different approaches to problem solving in business analysis

MBA059: Problem Solving for Business Analysts

by Dave Saboe | Feb 16, 2016 | Podcast , Start | 0 comments

In this episode, Matt Fishbeck shares a six step problem solving framework that can help you to address the right problem and come up with the best solution for your organization and customers.

After listening to this episode, you'll understand:.

• Why the skill of problem is so critical
• How to apply a 6 step problem solving framework
• How to apply problem solving techniques
• Defining the problem statement
• Defining scope
• Elicit information & resolving ambiguity
• Identifying associations and relationships
• Root cause analysis
• Solution proposal

The Problem Solving Process Start by creating the problem statement.  The problem statement is a well-defined statement or question to frame the context. After you have a clear and unambiguous problem statement, define the scope of the effort.  The scope definition is probably the most important stage since it basically whether or not the problem can be solved satisfactorily.  Scope is defined to apply constraints to the domain of consideration. When we have scope we know what to consider and what not to consider.  Therefore, all possible solutions are directly dependant on the information within the scope. Once the scope is defined, you can move on to eliciting information & resolving ambiguity.  Perform a stakeholder analysis and elicit information from all known stakeholders/sources as a basis for investigation.  You can use workshops, focus groups, interviews, document analysis, and other approaches to elicit information. When we elicit information, we try to remove ambiguity as ambiguity represents the unknown, liability, and risk.  To reduce ambiguity, we need to consider the taxonomy of ambiguity to provide a frame of reference to how we will resolve it.  Ambiguity may be:

• Missing information
• Incorrect information
• Duplicate information
• Conflicting information
• Incomplete information

The above provide a basis to ask questions concerning all information that is within scope, to challenge this information to be reliable and suitable for use.  Context diagrams and domain diagram can help resolve ambiguity. Next, we identify associations and relationships to organize the information so we can derive meaning from it.  Information needs to be structured, aligned, and associated that provides an additional level of meaning. This is the basis for traceability. The linking of concepts. It’s not just solely used for requirements. Once we thoroughly understand the information, we can move on to performing a root cause analysis.  A root cause analysis helps you to understand the underlying cause of the problem so you can address it instead of addressing a symptom of a greater issue. There are many techniques for root cause analysis including 5 Whys and Fishbone diagrams. Now that we understand the real root cause, we can propose solutions that will address that root cause.  When identifying proposed solutions, consider the scope, constraints, and relative cost and value of each option.   Problem solving is not some illusive black art; it’s an analytical process that can be broken down, quantified, and analyzed to identify the root cause to give rise to a viable solution. Listen to the full episode to hear all of Matt’s examples and tips for problem solving.

Your Homework

• Begin applying Matt’s six-stage problem solving approach.  Often, the most difficult part of problem solving is knowing where to start.
• Start learning the root cause analysis techniques in the Guide to the Business Analysis Body of Knowledge (BABOK).  The techniques will give you more tools to help in your problem solving efforts.

Links mentioned in this episode:

• Matt’s Problem Solving article on ModernAnalyst.com

Matt Fishbeck

Senior Business Analyst and Writer

Thank you for listening to the program

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How to Define a Problem and Generate Solutions

Tools versus experience.

A common concern for business analysts is a lack of experience, especially in the application of tools, i.e. frameworks and modelling techniques and the software that supports them. There are so many things to know and learn, and it can be very overwhelming. It seems that there are so many techniques to apply these days and it is confusing to know where to start.

However, there is a tendency by the business analyst to over rely on having a swag of tools and techniques to provide confidence. It is like if you are good at the tools then you are a good business analyst, but this is not true. Tools are only as good as the problem that is being solved. Of course, tools and techniques are important, but they are not the place to start.

The real value in business analysis is understanding the problem. You gain true experience in engaging with stakeholders, understanding their issues and aligning with their needs.

When the problem is properly understood, then the real difference can be made. You are able to narrow down and choose the right tool and use it to analyse and communicate the problem and articulate a possible solution. This way there is less overwhelm, and you can produce better results.

Problem solving

The business analysis process can be viewed as an exercise in solving a series of problems to produce beneficial outcomes for an organisation. Those problems may be related to:

• issues occurring in the business (see ‘Example business problems’ below)
• project methodology and personal skills
• people and organisation (see ‘Common problems encountered by business analysts’ below).

Being a confident problem solver is fundamentally important for your success as a business analyst. Having a good process to use when approaching a problem helps you solve problems quickly and effectively. Without a process, your solutions may be ineffective, or you will get stuck which can produce painful consequences.

Here is a basic approach to solving a problem in four steps:

• Define the problem.
• Generate ideas to solve the problem.
• Evaluate and select alternatives.
• Implement solutions.

There are other more complex approaches such as Simplex, Appreciative Inquiry and Soft Systems Methodology.

You will find on closer examination that you may already use a combination any of the above-mentioned techniques. Problem solving is something we do in every aspect of our daily lives and therefore it occurs largely as an unconscious activity, i.e. something we do so often we don’t have to think about it.

Possibly without knowing it, your unconscious mind is constantly used as an engine for problem solving. But you can use your unconscious mind to solve problems in a deliberate fashion. This is the process of listening and a readiness to record ideas as they percolate into your conscious mind. To do this requires the ability to relax and allow ideas and solutions to flow into your mind. One common technique is to saturate yourself in understanding the problem, ask yourself the question as to how to solve the problem, and then take a break or ‘sleep on it’.

You would have heard of this before, however conscious utilisation of this form of problem solving will greatly benefit your business analysis work. It can produce some very creative ideas that are very satisfying to include in the evaluation and selection of alternatives. The important thing is not to try too hard. Go with the flow. Incubate.

Defining the problem

Problem solving does not have to be an elaborate and difficult process.

Firstly, you need to understand what the problem is. Half the battle is won when you can identify the true source of the problem, as ideas to solve the problem may then be readily available.

It is not enough to only treat the symptoms of the problem, as this will not solve the underlying issue and symptoms will keep occurring. Just treating the symptoms will eventually come at significant cost for an organisation.

Business analysis problem solving techniques such as mind mapping and root cause analysis can help you work through the layers of a problem to uncover what’s really going on. They can be used in a group setting or as a personal tool for uncovering possible causes that can be later examined in a group setting.

When working with stakeholder groups you can simply use one or a combination of the above-mentioned tools and a brainstorming approach to uncover the root causes of a problem. In this case, you would start with the perceived ideas about what the problem is and use a problem identification technique to arrive at a true problem statement .

Problem identification can also be combined with other elicitation activities, e.g.

• Business process mapping workshops . In this case, the business analyst is defining and documenting the current state of how the organisation operates. In these workshops, the business analyst captures the activities performed by various functions in the organisation, pre-defined roles, information used and created (e.g. reports), systems used, location and temporal information, and other inputs and outputs. Often through the process mapping issues are raised by stakeholders and a quick ‘Five Whys’ analysis can uncover root causes that can be later examined in a separate session.
• Business process analysis and blue skies workshops . In these workshops, the focus is on uncovering ideas that will affect change on a business process or system that supports a business process. Without the exclusion of other approaches, there are two good ways of doing this.

The first approach occurs when you are examining the ‘as-is’ business process in a step-by-step fashion for improvements (business process analysis). A short and powerful questioning technique is described here , but through the analysis of processes you may encounter issues that required clarification. Again, the ‘Five Whys’ method is a good approach as it is more conversational than other problem identification techniques and therefore it does not break from the flow of the process analysis workshop.

The other approach is to disregard close examination of ‘as-is’ business process maps (blue skies workshops ) . This option depends on what you plan to achieve in your business analysis process, but it is very useful in situations where the stakeholders are more senior in the organisation or have no patience or desire to pay close scrutiny to business processes. Here you would develop a questioning technique that points at a process or function in the business but allows a free style generation of issues and ideas to overcome the issues. In this situation Lean Six Sigma principles can be used as the basis for questioning (using the acronym: DOWNTIME) to give the session structure, identify process improvements without looking at a map, and allow a free thinking and brainstorming approach to ideas generation. Again, the ‘Five Whys’ method is a good way to test the identification of a problem without breaking the flow of the workshop.

Generating ideas to solve the problem.

One way to generate ideas to solve problems has been described above, i.e. through blue skies workshops. Other methods mostly involve creative techniques such as brainstorming. There are different ways to structure brainstorming sessions, but it is important to note that:

• Good stakeholder analysis will inform who you include in which session so that you can optimise for best ideas generation and different points of view.
• You must have a planned approach which includes pre-planned questions and an agenda.
• You must set the scene so that participants know what their role is and what they will be doing in the session (no surprises).
• You facilitate rather than dictate the solutions.

It is important to note that participants know their own business and usually have an idea of what could be a good solution to a problem. If they don’t, then instead of telling the answer it is better to ask questions to trigger ideas. If they are supported in arriving at the answers, then they are more likely to invest ownership in the outcome of the project. Good questioning and conversation flow will support participants in producing good ideas. Participants should be challenged and pushed beyond the obvious solutions – this is where the real thinking starts – to get the best possible results from the brainstorming session.

Evaluating and selecting alternatives

The evaluation and selection of options to resolve a problem is part of these BABOK Knowledge Areas:

• Requirements Analysis and Design
• Solution Evaluation.

The work performed by the business analyst may culminate in the following deliverables:

• Business requirements specification ( see example template ). This deliverable encapsulates the analysis of elicited, validated and prioritised requirements.
• Business case ( see example template ). This deliverable summarises solution options and recommendations.

It is important to note that the templates provided above are more suited to Waterfall methodology or a ‘big requirements upfront’ approach to requirements documentation. At the very least they can be adapted or provided as a guideline for the type of information required in analysing requirements and making a recommendation. More about standard business analysis deliverables can be found here .

Implementing solutions

The implementation of solutions depends on the pathway described in the options analysis and recommendation (business case). This depends on the type of problem you are solving.

Properly identifying the business problem helps ensure you understand the project’s end game . You may be faced with documenting business processes to enhance business efficiencies, developing or purchasing a software system to support a changing business environment, or developing some kind of architecture to support an organisation’s strategic process.

Therefore, the implementation of the solution is defined by problem being solved and can take a number of pathways. The pathway to take is therefore another problem to be solved and another challenge for the business analyst and the project team (we must not forget that project management has a big role to play).

After all, business analysis is a series of problem-solving activities that delivered the best outcomes for an organisation.

Example problems

Common business problems solved by business analysts.

There are many business problems that you will solve over the course of your career and many will have a similar pattern. The list below describes some common examples of problems, their possible causes and some skills and techniques that would be utilised by the business analyst to deliver satisfactory outcomes for the organisation.

Common problems encountered by business analysts

Aside from the problems that business analysts solve as part of their work, there are other problems that they encounter in their work that are due mainly to people and organisational issues. The table below shows a list of common problems face by business analysts, possible mitigation activities to reduce or resolve the occurrence of the problem, and possible skills and techniques used as part of the mitigation strategy.

If possible, describe a business problem that you have identified and solved in the past. If you cannot describe a work-related business problem, then choose another problem that has occurred in your life, e.g. anything associated with club/social events, moving to a new house, changing career, travel or other. What was initial perceived problem (problem description)? What were the root causes of the problem? What approach did you take to identify and solve the problem (approach taken)? What tools and techniques did you use? What was the final outcome?

In consideration of the problem you described above, how could you have improved on the problem identification and resolution process? Is there anything you could have done better? What problem identification techniques could you incorporate in future work?

This exercise not only helps you reflect on problem solving in general but can be used in job interviews and conversations around problem solving.

If you are keen, add another row to the table above and repeat the exercise. The more you can spell out how you have solved problems and where you can improve, the more articulate you will be in describing this very important skill.

Top 9 Business Analysis Frameworks: Most Popular Techniques

• Business Analysis

Key takeaways

• The top 9 business analysis frameworks offer a diverse set of tools and methodologies to address complex business challenges, uncover opportunities, and drive strategic initiatives
• The frameworks offer structured approaches to problem-solving , enabling organizations to address complex issues and drive continuous improvement.
• The diverse nature of these frameworks allows organizations to adapt their analytical approaches to various business scenarios and industry contexts.

Navigating the complex world of business can often feel like trying to solve a giant jigsaw puzzle, with each piece representing a different challenge or opportunity. That’s where business analysis frameworks come in handy!

If you are a business analyst, you know that understanding the ins and outs of the business is crucial for achieving successful results in business analysis activities.

In this article, we will provide you with a list of the 9 best business analysis framework techniques that will help you achieve clarity and most importantly, aid your professional development.

What Is a Business Analysis Framework?

A Business Analysis Framework is a structured approach used by Business Analysts to understand, assess, and improve various aspects of a business . It provides a systematic way to identify, define, and address business needs and challenges.

A Business Analysis Framework is designed to help organizations analyze, strategize, and execute their operations. It provides a framework for thinking and communicating about various aspects of the business . It is a conceptual and real blueprint that involves and describes all the vital requirements of running a business.

A Business Analysis Framework typically includes the following steps:

• Identifying the problem: This involves identifying the business problem or opportunity that needs to be addressed. This step is critical as it sets the stage for the rest of the analysis.
• Defining the scope: This involves defining the boundaries of the analysis and determining what is included and what is not included in the analysis.
• Gathering information: This involves collecting data and information related to the problem or opportunity. This step is critical as it provides the basis for the analysis.
• Analyzing the information: This involves analyzing the data and information collected in the previous step. This step is critical as it provides insights into the problem or opportunity.
• Developing solutions: This involves developing potential solutions to the problem or opportunity. This step is critical as it provides options for addressing the problem or opportunity.
• Implementing solutions: This involves implementing the selected solution(s) to the problem or opportunity. This step is critical as it turns the analysis into action.
• Monitoring and evaluating: This involves monitoring and evaluating the effectiveness of the solution(s) implemented. This step is critical as it ensures that the problem or opportunity has been fully addressed and that the solution(s) implemented are effective.

A Business Analysis Framework can be used for various purposes, such as:

• Improving business processes
• Developing new products or services
• Evaluating and selecting software solutions
• Conducting feasibility studies
• Developing business cases

List of the 9 Best Business Analysis Framework Techniques

Let’s have a closer look at the 9 techniques that are widely used and recognized

1. Business Process Modelling (BPM)

Business process modelling is a technique used to analyze existing or potential business processes in order to improve them.

A process model serves as a reference so that everyone involved in the organization’s operations can have a common understanding of how things work and what needs to be done in order to reach desired objectives.

How is Business Process Modeling (BPM) Used?

• Visualizing Processes : BPM allows organizations to visually represent their processes, providing a clear understanding of how activities, resources, and information flow within the organization.
• Identifying Bottlenecks : By modeling business processes , organizations can identify potential bottlenecks, inefficiencies, and areas for improvement, enabling them to streamline operations.
• Improving Communication : BPM facilitates improved communication and collaboration among stakeholders by providing a common visual language for discussing and understanding processes.
• Supporting Decision-Making : BPM provides valuable insights for informed decision-making, enabling organizations to make data-driven changes to their processes.

2. Use Case Modelling

Use case modelling is a technique that lets you look at your system from the perspective of your customer.

Use Case Modeling is a technique used to capture and define the functional requirements of a system by illustrating how users interact with it. It involves identifying and documenting various scenarios that depict the interactions between users and the system to accomplish specific goals.

It’s a great way to make sure you’re answering all their questions and making sure they get what they need out of your service or product. You can also use it to keep track of all the possible ways that different people and groups might interact with your company.

How is Use Case Modeling Used?

• Requirement Uncovering : Use Case Modeling serves as a tool for uncovering and defining functional requirements through the identification of various use cases, scenarios, and user interactions.
• System Design : Use Case Modeling aids in the design and development of systems by providing a clear understanding of user-system interactions and requirements, guiding the creation of user interfaces and system functionalities.
• Communication Tool : Use Case models act as a communication tool between business stakeholders and technical teams , ensuring a common understanding of user-system interactions and requirements.
• Testing and Validation : Use Case Modeling supports testing and validation activities by providing test scenarios and expected system behaviors, aiding in the verification of system functionality.

3. SWOT Analysis

SWOT Analysis is a strategic planning technique used to identify and evaluate an organization’s internal strengths and weaknesses, as well as external opportunities and threats. It involves the systematic analysis of these factors to inform strategic decision-making.

Strengths, weaknesses, and opportunities are internal factors that affect the company, while threats are external factors that affect the company. The SWOT analysis is particularly useful in identifying areas that need improvement and areas where the business is doing well.

How is SWOT Analysis Used?

• Strategic Planning : It provides a structured framework for organizations to assess their current position and make informed decisions about future strategies.
• Business Assessment : SWOT Analysis helps in evaluating the internal capabilities and limitations of the organization, as well as the external factors that may impact its performance.
• Risk Management : It aids in identifying potential risks and challenges in the external environment, allowing organizations to develop proactive risk management strategies.
• Market Positioning : SWOT Analysis assists in understanding the organization’s competitive position and identifying opportunities to differentiate itself in the market.

4. MOST (Mission, Objectives, Strategies, and Tactics) Analysis

• MOST Analysis is a tool that can be used to determine an organization’s interest in entering a new market space or in determining if an industry is a good fit for its organization’s culture.

MOST Analysis focuses on four key elements:

• Mission : The overarching purpose or reason for an organization’s existence, defining its fundamental role and aspirations.
• Objectives : Clear and measurable goals that an organization aims to achieve within a specific timeframe, guiding its strategic direction.
• Strategy : The approach or plan designed to achieve the defined objectives and fulfill the organization’s mission.
• Tactics : The specific actions and initiatives undertaken to implement the chosen strategy and achieve the established objectives.

How is MOST Analysis Used?

MOST Analysis finds diverse applications in strategic planning and organizational development:

• Strategic Alignment : It helps in aligning organizational activities with its mission, ensuring that all efforts contribute to its overarching purpose.
• Goal Setting and Evaluation : MOST Analysis aids in setting clear and measurable objectives and evaluating progress towards their achievement.
• Resource Allocation : It supports effective resource allocation by ensuring that strategies and tactics are aligned with the organization’s mission and objectives.
• Decision-Making : MOST Analysis provides a structured framework for making strategic decisions, ensuring that they are in line with the organization’s mission and long-term objectives.

5. PESTLE Analysis

PESTLE Analysis is a framework used to analyze the impact of external factors on an organization. The acronym PESTLE stands for:

• Political : Factors related to government policies, stability, and potential impacts on business operations.
• Economic : Economic conditions, trends, and indicators that can affect the organization’s financial performance.
• Social : Social and cultural factors, including demographics, lifestyle changes, and consumer behavior.
• Technological : Technological advancements, innovation, and the impact of technology on the industry and organization.
• Legal : Legal and regulatory factors, including laws, regulations, and compliance requirements.
• Environmental : Environmental concerns, sustainability efforts, and their impact on business operations and reputation.

The components of the PESTLE analysis are then analyzed and given a score from 0-10, where 10 is considered favorable for the business and 0 is unfavorable. This technique is best used to identify existing threats and opportunities as well as to help understand what would need to change for the business to be more successful.

How is PESTLE Analysis Used?

• Risk Assessment : It helps in identifying potential risks and opportunities arising from the external environment, guiding risk management strategies.
• Strategic Planning : PESTLE Analysis informs strategic planning by providing insights into external factors that may impact the organization’s performance and objectives.
• Market Research : It aids in understanding the broader market environment, including regulatory changes, technological trends, and societal shifts.
• Business Expansion : PESTLE Analysis supports organizations in evaluating the feasibility and risks associated with entering new markets or expanding operations.

6. Brainstorming

Brainstorming is a technique to be used when generating requirements and writing what-ifs.

Brainstorming is a group problem-solving method that involves the spontaneous contribution of creative ideas and solutions. It encourages participants to think freely and express their thoughts without judgment, with the aim of generating innovative solutions and insights.

How is Brainstorming Used?

• Idea Generation : It serves as a platform for generating a multitude of ideas to address business challenges, explore new opportunities, or innovate products and services.
• Problem-Solving : Brainstorming helps in identifying and exploring potential solutions to complex problems by leveraging the collective creativity and expertise of participants.
• Requirement Elicitation : It aids in eliciting diverse perspectives and requirements from stakeholders, ensuring a comprehensive understanding of user needs and business objectives.
• Strategy Development : Brainstorming supports the development of strategic plans and initiatives by exploring various approaches and considering different viewpoints.

7. MoSCoW (Must or Should, Could or Would)

MoSCoW is a prioritization method that categorizes requirements into four distinct groups:

• Must Have : Essential requirements that are critical for the success of the project or business objective.
• Should Have : Important requirements that are desirable but not critical for the initial release or project delivery.
• Could Have : Requirements that are considered as potential enhancements, but their inclusion is not critical at the current time.
• Won’t Have (or Would Have) : Requirements that are explicitly identified as not being included in the current scope.

This technique is used to determine which requirements must be met, which requirements should be met, which requirements could be met, and which requirements would be met if there is time and resources available.

How is MoSCoW Used?

• Requirement Prioritization : It helps in prioritizing requirements based on their criticality and impact on project success, guiding resource allocation and planning.
• Scope Management : MoSCoW assists in defining and managing the project scope by categorizing requirements into distinct priority levels.
• Stakeholder Communication : It facilitates clear communication with stakeholders regarding the prioritization of requirements and the project’s focus areas.
• Decision-Making : MoSCoW supports decision-making by providing a structured approach to evaluating and categorizing requirements based on their importance.

8. The 5 Whys

The 5 Whys is a technique used to identify the root cause of a problem. The technique involves asking “why” five times to get to the root cause of the problem. This technique is particularly useful in identifying areas where the business can improve.

How is The 5 Whys Used?

The 5 Whys problem-solving technique finds diverse applications in business analysis and process improvement:

• Root Cause Analysis : It helps in identifying the root cause of a problem by systematically asking “why” to trace the issue back to its origin.
• Issue Resolution : The 5 Whys aids in addressing recurring problems by digging deeper into the underlying causes rather than addressing surface-level symptoms.
• Process Improvement : It supports continuous improvement efforts by uncovering weaknesses in processes or systems and addressing them at their core.
• Decision-Making : It assists in making informed decisions by providing a structured approach to understanding the factors contributing to a problem.

9. Gap Analysis

Gap Analysis is a method of assessing the performance of a business unit to determine whether business requirements or objectives are being met. It involves comparing the current state of the organization with its ideal state, highlighting shortcomings and opportunities for improvement.

How is Gap Analysis Used?

Gap Analysis finds diverse applications in strategic planning and organizational development:

• Performance Assessment : It helps in evaluating the current performance of the organization against its goals and objectives.
• Identifying Opportunities : Gap Analysis aids in identifying areas where the organization can make improvements to bridge the gap between its current and desired state.
• Resource Allocation : It supports effective resource allocation by identifying areas that require additional resources to meet the desired objectives.
• Process Improvement : It facilitates the identification of inefficiencies and areas for process improvement within the organization.

Tips : If you are curios to learn more about business analysis and related topics, then check out all of our posts related to business analysis

Framework for Business Analysis: The Essentials

Leveraging the right frameworks and techniques is crucial for gaining valuable insights, making informed decisions, and driving organizational success.

The top 9 business analysis frameworks offer a diverse set of tools and methodologies to address complex business challenges, uncover opportunities, and drive strategic initiatives.

By understanding and applying these frameworks, organizations can enhance their analytical capabilities, improve decision-making, and achieve sustainable growth in dynamic business environments.

Key Takeaways: Business Analyst Frameworks

In short, the 9 frameworks we have looked at:

• Business process modelling (BPM) is a technique used to analyze existing or potential business processes in order to improve them.
• Use case modeling is a technique for visually representing how users interact with a system, helping to define system requirements and validate the functionality of a solution.
• SWOT analysis is a strategic planning tool that evaluates an organization’s strengths, weaknesses, opportunities, and threats, providing valuable insights for strategic decision-making.
• PESTLE analysis evaluates the political, economic, social, technological, legal, and environmental factors that impact an organization, providing a comprehensive understanding of the external business environment.
• Brainstorming is a collaborative technique that encourages the generation of diverse ideas and solutions to address business challenges and explore new opportunities.
• MoSCoW is a prioritization method that categorizes requirements into four distinct groups: Must have, Should have, Could have, Would have
• The 5 Why technique involves asking “why” five times to get to the root cause of the problem.
• Gap Analysis is a method of assessing the performance of a business unit to determine whether business requirements or objectives are being met.

FAQ: Business Analysis Techniques

What are the key steps involved in the business analysis process.

The business analysis process typically involves the following key steps: Defining the problem: This involves identifying the problem or opportunity that the business is facing. Gathering information: This involves collecting data and information about the problem or opportunity. Analyzing the information: This involves analyzing the data and information to identify patterns, trends, and insights. Identifying solutions: Based on the analysis, potential solutions are identified. Evaluating solutions: The potential solutions are evaluated to determine the best course of action. Implementing the solution: The chosen solution is implemented, and the results are monitored to ensure success.

What tools are essential for effective business analysis?

There are several tools that are essential for effective business analysis. Some examples: Microsoft Excel: Excel is a powerful tool for data analysis and modeling. Flowcharting software: Flowcharting software is used to create process flow diagrams, which are often used in business analysis. Requirements management software: This software is used to manage and track requirements throughout the project lifecycle. Mind mapping software: This software is used to organize and visualize complex information.

Can you provide an example of a business analysis framework?

One example of a business analysis framework is Michael Porter’s Five Forces Model. This model is used for analyzing industries and considers the competitiveness of an industry in the market based on five different factors or forces, including rivalry among existing competitors, the bargaining power of buyers and suppliers, the threat of new entrants, and the threat of substitute products or services.

What are some common techniques used in business analysis?

Some common techniques used in business analysis include: SWOT analysis: This technique is used to identify the strengths, weaknesses, opportunities, and threats of a business or project. Use case modeling: This technique is used to identify the actors, goals, and scenarios of a system or process. Data modeling: This technique is used to create a visual representation of the data and information used in a system or process. Process modeling: This technique is used to create a visual representation of the steps involved in a process.

How can I create my own business analysis framework?

To create your own business analysis framework, you should: Identify the problem or opportunity: Define the problem or opportunity that the framework will address. Gather information: Collect data and information about the problem or opportunity. Analyze the information: Analyze the data and information to identify patterns, trends, and insights. Identify potential solutions: Based on the analysis, identify potential solutions. Evaluate the solutions: Evaluate the potential solutions to determine the best course of action. Implement the solution: Implement the chosen solution and monitor the results.

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Table of Contents

Definition of business analysis, what are business analysis techniques, best business analysis techniques, do you want to become a business analyst, top effective business analysis techniques.

Business analysts are such an essential element for an organization’s survival and success today. By using different structured business analysis techniques, these analysts help companies identify needs, root out flaws, and sift through a flood of data and options to find the right actionable solution.

We’re here today to explore some of the top business analysis techniques and how they are successfully leveraged for an organization’s success. There are many of these proven business analysis problem-solving techniques to choose from. Still, the ones highlighted here are the more commonly used methods, and it’s reasonable to infer that their popularity stems from their effectiveness. Here is the list of the top business analysis techniques:

Business Process Modeling (BPM)

Brainstorming, moscow (must or should, could or would), most (mission, objectives, strategies, and tactics) analysis, pestle analysis, swot analysis, six thinking hats, non-functional requirement analysis, design thinking.

Business analysis is an umbrella term describing the combination of knowledge, techniques, and tasks employed for identifying business needs, then proposing changes and creating solutions that result in value for the stakeholders. Although a significant number of today’s business analysis solutions incorporate software and digital data-based elements, many professionals in the field may also end up advising on organizational changes, improving processes, developing new policies, and participating in strategic planning.

So, business analysts spur change within an organization by assessing and analyzing needs and vulnerabilities and then creating and implementing the best solutions. Much of the information used to draw these conclusions comes from data collected by various means, often falling under the term “big data.”

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I was keenly looking for a change in my domain from business consultancy to IT(Business Analytics). This Post Graduate Program in Business Analysis course helped me achieve the same. I am proficient in business analysis now and am looking for job profiles that suit my skill set.

Business analysis techniques are processes used to create and implement plans necessary for identifying a company’s needs and delivering the best results. There is no such thing as a “one size fits all” technique because every business or organization is different.

Here are the top business analysis techniques. Keep in mind that business analysts who want to be project managers should be familiar with most, if not all, of them.

1. Business Process Modeling (BPM)

BPM is often used during a project’s analysis phase to understand and analyze the gaps between the current business process and any future process that the business is shooting for. This technique consists of four tasks:

1. Strategic planning

2. Business model analysis

3. Defining and designing the process

4. Technical analysis for complex business solutions

Many industries, especially the IT industry, favor this technique because it’s a simple, straightforward way to present the steps of the execution process and show how it will operate in different roles.

2. Brainstorming

There’s nothing like good, old-fashioned brainstorming to generate new ideas, identify a problem’s root causes, and come up with solutions to complex business problems. Brainstorming is a group activity technique that is often used in other methods such as PESTLE and SWOT .

CATWOE identifies the leading players and beneficiaries, collecting the perceptions of different stakeholders onto one unified platform. Business analysts use this technique to thoroughly evaluate how any proposed action will affect the various parties. The acronym stands for:

• Customers: Who benefits from the business?
• Actors: Who are the players in the process?
• Transformation Process: What is the transformation at the core of the system?
• World View: What is the big picture, and what are its impacts?
• Owner: Who owns the impacted system, and what’s their relation?
• Environmental Constraints: What are the constraints, and how do they impact the solution?

4. MoSCoW (Must or Should, Could or Would)

MoSCoW prioritizes requirements by offering a framework that evaluates each demand relative to the rest. The process forces you to ask questions about the actual necessity of any given element. Is the item a must-have or a should-have? Is the demand something that could make the product better, or is it something that would be a good idea in the future?

5. MOST (Mission, Objectives, Strategies, and Tactics) Analysis

MOST is a robust business analysis framework—considered one of the best techniques for understanding an organization’s ability and purpose. This technique includes conducting a detailed, complete internal analysis of the organization’s goals and how to approach them. The acronym stands for:

• Mission: What is the organization’s purpose?
• Objectives: What are the key goals that help achieve the mission?
• Strategies: What are the options available for achieving the objectives?
• Tactics: What are the methods that the organization will follow to carry out the strategies?

6. PESTLE Analysis

Business analysts use the PESTLE model (sometimes called PEST) to identify environmental factors that can influence their company and how best to address them when making business decisions. Those influences are:

• Political: Financial support and subsidies, government initiatives, and policies.
• Economic: Labor and energy costs, inflation, and interest rates.
• Sociological: Education, culture, media, life, and population.
• Technological: New information and communication systems technologies.
• Legal: Local and national government regulations and employment standards.
• Environmental: Waste, recycling, pollution, and weather.

By analyzing and studying these factors, analysts gain a better understanding of how they will influence the organization’s narrative. This understanding, in turn, makes it easier for analysts to develop strategies on how to address them.

7. SWOT Analysis

One of the most popular techniques in the industry, SWOT identifies the strengths and weaknesses in a corporate structure, presenting them as opportunities and threats. The knowledge helps analysts make better decisions regarding resource allocation and suggestions for organizational improvement. The four elements of SWOT are:

• Strengths: The qualities of the project or business that give it an advantage over the competition.
• Weaknesses: Characteristics of the business that pose a disadvantage to the project or organization, when compared to the competition or even other projects.
• Opportunities: Elements present in the environment that the project or business could exploit.
• Threats: Elements in the environment that could hinder the project or business.

SWOT is a simple, versatile technique that is equally effective in either a quick or in-depth analysis of any sized organization. It is also useful for assessing other subjects, such as groups, functions, or individuals.

8. Six Thinking Hats

This business analysis process guides a group’s line of thinking by encouraging them to consider different ideas and perspectives. The ‘six hats’ are:

• White: Focuses on your data and logic.
• Red: Uses intuition, emotions, and gut feelings.
• Black: Consider potential negative results, and what can go wrong.
• Yellow: Focus on the positives; keep an optimistic point of view.
• Green: Uses creativity.
• Blue: Takes the big picture into account, process control.

The six thinking hats technique is often used in conjunction with brainstorming, serving as a means of directing the team’s mental processes and causing them to consider disparate viewpoints.

9. The 5 Whys

This technique is commonly found as often in Six Sigma as it is in business analysis circles. While journalism uses the “Five W’s” (Who, What, When, Where, and Why) in reporting, the 5 Whys technique just operates “Why” in a series of leading questions, this approach helps business analysts pinpoint a problem’s origin by first asking why the issue exists, then following it up by asking another “why?” question relating to the first answer, and so on. Here’s an example:

• Why? Because the wrong models were shipped.
• Why? Because the product information in the database was incorrect.
• Why? Because there are insufficient resources allocated to modernizing the database software.
• Why? Because our managers didn’t think the matter had priority.
• Why? Because no one was aware of how often this problem occurred.
• Countermeasure: Improve incident reporting, be sure managers read reports, allocate budget funds for modernizing database software.

10. Non-Functional Requirement Analysis

Analysts apply this technique to projects where a technology solution is replaced, changed, or built up from scratch. The analysis defines and captures the characteristics needed for a new or a modified system and most often deal with requirements such as data storage or performance. Non-functional requirement analysis usually covers:

• Performance
• Reliability

Non-Functional Requirement Analysis is commonly implemented during a project’s Analysis phase and put into action during the Design phase.

11. Design Thinking

Design Thinking is a business analysis technique that is primarily used for problem-solving and innovation. It's a human-centered approach that emphasizes empathy, collaboration, and creative thinking to develop solutions that meet user needs and create positive user experiences. Design Thinking is often employed to address complex, ambiguous, or user-centric problems by focusing on understanding the end-users' perspectives, motivations, and pain points.

If you’re looking for a more rewarding, better-paying career , you should consider business analysis. The higher demand for Business Analysts means security, marketability, and excellent financial gain. According to Salary.com , Business Analysts can earn a yearly average of USD 75,400. Simplilearn offers a Business Analysis Certification training course designed to make those first steps easier.

The Post Graduate Business Analysis program gives you expertise in the latest BA tools and techniques like the ones mentioned previously. You will master planning and monitoring, data analysis and statistics, visualizations, Agile Scrum methodologies, and SQL databases. The course supplements your training with real-world case studies and helps you become an AI-powered business analyst.

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