Business Analysis

September 11, 2025
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What is Business Analysis?

Business analysis is the process of identifying business needs and finding solutions to business problems. It involves understanding how an organization functions, evaluating processes and systems, and recommending improvements that help achieve strategic goals. This discipline bridges the gap between stakeholders and technical teams by defining requirements and ensuring solutions meet business objectives. Professionals who perform this role, known as business analysts, work closely with managers, users, and developers to deliver value through effective change.

Business analysis is used across various industries to support informed decision-making, guide project development, and enhance operational efficiency. It combines analytical thinking, communication skills, and knowledge of business operations to assess current performance and propose future improvements. The goal is to deliver recommendations that address problems and enable organizations to adapt to change effectively.

Key Points

  • Business analysis focuses on understanding business needs and defining clear, actionable requirements.
  • It helps organizations identify gaps in performance, systems, or strategy.
  • Business analysts play a critical role in managing stakeholder expectations and aligning solutions with business goals.
  • The process includes tasks such as stakeholder interviews, process mapping, data analysis, and documentation.
  • It supports both strategic planning and project execution.

Related Terms

  • A business requirement is a high-level need that business analysis helps to identify and document.
  • The role of a business analyst is central to conducting research, gathering requirements, and validating solutions.
  • Stakeholder analysis is a key technique used to understand the interests and influence of individuals involved in or affected by a project.
  • Requirements management ensures that teams track and address all identified needs throughout a project lifecycle.
  • A feasibility study is often conducted during business analysis to assess whether proposed solutions are practical and cost-effective.

Business Analysis: Example

A retail company is experiencing a drop in online sales. The company brings in a business analyst to investigate the issue. After reviewing customer feedback, analyzing website traffic data, and interviewing stakeholders, the analyst discovers that a confusing checkout process is causing users to abandon their carts. The analyst recommends redesigning the checkout flow, which results in a 20% increase in completed purchases within three months.

Business Analysis: Best Practices

  • Involve stakeholders early and often to gather accurate and complete information.
  • Use clear, structured documentation to define business needs and proposed solutions.
  • Apply proven techniques such as SWOT analysis, process modelling, and use case diagrams.
  • Maintain ongoing communication between technical teams and business units to ensure seamless collaboration.
  • Evaluate the impact of proposed changes before implementation to reduce risk and ensure alignment with strategic goals.

Additional Resources

Business Analysis - Agile and Business Analysis: Practical guidance for IT professionals     Business Analysis - The PMI Guide to Business Analysis

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