapping, is used to analyze a company’s current business process and how it would perform if the process were modified or changed. BPM creates a visual model of the current workflow as a way to identify areas for improvement.
SWOT stands for strengths, weaknesses, opportunities and threats. This business analysis technique evaluates internal and external factors to identify business problems and solutions. SWOT analysis is a simple technique. If you’ve been wondering how to learn business analysis techniques, SWOT analysis is an excellent place to start.
The CATWOE checklist stands for customers, actors, transformation process, worldview, owners and environment. CATWOE is used to identify issues and focuses on the perspectives of business stakeholders. It is a useful method of analysis to determine whether a business strategy is working for all people involved in the business.
PESTEL analysis evaluates how specific external factors influence a business strategy. This technical analysis takes into account political, economic, social, technological, environmental and legal factors associated with the business. This framework helps to evaluate risks arising from the external environment.
The MOST analysis is a simple technique that analyzes a company’s mission, objectives, strategies and tactics. Similar to SWOT analysis, this technique studies the company’s objectives and the business strategies used to achieve them. MOST analysis usually takes place during the business planning stage to ensure that your business operations are viable.
Use case modeling
Use case modeling uses flowcharts to explain a business process. In this technique, the wishes of the business are translated into practical details. You can use a use case model at any stage of analysis, either at the start of a new business or to make informed decisions about an already existing business.
Agile Business Analytics
Agile business analysis has 12 key principles that are used to guide collaborative business analysis. Agile analysis breaks the problem down into smaller chunks. The main ideas behind agile approaches are to stay flexible in the analytics process and involve people across the company, including customers.
Analysis of non-functional requirements
Analysis of non-functional requirements focuses on how software and digital tools function in a business, especially when a new system is introduced. An analysis of non-functional requirements looks at the basic characteristics of digital technologies to ensure that they actually improve business processes.
How to do business analysis?
- Plan the analysis process. The first step is to define an analysis process and outline specific steps. You should also list the business requirements, key stakeholders, and other technical details.
- Collect outside information. The next step is to gather information about the context of the business project. Get reports on the market situation, cultural trends, economic factors and environmental factors related to the business.
- Talk to relevant stakeholders. To prioritize the project, you need to conduct stakeholder interviews. Talk to the development team, get feedback from technical teams, and ask for customer user stories.
- Analyzing project documents. The next step is to analyze relevant business documents. Consult the original and updated business plans, any business process documentation and financial records.
- Understand the problem. Using the information you have gathered, identify the problems in the project using one or more of the above analysis techniques. Discover the risks affecting the business and propose solutions based on the company’s resources.
- Present your solution† The final step is to share your business solution with the teams relevant to the project. Work on simplifying your technical analysis to present only the key points and show where the company can improve business decisions.
Business Analytics Ideas: Top 5 Tips to Master Business Analytics
Your job as a business analyst is to provide successful solutions to business problems. The same goes for business analytics. By 2021, the big data and business analytics market is estimated to be $215.7 billion. Getting an entry-level business analytics job is achievable if you have the right skills. Here are the top five tips for mastering business analytics.
Understand the responsibilities of a business analyst
To become a business analyst, you need to understand the job requirements. Read job descriptions for various business analyst positions to learn what technical skills and training they need. You can enroll in a bachelor’s degree in business analysis or take independent professional courses in business analysis to discover new business analysis techniques.
Understand the project
Learn as much as you can about each project you are working on. You need to understand the details and objectives of the project. Every analysis task involves a lot of strategic planning. Understanding the project is the foundation of any business analysis process, so make sure you spend enough time on this step.
Understand the organization
You need to understand the internal factors that determine the organization you work for in order to design a viable solution to the problem. Business analysts usually work closely with stakeholders and team members involved in a company’s decision-making process.
Understand the industry
Companies that exist within a larger industry with specific environmental factors. These external factors play a major role in the way a company is organized. Try using competitive analysis to compare your company with another company in the industry.
Practice your business analysis strategies
Business analysis techniques are the essential tools to succeed as a business analyst. Practice applying different techniques to a wide variety of case studies. This will help you master each technique and give you a feel for which techniques work well in different situations.
Are business analytics techniques worth learning?
Business analysis techniques are worth learning if you want to get a job in business analysis. According to the U.S. Bureau of Labor Statistics, the median salary of an operations research analyst is $86,200, which is more than double the national average for all occupations.
Business analysis jobs are rewarding if you want to combine creative and technical thinking. You must be good at collecting research to understand the current situation, and you will also need to think creatively to come up with solutions that fit the needs and constraints of the organization.
Business Analytics Techniques FAQ
Yes, business analytics can help managers and project directors make better decisions. Business analysis identifies key business problems and provides various solution options. Business managers can use information from business analytics to make informed decisions that can improve the business.
There are several business analysis techniques that you can use for different scenarios. These techniques include business process modeling, SWOT analysis, CATWOE analysis, PESTEL analysis, use case modeling, and non-functional requirements analysis. Depending on the project, you can use one or a mix of these analysis techniques.
You need business analysis because it helps identify a company’s needs and provides solutions to change or improve the way the organization works. It can help identify complex business solutions to help the organization optimize its processes.
The steps involved in business analysis vary depending on the project. The general steps include gathering information about the project, speaking with relevant stakeholders, defining the organization’s goals, and designing solutions.
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