What is Business Analysis?

Business analysis is all about helping organisations improve their operations. It’s about figuring out what a company needs, coming up with solutions, and making sure those solutions add value. Think of it as a way to help a business understand what needs to change and why, and then find the best way to make those changes happen. 

This practice is crucial for all organisations, whether businesses, government agencies, or non-profits. It’s not just for people with the ‘business analyst’ title. Managers, project leaders, product developers, and even software engineers use business analysis techniques to improve their ways of working. 

For example, a salesperson might use revenue intelligence insights on SalesCloud to identify a common dropoff point in their pipeline. After identifying this issue, they would work with their team to understand the underlying cause – a lack of follow-up after pricing is shared. They can then update their team processes to ensure they always meet with prospects to go over pricing options, increasing their close rate. 

In essence, business analysis is about spotting problems and opportunities within an organisation and figuring out how to address them effectively. It involves a lot of questioning and evaluating current processes to find better ways of doing things. Business analysts work on everything from high-level strategy to the nuts and bolts of implementing new systems, always with an eye on improving efficiency and effectiveness.
To explore tools that help this process, check out Salesforce’s overview of analytics products.

What’s the difference between business analysis and business analytics?

“Business analysis” and “business analytics” may sound similar, but they’re actually distinct practices. Business analysis focuses on understanding and improving business processes, strategies, and functions. It looks at an organisation’s overall structure and goals, helping to align business needs with technical solutions. Business analysts work on everything from assessing the current state of the business to identifying areas for improvement and specifying the requirements needed to implement changes. They are often involved in process mapping and designing solutions to help the business meet its objectives.

On the other hand, business analytics is centred around data. It entails delving into data to discover insights, identify trends, and forecast future outcomes. This domain employs statistical analysis and sophisticated techniques to assist businesses in making informed decisions, refining their processes, and securing a competitive advantage.
Read more about how this works in practice with tools like Tableau for analytics and Data Cloud for Marketing.

Understanding the business analysis framework

Ready to start your business analysis journey but don’t know where to start? A business analysis framework can guide you effectively. This framework can be a pre-existing model that you adapt to your needs or custom-build based on your specific business analysis techniques and processes. Think of it as a toolkit that helps diagnose and enhance business operations. It acts like a roadmap, complete with tools and methods that guide you through the complexities of business processes. Structuring your analysis with a framework helps streamline communication and ensures your recommendations align with company objectives.

The value of a business analysis framework

• Consistency: Ensure people across the business follow the same business analysis practices.
• Efficiency: Streamline workflows to save time, allowing analysts to concentrate on the most important areas.
• Clarity: Clearly define project scopes and objectives so all team members are aligned.
• Best Practices: Integrate industry-standard practices and methodologies for better outcomes.
• Quality Control: Maintain high-quality outputs, reducing errors and subsequent revisions.
• Effective Communication: Standardise reports and documentation to improve stakeholders’ understanding and streamline communication.
• Adaptability: Customise the framework to suit specific project demands and remain flexible to meet changing needs.
• Risk management: Spot and handle risks early on.
• Goal Alignment: Make sure your analysis supports your organisation’s strategic objectives.
• Knowledge Sharing: Use the framework as a development tool for new analysts and a skill enhancer for seasoned professionals.

The business analysis framework phases

A business analysis framework is typically divided into five key phases, each with a specific focus:

1. Investigation Phase: Thoroughly explore existing challenges to understand the root issues. Using data visualisation and AI-driven insights from CRM analytics products will ensure any outcomes from this stage are based on tangible data for maximum accuracy and impact.
2. Perspective Consideration: Gather insights from key stakeholders to inform the analysis.
3. Needs Analysis: Evaluate the current state against desired outcomes to identify necessary improvements.
4. Options Evaluation: Assess possible solutions and decide the most effective path forward.
5. Requirements Definition: Collaborate with relevant stakeholders to document the precise requirements for a transformation that resolves challenges and aligns with business goals.

Each stage plays a role in ensuring that the business analysis is comprehensive, coherent, and practical. Taken together, these stages promote informed decision-making and make sure the final outputs effectively address business challenges. 

Exploring business analysis techniques: a simple guide

Business analysis isn’t just technical jargon and documentation – it’s about understanding underlying issues and crafting practical strategies that really work. Many business analysis methods exist, so the right one for your business will depend on your team’s needs and preferences. Let’s dive into some popular techniques.

• SWOT Analysis is a favourite for its simplicity and effectiveness. It breaks things down into four areas: Strengths (what your business does best), Weaknesses (where you might lag), Opportunities (external factors you can capitalise on), and Threats (external challenges you might face). This method is versatile, applicable at any business stage, and helps you see where you stand inside and out.
• MOST Analysis is another approach where you get clear on your Mission (what you’re all about), Objectives (the goals that define your strategy), Strategies (the plan to hit those goals), and Tactics (actionable steps to execute your strategy). It’s all about aligning your daily actions with your long-term vision.
• Business Process Modelling (BPM) is your go-to for streamlining operations. It’s about mapping out workflows to pinpoint inefficiencies and improve communication. Starting with defining the scope, it lays out every step, input, and output, offering a visual playbook of your business processes that you can refine for better performance.
• PESTLE Analysis helps you scan the business environment for Political, Economic, Sociological, Technological, Legal, and Environmental factors. This wide-angle view can reveal critical influences on your operations, helping you adapt and stay competitive.
• CATWOE offers a structured approach for those with thorny problems. It considers Customers (those affected by decisions), Actors (who will carry out tasks), Transformation processes (how inputs become outputs), the Worldview (the big picture), Owners (decision makers), and Environmental constraints (external limits).

These techniques are theoretical and practical tools that help you structure your thinking, communicate with other stakeholders, and navigate complex issues by breaking them down. So, dive in, mix and match methods, and find what best suits your needs.

Navigating business analysis tools

When you’re starting out with business analysis, choosing the right tools is critical for success. Here’s a look at what to consider and some tools that can help streamline your analysis processes. 

What to consider when choosing business analysis tools

Selecting the perfect business analysis tool involves several key considerations:

• Business Needs and Goals: Your tools should support your current operations and future growth. They must be capable of effectively capturing, analysing, and documenting both business and stakeholder needs.
• Cost-Effectiveness: It’s essential to find tools that fit your budget and provide a strong return on investment without hidden costs.
• User Interface and Visualisation: The best tools offer a user-friendly interface and robust visualisation features, making it easier to understand and communicate data and insights.
• Advanced Features: Look for tools that provide comprehensive analytics capabilities, including data integration, quality control, and security.

Types of Business Analysis Tools

There are several types of tools that cater to the varied needs of business analysts:

• Requirement Gathering Tools are essential for understanding and organising stakeholder requirements and keeping up with changes. They help maintain alignment with the development and QA teams.
• Modelling Tools: These tools convert complex data into easy-to-understand diagrams, charts, and graphs. They play a crucial role in visualising data and deriving insights.
• Collaboration Tools: Effective communication with various teams and stakeholders is vital in business analysis. Collaboration tools ensure that everyone is aligned and informed.
• Project Management Tools: While not the primary focus for business analysts, grasping project management tools can be beneficial for overseeing broader business initiatives.

Incorporating advanced analytics tools into your business can significantly improve customer experiences and operational efficiency. Learn how Verizon enhanced its customer service and reduced call volumes by leveraging Tableau’s capabilities in its operations. Explore the case study for insights into Tableau’s impact on Verizon’s business strategy.

Harnessing business analysis for impactful growth

Business analysis is a cornerstone for organisational improvement and strategic decision-making. It enables businesses to identify needs, address challenges, and implement effective solutions that drive success. From the foundational frameworks to practical techniques like SWOT and PESTLE analysis, each element plays a critical role in shaping a business’s future.

Business analysts bridge the gap between raw data and actionable strategy, ensuring that every decision is backed by solid insights and aligned with the company’s goals. Whether you’re a manager, a developer, or an analyst, understanding and applying these principles can significantly enhance your impact on your organisation.

To further explore how advanced tools and detailed analytics can benefit your business, check out the Total Economic Impact™ report on Tableau.