Development of Business Analysis
Different organizations have reached various degrees of maturity in their adoption and implementation of business analysis. As the function of business analysis expands within a company, the value of such work is increasingly recognized, and business analysis is extended to broader areas of the business. In other words, business analysis is used in increasingly advanced ways and applied to strategic levels. To measure and assess the “maturity” of a company in business analysis, a framework called “Business Analysis Maturity Model” (BAMM) [1] can be used. The BAMM framework lays out the progression of business analysis within a company along two axes, scope (complexity of the work) and influence (degree of authority) given to the business analysts.
The first phase is defined as “system improvement” and refers to when business analysts are predominantly working with users to improve some aspect of their business systems (such as added functionality). In this capacity, the business analyst is primarily working with eliciting, analyzing, documenting, validating and managing requirements with the aid of various modeling techniques. The next stage is when the focus of the analyst is broadened to improve business processes. At this stage, the work of an analyst extends beyond the realm of information systems. At this level, analysis of various kinds such as strategy, stakeholder, problem, and gap analysis are performed. In addition, the analyst works with developing a business case and improves the processes. At the final stage of the progression, the business analyst operates more as an internal management consultant who assists senior management. In this capacity, the analyst focuses on portfolios of projects. You might see an overlap with the evolvement of the business analyst’s profession as discussed previously.
Another way to describe the value and maturity of business analysis is the “Business Analysis Practice Maturity Model”. This model captures the path of continuous improvement of business analysis practice within an organization. The first level is called “business analysis awareness.” Business analysis takes place in the organization but lacks plans and structures for business analysis practice. At the second level, “business analysis framework”, organizations recognize the value of the business analyst. Usually, there is a centralized unit responsible for managing the business analysis framework. At this level, the business analysis practice is predominantly project focused. As such, analysts are working mostly with various aspects of requirements (corresponding to the system improvement of BAMM). The third level, “business alignment” has an enterprise focus. The organization has reached a level where the business analyst ensures alignment between business strategy and project goals. The analysts work with enterprise analysis, portfolio management, business case development, and benefits management. At the fourth level, “business/technology optimization” business analysis is well integrated with other similar functions such as project management and quality assurance. Here, there is a “competitive focus” as the work of an analyst aims at improving the competitiveness of the company. At this level, opportunities are actively realized into innovative business solutions, business analysts are involved in aspects of strategy development and long-term planning.
The maturity level also reflects the evolving role of an analyst. A new business analyst might begin with focusing on working with requirements. However, as the analysts gain experience and become more skillful, they move a step up and are involved in projects of higher complexity. At such levels, they might work with improvements that affect and involve several divisions of an organization. As the analysts evolve, they might be involved in managing portfolios of improvements determining which will yield the best value and is most aligned with the strategic objectives of the organization. Perhaps the analyst will also work with finding new opportunities that improve the position of the organization in the market.
The Role of a Business Analyst A business analyst is someone who is responsible for discovering, synthesizing, and analyzing information from a variety of sources within an enterprise “for the purpose of eliciting the actual needs of stakeholders in order to determine underlying issues and causes and ensure that the designed and delivered solutions are aligned with the needs of the stakeholder” [3]. This role is also defined as an “advisory role which has the responsibility for investigating and analyzing business situations, identifying and evaluating options for improving business systems, elaborating and defining requirements, and ensuring the effective implementation and use of information systems in line with the needs of the business”.
As can be seen from the definitions above, the role of the business analyst is about understanding and identifying problems to ensure the development of effective solutions that address the right problem and satisfy the real needs. In other words, a business analyst is someone who works with “enabling change in an enterprise by defining needs and recommending solutions that deliver value to stakeholders” [3]. The business analyst applies a set of techniques to achieve results or performs a set of core activities to ensure that the right problem is resolved with the appropriate solutions.
The tasks performed are not restricted to business analysis alone. As was mentioned earlier, other professions perform similar tasks, resulting in an overlap. A business analyst works with eliciting requirements as does a software product manager. A business analyst can model business processes as does a process analyst. Business analysis is therefore not something performed exclusively by business analysts. Rather, anyone performing tasks that fall within the definition of business analysis is at least partly a business analyst regardless of their job title.
Over the years, the role of a business analyst has evolved and now incorporates a multitude of perspectives that he or she is required to perform. These are as follows:
Analyst – the analyst is the ultimate problem solver that analyzes problems, “considers issues from a systems perspective; systematically organizes the problem, opportunity, or situation; sets priorities; identifies causal or if then relationships and synthesizes the problem’s component parts in the systems context.”
Facilitator – the analyst is a “key facilitator within an organization” who effectively elicits requirements by ensuring “positive, continuous discussion and progress.” They “create a positive and constructive group environment, maintain a group’s focus, lead a discussion toward stated goals, and use questioning techniques and other tools to discover user and stakeholder processes and gather data.”
Negotiator – the analyst mediates between clients, stakeholders, and other involved parties. They build consensus and agreement and address contentious issues.
Architect – the analyst works with solutions that include systems development, process improvement, and organizational change. They model data, business processes, use different designs, consider usability and understand the needs of the end users.
Planner – the analyst plans and manages activities that secure successful results within constraints. They ensure that requirements are “accurately identified, captured, and tracked throughout the project’s life cycle; define, organize, and schedule requirements management activities in a way that’s consistent with the organization’s culture and standards; and execute planned requirements of management activities while remaining flexible to changing requirements and project deadlines.”
Communicator – the analyst has a role as a communicator between stakeholders’ needs and project organizations. They “use discussion, conversations, and interviews to further understanding; speak clearly and listen actively; and create clear, complete, and usable documentation.”
Diplomat – the analyst ensures satisfaction with the solution. They build and maintain positive working relationships with customers throughout the process and are sensitive to priorities, goals, and competitive advantage.
Expert – the analyst applies his or her expertise to find solutions. They need to understand the business models, industry, and other relevant aspects.
Strategist – the analyst thinks “outside the box” and considers long term aspects that extend beyond a specific project. They understand visions, goals, and strategies to reach business goals and translate them into practical plans aligned with the company’s context.
The role is not to determine and decide on all aspects such as what the problems are or which solution to choose. Rather the analyst acts as a “navigator” to ensure that the right problems have been identified and that the solutions are relevant. The role of an analyst is to ensure that all options are identified rather than pushing for a particular solution based on preferences. Naturally, the analysts can contribute with much valuable input but their role of facilitating collaboration, creating a common understanding among the stakeholders, analyzed, evaluating and examining situations, solutions, and requirements are also of vital importance.
It is important to remember that the analyst role will vary during the business analysis process. In the initial phases, the analyst has an important role of gathering data and analyzing the situation to uncover the real problems or needs. However, during the analysis of needs and evolution of alternatives, the role might be more geared towards “negotiation and meditating” while during the delivery of the solution phase, the role is mainly supportive and ensuring that changes are compliant with the business needs.
Finally, the role of the analyst will be different depending on seniority and specialization. Someone with a business background might begin work by eliciting requirements for smaller projects, perhaps under the supervision of a more experienced analyst. Such a person would be considered as a junior business analyst. After three or more years, that analyst would perhaps begin working on larger change initiatives and be active in planning and setting up new initiatives. Having gained experience with such work, the analyst might be ready to take the role of lead analyst on larger and more complex initiative. Such a business analyst might also work with initiating change initiatives and supporting junior business analysts. After ten or so years of experience, the analyst is ready to work with strategic planning, assessing and managing portfolios of change initiatives rather than participating in specific ones. As can be seen, the role of the analyst will change as experience is accumulated.
A similar path of career development might arise for someone who has roots in IT. In such cases, they begin as a programmer or junior analyst, progress to system analyst and business system analyst and finally be more involved in strategic management.
