The business analysis Key Terms
March 8, 2020

The business analysis Key Terms

By Lau

“In order to succeed, we must first believe that we can.”

– Nikos Kazantzakis
In order to succeed, we must first believe that we can. – Nikos Kazantzakis Click To Tweet

Why it is important to learn what the business analysis key terms are?

Here are two reasons:

  1. It will allow you to understand the everyday lingo business analysts use.
  2. You will be able to understand the BABOK® Guide.

These are the terms you will learn:

  • Business analysis.
  • Business Analysis Information.
  • Design.
  • Enterprise.
  • Organisation.
  • Plan.
  • Requirement.
  • Risk.

All the information in this article has been taken from the BABOK® Guide. The information has been reorganised, summarized and clarifying descriptions have been added to make it easier for beginners to understand.

Chapter 2. Business Analysis Key Concepts

2.2 Key Terms

Business Analysis 

“The BABOK® Guide describes and defines business analysis as the practice of enabling change in an enterprise by defining needs and recommending solutions that deliver value to stakeholders. 

To better understand this, think of the business analysis required for a software development project. In this case, the definition above would mean that business analysis would be required when an enterprise needs a new software solution or simply wants to change the one it already has.

Business Analysis Information 

Business analysis information is needed to perform the business analysis tasks, such as eliciting, analysing and documenting. This information is the input and also the output of business analysis work. Some examples of business analysis information are requirements, designs, documentation.

Design 

Designs are the method of showing a solution. Designs contain a description of how a user’s needs will be satisfied. The way of representing the design could be through one or more documents depending on the size of the solution or the business need of making it more or less descriptive.

Enterprise 

An enterprise is composed of one or more organisations. These organisations have the same goals. In order to achieve those goals, they have to use the same process, tools or information. 

 Organisation

“An autonomous group of people under the management of a single individual or board, that works towards common goals and objectives.” 

Plan 

“A plan is a proposal for doing or achieving something.”

A plan is a series of interdependent steps that follow a sequence and schedule with a specific objective. A plan involves materials, human resources and stakeholders.

Requirement 

“A requirement is a usable representation of a need.” 

Requirements include the description of the beneficiary, the need and the added value that satisfying that need will give to the beneficiary.

Risk 

“Risk is the effect of uncertainty on the value of a change, a solution or the enterprise. Business analysts collaborate with other stakeholders to identify, assess and prioritise risks. They deal with those risks by altering the likelihood of the conditions or events that lead to the uncertainty: mitigating the consequences, removing the source of the risk, avoiding the risk altogether by deciding not to start or continue with an activity that leads to the risk, sharing the risk with other parties or accepting or even increasing the risk to deal with an opportunity.”

An example of a risk a business analyst assesses would be defining a new software login, including password policy, which is basically a set of rules designed to enhance computer security by encouraging users to employ strong passwords and use them properly.

Keep in mind that these terms are being defined from the business analysis point of view. This means that you might find a different definition of the same word used in a different context. 

You might also like to read about Requirements Classification Schema that describes all the different types of requirements included in the BABOK® Guide.

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See you soon. 😉