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Business analysis – what exactly is it?
IT business analysis is the first phase of project development, which involves integrating the business environment with IT experts.
Essentially, it consists of analyzing client needs and requirements to introduce IT solutions. Such research results are then translated into a programming language by qualified specialists. When project requirements are clearly defined, subsequent application or IT system development stages are less likely to fail.
A variety of tools are used by the expert team when carrying out IT business analysis:
● Work observation,
● Infrastructure analysis,
● Documentation analysis.
Objectives of business analysis in IT project implementation
Business analysis comes with plenty of challenges. They include:
- Gathering information on the current problems faced by the customer;
- Answering the question of what elements in the business environment work efficiently and effectively.
By doing this, it is possible to design new, even more tailored IT solutions for the client.
The next step in this analysis is to determine what the client wants to achieve by implementing the system. A preliminary project implementation plan outlines detailed functional and non-functional requirements and usage scenarios.
Five stages of business analysis
The execution of IT business analysis consists of five key stages:
● Determining project business objectives – carried out in client meetings and through interviews and observations.
● Business process analysis – leads to identifying areas where the system can improve processes.
● Technology analysis – includes the current systems and technologies used in the organization. It aims to identify which can continue to be used and which should be changed.
● Defining system requirements – involves generating a list of functional and non-functional requirements, priorities, and acceptance criteria for the requirements.
● Designing the solution – the final phase of the business analysis, which is based on the collected requirements, including technical and functional aspects.
Is it justifiable to conduct a business analysis?
The answer to this question is an unambiguous “Yes!”. It can reduce the risk of project failure right from the start. This is particularly crucial, especially since, according to the Standish Group Annual CHAOS 2020 report, 66% of all technology projects end in partial or complete failure. An analysis of as many as 50,000 implementations worldwide led to these findings.
Here are the benefits of business analysis:
- Identifying potential risks to the IT project,
- Mitigating risk factors,
- Estimating additional costs and including them in the budget,
- Planning the necessary infrastructure or integrations.
All of this contributes to the quality and price of the final product. Despite the fact that IT business analysis involves many experts from various fields (business analysts, designers, UX designers, developers, and testers), it remains integral to delivering an effective IT solution project.
Properly conducted IT analysis = project success
Business analysis and project success are inextricably linked when appropriately conducted and grounded in sound principles. Employees involved in the analysis employ various techniques, including interviews with stakeholders, to better understand their needs and requirements. They use group discussions or workshops and analyze the documents presented. They strive to fully understand the customer and their needs so that the system or application designed for them is precisely what they need. In IT business analysis, the overriding value is the client’s desired results by implementing a given system.
Business analysis costs
The cost and length of an IT business analysis are determined by a number of factors. It varies depending on the project size, the level of business and technological complexity, and the client’s requirements. Also taken into account is the expertise and experience of the implementation company.
Business analysis is definitely the first step to a successful IT project, so it is worthwhile to know the key areas it covers.
Wondering how to conduct an effective business analysis of an IT project? Download the free e-book.