Business analysis is an essential component of successful business operations. It involves analysing the various aspects of a business to identify strengths, weaknesses, opportunities, and threats. Through this strategic analysis, businesses can make smart and informed decisions that can enhance performance and drive growth.
The British Computer Society, branded BCS, The Chartered Institute for IT, is an internationally recognised qualification body that define business analysis courses necessary to equip individuals with the skills and knowledge required to excel in business analysis. In this blog, let's explore the reasons why business analysis is necessary for business success, with a particular focus on the UK.
Why is Business Analysis Necessary?
1. Improved Decision-Making
Business analysis enables businesses to make informed decisions by providing them with accurate data research and insights. By analysing data on customer behaviour, market trends, and industry developments, businesses can make strategic decisions that drive growth and improve performance. With the relevant information at their disposal, businesses can make confident decisions that reduce risk, costs and increase the chances of success.
2. Increased Efficiency and Effectiveness
Business analysis helps businesses to identify areas of inefficiency and waste, similar to Lean Six Sigma functions, allowing them to streamline their operations and maximise efficiency. By analysing business processes and workflows, businesses can identify bottlenecks and inefficiencies, and implement changes that improve productivity, effectiveness and save on costs.
3. Better Customer Experience
Business analysis enables businesses to understand their customers better, including their needs, preferences, and behaviours. By analysing customer data, businesses can develop products and services that meet customer needs and preferences, and provide better customer experiences. This can lead to increased customer loyalty, retention and higher levels of customer satisfaction.
4. Competitive Advantage
Business analysis can provide businesses with a competitive advantage by enabling them to identify emerging trends and opportunities in the marketplace. By analysing relevant market data, businesses can identify gaps in the market and develop new products and services that meet unmet customer needs. This can help businesses to stay ahead of the competition, increase their market share and sustain profitability.
5. Risk Reduction
Business analysis helps businesses to identify and manage risks, reducing the likelihood of costly mistakes and failures. By analysing market trends, customer behaviour, and industry developments, businesses can identify potential risks and take proactive measures to mitigate them quickly. This can help businesses to avoid costly mistakes and reduce the impact of unforeseen events.
The Role of the Business Analyst
Business analysis is typically carried out by a business analyst or team of business analysts, who are responsible for identifying opportunities and improvements within a business. The role of the business analyst can vary depending on the specific needs or project of the business, but typically involves some of the following tasks:
- Conducting research and analysis to identify areas for improvement.
- Gathering and analysing data on customer behaviour, market trends, and industry developments.
- Developing and implementing strategies to improve business performance.
- Communicating with stakeholders to ensure that business goals are aligned.
- Providing training and support to team members to ensure that improvements are implemented effectively.
The BCS and Business Analysis in the UK
The British Computer Society, branded BCS, The Chartered Institute for IT, is a leading qualification body for business analysts in the UK. The BCS offers a range of qualifications and training courses, such as the BCS Foundation Certificate in Business Analysis, that is designed to equip individuals with the foundational skills and knowledge required to excel in business analysis.
According to a survey by the BCS, 70% of business analysts in the UK hold a BCS certification. The survey also found that business analysts with a BCS certification earn an average of £52,000 per year, compared to £43,000 for those without certification.
Why Business Analysis worked for British Airways
In 2008, BA (British Airways) was facing significant financial challenges, with losses exceeding £400 million. To address these challenges, BA embarked on a major cost-cutting program, which included the outsourcing of some of its operations.
Through this analysis, the business analysts identified several areas where costs could be reduced, including the consolidation of its data centres and the optimisation of its flight schedules. They also identified opportunities to improve customer service, such as by introducing self-service check-in kiosks.
Based on the recommendations of the business analysts, BA was able to reduce its costs significantly while maintaining the quality of its services. By 2010, the airline had returned to profitability, with profits exceeding £400 million.
This case demonstrates the significant impact that business analysts can have on a business's bottom line. By providing valuable insights and recommendations, business analysts can help businesses identify cost-saving opportunities, improve their operations, and ultimately achieve greater success.
Why is business analysis is crucial? Business analysis is a crucial component of successful business operations. It enables businesses to make informed decisions, increase efficiency and effectiveness, improve the customer experience, gain a competitive advantage, and reduce risk.