Table of Contents
- Business Analysis Definition
- Popular Business Analysis Techniques
- Steps in Business Systems Analysis
- Business Analysis Example
- Importance of Business Analysis
- Lesson Summary
For any business to be thriving, there needs to be constant improvement by identifying needs and solutions to business problems at the onset they appear. Addressing this need prompts a company or business to create a business analysis project to identify efficient solutions that meet the demand for improvement. Business analysis is defined as the in-depth company study that does all these activities in addressing the mission set by the company. The business analysis team provides organization, strategic guidance, documentation, clarification, and assistance with political issues to the business.
It is important to understand that documentation is necessary when conducting a business analysis, and the company's stakeholders are essential. Stakeholders include everyone connected to the company's improvement plan, such as customers, external auditors, regulatory officials, and suppliers.
Several business analysis techniques are popular in the business world. In all of these, documentation is essential throughout the analysis process. Four top strategies include brainstorming, SWOT, MOST, and PESTLE.
Brainstorming is the oldest method of doing business analysis. It comprises forming groups of stakeholders of the company to focus on a problem and then discussing many ideas to fix it. This strategy encourages the stakeholders to be creative in developing new ideas that may be used to improve the business.
Brainstorming follows these basic steps:
The brainstorming technique can generate many ideas in a short time and an unbiased environment. However, much depends on the stakeholders' willingness to participate and creativity in formulating new ideas for improvement.
The SWOT technique comprises four factors that are evaluated to find the company's strengths, weaknesses, opportunities, and threats:
The MOST technique is considered one of the best in understanding the company's goals and purpose. The strategy starts by detailing the missions and goals, each with suggestions on how to achieve them. MOST is also an acronym that stands for the following:
PESTLE focuses on environmental factors that may affect a company's overall plans for growth and expansion. It covers all the external factors that may directly affect the company. These factors create the acronym:
All of these techniques are useful and important in helping the company come up with sound business analysis. It is also worth mentioning the importance of documentation for organized record-keeping and ease of data collection for future evaluation and assessment of the program.
There is a total of nine steps in the creation of business analysis. These are:
The problem is the inventory system, which shows false information regarding merchandise availability.
The team's task is to be the go-between and provide organization, strategic guidance, documentation, and assistance with political issues. The identified problem or issue for this particular example is the inventory system. Therefore, the team that may be suitable to solve the problem comprises the business manager and their assistant.
The business process in this example is the inventory system. The people directly connected to this process are the shop manager, the sales manager, and the accountant.
Stakeholders are directly affected by the problem or issue. This may include customers, suppliers, regulatory officials, financial reporting experts, and external auditors. In this case, the company owner, customers, and salespeople are affected.
The requirements of stakeholders need to be identified for this step. To define the stakeholders' requirements, one may brainstorm, review, and analyze documentation and individual interviews.
For this example, the customers would love to have their work done on time and the parts they ordered available and delivered as promised. The owner requires to keep the customers happy. Another essential requirement for the stakeholders is to keep an accurate inventory record so that the salespeople do not need to be bothered with inventory problems and instead concentrate on selling the merchandise.
The current business process in the example is the existing inventory system. This will include shipments received, placing them on shelves, reordering inventory, and recording sales.
The wants and expectations of the stakeholders and what the business process can provide must go hand in hand and not conflict with each other. In this example, the customers will be satisfied if the inventory system is fixed, which should be the primary goal.
In this example, a review of the job flow is an excellent start to finding solutions. This includes:
Simple solutions may come from these reviews, such as one person may be assigned or tasked to record all sales tickets and inventory receipts. Another solution may be to move the displays further away from the exit doors to minimize shoplifting and theft. These and other small solutions will then be reviewed and commented on by the stakeholders and the people involved in the current business process.
Assuming the simple solutions presented in Step 8 were reviewed and approved by the stakeholders, the more challenging job is implementing them in the workplace. Steps must also be taken to ensure the sustainability of these solutions. Thus, periodic checks must be done via surveys for customer satisfaction. New system checks such as records of completion times on jobs, logs of out-of-stock occurrences, and a complete manual count of inventory items to be compared to the count in the inventory system, must be in place to ensure continuous improvement.
Business systems analysis is very important for the success of any business. There is no perfect method or system. There will always be areas that may be improved. The nine steps in the business analysis will provide a thorough review of the system that will improve communications among the stakeholders, increase the productivity of the company, and will pave the way to having more innovations and improvements for the company.
Business analysis is defined to be the in-depth company study that does all these activities in addressing the mission set by the company. The business analysis team provides organization, strategic guidance, documentation, clarification, and assistance with political issues to the business. It is important to understand that when a business analysis is conducted, documentation is necessary and the company's stakeholders are important. Stakeholders include everyone that has a connection to the improvement plan for the company. This includes customers, external auditors, regulatory officials, and suppliers. Brainstorming, reviewing, and analyzing documentation, as well as individual interviews may be conducted to define the stakeholders' requirements, which is a crucial part of the analysis.
There are various techniques that help in better analysis of any business:
These strategies organize and help identify problem areas and solutions for the improvement of the business. Each business analysis project originates with the identification of a problem or issue and ends with implementation changes that will have a sustainable system to keep the solutions continuously improving.
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Business analysis techniques are strategies or ways where the company can improve its performance. Among the most popular ones are brainstorming, SWOT, MOST, and PESTLE.
There are 8 steps that are done to make a business analysis. The steps are:
The business analysts who provide organization, strategic guidance, documentation, clarification, and assistance with political issues to the business are the ones that initiate the problem-solving process for the company. They find the strategy or technique that would solve the problem and document the process so that the improvements can be shared with all stakeholders.
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