Business Analysis For Dummies book cover

Business Analysis For Dummies

Author:
Alison Cox

Overview

Build a successful career in business analysis  When it comes to doing good business, change is a very good thing. And effective business analysts are at the heart of identifying opportunities for growth and implementing the solutions that can transform an organization’s foundation—and ultimately increase its profitability. Whether you’re an aspiring business analysis professional or a seasoned analyst looking for the latest techniques and approaches, Business Analysis For Dummies helps you discover the newest tips and tricks for turning knowledge into the changes that have a real and meaningful impact on business and drive your organization towards value delivery.
  • Identify areas for growth and create solutions
  • Learn how to bring people together to collaborate effectively
  • Discover ways to better understand and serve your customers
  •  See how business analysis works in the real world
  •  Learn the technology to make the job easier
  • Find business solutions to improve your organization’s performance
  •  Understand how to dig deeply into your organization’s data, processes, and business rules
Dummies makes the path to business success clear. Start here to turn your love of business analysis into the catalyst that makes a difference.
Build a successful career in business analysis  When it comes to doing good business, change is a very good thing. And effective business analysts are at the heart of identifying opportunities for growth and implementing the solutions that can transform an organization’s foundation—and ultimately increase its profitability. Whether you’re an aspiring business analysis professional or a seasoned analyst looking for the latest techniques and approaches, Business Analysis For Dummies helps you discover the newest tips and tricks for turning knowledge into the changes that have a real and meaningful impact on business and drive your organization towards
value delivery.
  • Identify areas for growth and create solutions
  • Learn how to bring people together to collaborate effectively
  • Discover ways to better understand and serve your customers
  •  See how business analysis works in the real world
  •  Learn the technology to make the job easier
  • Find business solutions to improve your organization’s performance
  •  Understand how to dig deeply into your organization’s data, processes, and business rules
Dummies makes the path to business success clear. Start here to turn your love of business analysis into the catalyst that makes a difference.
Business Analysis For Dummies Cheat Sheet

Business analysis is a profession, or a set of methods, tools, and techniques, or a role, or a combination of all of these. Your role as a business analyst is critical for successful delivery of value to your customers, whether those customers are external or internal to your organization. You can use business analysis concepts, tools, and technique across your organization to help it to respond quickly and effectively to changes in your world, your environment, your markets, your customer base. You can use business analysis at multiple levels: the strategic level, the initiative level, and the operational level.

Articles From The Book

106 results

General Business Articles

The Different Types of Business Analysis Projects

In the business analysis profession, there is no one-size-fits-all solution. As you develop your project type, you need to know all the tools available to you; think through all the variables related to the people, project characteristics, and the process; and then determine what tasks you need to complete.

Data warehouse projects

A data warehouse is a solution that brings together information from diverse sources and puts it in a format that stakeholders can easily access when making complex business decisions. A data warehouse supports a company’s tactical and strategic goals. Data warehouses are useful for trend analysis, forecasting, competitive analysis, and targeted market research. Data is often summarized by specific subject area, function, department, geographic region, time period, or all of these. Most data warehouse projects fall into the “large project” category and result in a substantial project planning effort for you as the business analyst. These projects often have a company-wide focus. The business priority for the project depends on what critical decisions need to be made to address a business threat or opportunity. Include these types of tasks in your data warehouse project work plan:
  • Identifying what information the data warehouse must contain, identifying who should have access to it, and making sure users have the right level of access.

  • Identifying and prioritizing subject areas to be implemented.

  • Managing the scope of each subject area iteration or release.

  • Validating the data accuracy and consistency during the extract/transform/load (ETL) process.

  • Defining the correct level of data summarization.

  • Establishing a data refresh schedule that’s consistent with business needs, timing, and cycles.

  • Researching and reviewing available commercial off-the-shelf (COTS) business intelligence tools used for complex reporting.

  • Planning for a user-friendly, powerful desktop query tool for users to access data without IT assistance.

  • Planning for the user training and support needed to learn how to use tools and access data.

  • Ensuring thorough testing is done prior to user acceptance testing (UAT).

Process improvement projects

Companies find competitive advantages by looking closely at their business processes and determining whether they need to improve their business operations. Depending on the changes to be made, those changes may occur in small segments over a long period of time (evolutionary changes) or may be made at one time (revolutionary changes). As a business analyst, your evaluation of the business process may result in a recommendation for software changes, procedural changes, organizational changes, or personnel changes. The tasks you perform when completing a process improvement project include analyzing the current process, capturing metrics as a baseline, identifying the problems, and identifying solutions that fix those problems to achieve better performance. Reengineering — another approach to changing a business process — happens when you start from scratch to ask what the organization needs in order to succeed instead of fixing something that already exists. You ignore current roles, silos (compartmentalized departments in organizations), and outdated business rules, and challenge assumptions to create enterprise-wide changes. Reengineering implies that you’re innovating dramatically to design new, streamlined processes. Tasks related to process reengineering projects include the following:
  • Performing root cause analysis to find out the real problem that exists within the business

  • Brainstorming with the project team alternative approaches to address the problem area

  • Choosing the best approach that solves the business problem

Infrastructure projects

Infrastructure projects are internal technical upgrades that impact systems, hardware, platforms, or tools in order to improve the technology that supports the business and the information technology (IT) efforts. Typically, these projects are called IT projects because they’re driven and sponsored by IT departments. Tasks to include on your work plan include the following:
  • Assessing how software interface changes (even small ones) may impact usability

  • Assessing how the project may impact user productivity and whether training may be required

  • Determining whether any change to a work process needs to be made based on the project

With infrastructure projects, the changes often affect stakeholders, external customers, or suppliers. Business analysts are involved to manage requirements and expectations of these changes among all project stakeholders. Here are some things to keep in mind:
  • Business analysts sometimes underestimate or miscommunicate business impact, technical risks, and priorities, so be careful. In particular, don’t forget about implementation considerations and transition requirements (user training, timing, and support).

    Although infrastructure projects aren’t intended to change user functionality, user productivity often decreases during the learning curve as users get used to the new elements.

  • Because these projects are technology improvements, they may often be delayed to make room for more business-critical efforts, assuming their delay doesn’t significantly impact the business.

  • These projects may be initiated because vendor support is no longer available.

Web development projects

In today’s environment, many users expect feature-rich websites and applications accessible from anywhere with any web browser. They also expect functions to be delivered in short time frames. Think about the applications you use today, like online banking, social media, and shopping websites. Web development projects are customer-facing web applications that are targeted at consumers and are available inside or outside the organization. As such, they require some special considerations in your work plan. When planning for this type of project, make sure to prioritize the features and functions. Doing so allows the team to work on and implement the highest value features first. Using an agile approach (building a highly skilled, tightly knit, self-managed, and collocated team that stays with the project from beginning to end and delivers software quickly) works well for these types of projects. Key stakeholders involved in these projects include usability experts, marketing product owners, and a customer representative or surrogate representative, such as marketing or business analyst. The following are some tasks to include on a web development work plan:
  • Eliciting usability and security requirements

  • Use cases, user stories, wireframes, prototypes, and simulations

  • Testing activities like UAT

General Business Articles

How to Use a Text-Based Data Flow Diagram in Your Business Analysis Report

The data flow diagram is a helpful diagram for business analysts that shows the parties and systems involved with a particular process, as well as the data and interfaces involved when dealing with external agents (those parties or systems that exchange information with the project but over which your project has no control). It’s most commonly used for the project level context diagram (or scope diagram). Although the data flow diagram is a graphic, as the name suggests, you can also use a text-based version called the external interaction textual template.

You use these techniques to analyze and communicate. If text communicates better to your stakeholders, use the textual template rather than the diagram.

Introduction to data flow diagrams for business analysis

The data flow diagram consists of three basic symbols: circles, curved lines, and rectangles. Each symbol represents something different:
  • Circles: The circles represent the process (or the function) that actually works to transform inputs into outputs. In the example below, the process involves taking in all the information from the guest (input) and sending it off to the reservation system (output).

  • Curved lines: The curved lines represent the data flowing into and out of the process. These bits of data aren’t detailed data elements but rather a conglomeration of data called net flow. In the example, dates coming from the guest into the process are arrival and departure dates (including times), but instead of getting that detailed, the diagram simply summarizes them as “dates.”

  • Rectangular boxes: The rectangular boxes represent external agents that are sources or recipients of data. Your project has no control over how these sources execute their internal processes (their work), and the project can only send data to and receive it from them.

    For example, you have no idea how the reservation system processes its data, but based on what you send the system, you get the availability and price information from it.

    Credit: Illustration by Wiley, Composition Services Graphics
Here are some examples of when you should apply this technique:
  • When identifying stakeholders (those external agents!)

  • When scoping your project and figuring out your boundaries

Like any analysis method, data flow diagrams have advantages and disadvantages. In the advantages column is the fact that the diagram is a very clear way to show the scope boundaries for the project so that everyone is on the same page with regard to the area being analyzed (the scope). It also highlights the items that aren’t part of scope and can be documented as “out of scope.” The disadvantages primarily have to do with reader understanding:
  • The diagram doesn’t show sequence, so some businesspeople may have a hard time following it.

  • The diagram presents the data flowing into and out of the project at a rather high level. It doesn’t show all the data elements, which may be problematic for detail-oriented folks.

  • The data flow has kind of fallen out of favor because, outside the scope diagram, businesspeople don’t relate to the many levels of the data flow diagram. They prefer a workflow.

Here’s how to create a data flow diagram:
  1. Identify the process you’re documenting (the circle in the middle of the diagram).

  2. Identify all the parties and systems (the rectangles) involved in the process.

  3. Elicit from the stakeholders the data (the curved lines) flowing among the parties, the systems, and the process.

  4. Have the stakeholders validate your diagram.

The external interaction textual template for business analysis

An external interaction textual template may sound complicated, but it’s really not. You use the same information you’d use for a data flow diagram but present it in a text table rather than a graphic. A textual representation may be preferable when your stakeholders don’t understand the diagram or when teaching them how to read it takes too much time. You can see that the left-hand column lists the external agents (the rectangles on the data flow diagram), and the middle and right-hand columns list the data itself (the curved lines on the diagram).
Credit: Illustration by Wiley, Composition Services Graphics

General Business Articles

Introduction to Prototyping for Business Analysis

In prototyping, you create a model of the proposed solution. In business analysis, a prototype, or mockup, generally means a representation of a computer screen and examples of how the user will interact with the application to accomplish a task to solve the business problem. The business analyst creates the prototype, usually with help from the technical team.

Prototyping is a great tool to communicate what a software solution will look like. You just need to make sure that the solution doesn’t come before the underlying problem has been identified.

Sometimes, a stakeholder draws a picture showing you what he thinks the solution should look like. That initiative isn’t necessarily bad, but it puts the cart before the horse. In this situation, you still need to understand what the underlying problem is within the business domain.

Here are the reasons why prototyping is so great:

  • Prototypes give users something tangible to review. People are visual. Many people are interested in seeing what something looks like, and the prototype fits this bill.

  • When done properly, prototypes can speed up the project lifecycle. If a picture is worth a thousand words, prototypes save a lot of talking. In fact, in a commercial off-the-shelf (COTS) system, business analysts often start with prototypes because the screen has already been designed. The changes to the screen and the configuration will be modified on the mockup.

Be careful about using prototypes too early in the project. Users may get caught up in the aesthetics of the screen and want you to make the fonts sans serif or something like that.

Unless someone presents a valid reason for changing the aesthetics, remember the purpose of the prototype: You’re only trying to understand how the solution should function. In addition, make sure everyone knows the prototype is just a picture. Some prototypes may look, and even feel, like a real system. People tend to think the system is already built and ready to be used, but it hasn’t.

That said, sometimes aesthetic changes matter. Paul once created a dashboard for his manager that showed the health of the manager’s projects with green, yellow, and red boxes. Unfortunately, the manager was colorblind, so the red and green boxes weren’t useful. That is a valid reason to change colors!

Throwaway prototypes

You may be shocked that we’d suggest you throw away something you took a long time creating, but that’s essentially what you do with throwaway prototypes.

Throwaway prototypes are just pictures. You may draw them on a whiteboard or with an application like Microsoft Word or even on a napkin. These may be kept as artifacts, but they are thrown away in the sense that they are not used to build the system directly. Sure, they’re useful graphics, but that’s the extent of it.

The development team starts to build or update the application from scratch because the prototype can’t be leveraged (it doesn’t include code that developers can use when programming the solution).

Here is an example of a throwaway prototype for a computer application. What’s hard to notice is that it’s just a drawing. Nothing more. That means the developers have to start coding from scratch.

Credit: Illustration by Wiley, Composition Services Graphics

When you make throwaway prototypes, follow the concept of “just enough.” That is, spend only enough time on the prototype to get the project team to understand what needs to be done, and then move on. Time is tight, so you don’t want to spend any longer than is necessary.

Evolutionary prototype

Evolutionary prototypes let the development team leverage the effort of the analysis; basically, what starts as a prototype turns into the actual solution.

The advantage with this approach is that the expectations from the business are solid. They see the actual front end of the solution, and the developers make the necessary changes as the team works to clearly define the solution. Many times, the development team is involved in the creation of the front end and can guide the team on approaches.

Simulation prototype

Simulation prototypes are sort of like throwaway prototypes on steroids. Ultimately, the development team can’t leverage these prototypes for code (although at the time of this writing, some simulation tools are allowing some code snippets to be exported like in an evolutionary prototype).

The advantage with the simulation is it gives the business stakeholders something tangible to walk through. Users can interact with the solution and see how it works as they click and navigate through the proposed solution.