With the growth of AI and Data Science, the field of Business analysis has gained significant value in the past decade. More and more businesses today rely on the acumen of the business analyst to obtain data-driven solutions for their business problems. Let’s delve into how the complex process of analysing business needs and providing solutions to the same is carried out by business analysts.
Business Analysis Techniques
Some of the most popular and relevant business analysis techniques are as follows:
The term SWOT is the acronym for Strength, Weakness, Opportunity, Threat. SWOT analysis forms the most rudimentary business analysis techniques to get a holistic view of the most important aspects concerning the business. This analysis techniques categorise the Strength & Weakness as internal factors of the business, the strong suit of the business could be its brand image and the weak points of the business could be its high price point given the alternatives in the market.
This analysis technique considers opportunity and threats as external factors to the business. The threat could be in the form of increased competition, an example of an opportunity could be expanding into an untapped market. SWOT analysis techniques is a one that is widely used and the application can be done at any stage of the project.
MOST stands for Mission, Objective, Strategy, Tactics. These four elements form the core of the MOST business analysis technique. It provides a clear picture when it comes to understanding the purpose and approach of the business. Let’s break each element individually to gain more insight into this valuable business analysis technique.
Every organisation is started to fulfil a purpose, to solve a problem, to accomplish a goal, that goal and purpose is the mission statement of the company. The primary step to business analysis is to be familiar with the mission of the company, everything else is secondary.
What is the objective? How is it different from a mission? Well, the mission takes a broader approach to the problem whereas objectives are the set of goals that the organisation intends to achieve within a certain time period. The objective breaks down the broader mission into more defined goals and a measurement approach.
Strategy again takes a broader angle; it can be defined as the approach and plan the organisation will use to obtain its business objectives within the set time frame. Strategy answers the ‘how’ of the business.
Tactics are more refined methods to carry out a broad strategy to achieve the goals of the organisation. Tactics are more about short term operational plans to obtain the objectives.
Business Process Modelling
Business Process Modelling considers the process improvement techniques which will help the organisation to achieve the objectives in a more efficient and effective manner. It helps in analysing the gap that exists between the existing business process and the more efficient business process which could be opted instead. The pros and cons of both the business process are taken into factored in before reaching a decision. Some of the major steps involved in the Business Process Modelling technique include strategic planning, business model analysis, process designing, and complex technical analysis. The technique of process improvement is widely used in the IT industry.
The organisations do not operate in isolation, there are multiple stakeholders in a business ranging from customers to employees and suppliers. All stakeholders are influenced by the functioning of the business and have the power to influence its operations. In the contemporary scenario, sustainability if of utmost concern, it’s not only about profit maximisation for the business but to achieve it in a more sustainable way. PESTLE is the acronym for the crucial factors that influence the business, these include Political, Economic, Social, Technological, Legal, Environmental factors. PESTLE technique analyses these factors and identifies how each of these elements will influence the performance of the business.
Also Read: Business Analysis Trends in 2020