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For broader coverage of this topic, see Business Analysis.
Business Analyst Word Cloud - Flickr. This image shows aspects of the Business Analyst profession

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] The goal of a business analyst is to ensure an increase in business efficiency through their knowledge of both IT and business processes, [4] in a project based way. A business analyst can be seen as bridging the gap between the customers and IT teams. Business analysts in the context of requirements engineering have had to adapt to evolving tasks, techniques, and challenges [5]. One of these evolving techniques relevant for business analysts was the introduction of agile software development .

Some tasks of a business analyst include creating detailed business analyses, budgeting and forecasting, 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.[4][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] Through the acquiring of certain certificates (ECBA, CCBA, etc.) or educational degrees (business analytics, data science, etc.) one can show competence for a career as a business analyst.

Historic development

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The past

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When looking at Business analysis in a broad way, it could be argued that the characteristics of the Business Analyst role, along with the drive for improvement through innovative thinking, have been around since the onset of the Mesolithic era (Middle of Old Stone Age).[7][8] In this scenario, one has to think about actions like finding better ways to keep ourselves safe, ensuring that there was never a lack of food or shelter, and making it easier to obtain those necessities of life. These are all examples of the urge for better, more efficient ways of maximizing results.[7][8] However, the more modern Business Analyst role of IT professional started after the introduction of the first mass produced personal computers back in the 1940s. One limitation was that the computers of this era were not considered to be user-friendly, which resulted in a surging demand for IT professionals. This was the result of fragmented and inefficient communication between the programmers who worked on the technical program build and system rewrites, and the actual end users who did not understand the technical aspects of the work.[7][8][9]

This communication mishap caused the rise of the first modern Business Analysts. However, in the beginning Business Analysts were known as Systems analyst, with their focus mostly on optimising software and computer processes and systems. Regardless, the ability to understand the language spoken by both the business side of organisations and the technology group offered value and clarity that was highly needed. These skills allowed Business Analysts to function as translators, being well known with the business-speak and technical jargon.[7][9][10]

The next big change within the field of Business Analyst was the 2001 introduction of the Agile Manifesto, giving way for Agile software development. After its release, Agile has played an important role in business analysis. Within the Business Analyst community, it is widely agreed upon that every Business Analyst should familiarise themselves with the Agile mindset.[7] Ever since the shift further into Agile contexts, BAs began to expand their skills and expertise into other areas of the business. This caused Business Analysts to take on more of a Product Ownership role. It also resulted in a growing collaboration between stakeholders, by being the facilitator of said collaboration.[7] Business analysts evolved to be important at the initiation stage of projects, where defining the business requirements, along with outlining the current- and future state of the business related to the business problem and solution, are part of their tasks.[9]

Present day and the future

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Today, Business Analysts are coming from both the IT and business areas. Business Analysts are hence now expected to have a combination of IT and business skills. Expressed in actual tasks, BAs are able to make recommendations about procedural -, personnel -, and policy changes on top of recommending software. This shows that BAs are not merely focused on IT related tasks, but can be utilised on a larger organisational scale.[8][10][11][12] As expressed by the International Institute of Business Analysis: “The Business Analyst can help improve the business system not just the business software”.[8] This does not take away from the fact that a Business Analyst needs to be digital to be an adequate Business Analyst, as in today's there is no such thing as a “non-digital” Business Analyst nowadays.[11] However the lines are blurred and open for interpretation about what is and is not digital.

Regardless, this shift to a more involved and central position within the business is expected to continue for the near future. Additionally, due to the rapid evolution of technology BAs will, among others, be expected to have knowledge of artificial intelligence (AI) and machine learning. This will help the Business Analyst to create strategies for the business that support these upcoming technologies. [13]

Role

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Business analysis is defined by the International Institute of Business Analysis (IIBA) as the disciplined approach for introducing change to a organisation[1]. This is done through management, processing, and interpretation of data in order to identify and define the solution that maximises the value delivered by that organisation to its stakeholders.[1]

A business analyst's job description tends to include: creating detailed business analysis, outlining problems, opportunities and solutions, budgeting and forecasting, planning and monitoring, variance and analysis, pricing, reporting, and defining business requirements and reporting back to stakeholders.[3] The job of business analysts is not to define the scope of a solution or to make sure that it is delivered. Instead, a business analyst should see that the business is using the solution in the most efficient way for solving its problems. In general, this cannot be done without the implementation of change within an organisation [11].

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, requirements engineering, business policy and procedures, organisational development and solution testing.[4][14] 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.[15] This can then be used to improve business performance through identifying areas for potential growth, cost reduction, understanding customer behaviour, and observing economic trends and forecasts, and then reacting appropriately.[16][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.[4] Business analysts are essential at all levels of a business, as both tactical and strategic planning require analysts who help with incrementally improving products, business processes, and application.[4]

Business analysts have an increasing need to provide a business with sustainable solutions. The Business Analyst has a key role in making sustainable choices, providing direction to business and influencing demand for specific technologies.[17] Business analysis practices have the opportunity to use business data in a positive way, which can lead to the transition of a sustainable world.[18]

Focus areas

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Due to the range of applications a business analyst can have, there are specific areas in which they can function. Kathleen B. Hass describes the requirement of business analysts in four areas of business – operations focus, project focus, enterprise focus, and competitive focus.[4]

The four areas of business - as described by Kathleen B. Haas
Area of business Description
Operational focus Business analysts are able to use big data to analyse the way in which a business's operations are impacting the ability of the business to generate business value.[19] Business analysts add value to the operational level of a business by enabling efficiency to be maximised through cost cuts, investing in better equipment, improving employee efficiency, and increasing production of popular products.[20]
Project focus When a business analyst takes charge of a project, areas that are historically overlooked are more likely to be considered carefully.[4] The business analyst has an essential role in projects, which includes the integration of strategic planning with portfolio planning for Information Systems and technology,[4] 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.[4]
Enterprise focus A business analyst who works in this area of a business helps with optimising the development of innovative solutions[4] 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.[4]
Competitive focus The competitive environment is analysed by business analysts in order to develop a meaningful strategy[21] for all areas of a business. One of the main functions of business which this is relevant in is marketing. By observing consumer behaviour 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.[21]
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With Business Analysis being a disciplined approach for introducing and managing change to organizations, the job title of “Business Analyst” is only one of many linked to this principle.[1] Other job titles that are related to business analysis, as described by the IIBA, include the following:

Business analysts can also work in areas relating to project management, product management, software development, quality assurance and interaction design, as they rely heavily on business analysis skills for success.[1]

Skills

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Basic skills, as defined by the IIBA

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The BABOK (Business Analysis Body of Knowledge) is guide, issued by the International Institute of Business Analysis (IIBA), which lays out the main competences and basic skills for business analysis. According to the IIBA,[1] a subset of the basic skills most important for a business analyst include:

Subset of most important Business Analyst skills
Basic skills Description
Oral and written communication skills Business Analysts delegate an great part of their time conveying fast amount of business requirements, ideas, user stories, test cases and opinions using verbal and written communication. It is important for Business Analysts to have the ability to ask the correct questions in order to understand all stakeholders' needs. These stakeholders expect continuous support and updates from Business Analysts within a project.
Facilitation, and interpersonal and consultative skills With the Business Analyst functioning as the bridge between various stakeholders, they need to be able to ensure proper communication of all well articulated and specified requirements.[22]
Analytical thinking and problem solving An analytical mind is key to problem-solving. Using an analysis of various factors helps in the process of finding the best solution. This also prevents potential problems in the provided context. Different analysis techniques like textual and visual models help Business Analysts with improving the efficiency of their work within a project.[23]
Organisational skills Goal setting, project management, and time management are organisational skills necessary for business analysts. Because the importance of business analysts is ever growing, Business Analysts now have more to deal with than before as they are involved in handling the company's priorities. Having the skills as mentioned before, helps them to do their work better and more efficient.[24]
Knowledge of business structure When a Business Analyst gets to know the company's business in-depth, they will be able to more precisely analyze the organisational context. This gives way to the identification of more opportunities for improvement.[25]
Stakeholder analysis This requires identifying the stakeholders who share a common business need. Tasks include analyzing, recording, and examining different attributes of identified stakeholders.[26]
Requirements engineering (RE) The systems and software engineering process that covers all activities involved in discovering, documenting and maintaining a set of requirements in the engineering design process. It is often rigid and with an focus on developing engineering specifications for a product. The activities within RE vary widely and include: requirement elicitation, requirements analysis, requirements specification, requirements validation, and requirements management. With the primarily focus of these requirements engineering activities being on building products, it does not include many of the other activities involved in business analysis.[27]
Cost benefit analysis The systematic process that business use in order to analyze which decisions to make and which to forgo.[28]
Processes modelling Building, designing, tracking, implementing, adapting, and improving business processes. These processes are all a significant part of the work business analysts.[24]

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 basic understanding of the way that 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]

Broader subset of business analysis skills

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While the basic skills listed above give a general understanding of what is expected from business analysis, broader categorized skill sets can be defined. These subsets of skills more clearly define what is required from business analysts in the work place, and can be seen in the table below.

Broad subset of Business Analyst skills
Skill set Description
Requirements elicitation This refers to "analysing and gathering the needs of both computer-based systems as well as the business".[29] Successful requirements elicitation can help to improve quality and eliminate defective requirements at an early point in the product lifecycle, and can therefore minimise wastage and maximise business success simultaneously.[30]
Requirements analysis and negotiation Focus in on the tasks that determine the needs or conditions to meet the new or altered product or project. Requirements are identified, taking into account the possible conflicting requirements of various stakeholders. Through negotiation conflicts with stakeholders are resolved. These skills are vital to the success or failure of a systems or software project. As aids in these activities, both written and graphical tools are used. Examples of written tools include: use cases and user stories, while examples of graphical tools are: UML and LML.
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.[29][31]
Designing solutions Business analysts can contribute to the design of business functions and processes through the analysis of past performance and certain areas for improvement.[29][32]
Business modelling Include forecasting, modelling and analysing current and future business performance, functions and processes are essential to the business analyst role. These skills enable a Business Analyst to make educated business decisions.[29]
Business problem analysis A business analyst must be able to analyse 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.[29]
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.[29] Part of this involves comparison with competitors and industry trends.[33]

The shift from a waterfall to agile software development workflows has impacted the peripheral competences of Business analysts. While the core competences and skillsets  of business analysts as stated above are accurate, the shift to agile has increased the importance of use cases as a tool to explain user interactions.

Qualifications

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There are a number of qualifications that can lead to a career as a business analyst. For example, the 'BCS International Diploma in Business Analysis qualification' provides an internationally recognised qualification. The IIBA also identifies three other key certifications as an association:

The ECBis an entry-level certification for any and all professionals who wish to become a business analyst. This certification is mainly meant for those that do not yet have any experience as business analysts, but are interested in becoming one.[34][35] Meanwhile, the CCB is a certification focused more on those with mid-level experience within the field of business analysis with the desire to improve their skill-set. It requires a minimum of 5,750 hours of business analytics work aligned with the BABOK guide in the last seven years.[35] Lastly, as the name implies, the CBAP is for a professional business analyst, with an already good amount of experience in business analysis. Due to the difficulty of obtaining this certification, it is widely recognized and accepted, making it popular among business analysts.[34][35]

Alternatives to certificates include:

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.[37] Considering all these factors into their tasks reduces the risk of irregular[disambiguation needed] and inaccurate conclusions being drawn.[37]

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.[38]

Management of analytical resources is a task which is necessary for business analysts to indulge in. This is due to to there being many ways in which a business can implement high initial costs, when looking at the process of data analysis. It is for that reason that resources should be carefully managed so as to not lose business profits.[37]

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.[37]

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.[38]

See also

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References

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  1. ^ a b c d e f "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. ^ 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)
  5. ^ Shah, Muhammad (2017). "Evolving Role of a Business Analyst" (PDF). International Journal of Business and Management. 1 (2). doi:10.26666/rmp.ijbm.2017.2.2.
  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. ^ a b c d e f Aschenbrenner, Jeremy. "The Evolution of the Business Analyst Role". The BA Guide. Retrieved 2023-01-11.
  8. ^ a b c d e Hoque, Kazi. "A brief History of Business Analysis". bangladesh.iiba.org. Retrieved 2023-01-12.
  9. ^ a b c "History of Business Analysis". Harrybaker Training Institute. Retrieved 2023-01-13.
  10. ^ a b Saboe, Dave (2018-07-03). "MBA161: Evolution of the BA Role". Mastering Business Analysis. Retrieved 2023-01-12.
  11. ^ a b c Arkhipov, Igor (2022-01-19). "The evolution of a digital BA". Medium. Retrieved 2023-01-13.
  12. ^ "History of Business Analysis". Harrybaker Training Institute. Retrieved 2023-01-13.
  13. ^ van Loon, Ronald (June 29, 2022). "3 Reasons Why You Should Become A Business Analyst In 2022". www.linkedin.com. Retrieved 2023-01-22.
  14. ^ "Business Analysis: The Elicitation Process". UniversalClass.com. Retrieved 2023-01-13.
  15. ^ 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.
  16. ^ 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.
  17. ^ 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.
  18. ^ 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.
  19. ^ 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.
  20. ^ 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.
  21. ^ 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.
  22. ^ "Basic Interpersonal Skills needed by a Business Analyst". issuu. Retrieved 2023-01-22.
  23. ^ Paspelava, Darya (2019-05-02). "Business Analyst Communication Skills | Important Soft Skills for Business Analyst". Exposit. Retrieved 2023-01-22.
  24. ^ a b Osborne, Justin (2021-10-14). "9 Skills Every Business Analyst Needs To Succeed". BA times. Retrieved 2023-01-22.
  25. ^ Nicholas, Jerry. "What Skills Needed For A Business Analyst | 11 Key BA Skills To Excel At". Business Analyst Mentor. Retrieved 2023-01-22.
  26. ^ "Stakeholder mapping in business analysis". The Functional BA. 2020-01-21. Retrieved 2023-01-22.
  27. ^ Parker, John (2013-01-14). "Requirements Engineering vs. Business Analysis". Enfocus Solutions Inc. Retrieved 2023-01-22.
  28. ^ Hayes, Adam (October 31, 2022). "What Is Cost-Benefit Analysis, How Is it Used, What Are its Pros and Cons?". Investopedia. Retrieved 2023-01-22.
  29. ^ 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.
  30. ^ 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.
  31. ^ 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
  32. ^ 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.
  33. ^ 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.
  34. ^ a b "Top 6 Best Business Analyst Certifications For You - BABeginners". BA beginners. Retrieved 2023-01-13.
  35. ^ a b c Dawes-Chatha, Sandra (2022-10-18). "The 7 Best Business Analyst Certifications to Level Up Your Career". MUO. Retrieved 2023-01-13.
  36. ^ a b c "How to Become a Business Analyst (With FAQs and Answers)". Indeed Career Guide. Retrieved 2022-05-27.
  37. ^ 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.
  38. ^ 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.{{cite journal}}: CS1 maint: unflagged free DOI (link)

Category:Business analysis Category:Business terms Category:Systems analysis Category:Business occupations Category:Computer occupations

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