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Business Analysis



Business Analysis helps an organization to improve how it conducts its functions and activities in order to reduce overall costs, provide more efficient use of scarce resources, and better support customers. It introduces the notion of process orientation, of concentrating on and rethinking end-to-end activities that create value for customers, while removing unnecessary non-value added work. The person who carries out this task is called a Business Analyst or BA.


 


Business Analysis is also a structured methodology that is focused on completely understanding the customer's needs, identifying how best to meet those needs, and then "reinventing" the stream of processes to meet those needs. Its purpose is to develop business process improvement (BPI) as a key strategy and a management tool, capable of supporting the organization's vision, mission, goals, and objectives, and to promote the effective use of technology throughout the organization.


Benefits of Business Analysis

According to Michael Hammer and James Champy, in their seminal work, "Reengineering the Corporation (1993)", business analysis "does not seek to make businesses better, through incremental improvements — 10 percent faster here or 20 percent less costly there". The aim of business analysis is "a quantum leap in performance — the 100 percent or even tenfold improvements that can follow from entirely new work processes and structures".


 


Some of the world's premier corporations have used the principles of business analysis to save hundreds of millions of dollars per year, to achieve unprecedented levels of customer satisfaction, and to speed up, and make more flexible, all aspects of their operations.


Roles of Business Analysts

As the scope of Business Analysis is very wide, there has been a tendency for business analysts to specialize in one of the three sets of activities which constitute the scope of Business Analysis.


 


1. Strategist


Organizations need to focus on strategic matters on a more or less continuous basis in the modern business world. Business analysts, serving this need, are well-versed in analyzing the strategic profile of the organization and its environment, advising Senior Management on suitable policies, and the effects of policy decisions.


 


2. Architect


Organizations may need to introduce change to solve business problems which may have been identified by the strategic analysis, referred to above. Business analysts contribute by analyzing objectives, processes and resources, and suggesting ways by which re-design (BPR), or improvements (BPI) could be made. Particular skills of this type of analyst are "soft skills", such as knowledge of the business, Requirements engineering, Stakeholder Analysis, and some "hard skills", such as Business Process Modeling. Although the role requires an awareness of technology and its uses, it is not an IT-focused role.


 


Three elements are essential to this aspect of the business analysis effort: the redesign of core business processes; the application of enabling technologies to support the new core processes; and the management of organizational change. This aspect of business analysis is also called "business process improvement" (BPI), or "reengineering".


 


3. Systems Analyst


There is the need to align IT Development with the systems actually running in production for the Business. A long-standing problem in business is how to get the best return from IT investments, which are generally very expensive and of critical, often strategic, importance. IT Departments, aware of the problem, often create a Business Analyst role to better understand, and define the requirements for their IT systems. Although there may be some overlap with the Developer and Testing roles, the focus is always on the IT part of the change process, and generally, this type of Business Analyst gets involved, only when a case for change has already been made and decided upon.


In any case, the term, "Analyst", is lately considered somewhat misleading, insofar as analysts (i.e. Problem Investigators) also do design work (Solution Definers).

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