Today’s market is data-driven. No matter what type of business you are running, you need data and statistics to check what everyone is doing and ensure that the business strategy you are using will bring in more value.
Many businesses face every day because they have too many choices in front of them.
So, without further ado, let’s talk about business analysis techniques and the most commonly used ones in the market to find out how they can benefit your company and its business endeavors. Let’s begin.
What are Business Analysis Techniques?
By definition, business analysts use these analysis techniques to create and execute plans necessary for identifying what’s good for the business in the current market so that the company gains the most value.
You also have to note that there is no “one size fits all” technique that can help every single business on the planet. You need to make the right decision for your business as every company and its working processes are different.
Commonly Used Business Analysis Techniques
Let’s look at all these incredible techniques in detail and find out how they can benefit your business in today’s market.
One of the best techniques used in the organizational paradigm right now is Brainstorming. The technique is used by working professionals worldwide to generate new and innovative ideas.
It is also an incredible mind-flexing exercise that helps to identify a problem’s root cause and come up with efficient solutions to complex problems that the company faces in everyday dealings.
Brainstorming is also an effective group activity technique used in other methods like SWOT and PESTLE.
2. MoSCoW (Must or Should, Could or Would)
MoSCow is an incredible business analysis technique prioritizes the company’s requirements by offering a framework that helps evaluate every demand relative to the rest.
This overall process forces you to ask different questions about the actual need of the element, like, Is this item critically important or just a simple need? Is the demand in question or the spotlight something that could make the overall product better right now or shortly?
3. PESTLE Analysis
Business analysts from all over the world use the PESTLE model to identify the different environmental factors that can have a lasting impact on the company and how best to take them into account while you make business decisions.
These influences include:
- Economic: The company Labor that works for the business and energy costs of the everyday business processes, including inflation, and interest rates
- Technological: New information and communication systems technologies that are used by businesses for their daily processes
- Environmental: Weather, pollution, recycling, and waste
- Political: Financial support and subsidies provided by the government or the upper management, government initiatives were taken to benefit the businesses and overall political policies
- Sociological: Education, culture, media, life, and population
- Legal: Local and national government regulations and employment standards
4. Six Thinking Hats
This incredible business analysis technique helps a group’s line of thinking by encouraging them to consider all of the different perspectives and ideas that can impact the overall business value.
These six thinking hats are as follows:
- Red: These thinking hats use intuition, emotions, and gut feelings to choose a strategy to bring value to the company
- Yellow: Focus on the positives of what the strategy can deliver and keeps an optimistic point of view despite any negativity
- Blue: Takes the big picture into account and also focuses on process control
- White: Focuses on the data and logic that you gather from all your sources
- Black: Consider potential negative results and what can go wrong if a specific business strategy is chosen
- Green: Uses creativity to select a particular strategy of the business to generate value
5. Non-Functional Requirement Analysis
All business analysts monitoring the market daily apply this incredible business analysis technique to any and every project built up from scratch; changed, or replaced.
This analysis captures and defines the characteristics needed for an older, modified, or new system being put in place. This analysis also deals with the requirements like performance and data storage.
This non-functional requirement analysis usually consists of:
6. Business Process Modeling (BPM)
Business process modeling is often used during the analysis phase of a project to analyze and understand all of the gaps between the future processes and the current business process that is working right now.
This process modeling consists of:
- Business model analysis
- Technical analysis for complex business solutions
- Strategic planning
- Defining and designing the process
This incredible business analysis technique identifies all the beneficiaries associated with the business and the leading players in charge, which helps collect all of the information about and perceptions regarding different stakeholders on a unified platform.
This technique is used to thoroughly evaluate how any selected action plan affects the various parties associated with the business.
CATWOE stands for:
- Customers: Who are the beneficiaries that are directly associated with the business?
- Actors: Who are the key players or the stakeholders in the process?
- Transformation Process: What is the process at the core of the system that will shape the overall business?
- World View: What is the big picture for the business in the future, and what are its impacts on the market and the people associated with it?
- Owner: Who owns the impacted system in question, and what’s the relationship between these different stakeholders?
- Environmental Constraints: What are the environmental constraints associated with it, and how do they impact the solution in the overall scheme?
8. MOST Analysis
MOST stands for Mission, Objectives, Strategies, and Tactics. This analysis is a robust business analysis framework that is one of the most incredible techniques to understand a company’s purpose and its ability to work.
This analysis technique helps to conduct a detailed internal analysis of the milestones and goals set by the organization and how they can approach them.
- Mission: What are the organization’s overall goals, milestones, and purpose?
- Objectives: What are the main goals to help the company achieve its primary mission?
- Strategies: What are the primary options available for the team to achieve the company’s objectives?
- Tactics: What are the tactics and methods that the organizations use to carry out the different strategies that have been put into place?
9. SWOT Analysis
Being one of the most essential strategies in the industry right now, SWOT is unique when it comes to identifying the weaknesses and strengths in a corporate structure. This helps them to present these strengths and weaknesses as threats and opportunities.
This knowledge helps the analysts to make better decisions regarding organizational improvement and resource allocation.
- Strengths: The qualities and benefits of the business that is going to give it an advantage over the competition in the market and the overall mindsets of the customers
- Weaknesses: Characteristics of the business that can affect the reputation of the business when it is being compared to other competitors in the market
- Opportunities: Potential positive elements present in the market that the project or business could exploit for their benefit
- Threats: Potential negative elements in the environment that could hinder the progress of the business
10. The 5 Whys
These 5 whys are 5 different questions that the analysts ask the business to be crystal clear about the company’s dealings.
Let’s consider an issue.
“The client refuses to accept any and every delivery of the 3-D printers in the company’s warehouse.”
- Why? Because all of the printers are the wrong models and the company ordered different ones
- Why? The product information in the business database is incorrect
- Why? The database software is being modernized with few resources, so the data was not updated properly
- Why? The managers of the company thought that this matter didn’t matter
- Why? No one had any idea why this problem occurred and whether it will happen again
This was our guide on effective business analysis techniques for 2023. If you want to add something to it, then write to us, and we will do our best to accommodate it into our article.