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{{Short description|Person who analyses and documents business processes}}
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==General Definition of Business Analyst==
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[[File:Business Analyst (BA).jpg|thumb|436x436px|Business analyst word cloud indicating some aspects of the business analyst profession (Flickr)]]


A '''business analyst''' ('''BA''') is a person who processes, interprets and documents [[business process]]es, products, services and [[software]] through analysis of [[data]].<ref name=":2">{{Cite web |title=What is Business Analysis? {{!}} IIBA® |url=https://www.iiba.org/professional-development/career-centre/what-is-business-analysis/ |access-date=2022-04-14 |website=www.iiba.org |language=en}}</ref><ref name=":0" /><ref name=":3">{{Cite web |title=What is a business analyst? A key role for business-IT efficiency |url=https://www.cio.com/article/276798/project-management-what-do-business-analysts-actually-do-for-software-implementation-projects.html |access-date=2022-05-13 |website=CIO |language=en-US}}</ref><ref name=":21">{{Cite web |title=How to become a Business Analyst? |url=https://techcanvass.com/blogs/how-to-become-a-business-analyst.aspx |access-date=2024-06-13 |website=Techcanvass |language=en-US}}</ref> The [[role]] of a business analyst is to ensure business [[efficiency]] increases through their knowledge of both [[Information technology|IT]] and [[business function]].<ref name=":1">{{Cite book |last=B. |first=Hass, Kathleen |url=http://worldcat.org/oclc/819807719 |title=The Enterprise Business Analyst : DEVELOPING CREATIVE SOLUTIONS TO COMPLEX BUSINESS PROBLEMS |year=2011 |isbn=978-1-56726-349-7 |oclc=819807719}}</ref>
A '''Business Analyst''' is responsible for identifying the business needs of their clients and [[stakeholder]]s to help determine solutions to business problems. They typically have a high degree of industry experience and perform a [[liaison]] function to software developers or other service providers.


Some tasks of a business analyst include creating detailed [[business analysis]], [[budgeting]] and [[forecasting]], business strategising, planning and monitoring, [[variance analysis]], pricing, reporting and defining business requirements for [[Stakeholder (corporate)|stakeholders]].<ref name=":0">{{Cite web |title=What is a BA |url=https://businessanalystsolutions.com/what-is-ba/ |access-date=2022-04-14 |website=Business Analyst Solutions |language=en-GB}}</ref> The business analyst role is applicable to four key areas/levels of business functions – operational, project, enterprise and competitive focuses.<ref name=":1" /><ref name=":4">{{Cite book |last1=Fleigher |first1=Craig S. |url=http://worldcat.org/oclc/824734026 |title=Business and Competitive Analysis : Effective Application of New and Classic Methods |last2=Bensoussan |first2=Babette E. |year=2015 |isbn=978-0-13-308640-9 |oclc=824734026}}</ref> Each of these areas of business analysis have a significant impact on [[Business performance management|business performance]], and assist in enhancing [[profitability]] and efficiency in all stages of the business process, and across all business functions.<ref name=":4" />
==What does a Business Analyst do?==


== Role ==
A Business Analyst is someone who applies analytical skills to high-level Business requests to determine what the business wants/needs and if these requests or requirements are consistent and not in contradiction with each other.
Business analysis has been defined as "a disciplined approach for introducing change to organization"<ref name=":2" /> through [[management]], processing, and [[Data Interpretation|interpretation]] of data in order to "identify and define the solution that will maximize the value delivered by an organization to its stakeholders".<ref name=":2" />
The emphasis in the role is to understand the requirements from the business perspective and translate them into ability statements, smaller sub-requirements, functions, tasks, etc. that are used by the Project Manager in a [[Work Breakdown Structure]].
The analysis may consist of several areas such as Business/subject Knowledge, IT capabilities, feasibilities, costs, relevance, data, and dependencies across other business or project areas.


A business analyst's job description tends to include "creating detailed business analysis, outlining problems, opportunities and solutions for a business, budgeting and forecasting, planning and monitoring, variance and analysis, pricing, reporting, and defining business requirements and reporting back to stakeholders".<ref name=":3" />
==What skills and knowledge does the Business Analyst need?==


There are many business activities which the business analyst is involved in. Some areas in which business analysts can have an important role are in [[financial analysis]], [[quality assurance]], [[training]], business policy and procedures, market analysis, [[Organization development|organizational development]] and solution testing.<ref name=":1" /> More specifically, business analysts are required to use the data which is gathered for the purpose of analysis and interpret greater meaning for the business.<ref>{{Cite journal |last1=Fosso Wamba |first1=Samuel |last2=Akter |first2=Shahriar |last3=Edwards |first3=Andrew |last4=Chopin |first4=Geoffrey |last5=Gnanzou |first5=Denis |date=July 2015 |title=How 'big data' can make big impact: Findings from a systematic review and a longitudinal case study |url=http://dx.doi.org/10.1016/j.ijpe.2014.12.031 |journal=International Journal of Production Economics |volume=165 |pages=234–246 |doi=10.1016/j.ijpe.2014.12.031 |s2cid=154510222 |issn=0925-5273}}</ref> This can then be used to improve business performance through identifying areas for potential growth, [[cost reduction]], understanding [[Consumer behaviour|customer behavior]], and observing economic trends and forecasts, and then reacting appropriately.<ref>{{Cite journal |last1=Park |first1=Joon |last2=Jeong |first2=Seung R. |date=2016-08-31 |title=A Study on the Relative Importance of Underlying Competencies of Business Analysts |journal=KSII Transactions on Internet and Information Systems |volume=10 |issue=8 |doi=10.3837/tiis.2016.08.031 |s2cid=10396219 |issn=1976-7277|doi-access=free }}</ref><ref name=":3" />
'''Business Subject knowledge''': The BA should have some background knowledge of the subject to make the requirements gathering efficient, although it is not always a must and depends highly on the complexity of the project. This kind of investigation is also known as [[Domain Analysis]].


Successful business analysts should influence the business environment by providing reliable guidance in decision making for the future through observing data which reflects the [[Behavior|behaviour]] of the business in the past.<ref name=":1" /> Business analysts are essential at all levels of a business, as both [[Tactic (method)|tactical]] and [[Strategy|strategic]] planning require analysts who help with "incremental improvements to products, business processes, and application".<ref name=":1" />
'''IT Capabilities:''' understanding of what systems can and cannot do.


Business analysts have an increasing need to provide a business with [[Sustainability|sustainable]] solutions. The Business Analyst "plays a key role in making sustainable choices, providing direction to business and influencing demand for specific [[Technology|technologies]]".<ref>{{Cite journal |last1=Richards |first1=Debbie |last2=Marrone |first2=Mauricio |last3=Vatanasakdakul |first3=Savanid |date=2011-01-01 |title=What does an Information Systems Graduate need to know? A focus on Business Analysts and their role in sustainability |url=https://aisel.aisnet.org/acis2011/15 |journal=ACIS 2011 Proceedings}}</ref> Business analysis practices have the opportunity to use business data in a positive way, which can lead to the transition of a sustainable world.<ref>{{Cite journal |last1=Seidel |first1=Stefan |last2=Bharati |first2=Pratyush |last3=Fridgen |first3=Gilbert |last4=Watson |first4=Richard |last5=Albizri |first5=Abdullah |last6=Boudreau |first6=Marie-Claude |last7=Butler |first7=Tom |last8=Kruse |first8=Leona |last9=Guzman |first9=Indira |last10=Karsten |first10=Helena |last11=Lee |first11=Habin |date=2017-02-01 |title=The Sustainability Imperative in Information Systems Research |url=https://aisel.aisnet.org/cais/vol40/iss1/3 |journal=Communications of the Association for Information Systems |volume=40 |issue=1 |pages=40–52 |doi=10.17705/1CAIS.04003 |issn=1529-3181|doi-access=free }}</ref>
'''Feasibility''': analysis around the feasibility of requirements in terms of effort, time, costs.


==Areas of business analysis==
'''Relevance''': requirements must serve a purpose otherwise they are not real requirements and hence must be de-scoped.


=== Business focuses ===
'''Data''': this area is very broad and it can be described as collecting data requirements, what data do we currently have and need to be carried over into the new systems or analysis around what can be achieved with a new system by projecting previous figures of a successful project on the business.
Due to the range of applications a business analyst can have, there are specific areas in which they can function. Kathleen B. Haas describes the requirement of business analysts in four areas of business – operations focus, project focus, enterprise focus, and competitive focus.<ref name=":1" />


# '''Operations focus''' – business analyst are able to use [[big data]] to analyze the way in which a business's operations are impacting the ability of the business to generate [[business value]].<ref>{{Cite journal |last1=Fosso Wamba |first1=Samuel |last2=Akter |first2=Shahriar |last3=Trinchera |first3=Laura |last4=De Bourmont |first4=Marc |date=2019-09-12 |title=Turning information quality into firm performance in the big data economy |url=http://dx.doi.org/10.1108/md-04-2018-0394 |journal=Management Decision |volume=57 |issue=8 |pages=1756–1783 |doi=10.1108/md-04-2018-0394 |s2cid=54024244 |issn=0025-1747}}</ref> Business analysts add value to the operational level of a business by enabling efficiency to be maximized through [[Cost reduction|cost cuts]], [[investing]] in better equipment, improving employee efficiency, and increasing production of popular products.<ref>{{Cite journal |last1=Radeschütz |first1=Sylvia |last2=Mitschang |first2=Bernhard |last3=Leymann |first3=Frank |date=2008 |editor-last=Mertins |editor-first=Kai |editor2-last=Ruggaber |editor2-first=Rainer |editor3-last=Popplewell |editor3-first=Keith |editor4-last=Xu |editor4-first=Xiaofei |title=Matching of Process Data and Operational Data for a Deep Business Analysis |url=https://link.springer.com/chapter/10.1007/978-1-84800-221-0_14 |journal=Enterprise Interoperability III |language=en |location=London |publisher=Springer |pages=171–182 |doi=10.1007/978-1-84800-221-0_14 |isbn=978-1-84800-221-0}}</ref>
The above mentioned analysis requires knowledge of the [[System Development Life Cycle]], otherwise the BA would not be able to play the different roles during a Project.
# '''Project focus''' – when a business analyst takes charge of a project, areas that are historically overlooked are more likely to be considered carefully.<ref name=":1" /> The business analyst has an essential role in projects, which includes "integrating strategic planning with [[Portfolio optimization|portfolio]] planning for Information Systems and technology",<ref name=":1" /> inclusion of the possible effects of business decisions on future performance, and the use of modelling tools to demonstrate the "as-is" and "to-be" business to all employees across various levels of the business.<ref name=":1" />
In short terms, the SDLC contains well-defined phases which are executed by the project team: a business idea or request, feasibility (business case), planning (Business requirements, Functional requirements), deliver (Coding, execution of activities), Test (testing, test cases, pilot), implementation (roll out of the idea or request), close out (documentation, post implementation review). This is also known as [[Project Methodology]].
# '''Enterprise focus''' – a business analyst who works in this area of a business helps to "optimize development of [[Innovation|innovative]] solutions"<ref name=":1" /> through the use of technology. Activities involved in an enterprise-focused business analyst's job include building current and future [[business architecture]], conducting analyses of opportunities, problems and [[Feasibility study|feasibility]], proposing new projects to build solutions, validating forecasts and assumptions being made, conducting solution assessments and validation, comparing planned and actual results of [[business plan]]s.<ref name=":1" />
# '''Competitive focus''' – the competitive environment is analyzed by business analysts "in order to develop a meaningful strategy"<ref name=":5">{{Cite journal |last1=Deshpandé |first1=Rohit |last2=Gatingon |first2=Hubert |date=July 1994 |title=Competitive analysis |url=http://dx.doi.org/10.1007/bf00993906 |journal=Marketing Letters |volume=5 |issue=3 |pages=271–287 |doi=10.1007/bf00993906 |s2cid=189942996 |issn=0923-0645}}</ref> for all areas of a business. One of the main functions of business which this is relevant in is [[marketing]]. By observing consumer behavior when interacting with a business's products and the products of its competitors, as well as the [[distinctiveness]] of [[brand]]s in the consumer space, information about [[Substitute good|substitutability]] and product performance can be determined.<ref name=":5" />


=== Specific business analyst roles ===
The BA will provide different services during the SDLC: assisting with the Business case, high level feasibility, gathering of the requirements, reviewing the design and test cases, processing change requests and trace the requirements during implementation (traceability matrix). Also there are many Project Methodologies such as RAD, SDM, Rational Rose etc.
Business analyst skills can be applied to a variety of roles within business processes.<ref name=":2" />


* Business analyst
Techniques that the Business analysts use to gather and document requirements include UML, process flows, use cases, interview skills, workshop facilitation, investigation of current state (existing systems and/or processes) etc.
* [[Business Systems Analysis|Business systems analyst]]
* [[Systems analyst]]
* [[Requirements engineering|Requirements engineer]]
* [[Process analysis|Process analyst]]
* [[Product analysis|Product analyst]]
* [[Product manager]]
* Product owner
* Enterprise analyst
* [[Business architecture|Business architect]]
* [[Management consulting|Management consultant]]
* Business [[Intelligence analysis|intelligence analyst]]
* [[Data scientist]]
* Customer Relationship Management


Business analysts can also work in areas relating to project management, product management, software development, quality assurance and interaction design.<ref name=":2" />
Skills required to support the Business analysis include communication skills, understanding of a variety of technologies and platforms (client, server and mainframe), ERD’s and relational database concepts, Object-Oriented technologies (Rational Rose, OOA, OOD, OOP), and Project SDLC.


== Skills and qualifications ==
Also the BA needs to have the ability to assemble, analyze and evaluate data and to be able to make appropriate and well-reasoned recommendations and decisions to support the Business stakeholders and the Project team.


=== Skills ===
==Other activities and skills:==


* [[Oral Communication|Oral]] and [[written communication]] skills
- Provide guidance to stakeholders on devising effective and efficient approaches to achieve the project objectives
* [[Facilitation (business)|Facilitation]], and [[Interpersonal relationship|interpersonal]] and consultative skills
- Identify and resolve issues
* [[Analytical thinking]] and [[problem solving]]
- Manage the risks
* Being detail-oriented and capable of delivering high level [[Accuracy and precision|accuracy]]
- Liaise with other project areas to coordinate interdependencies and resolve issues
* Organisational skills
- Liaise with various business units to gather requirements and resolve issues
- Improve business processes
* Knowledge of [[business structure]]
* Stakeholder analysis
- Gather and define business requirements
* [[Requirements engineering]]
- Analyze and map processes (current state/future state)
* [[Cost–benefit analysis|Cost benefit analysis]]
- Analyze data
* Processes modelling
- Produce high quality documentation (version control)
* Understanding of [[IT network assurance|networks]], databases and other technology
- Report status and issues to Project Manager(s)


These skills are a combination of [[hard skills]] and [[soft skills]]. A business analyst should have knowledge in IT and/or business, but the combination of both of these fields is what makes a business analyst such a valuable asset to the business environment. As a minimum standard, a business analyst should have a "general understanding of how systems, products and tools work" in the business environment.<ref name=":0" />
==What are the Deliverables that a BA produce?==


Some IT employees may transfer from the area of IT into a business analyst role, as their skills are often applicable in both.<ref name=":3" />
(The '''What'''): The Business requirements specification which defines what the business wants (mostly ability statements without any reference to systems or functions or design because this is irrelevant to the requirement. In case it’s relevant it is a functional requirement). Example: The ability to provide Customers with a charge out option for their contracts.


There are broader categorized skill sets which business analysts require in the work place.
(The '''How'''): The Functional requirements describes what the system, process or product/service must do in order to full fill the business requirement. Note that the Business requirement often can be broken up into sub-business requirements and many functional requirements. An example that follows from previous business requirement example: The button “Charge Out” must populate field “Charge Out amount” with a calculated pay out charge for the remainder of the contract. Non Functional requirements refer to the performance, scalability and security requirements.


# [[Mediation]] - business analysts are a useful "liaison support role" between business professionals and IT professionals in the [[workplace]]. The business analyst role is an overlap of these two [[profession]]s, and therefore the business analyst plays an essential role in [[communication]] and understanding between these two groups.<ref name=":6">{{Cite book |last1=Vonsavanh |first1=A. |url=https://opus.lib.uts.edu.au/handle/10453/11938 |title=The Roles and Skill Sets of Systems vs Business Analysts |last2=Campbell |first2=B. R. |publisher=University of Canterbury |year=2008 |isbn=978-0-473-14528-6}}</ref><ref>{{Citation |last=Milani |first=Fredrik |title=Guiding Principles for Business Analysts |date=2019 |url=https://doi.org/10.1007/978-3-030-05719-0_20 |work=Digital Business Analysis |pages=363–385 |editor-last=Milani |editor-first=Fredrik |place=Cham |publisher=Springer International Publishing |language=en |doi=10.1007/978-3-030-05719-0_20 |isbn=978-3-030-05719-0 |s2cid=115599172 |access-date=2022-05-27}}</ref>
'''Reports''': The reporting requirements (Purpose of the report, justification of the report, the report attributes and columns, runtime parameters)
# [[Requirements elicitation]] - this refers to "analyzing and gathering the needs of both [[Computer-based information technology|computer-based]] systems as well as the business".<ref name=":6" /> Successful requirements elicitation can help to improve and eliminate quality and defective requirements respectively at an early point in the [[product lifecycle]], and can therefore minimize [[wastage]] and maximize business success simultaneously.<ref>{{Cite book |last1=Hossenlopp |first1=Rosemary |url=https://books.google.com/books?id=GBhFDwAAQBAJ&q=elicitation&pg=PT1 |title=Unearthing Business Requirements: Elicitation Tools and Techniques |last2=PMP |first2=Rosemary Hossenlopp |last3=Hass |first3=Kathleen B. |last4=PMP |first4=Kathleen B. Hass |publisher=Berrett-Koehler Publishers |year=2008 |isbn=978-1-5230-9653-4 |language=en}}</ref>
# Solution designer - business analysts can contribute to the design of business functions and processes through the analysis of [[past performance]] and certain areas for improvement.<ref name=":6" /><ref>{{Cite book |last1=PMP |first1=Lori Lindbergh |url=https://books.google.com/books?id=UBlFDwAAQBAJ&dq=business+analyst+solution+design&pg=PT10 |title=From Analyst to Leader: Elevating the Role of the Business Analyst |last2=PMP |first2=Richard VanderHorst |last3=PMP |first3=Kathleen B. Hass |last4=PMP |first4=Kimi Ziemski |date=2007-12-01 |publisher=Berrett-Koehler Publishers |isbn=978-1-56726-348-0 |language=en}}</ref>
# [[Business modeling|Business modelling]] - forecasting, modelling and analyzing current and future business performance, functions and processes are essential to the business analyst role. These skills enable the business analyst to make educated business decisions.<ref name=":6" />
# Business [[problem analysis]] - a business analyst must be able to analyze the issues a business is facing in order to determine how they impact business performance, and how the business can overcome these problems with maximum efficiency.<ref name=":6" />
# [[Information system|Information System (IS)]] [[strategy evaluation]] - business analysts are required to continually monitor and control the strategic plans of a business, so that it is able to best meet its needs and goals.<ref name=":6" /> Part of this involves comparison with competitors and industry trends.<ref>{{Cite journal |last1=Leidecker |first1=Joel K. |last2=Bruno |first2=Albert V. |date=1984-02-01 |title=Identifying and using critical success factors |url=https://dx.doi.org/10.1016/0024-6301%2884%2990163-8 |journal=Long Range Planning |language=en |volume=17 |issue=1 |pages=23–32 |doi=10.1016/0024-6301(84)90163-8 |s2cid=153974817 |issn=0024-6301}}</ref>


=== Qualifications ===
'''Traceability Matrix''': A cross matrix that traces the original requirement back to the end result (function, product or task), if the end result has been achieved or not which reasons, any change requests on the requirement and the date of the implementation.
There are a number of qualifications that can lead to a career as a business analyst.


* Completing a [[bachelor's degree]] - this could be in information technology, [[business administration]] or [[economics]].<ref name=":7">{{Cite web |title=How to Become a Business Analyst (With FAQs and Answers) |url=https://au.indeed.com/career-advice/finding-a-job/how-to-become-business-analyst |access-date=2022-05-27 |website=Indeed Career Guide |language=en}}</ref>
==How to become a BA?==
* Completing a [[master's degree]] - masters degrees "help add more skills and significantly increase your [[salary]]".<ref name=":7" /> Examples of masters degrees which are relevant to business analysts include [[business analytics]], business informatics, business intelligence & analytics, [[data science]], [[management information system]]s or [[information technology]].<ref name=":7" />


The combination of all these skills and qualifications provides the business environment with deeper understanding into the behaviour of [[Market (economics)|markets]], products, competitors, [[Economy|economies]], and operations within and around a business.
The BA role is one of those occupations you cannot apply for unless you have some experience in related roles. Often Software developers follow the career path of Software developer, Functional analyst, Systems analyst, and Technical Business analyst to become Business Analyst. Business analysts often grow further into other roles as Project manager or consultant.


== Challenges ==
A BA does not always work in IT related projects, for example could be working on marketing proposition projects or in consultancy tasks.
A successful business analyst requires access to large amounts of [[data]], and in the process of using this data they must be aware of challenges relating to [[data privacy]], careful management of analytical resources, team success, and effective [[communication]] of results to external parties.<ref name=":8">{{Cite journal |last=Bose |first=Ranjit |date=2009-01-01 |title=Advanced analytics: opportunities and challenges |url=https://doi.org/10.1108/02635570910930073 |journal=Industrial Management & Data Systems |volume=109 |issue=2 |pages=155–172 |doi=10.1108/02635570910930073 |issn=0263-5577}}</ref> Considering all these factors into their tasks reduces the risk of inaccurate conclusions being drawn.<ref name=":8" />


Data privacy is an increasingly common issue, as [[social media]] and [[Big data|Big Data]] are becoming more prominent, and hence it is important for businesses to ensure that they handle and [[dissemination|distribute]] only the necessary data to the appropriate [[employees]].<ref name=":9">{{Cite journal |last1=Jain |first1=Priyank |last2=Gyanchandani |first2=Manasi |last3=Khare |first3=Nilay |date=2016-11-26 |title=Big data privacy: a technological perspective and review |journal=Journal of Big Data |language=en |volume=3 |issue=1 |pages=25 |doi=10.1186/s40537-016-0059-y |s2cid=3732848 |issn=2196-1115|doi-access=free }}</ref>
A few consulting companies provide BA training courses and there are some consulting books (UML, workshop facilitating, consultancy, communication skills) on the market. Some helpful text books are: UML for the IT Business Analyst: A Practical Guide to Object-Oriented Requirements Gathering by Howard Podeswa, Writing Effective Use Cases by Alistair Cockburn and Discovering Real Business Requirements for Software Project Success by Robin F. Goldsmith. Unfortunately most of the books describe the functional requirements gathered and specification process in full detail without clarifying the Business requirements gathering and specification process.


Management of analytical resources is necessary for business analysts to consider, as there are many ways in which a business can implement high [[initial]] costs in the process of analysis of data, and hence [[resource]]s should be carefully managed so as to not lose business profits.<ref name=":8" />
BAs work in different industries such as Finance, Banking, Insurance, Telco, Utilities, etc. It is common that BAs switch between industries. The Business Domain subject areas are workflow, billing, mediation, provisioning, customer relationship etc. The Telco industry has mapped these functional areas in their eTOM (Telecommunications Operational Map) model.


Team functionality and success is important in all areas of business, and business analytics is no different. Business analysts work best in environments where [[group dynamics]] are balanced and teamwork is maximised to ensure the best conclusions are drawn from the data.<ref name=":8" />
==See also==
*[[Business Requirements engineering]]
*[[Business Process Reengineering]]
*[[Systems analysis]]
*[[Business Analysis]]
*[[Information technology]]
*[[Use case | Use cases]]
*[[Process Modeling | Process modelling]]
*[[Data modeling | Data modelling]]


Effectively communicating to external parties is an important challenge for business analysts. The language a business analyst uses in their every-day job is likely to be difficult for other groups within and beyond the business to understand. Hence, it is essential that the business considers how they communicate their conclusions to others.<ref name=":9" />
==External References==


==See also==
[http://www.irise.com/resources/ba_resources.shtml ''Business Analysis Resources'']
*[[Business process reengineering]]
*[[Change management analyst]]
*[[Information technology]]


==References==
{{reflist|2}}


[[Category:Business analysis]]
Business Analyst Certification Programs
[[Category:Business terms]]
* [http://www.uc-certificates.com/ucirvineextension/eveningcertificate/businessanalyst/ ''UC Irvine'']
[[Category:Systems analysis]]
* [http://www.villanovau.com/Content/Mastering-BA.html ''Villanova University'']
[[Category:Business occupations]]
* [http://www.butrain.com/Business-analyst-analysis-training-courses/ ''Boston University'']
[[Category:Computer occupations]]
* [http://www.esi-intl.com/public/businessanalysis/index.asp ''ESI International'']
* [http://www.continuinged.uncc.edu/certificate/analyst/ ''UNC Charlotte'']
* [http://www.smu.ca/academic/conted/epd/mastersbusanalysts.htm ''York University/St. Marys - Canada'']

Latest revision as of 01:32, 5 November 2024

Business analyst word cloud indicating some aspects of the business analyst profession (Flickr)

A business analyst (BA) is a person who processes, interprets and documents business processes, products, services and software through analysis of data.[1][2][3][4] The role of a business analyst is to ensure business efficiency increases through their knowledge of both IT and business function.[5]

Some tasks of a business analyst include creating detailed business analysis, budgeting and forecasting, business strategising, planning and monitoring, variance analysis, pricing, reporting and defining business requirements for stakeholders.[2] The business analyst role is applicable to four key areas/levels of business functions – operational, project, enterprise and competitive focuses.[5][6] Each of these areas of business analysis have a significant impact on business performance, and assist in enhancing profitability and efficiency in all stages of the business process, and across all business functions.[6]

Role

[edit]

Business analysis has been defined as "a disciplined approach for introducing change to organization"[1] through management, processing, and interpretation of data in order to "identify and define the solution that will maximize the value delivered by an organization to its stakeholders".[1]

A business analyst's job description tends to include "creating detailed business analysis, outlining problems, opportunities and solutions for a business, budgeting and forecasting, planning and monitoring, variance and analysis, pricing, reporting, and defining business requirements and reporting back to stakeholders".[3]

There are many business activities which the business analyst is involved in. Some areas in which business analysts can have an important role are in financial analysis, quality assurance, training, business policy and procedures, market analysis, organizational development and solution testing.[5] More specifically, business analysts are required to use the data which is gathered for the purpose of analysis and interpret greater meaning for the business.[7] This can then be used to improve business performance through identifying areas for potential growth, cost reduction, understanding customer behavior, and observing economic trends and forecasts, and then reacting appropriately.[8][3]

Successful business analysts should influence the business environment by providing reliable guidance in decision making for the future through observing data which reflects the behaviour of the business in the past.[5] Business analysts are essential at all levels of a business, as both tactical and strategic planning require analysts who help with "incremental improvements to products, business processes, and application".[5]

Business analysts have an increasing need to provide a business with sustainable solutions. The Business Analyst "plays a key role in making sustainable choices, providing direction to business and influencing demand for specific technologies".[9] Business analysis practices have the opportunity to use business data in a positive way, which can lead to the transition of a sustainable world.[10]

Areas of business analysis

[edit]

Business focuses

[edit]

Due to the range of applications a business analyst can have, there are specific areas in which they can function. Kathleen B. Haas describes the requirement of business analysts in four areas of business – operations focus, project focus, enterprise focus, and competitive focus.[5]

  1. Operations focus – business analyst are able to use big data to analyze the way in which a business's operations are impacting the ability of the business to generate business value.[11] Business analysts add value to the operational level of a business by enabling efficiency to be maximized through cost cuts, investing in better equipment, improving employee efficiency, and increasing production of popular products.[12]
  2. Project focus – when a business analyst takes charge of a project, areas that are historically overlooked are more likely to be considered carefully.[5] The business analyst has an essential role in projects, which includes "integrating strategic planning with portfolio planning for Information Systems and technology",[5] inclusion of the possible effects of business decisions on future performance, and the use of modelling tools to demonstrate the "as-is" and "to-be" business to all employees across various levels of the business.[5]
  3. Enterprise focus – a business analyst who works in this area of a business helps to "optimize development of innovative solutions"[5] through the use of technology. Activities involved in an enterprise-focused business analyst's job include building current and future business architecture, conducting analyses of opportunities, problems and feasibility, proposing new projects to build solutions, validating forecasts and assumptions being made, conducting solution assessments and validation, comparing planned and actual results of business plans.[5]
  4. Competitive focus – the competitive environment is analyzed by business analysts "in order to develop a meaningful strategy"[13] for all areas of a business. One of the main functions of business which this is relevant in is marketing. By observing consumer behavior when interacting with a business's products and the products of its competitors, as well as the distinctiveness of brands in the consumer space, information about substitutability and product performance can be determined.[13]

Specific business analyst roles

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Business analyst skills can be applied to a variety of roles within business processes.[1]

Business analysts can also work in areas relating to project management, product management, software development, quality assurance and interaction design.[1]

Skills and qualifications

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Skills

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These skills are a combination of hard skills and soft skills. A business analyst should have knowledge in IT and/or business, but the combination of both of these fields is what makes a business analyst such a valuable asset to the business environment. As a minimum standard, a business analyst should have a "general understanding of how systems, products and tools work" in the business environment.[2]

Some IT employees may transfer from the area of IT into a business analyst role, as their skills are often applicable in both.[3]

There are broader categorized skill sets which business analysts require in the work place.

  1. Mediation - business analysts are a useful "liaison support role" between business professionals and IT professionals in the workplace. The business analyst role is an overlap of these two professions, and therefore the business analyst plays an essential role in communication and understanding between these two groups.[14][15]
  2. Requirements elicitation - this refers to "analyzing and gathering the needs of both computer-based systems as well as the business".[14] Successful requirements elicitation can help to improve and eliminate quality and defective requirements respectively at an early point in the product lifecycle, and can therefore minimize wastage and maximize business success simultaneously.[16]
  3. Solution designer - business analysts can contribute to the design of business functions and processes through the analysis of past performance and certain areas for improvement.[14][17]
  4. Business modelling - forecasting, modelling and analyzing current and future business performance, functions and processes are essential to the business analyst role. These skills enable the business analyst to make educated business decisions.[14]
  5. Business problem analysis - a business analyst must be able to analyze the issues a business is facing in order to determine how they impact business performance, and how the business can overcome these problems with maximum efficiency.[14]
  6. Information System (IS) strategy evaluation - business analysts are required to continually monitor and control the strategic plans of a business, so that it is able to best meet its needs and goals.[14] Part of this involves comparison with competitors and industry trends.[18]

Qualifications

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There are a number of qualifications that can lead to a career as a business analyst.

The combination of all these skills and qualifications provides the business environment with deeper understanding into the behaviour of markets, products, competitors, economies, and operations within and around a business.

Challenges

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A successful business analyst requires access to large amounts of data, and in the process of using this data they must be aware of challenges relating to data privacy, careful management of analytical resources, team success, and effective communication of results to external parties.[20] Considering all these factors into their tasks reduces the risk of inaccurate conclusions being drawn.[20]

Data privacy is an increasingly common issue, as social media and Big Data are becoming more prominent, and hence it is important for businesses to ensure that they handle and distribute only the necessary data to the appropriate employees.[21]

Management of analytical resources is necessary for business analysts to consider, as there are many ways in which a business can implement high initial costs in the process of analysis of data, and hence resources should be carefully managed so as to not lose business profits.[20]

Team functionality and success is important in all areas of business, and business analytics is no different. Business analysts work best in environments where group dynamics are balanced and teamwork is maximised to ensure the best conclusions are drawn from the data.[20]

Effectively communicating to external parties is an important challenge for business analysts. The language a business analyst uses in their every-day job is likely to be difficult for other groups within and beyond the business to understand. Hence, it is essential that the business considers how they communicate their conclusions to others.[21]

See also

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References

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  1. ^ a b c d e "What is Business Analysis? | IIBA®". www.iiba.org. Retrieved 2022-04-14.
  2. ^ a b c "What is a BA". Business Analyst Solutions. Retrieved 2022-04-14.
  3. ^ a b c d "What is a business analyst? A key role for business-IT efficiency". CIO. Retrieved 2022-05-13.
  4. ^ "How to become a Business Analyst?". Techcanvass. Retrieved 2024-06-13.
  5. ^ a b c d e f g h i j k B., Hass, Kathleen (2011). The Enterprise Business Analyst : DEVELOPING CREATIVE SOLUTIONS TO COMPLEX BUSINESS PROBLEMS. ISBN 978-1-56726-349-7. OCLC 819807719.{{cite book}}: CS1 maint: multiple names: authors list (link)
  6. ^ a b Fleigher, Craig S.; Bensoussan, Babette E. (2015). Business and Competitive Analysis : Effective Application of New and Classic Methods. ISBN 978-0-13-308640-9. OCLC 824734026.
  7. ^ Fosso Wamba, Samuel; Akter, Shahriar; Edwards, Andrew; Chopin, Geoffrey; Gnanzou, Denis (July 2015). "How 'big data' can make big impact: Findings from a systematic review and a longitudinal case study". International Journal of Production Economics. 165: 234–246. doi:10.1016/j.ijpe.2014.12.031. ISSN 0925-5273. S2CID 154510222.
  8. ^ Park, Joon; Jeong, Seung R. (2016-08-31). "A Study on the Relative Importance of Underlying Competencies of Business Analysts". KSII Transactions on Internet and Information Systems. 10 (8). doi:10.3837/tiis.2016.08.031. ISSN 1976-7277. S2CID 10396219.
  9. ^ Richards, Debbie; Marrone, Mauricio; Vatanasakdakul, Savanid (2011-01-01). "What does an Information Systems Graduate need to know? A focus on Business Analysts and their role in sustainability". ACIS 2011 Proceedings.
  10. ^ Seidel, Stefan; Bharati, Pratyush; Fridgen, Gilbert; Watson, Richard; Albizri, Abdullah; Boudreau, Marie-Claude; Butler, Tom; Kruse, Leona; Guzman, Indira; Karsten, Helena; Lee, Habin (2017-02-01). "The Sustainability Imperative in Information Systems Research". Communications of the Association for Information Systems. 40 (1): 40–52. doi:10.17705/1CAIS.04003. ISSN 1529-3181.
  11. ^ Fosso Wamba, Samuel; Akter, Shahriar; Trinchera, Laura; De Bourmont, Marc (2019-09-12). "Turning information quality into firm performance in the big data economy". Management Decision. 57 (8): 1756–1783. doi:10.1108/md-04-2018-0394. ISSN 0025-1747. S2CID 54024244.
  12. ^ Radeschütz, Sylvia; Mitschang, Bernhard; Leymann, Frank (2008). Mertins, Kai; Ruggaber, Rainer; Popplewell, Keith; Xu, Xiaofei (eds.). "Matching of Process Data and Operational Data for a Deep Business Analysis". Enterprise Interoperability III. London: Springer: 171–182. doi:10.1007/978-1-84800-221-0_14. ISBN 978-1-84800-221-0.
  13. ^ a b Deshpandé, Rohit; Gatingon, Hubert (July 1994). "Competitive analysis". Marketing Letters. 5 (3): 271–287. doi:10.1007/bf00993906. ISSN 0923-0645. S2CID 189942996.
  14. ^ a b c d e f Vonsavanh, A.; Campbell, B. R. (2008). The Roles and Skill Sets of Systems vs Business Analysts. University of Canterbury. ISBN 978-0-473-14528-6.
  15. ^ Milani, Fredrik (2019), Milani, Fredrik (ed.), "Guiding Principles for Business Analysts", Digital Business Analysis, Cham: Springer International Publishing, pp. 363–385, doi:10.1007/978-3-030-05719-0_20, ISBN 978-3-030-05719-0, S2CID 115599172, retrieved 2022-05-27
  16. ^ Hossenlopp, Rosemary; PMP, Rosemary Hossenlopp; Hass, Kathleen B.; PMP, Kathleen B. Hass (2008). Unearthing Business Requirements: Elicitation Tools and Techniques. Berrett-Koehler Publishers. ISBN 978-1-5230-9653-4.
  17. ^ PMP, Lori Lindbergh; PMP, Richard VanderHorst; PMP, Kathleen B. Hass; PMP, Kimi Ziemski (2007-12-01). From Analyst to Leader: Elevating the Role of the Business Analyst. Berrett-Koehler Publishers. ISBN 978-1-56726-348-0.
  18. ^ Leidecker, Joel K.; Bruno, Albert V. (1984-02-01). "Identifying and using critical success factors". Long Range Planning. 17 (1): 23–32. doi:10.1016/0024-6301(84)90163-8. ISSN 0024-6301. S2CID 153974817.
  19. ^ a b c "How to Become a Business Analyst (With FAQs and Answers)". Indeed Career Guide. Retrieved 2022-05-27.
  20. ^ a b c d Bose, Ranjit (2009-01-01). "Advanced analytics: opportunities and challenges". Industrial Management & Data Systems. 109 (2): 155–172. doi:10.1108/02635570910930073. ISSN 0263-5577.
  21. ^ a b Jain, Priyank; Gyanchandani, Manasi; Khare, Nilay (2016-11-26). "Big data privacy: a technological perspective and review". Journal of Big Data. 3 (1): 25. doi:10.1186/s40537-016-0059-y. ISSN 2196-1115. S2CID 3732848.
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