What is the Role of a Business Analyst 

Business analysis may be described as the means of establishing the requirements of the firm and how to deal with issues. Business analysts act as a bridge between the business and technical side of the organization to gather requirements, evaluate the possibilities, and facilitate change.

The Role of a Business Analyst

A business analyst who provides business analysis services often works with business and IT stakeholders to evaluate goals, processes, and issues. Key responsibilities include:

Understanding Business Needs

  • Identify the needs of the stakeholders through interviews, workshops, observation, and documents review
  • Document the business, functional, and non-functional requirements from the identified stakeholder needs
  • Conduct a business analysis overview of the current standards and trends of the industry
  • Define potential opportunities for operational enhancement

Evaluating Solutions

  • Research technology solutions and vendors
  • Define metrics and success criteria to evaluate solution options
  • Conduct cost-benefit and ROI analyses on proposed solutions
  • Present recommendations with evidence to support the proposed direction

Driving Change

  • Design future-state process flows and guide process re-engineering
  • Develop business cases, transition plans, and implementation roadmaps
  • Create user stories and functional specifications for developers
  • Define testing plans and success criteria
  • Manage stakeholder communication and training

So, what is analysis in business in practice? Essentially, it involves digging deep into the business to understand the root causes of issues. It bridges collaboration between business and technical teams to evaluate potential solutions and drive organizational change.

Key Business Analysis Techniques

There are several approaches used by business analysts to analyze the business environment and come up with the best solutions deep solutions.

Requirements Gathering

It is crucial for business analysts to understand the needs of the stakeholders fully, and this is why detailed requirements gathering is conducted. This includes interviews, group sessions, documentation reviews, questionnaires, observation, and intensive requirements sessions. These techniques will assist the proficient business analysts in interacting with the stakeholders and get a comprehensive list of business, functional, and non-functional requirements. They then very cleverly translate the gentle expectations of the stakeholders into concrete requirements documentation.

Process Modeling

Many business analysts use process mapping to define the existing business processes, analyze the problems, and design better future processes. Some of the useful process modeling techniques include; flowcharts, which are used to model the flow of a process and identify the steps in the process; value stream mapping, which is used to identify and eliminate waste in the process; and swimlane diagrams, which is used to model the roles and responsibilities of the individuals involved in the process. Managers will often model activities to measure the level of suffering to be undertaken before proposing changes.

Data Analysis

However, the best business analysts do not assume or guess; instead, they let the numbers speak for themselves. A good analyst considers all the available sources of information including business reports, sales funnels, financial performance indicators, customer activity rates, web analytics, and market data. By using data visualization tools and statistical models, analysts bring out trends, issues, and possibilities. The detailed analysis of data collected in the process is beneficial to the analysts as it enables them to confidently support their solution proposals.


Another quantitative technique that business analysts can use to search for optimization is benchmarking. Benchmarking of the leader and competitors helps the analysts to compare organizational performance in terms of metrics like operational efficiency, cost, quality, and customer satisfaction. Benchmarking identifies functional areas and processes that are less effective compared to the industry and provides evidence-based suggestions.

Testing and Validation

Business analysts don’t just define requirements and success metrics upfront – they play an active role in testing and validation. Analysts typically develop comprehensive test plans and test cases linked to defined requirements to verify all needs are fully addressed in the final solution. Understanding business analysis of desired functionality and outcomes enables analysts to take the lead in user acceptance testing. This validation ensures the solution delivers on stakeholder expectations before going live.

Business Analysis Frameworks

Now that you understand the whole business analyst meaning, it should be added that business analysts commonly leverage proven frameworks and methodologies to add more structure and strategic focus to initiatives.

SWOT Analysis

Conducting a SWOT analysis is a go-to technique for business analysis basics to evaluate an organization or initiative before moving forward. The SWOT framework examines Strengths that can be built upon, Weaknesses to shore up, Opportunities worth pursuing, and Threats to monitor and mitigate. Developing a SWOT helps analysts take a 360-degree view of the internal and external factors that can impact the proposed direction and strategy. The insights derived help leaders determine if plans are viable or need adjustment.

PEST Analysis

PEST analysis considers the macro-environmental Political, Economic, Social, and Technological factors that can influence the outcome of solutions. Analysts will research the broad market landscape through this framework before finalizing recommendations. For example, upcoming regulatory changes or innovations on the technology horizon could significantly benefit or impede certain strategic paths. Keeping a pulse through PEST research ensures considerations like compliance, access to talent, cultural trends, and disruptive innovations are built into plans.

Porter’s Five Forces

To assess competitive landscape factors, business analysts often leverage Porter’s classic framework. The model examines five forces that determine profitability potential within an industry: Risk of New Entrants, Bargaining Power of Suppliers, Bargaining Power of Buyers, Threat of Substitute Products or Services, and Jockeying between Existing Market Rivals. By researching these areas, analysts can provide data-backed recommendations on topics like pricing strategy, supply chain optimization, and M&A targets.

McKinsey 7S Model

The McKinsey 7S model is a framework business analysts utilize to assess organizational readiness for change initiatives. At optimal companies, the seven elements – Strategy, Structure, Systems, Shared Values, Staff, Skills, and Style – are aligned and mutually reinforcing. Analysts leverage this model to identify misalignments that could derail proposed changes, like an outdated structure or needing more skills. Addressing these gaps through targeted recommendations sets up initiatives for smooth adoption and ongoing success.

These frameworks help business analysts take a structured, holistic view when evaluating the business landscape and solution options.

The Future of Business Analysis

The business analyst position will continue to be an essential one in organizations as they try to manage the increasing number of technologies that are being developed. Here are a few predictions for the future of the field:

Advanced Analytics – BAs will need to go beyond simple data analysis and be able to extract meaningful information from increasingly large data sets. Machine learning applications will be key.

Deeper Tech Awareness – Cloud platforms, automation tools, IoT environments, and modern architectural patterns will become the basic prerequisites for technology recommendations.

Agile Alignment – BAs also can position themselves more intimately within the agile development teams to offer requirements and UX specifications as and when needed.

Soft and Tech Skills – The combination of soft skills such as influencer and storytelling, with hard skills such as data science and solution architecture will deliver tremendous value.

The business analysts that will be required in the next few years will not only be functional analysts but rather strategic partners who are able to manage the constant technological change that is occurring in organizations.

Sudeep Bhatnagar
Co-founder & Director of Business
Sudeep Bhatnagar

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