What is business analysis?Latvia
Key takeaways
Business analysis turns business needs into clear requirements and evidence-based decisions.
- Business analysis aligns strategic goals with delivery by bridging stakeholders and technical teams.
- Clear requirements and validation reduce project risk and improve solution fit, cost and feasibility.
- Techniques like SWOT, gap analysis, process modelling and data analysis expose opportunities and bottlenecks.
- Embedding analysis in governance strengthens planning, transparency and measurable outcomes.
- Rigour can be maintained alongside speed by using consistent standards, templates and lightweight frameworks.
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 improvementContents 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)Definition 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 analysisWhen to use a business case
- Identifying business needs and opportunities for improvement
- Supporting stakeholders in achieving strategic goalsWho creates and who approves a business case
- Facilitating change managementKey components of a business case processes
- Reducing project risk through clear requirements and solution assessmentHow to write a business case
- 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.Financial analysis methods
Key responsibilities of a business analyst
The Risks, assumptions, constraints and dependenciesbusiness analyst plays a critical role throughout project lifecycles and change initiatives. Their main responsibilities include:Example business case
- Requirements elicitation: Facilitating workshops, interviews, and surveys to gather needs from stakeholdersBusiness case template
- Requirements documentation: Creating clear business and technical requirements using various formats (e.g., Business case vs business planuser stories , use cases)Governance and lifecycle
- Gap analysis and feasibility studies: Assessing current and desired future states to highlight improvements and evaluate solution viabilityFAQs
- Stakeholder engagement:
Essential skills and competencies for business analysts,
- Analytical and critical thinkinginternal rate of return (IRR)
- Effective communication and stakeholder engagement, and
- Attention to detail in requirements documentationpayback period
- Problem-solving and solution assessment.
- Knowledge of business and technical requirementsRisks
- Proficiency in process improvement and data analysis: key risks, mitigations, and residual risk.
Certification and career progressionAssumptions and dependencies
BCS: what must be true for the case to succeed and what it relies on (for example, data quality or supplier delivery). Implementation plan offers globally recognised certifications, such as : phases, milestones, resourcing approach, and indicative timeline.Business Analysis FoundationMetrics and KPIs, : how progress and outcomes will be measured, including benefits tracking.International Diploma in Business AnalysisGovernance and approval, Practitioner certificates in : decision points, review cadence, and post-implementation review plan.Requirements EngineeringHow to write a business case, Define the decision to be madeModelling Business Processes: state what approval is requested (funding, people, procurement authority) and by when., and Describe the current state and baselineBusiness Analysis Practices: quantify today’s performance, costs, cycle times, or risks so improvement can be measured..Set objectives and success criteria
The : define outcomes and KPIs, including benefits ownership and expected timing.International Institute of Business Analysis (IIBA)Identify feasible options offers globally recognised certifications, such as ECBA, CCBA, and CBAP, based on the : include at least a baseline option and 1 to 3 credible alternatives; capture key constraints.BABOK GuideEstimate benefits. : quantify savings, revenue uplift, risk reduction, or service improvements; link to benefits realisation plans.CertificationsEstimate full costs demonstrate expertise in requirements elicitation, stakeholder management, and business analysis best practices. Aspiring business analysts may also pursue : include acquisition, implementation, training, transition, and ongoing running costs; note opportunity cost where relevant.project managementRun financial appraisal or : calculate ROI, NPV, IRR, and payback period; document discount rate and major assumptions.change management qualificationsAssess risks, assumptions, and dependencies to support broader career progression.: rate likelihood and impact, define mitigations, and identify decision-critical unknowns.
FAQsRecommend the preferred option
What is business analysis?: provide a clear recommendation and explain trade-offs (value, risk, feasibility, timing).
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.Outline the implementation plan and governance
What does a business analyst do?: include timeline, milestones, responsibilities, and a post-implementation review to validate outcomes.
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.A more detailed guide to
What are the key techniques in business analysis?writing a business case
Common is on our web site.business analysis techniquesFinancial analysis methods include Business cases often combine narrative justification with investment appraisal. Common methods include:SWOT analysisReturn on investment (ROI), gap analysis, requirements elicitation, process mapping, use case modelling, and stakeholder analysis.: a simple ratio comparing net benefits to costs. It is easy to communicate, but can hide timing and risk.
What are the main types of requirements in business analysis?Payback period
Business analysts work with : how long it takes for cumulative benefits to repay the initial investment. Useful for liquidity constraints, but ignores value after payback and time value of money.business requirementsNet present value (NPV) (organisational goals), : discounts future cash flows back to today using a discount rate, reflecting the time value of money. A positive NPV indicates value creation under the model assumptions.stakeholder requirementsInternal rate of return (IRR), and : the discount rate at which NPV equals zero. It supports comparison between investments, but can be misleading with non-standard cash flows.technical requirementsBackground explanations for these appraisal concepts are available from reference sources for (system or IT needs).cost–benefit analysis
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.net present value
What qualifications or certification should a business analyst have?, and
Common internal rate of returncertifications. include BCS’s Business Analysis Foundation certificate, Benefits vs costs (simple structure)International Diploma in Business AnalysisCategory, and Practitioner certificates in Business Analysis Practices, Requirements Engineering, and Modelling Business Processes.Examples
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 to quantify
How does business analysis differ from project management?Benefits
Business analysis focuses on defining requirements and recommending solutions, while Time saved, fewer errors, faster sales cycle, improved complianceproject managementLabour cost reduction, avoided rework, revenue uplift, avoided penalties is concerned with planning, executing, and Costsdelivering projectsLicences, implementation, training, change management, support within scope, time, and budget constraints.Quotes, internal day rates, vendor contracts, total cost of ownership