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18 hours a week. 

That's how long the average employee spends in (mostly unnecessary) meetings, according to the Australian Financial Review. But unnecessary meetings aren't just a waste of time, but also money, at around $39 000 per employee (AFR, 2022).

This common problem is the perfect example of an organisational issue that business analysis can successfully solve or prevent.  

The importance of business analysis within an organisation cannot be overstated. It is both a foundational element and a multidisciplinary domain; and with a wide area of responsibility, it ultimately delivers a strong return on investment (ROI) to organisations in a diverse set of areas.  

Let’s examine how.  

'Business analysis is the practice of enabling change in an organisational context, by defining needs and recommending solutions that deliver value to stakeholders' 

International Institute of Business Analysis (IIBA)

What is Business Analysis? 

Business analysis is the process of identifying business needs and determining the best solutions to meet these whilst benefiting stakeholders. It is centered around introducing and managing change in an organisation and can be used throughout organisations of any size or industry type. To achieve these solutions, a business analyst must understand:  

  • The business 
  • The  context of the business problem relating to the business processes 
  • Essential business processes and applications that support them.  

Business analysis draws from skills within project management, communication, data analysis and other areas. It plays a pivotal role in ensuring projects align with organisational goals, delivering value to stakeholders and clients alike. It also uses techniques to help understand the structure, rules, and functions of an organisation. Some questions addressed during analysis include: 

  • Where are the opportunities and how do/will we use them? 
  • Where do we see threats and how we do tackle them? 
  • Where are opportunities for growth and improvement?  

There are two types of business analysis - internal and external.  

Internal business analysis is focused on the organisation and involves the investigation of status, process, organisation, information, people, information technology, etc. 

External business analysis is focused on market opportunities, the organisation’s position in relation to competitors and the demand for desired results. 

By fostering objective judgements using factual evidence, business analysis creates insights that ultimately drive sustainable revenue growth and prevents recurring mistakes. Evidence comes from business exploration which involves managing data, strategic analysis tools and informed decision-making, which includes identification of business opportunities. Potential data exploration sources include: 

  • Business reports and operational dashboards — this may include investigating detailed records and figuring out what can be learnt about day-to-day business from these.  
  • Key Performance Indicators (KP1s) — what is measured? This includes reports to shareholders, market analysis and annual reports.  
  • Data statistics and profiling — means, averages, and histograms for key attributes and metrics — often available through your company’s power BI analytics.

What are the Core Responsibilities of Business Analysis? 

It is common for business analysts to work beyond their role scope into other domains, such as change, project management and test analysis.  In a nutshell, a BA works to improve overall business efficiency whilst eliminating any redundancies, and converts findings of data specialists and programmers into practical solutions.  

Key areas of responsibility include:  

  • Investigating business situations 
  • Identifying and evaluating appropriate options 
  • Defining requirements 
  • Ensuring the effective use of information systems and technology. 

There is a diverse range of BA models available, ranging from PESTLE, CATWOE, de Bono's Six Thinking Hats, Five Whys to the MoSCoW method, and many more. Business analysis focuses on improving business processes and functions, rather than just analysing data. They analyse what a business needs to function optimally, what needs to improve, and then work to implement solutions. This may include improving processes, changing policies, or introducing new technology. 

For example, a business analyst may work with the client who has a particular requirement in their business, and the development team, which either builds a product or delivers a service to fulfil that requirement. They will typically coordinate between two parties to make sure solutions created by development meet client requirements and they are adapting solutions as these needs change. They may also act as a technical project manager and collaborate with stakeholders to design and implement the service or product and ensure it is solving the client’s problem.

Why is Business Analysis Important?

Robust business analysis leads to many benefits, typically including a higher competitive position, lower costs, higher customer satisfaction, a shorter lead time, and general improvement of workplaces. Organisations generally lose a lot of money in activities that are barely visible, such as poor cooperation and problem solving, unnecessary meetings and high labour costs (due to complicated processes). Business analysis can address these and many other issues head-on.  

The four types of analytics

These soft and hard  analytics skills can be utilised across different facets of business, , including: 

  • Descriptive analytics – what’s happening to my business right now? 
  • Diagnostic analytics – why is this happening in my business? 
  • Predictive analytics – What’s likely to happen in the future? 
  • Prescriptive analytics – What do I need to do to succeed? 

In the software development realm, for example, business analysis plays a crucial role in the process, by acting as a bridge between business stakeholders and technical developers. The primary focus is to understand the business requirements, processes, and objectives, and then translate these into clear and actionable specifications for software development.  

Here are some benefits of using a business analyst for software needs:

1.      Requirement elicitation and documentation: elicitation is the gathering and extracting of information, which lays the foundation for successful project planning and execution.  BAs excel at gathering and documenting detailed and accurate requirements from many different stakeholders. They ensure that all relevant information is captured and translated into a format that developers can understand and work with. 

2.     Clear communication: BAs facilitate effective communication between business and technical teams. They bridge the gap between non-technical stakeholders and developers, ensuring that both sides understand each other's needs and concerns for optimal solutions.  

What are the Benefits of Business Analysis?

Understanding and problem identification  

At its core, business analysis greatly assists in understanding both the structure and dynamics of an organisation. This understanding becomes a cornerstone for addressing other challenges and leads to highly tailored solutions. This extends beyond just issue resolution but identifies potential solutions and recommendationss solutions that aligns with both the short and long term. 

Change articulation and value 

More than just addressing challenges, business analysis excels in articulating the need for change. This ability to communicate the necessity for change streamlines the process of solution implementation. This enhances value through improved decision-making, accurate identification of business needs, and alignment with the objectives of stakeholders.  

Risk management  

Businesses analysis results in better communication and optimised processes, collectively leading to improved efficiency and effectiveness, which leads to more impactful risk management.  

Resource allocation  

Strategically allocating resources and aligning them with stakeholder objectives cements the strong ROI that business analysis brings. This approach ensures better resource allocation and furnishes a roadmap for success.  

Project management efficiency and waste reduction  

Business analysis equips organisations with tools for streamlined project management, enhancing efficiency and reducing waste. This culminates in the reduction of waste (time, money, labour, resources) and the timely completion of projects. Furthermore, project efficiency gains momentum through improved understanding and streamlined processes. 

The Takeaway

Business analysis has a strong return on investment (ROI). It plays a crucial role in many businesses by acting as a bridge between stakeholders and the internal team. The primary focus is to understand the business requirements, processes and objectives and translate these into clear and actionable insights for sustainable long-term growth. 

Let's Talk.  

If you feel that your business could benefit from business analysis, do not hesitate to contact us today. We have business analysts in-house at Dapth committed to your long-term growth.  

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Amorette Klotz
Digital Coordinator , Dapth
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