What is business analysis according to the BABOK Guide?
February 9, 2020

What is business analysis according to the BABOK Guide?

By Lau

“Setting goals is the first step in turning the invisible into the visible.”

– Tony Robbins
Setting goals is the first step in turning the invisible into the visible. – Tony Robbins Click To Tweet

Let’s start from the beginning. If you are planning to become a Business Analyst you must know how to answer basic questions on the subject. This is one of them. In this article, we will first talk about the definition given by the BABOK Guide, and then I will explain it to you in an easier way.

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.

What is Business Analysis?

According to the BABOK Guide. Business analysis is the practice of enabling change in an enterprise by defining needs and recommending solutions that deliver value to stakeholders.

If we are thinking about business analysis for software, this would mean that business analysis is required when an enterprise needs a new software solution or simply wants to change the one it already has.

“Business analysis is performed on a variety of initiatives within an enterprise. Initiatives may be strategic, tactical or operational. “

Type of initiatives.

  • Strategic: It’s about long term goals.
  • Tactical: Covers the big project or activities that move the company towards achieving the strategic goals.
  • Operational: The day to day process that achieves the tactical objectives.

“Business analysis may be performed within the boundaries of a project or throughout enterprise evolution and continuous improvement.

The importance of this paragraph is to understand when business analysis is required. A business analysis practitioner could be needed for a specific project or to constantly propose new ideas to improve the enterprise. 

“It can be used to understand the current state, to define the future state, and to determine the activities required to move from the current to the future state.

  • To understand the current state. This is what Business Analysts are trying to do in the requirements gathering stage. Their goal is to have the big picture view of what is already happening and only after they clearly have it will they be able to move on to the second stage “to define the future state”.
  • To define the future state. The future state is the result of the analysis. Here they will define what the customer has to receive in order to cover their needs.
  • To determine the activities required to move from the current to the future state. These activities are the specification of every change needed to reach the future state. 

Let’s look at an example.

  • Current state. The client has a shop but he doesn’t know how to control the stock.
  • Future state. The client needs stock control software.
  • Activities. The requirements documentation will contain the following specifications.
    • Create new tables in the database. 
    • Create a CRUD (Create, Read, Update and Delete)
    • Create a new interface that shows a filter with the following fields…

You might also like to read about “Who is a Business Analyst?”.

And don’t forget to download this FREE Digital Book: The Master Strategy for BA Beginners where you will learn how to get your first BA job by following 3 strategic steps.

See you soon. 😉