Business analysis: definition and overview
Business analysis is a professional discipline that involves understanding business needs and problems, eliciting and documenting requirements, and proposing solutions that drive process improvement and deliver value. It acts as a bridge between stakeholders and technical teams, ensuring that strategic objectives are aligned with operational execution. Reputable bodies such as the International Institute of Business Analysis (IIBA) define business analysis as the practice of enabling change in an organisational context by defining needs and recommending solutions that yield benefits for key stakeholders.
The objectives and value of business analysis
- Identifying business needs and opportunities for improvement
- Supporting stakeholders in achieving strategic goals
- Facilitating change management processes
- Reducing project risk through clear requirements and solution assessment
- Ensuring solutions are feasible, cost-effective, and aligned with business requirements
Business analysts enable informed decision-making, increase process efficiency, and help organisations remain competitive.
Key responsibilities of a business analyst
The business analyst plays a critical role throughout project lifecycles and change initiatives. Their main responsibilities include:
- Requirements elicitation: Facilitating workshops, interviews, and surveys to gather needs from stakeholders
- Requirements documentation: Creating clear business and technical requirements using various formats (e.g., user stories, use cases)
- Gap analysis and feasibility studies: Assessing current and desired future states to highlight improvements and evaluate solution viability
- Stakeholder engagement: Communicating with diverse stakeholders to ensure requirements are validated and aligned
- Process mapping and business process modelling: Visualising workflows for process improvement opportunities
- Solution assessment and validation: Reviewing proposals to ensure solutions address documented requirements and deliver value
- Change management: Supporting the transition of solutions into the business and managing effects on people and processes
Main business analysis processes
| Process | Description |
|---|---|
| Requirements elicitation | Gathering information from stakeholders using interviews, workshops, observation, and document analysis |
| Requirements documentation | Capturing business and technical requirements in written formats, such as user stories, use cases, or requirement specifications |
| Requirements validation | Ensuring requirements are accurate, feasible, and aligned with business goals |
| Stakeholder engagement | Building relationships with all parties affected by the change to ensure their needs are met |
| Process improvement | Analysing existing workflows and recommending enhancements for efficiency |
| Solution assessment | Evaluating potential solutions against requirements |
| Change management | Supporting successful adoption of new processes or systems |
Common business analysis techniques
- SWOT analysis: Identifying strengths, weaknesses, opportunities, and threats related to a business area or solution
- Gap analysis: Comparing current and target states to identify improvement areas
- Use case modelling: Mapping user interactions with systems to define requirements
- Business process modelling: Creating diagrams (such as BPMN) to visualise business processes
- Stakeholder analysis: Identifying stakeholder interests, influence, and engagement needs
- User stories: Documenting concise functional requirements, typically in Agile projects
- Feasibility study: Analysing proposed solutions for practicality and viability
- Data analysis: Using quantitative and qualitative data to inform decision-making
Business analysis tools and methodologies
Key tools
- Requirements management software (for example, Jira, Confluence, or Azure DevOps)
- Process mapping tools (such as Visio, Lucidchart)
- Mind mapping and collaboration software
- Data analysis tools (for example, Excel, Power BI)
Methodologies
- BABOK (Business Analysis Body of Knowledge): The leading global standard published by IIBA, outlining best practices and techniques for business analysis
- Agile: An iterative methodology focusing on flexibility, frequent delivery, and collaboration (often using user stories)
- Waterfall methodology: A linear, phased project approach suitable for well-defined requirements
Choosing the right methodology depends on project size, risk, stakeholder needs, and desired adaptability.
Essential skills and competencies for business analysts
- Analytical and critical thinking
- Effective communication and stakeholder engagement
- Attention to detail in requirements documentation
- Problem-solving and solution assessment
- Knowledge of business and technical requirements
- Proficiency in process improvement and data analysis
Certification and career progression
BCS offers globally recognised certifications, such as Business Analysis Foundation, International Diploma in Business Analysis, Practitioner certificates in Requirements Engineering, Modelling Business Processes, and Business Analysis Practices.
The International Institute of Business Analysis (IIBA) offers globally recognised certifications, such as ECBA, CCBA, and CBAP, based on the BABOK Guide. Certifications demonstrate expertise in requirements elicitation, stakeholder management, and business analysis best practices. Aspiring business analysts may also pursue project management or change management qualifications to support broader career progression.
FAQs
What is business analysis?
Business analysis is the systematic investigation and evaluation of business needs to recommend solutions that achieve organisational objectives. It includes requirements gathering, stakeholder engagement, and process optimisation.
What does a business analyst do?
A business analyst identifies business problems, elicits requirements, engages stakeholders, and ensures that proposed solutions align with business goals. They act as a bridge between business and IT functions.
What are the key techniques in business analysis?
Common business analysis techniques include SWOT analysis, gap analysis, requirements elicitation, process mapping, use case modelling, and stakeholder analysis.
What are the main types of requirements in business analysis?
Business analysts work with business requirements (organisational goals), stakeholder requirements, and technical requirements (system or IT needs).
What is the BABOK?
BABOK refers to the Business Analysis Body of Knowledge, a globally-accepted standard containing best practices, techniques, and competencies for business analysis, maintained by IIBA.
What qualifications or certification should a business analyst have?
Common certifications include BCS’s Business Analysis Foundation certificate, International Diploma in Business Analysis, and Practitioner certificates in Business Analysis Practices, Requirements Engineering, and Modelling Business Processes.
In addition, there are IIBA’s ECBA, CCBA, and CBAP, which validate knowledge of BABOK and proficiency in requirements elicitation, stakeholder engagement, and process improvement.
How does business analysis differ from project management?
Business analysis focuses on defining requirements and recommending solutions, while project management is concerned with planning, executing, and delivering projects within scope, time, and budget constraints.