According to the International Institute for Business Analysis (IIBA), “Business analysis is the practice of enabling change in an enterprise by defining needs and recommending solutions that deliver value to stakeholders. It enables an enterprise to articulate needs and the rationale for change, and to design and describe solutions that can deliver value.”
Business analysis and analysts have become invaluable assets to companies in recent years. An effective analysis can be valuable for making informed decisions based on data and research.
Writing an analysis can help you build support around a particular idea, cause or project. This is why knowing how to write one is a valuable skill for any career.
What is an analysis?
An analysis is a detailed examination of a topic. It involves performing research and separating results into smaller, logical topics to form reasonable conclusions. It presents a specific argument about the topic and supports that argument with evidence. You can perform an analysis to find different solutions to a challenge in a variety of situations.
An analysis is important because it organizes and interprets data, and then structures that data into presentable information useful for real-world applications. For example, a marketing analysis interprets buying patterns, market size, demographics and other variables to develop a specific marketing plan.
Understanding analysis in business
Business analysis is a strategy for initiating and managing change in organisations, whether for-profit, government or non-profit organisations. While there are dedicated business analysts, many additional positions – including management, project management, product management, software development, quality assurance, and interaction design – rely on business analysis for success.
Business analysis is used to locate and communicate the need for change in how organisations operate, as well as to help organisations implement that change. Analysts identify and define solutions that will help a business deliver the most value to its stakeholders. They constantly question
- what they observe
- what’s being done and why
- whether there might be a better way to do things
- whether rules are being followed
- whether exceptions are being made
- whether those rules should even exist in the first place.
They also analyse the efficiency of a business and work across all levels of an organisation. Their responsibilities range from defining strategy to developing enterprise architecture to taking a leadership role in defining programme and project goals and requirements, as well as supporting continuous improvement in the organisation’s technology and processes.
Business analysts (and aspiring business analysts) can benefit from reading the BABOK Guide, the globally recognised standard for business analysis.
Methods of business analysis
There are three methods of business analysis:
- Descriptive analysis interprets historical data to identify trends and patterns
- Predictive analysis uses statistics to predict future outcomes
- Prescriptive analysis applies testing and other techniques to determine which outcome will produce the best result in a given scenario.
The best method to use is determined by the current company circumstances.
Organisations can use cloud analytics solutions to combine data from many departments, such as sales, marketing, HR, and finance, to create a single view that demonstrates how one department’s figures affect the others. Furthermore, techniques like visualisation, predictive insights, and scenario modelling provide a wide range of unique insights across a company.
Business analysis techniques
Business analysts use hundreds of different techniques to assess their clients. Here are just a few of the most popular.
SWOT Analysis
Strengths, Weaknesses, Opportunities, and Threats are the four elements of SWOT analysis. Strengths and Weaknesses are “internal” factors, whereas Threats and Opportunities are “external” factors. The business analyst assigns each element to a quadrant and places the data as the answers for each quadrant.
SWOT analysis is one of the most widely used business analysis techniques today.
PESTLE Analysis
PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental. Each of these elements influences business decisions. Business analysts use the PESTLE analysis technique to identify elements in the organisation’s operating environment, as well as to analyse how those PESTLE aspects will affect the organisation’s future performance.
PESTLE can be used in tandem with SWOT to identify external Opportunities and Threats to a business.
MOST Analysis
MOST stands for Mission, Objective, Strategy and Tactics. An organisation’s Mission pertains to its purpose and aims for its future. It is easier to analyse and assess the remaining components if the mission is specific. Objectives are individual targets that help a business to achieve its Mission. Objectives must be SMART – that is, Specific, Measurable, Achievable, Realistic and Timely.
A company’s strategy is the steps that it takes to achieve its objectives and accomplish its mission. Tactics are the methods that a company uses to carry out its strategy.
Brainstorming
This is a group activity and one of the most frequently used techniques in business analysis. This is a creative strategy where a group of people come together to produce ideas, analyse root causes, and provide solutions to issues.
Brainstorming is used in tandem with other business analysis techniques such as SWOT analysis and MOST analysis.
Use Case Modelling
Use case modelling uses infographics to show how a business should operate in a proposed system through user interactions. This is most commonly used in software development projects and during the design phase to convert business requirements into practical specifications inside an existing development project.
CATWOE
CATWOE stands for Customers, Actors, Transformation Process, Worldview, Owner and Environmental Constraints. It highlights the key players and beneficiaries, bringing together the perspectives of various stakeholders on a single platform.
This technique is used by business analysts to assess how any suggested change will affect the various parties.
Six Thinking Hats
This business analysis method directs a group’s thinking by encouraging them to evaluate a variety of ideas and viewpoints. The six coloured “hats” represent different personalities, from creative types to logical thinkers.
Business Process Modelling (BPM)
The goal of business process modelling is to improve processes. It is a legacy process that is frequently used as a business analysis approach during the analysis phase of a project to identify the gaps between existing business processes and future business processes.
Business analysts execute the following duties in a BPM project, according to IIBA: Strategic Planning, Business Model Analysis, Defining Processes and Technical Analysis.
Processes, decisions, and information are usually depicted as a sequential workflow in a BPM diagram.
How to effectively create a business analysis report
Define the purpose and scope
Before you start writing your report, you need to define the purpose and scope of your analysis. What is the main question or goal that you are trying to answer or achieve? What are the key assumptions, constraints, and criteria that guide your analysis? Also, what are the expected outcomes and benefits of your analysis?
You should also identify your target audience and their expectations, preferences, and level of knowledge. This will help you tailor your report to their needs and interests.
Collect and analyze data
The next step is to collect and analyze data that are relevant to your purpose and scope. You may use various sources and methods of data collection, such as surveys, interviews, observations, or databases. Also apply appropriate data analysis techniques, such as descriptive statistics, inferential statistics, or predictive modelling, to explore, summarize, and interpret your data.
You should also document your data collection and analysis process, including the tools, formulas, and assumptions that you use.
Organize and structure your report
Once you have collected and analyzed your data, you need to organize and structure your report clearly and logically. You should follow the standard format of a business analysis report, which typically consists of the following sections: executive summary, introduction, methodology, findings, conclusions, recommendations, and appendices.
You should also use headings, subheadings, tables, charts, and graphs to break down your report into manageable chunks and highlight the key points.
Write and edit your report
The next step is to write and edit your report in concise and professional language. You should use the active voice, simple sentences, and precise words to convey your message. You should also avoid jargon, acronyms, and technical terms that may confuse your audience. Proofread your report for spelling, grammar, and punctuation errors.
Also, you may ask someone else to review your report for clarity, accuracy, and completeness.
Present and communicate your report
The final step is to present and communicate your report to your audience. You may use different formats and channels to present your report, such as slides, videos, or webinars. You should also prepare for the presentation by rehearsing your speech, anticipating questions, and preparing handouts or notes.
Along with these, you should also engage your audience by using stories, examples, or questions to illustrate your points. Solicit feedback and follow up on your report to ensure that your analysis is understood and implemented.
Tips for writing an analysis
The following tips will help you write a reasonable and critical analysis:
Be explicit
There are many ways to interpret evidence, so it’s crucial all evidence explicitly connects to your argument. With every piece of evidence, follow up with one to two sentences giving your own interpretation of how the information links to your argument. Provide more insight if the evidence is particularly significant.
Be balanced
An analysis should take into account all facts and present reasonable judgments. If you find information that disputes your stance, analyze it, then use strong evidence to show your argument is still credible. Use phrases such as “This evidence suggests…” or “Many are in agreement that…” to maintain a critical and credible analysis.
Analyze all evidence
All evidence provides some level of relevance. Always analyze each piece of evidence you present in your analysis, even if the evidence contradicts your argument. Acknowledging data that may not fully support your thesis can help you make an effective argument against it.
Make a mind map
It’s helpful to brainstorm and create an outline before writing to collect and connect your thoughts. Try drawing a mind map, beginning with a central topic bubble. Write smaller ideas related to the topic around the outside, then connect the smaller bubbles if there are clear patterns or related ideas.
As you connect ideas, themes will emerge. This can help you narrow down your topic and create a thesis.
Why are business analysis and analytics important?
Business analysis and business analytics are excellent tools for ensuring that a company grows and succeeds. Thorough business analysis and solution implementation can improve a variety of areas in a company’s operations.
- ROI is likely to rise, as the business analyst identifies areas where a company is wasting time or money and determines how to minimise costs.
- Business analysts can help a company save money by identifying areas where it is overspending and recommending solutions to cut costs in those areas. Business analysts play an essential role in helping firms develop and flourish over time, because they can help them save money and find methods to cut crucial time out of business procedures. A smart business analyst can ensure that a company stays on track so that its owners don’t have to worry about it, giving them more time to focus on other essential matters.
Technology advancements have had a significant impact on how businesses use IT-based solutions to address a variety of business difficulties, challenges, and concerns. As a result, many organisations throughout the world have continued to have a strong demand for qualified personnel who are familiar with business analysis procedures.
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