Top 10 Must Follow Business Analytics Techniques
Business Analytics is a highly versatile domain. In recent years, it has taken a considerable shift by approaching the business with voluminous innovative business analytics techniques. To pursue a career in the field of Business Analytics, a business analyst must be trailblazing in using some of the techniques or methods that would take the business to the next echelon. This blog will aid to explore some of the most widely used business analytics techniques for aspirants who are inclined to take their career as a Business Analyst.
What is Business Analytics?
Every business procures data in a more specific and considerate manner to drive their decision-making. Business analytics in the current scenario sieve through an ocean of digital information with a sharp critical eye. Organizations in the present era hire professional, experienced Business analysts to lower business risks and enhance business values.
Business Analytics is the process of collecting and analyzing the data collected to provide insights for the betterment of the business. Business Analysts require technical and non-technical skills to improve an organization’s current processes and make profitable decisions using insights and data analysis.
Business Analytics Techniques:
Business Analysis has become an emerging field in the last few years with innovative and unique Business analytics Techniques to bring the best business solution. Business Analytics Techniques are processes used to create and implement necessary plans for identifying the needs of the organization to deliver the best outcome or result.
As a Business Analyst Professional, one needs to get explored some of the best Business Analytics Techniques that are widely used in successful organizations or businesses. These techniques are not used throughout the business instead they are business-centered or project-centered.
Some of the Business Analytics Techniques Are Discussed as Follows:
- SWOT Analysis
- MOST Analysis
- BPM (Business Process Modelling)
- PESTLE Analysis
- System Analysis
- Mind Mapping
- User Stories
- Six Hat Analysis
1. SWOT Analysis:
SWOT Analysis is a strategic management technique that is used to identify and analyze the internal factors (Strengths and Weaknesses) and the external factors (Opportunities and Threats) of an organization.
The strengths are the capacities within the organization to accomplish its goal, the weaknesses are the defects or barriers that affect the organization from achieving its goal, the Opportunities are nothing but the external forces that help the organization in the accomplishment of its goal and the threats are the external potentials that harm the organization from achieving its goal.
The SWOT Analysis is done to increase awareness of these factors and establish a business strategy. This also helps to identify various business problems or struggles and supports the organization in improving its strengths, eliminating its weaknesses, facing opportunities, and overcoming its threats.
Benefits of SWOT Analysis:
- SWOT Analysis helps an organization to identify the internal strengths and weaknesses that affect and helps the organizational growth in achieving its objective.
- It also helps to analyze the external opportunities and threats arising from the business environment.
- This technique supports some brainstorming sessions and important decision-making processes.
2. MOST Analysis:
MOST Analysis is one of the most comprehensive techniques used for understanding the organization’s ability and objective. Moreover, this technique is also used for strategic planning and development in business. The four elements of MOST Analysis are Mission, Objective, Strategy, and Tactics.
This technique helps the organization in improving its internal processes and culture by observing the internal environment of an organization. In MOST Analysis, Mission tells the ultimate goal of the organization. Once the mission had been established, the analyst can begin with the other elements in MOST Analysis.
The Objective is the collection of individual department goals that add up to the overall mission. After the mission had been decided, it rolls down to the objective which assists to achieve the mission easily. A good Objective should be SMART (Specific, Measurable, Achievable, Relevant, and Time-bound) for the decision-making process.
Then comes Strategies, which are the safest and long-term approach to achieving the objectives. Strategies are the actions or plans taken to accomplish the framed objectives.
Finally comes the Tactics, which are the short-term and easily understandable approaches that are designed to carry out the strategies and complete the same.
Benefits of MOST Analysis:
- In MOST Analysis, a clear goal or objective has been set and helps each and every individual of the organization to move towards the set goal.
- The technique helps to avoid day-to-day distractions and provides an overall strategic direction.
- This technique helps to identify the key components of the business and their interdependencies in a more simple and effective manner.
3. Business Process Modelling (BPM):
It gives a clear explanation and structured approach to developing the business processes. The steps in Business Process Modelling are Design, Model, Implement, Monitor, and Optimize.
|Design – Model – Implement – Monitor – Optimize|
In the Design or Analyze step, the current business processes are mapped end to end.
In the Model phase, the visual modeling of the ideal process and flow of data is done.
In the Implement stage, the execution of the process and opening it to all end users are done.
In the Monitor phase, keep an eye on the process effectively and identify any bottlenecks.
In the Optimize stage, identify any changes to make the process more effective.
Business Process Modelling is mainly used in issuing purchase orders, product assembly, shipping products, invoicing clients, and estimating project costs. There are five different techniques of Business Analytics Modelling: Business Process Modelling Notation (BPMN) diagram, flow chart, UML Diagram, Gantt chart, and PERT Diagram.
Benefits of Business Process Modelling:
- Business Process Modelling helps to align the activities of the organization with its core goal or objective.
- This technique helps in increasing productivity and also aids in reducing inefficiencies, costs, and bottlenecks.
- Overall, this Business Process Modelling aids in producing better products and services that eventually delight the customers or clients.
4. PESTLE Analysis:
PESTLE Analysis tells about the important External factors like Political, Economical, Technological, Legal, and Environmental factors that influence the function of an organization. These factors may be supportive or detrimental to the business. PESTLE Analysis forms a much more comprehensive version of the SWOT Analysis.
In PESTLE Analysis,
Political factors include the role of government and governmental policies like Tax policies, tariffs, and other policies that might bring opportunities or threats to the business.
Economic factors are those factors like Interest rates, inflation rates, gross domestic product, unemployment rates, and general growth or decline of the economy within which the organization function.
Social factors refer majorly to the demographic elements such as age, gender, population, ethnicity, and cultural norms that provide a positive or negative impact on the organization and assist the organization in planning its marketing analysis and strategy.
Technological factors center on the ever-increasing pace of modern technological innovations that the organization has to focus on Research and Development.
Legal factors state how the law and justice influence the business in various aspects like copyright, antitrust, employment, wages, welfare, health and safety, discrimination, etc.,
Environmental factors involve environmental or physical conditions like natural disasters, weather conditions, and pollution levels under which the organization operate.
The main aim of PESTLE Analysis is to understand, analyze and assess the macro External factors that affect Organizational growth and helps in working with those factors that could create Opportunities and Threats to the business.
Benefits of PESTLE Analysis:
- PESTLE Analysis gives a clear picture of the external factors as may be opportunities or threats to the organization and helps further to the optimum growth of an organization.
- This analysis aids the businessman or the analyst to understand the market and helps in the process of problem-solving as well as decision-making.
- This framework represents one of the backbones of strategic planning management in order to achieve organizational goals.
- This fabulous technique can be leveraged for several purposes and build the organization to prepare for its future goals.
5. System Analysis:
System Analysis is a problem-solving technique that helps to improvise the system of an organization and ensures that all the systems work efficiently in order to accomplish the goal of the organization. The seven phases or stages of System Analysis are Planning, Analysis, Design, Development, Testing, Implementation, and Maintenance.
The planning stage also called as Feasibility stage helps to define the problem and scope of the existing system and determines the objectives of the new upcoming system or project. The Analysis stage includes the collection of all necessary details specific to the new system or product and researching the need for the same.
The Design stage is the important stage before the development stage as it provides complete guidance throughout the process. The Development stage is where the developers develop the designed product or service based on the specifications designed.
The Testing stage is an important stage where the developed product or service is tested for any flaws or negativity. The Implementation stage is where the product or service is ready for the market and may be provided to the end users. The Maintenance stage is where the organization must be ready for the services that are needed to maintain the product or service in the market and make it a grand success.
Benefits of System Analysis:
- System Analysis helps in identifying the desired goals or objectives and developing plans and strategies in order to accomplish the identified objectives or goals in a more organized way.
- This technique aids to choose the appropriate plans and strategies to meet the goals of the organization.
- The technique also helps to identify the root cause of a problem and solve same in a more organized and appropriate manner.
You can also check here the best Business Analytics Courses in India
6. Brain Storming:
Brain Storming is defined as “a method of generating ideas and sharing thoughts to solve a particular commercial. Brain Storming is a very useful and one of the best Business Analytics Techniques that allows members of the organization to think continuously and freely and come up with diverse ideas or solutions to analyze the business effectively.
It is a group activity where the idea or thoughts of each participant in the group are encouraged. Group Brainstorming is mainly used in large organizations to achieve a conclusion with diverse ideas and thoughts.
Benefits of Brainstorming:
- Brainstorming allows the organization to get more ideas or thoughts quickly, which can be further refined and merged to create the ideal solution for a problem.
- As Brainstorming draws the creativity and experience of almost all the members of an organization, this technique brings diverse solutions more effectively and quickly.
7. Mind Mapping:
Mind mapping as one of the Business Analytics Techniques helps to organize the data or information around a central topic or theme. This technique is used especially when an organization has accommodated innovative approaches by introducing new products or services.
The structure of a mind map is similar to the structure of neurons in the brain, as it keeps expanding with new ideas or resources. In Business Analysis, mind mapping is used to investigate and evaluate problems procured from the clients or stakeholders and solved to get ideas or solutions. Nowadays, there are several online mind-mapping tools available viz. Lucidspark, Xmind, MindManager, Ayoa, Canva, Invision, Mindmo, Gitmind, MindMup, Figma, Coggle, etc.,
Benefits of Mind Mapping:
- Mind mapping helps to find solutions faster and in a more effective manner.
- The business analytics techniques help the employees to clarify the central concept of the organization’s operation.
- Further, this enables the critical and creative thinking of the workforce and enables increased productivity.
8. User Stories:
User Stories are small, self-contained work designed to achieve a specific goal. Usually, user stories are written from the customer or end user’s perspective to understand the value of a product or service to the customer. User stories are a few sentences in very simple language that provides an outline of the desired outcome or product.
A Simple Template of User Stories
|S.no||User Stories||Acceptance Criteria|
|User Story 1||As a [type of user], I want to [task] so that I can achieve [goal].||Given that [how things begin]|
When [action carried out]
Then [outcome of the action taken].
|User Story 2|
|User Story 3|
Benefits of User Stories:
- Business Analytics Techniques always help to keep the focus on the end user or customer.
- User Stories enable the team collaboration to work together to serve the end user.
- User Stories motivate the team to think critically as well as creatively to accomplish the desired outcome.
9. CATWOE Analysis:
CATWOE Analysis was discovered by David Smyth in which he defines the six problem-solving elements that were combined together into the acronym CATWOE. This one of the best Business Analytics techniques provides a framework for defining and analyzing the perspectives of the business stakeholders in a larger view. CATWOE is the acronym for Clients, Actors, Transformation process, Worldview, Owners, and Environment.
- Customers – Beneficiaries from the Business.
- Actors – The players or employees of the organization.
- Transformation Process – The transformation or change of the manufacturing processes, information processes, etc.,
- World View – The bigger picture and impact of the business or process.
- Owner – Owner, investor, or entrepreneur of the impacted system.
- Environmental Constraints – The threats or constraints that influence the progress of the system.
Benefits of CATWOE Analysis:
- The Technique helps in a holistic understanding of different perspectives and forms the foundation for integrating two or more viewpoints.
- As this technique involves all perspectives, it provides an in-depth and holistic approach to problem-solving.
10. Six Thinking Hat Analysis:
Six Thinking Hat Analysis is an analysis mainly used to strengthen problem-solving and decision-making aspects as this investigates in a clear, vivid, and conflict-free perspective on various issues or problems.
Dr. Edward de Bono, a physician, and psychologist invented this simple technique based on the brain’s various modes of thinking and aims to empower people to “encounter exceptional discussions and fabricate appropriate quicker decisions”.
This technique further aids in eliminating the ‘waste’ or unnecessary conflicts and disputes that might arise during the discussion and establishes a healthy and sustainable culture among the employees or members of the discussion.
The six different colored hats direct various types of thinking and are briefly explained as follows:
The White Hat: This is the Facts Hat, which focuses on facts and logic.
The Red Hat: This is the Intuitive Hat, which focuses on Emotions and Instinct.
The Black Hat: This is the Cautious Hat, which focuses on predicting negative outcomes.
The Yellow Hat: This is the Optimistic Hat, which focuses on Positive Outcomes.
The Green Hat: This is the Creative Hat, optimizing creative, innovative ideas and criticism.
The Blue Hat: This is the Control Hat, used for Management and Organization.
In this technique, the members are divided into different groups based on the six hats. Each group is allowed to talk about the product or service from their hat’s perspective i.e., the white hat group talks about the logical elements, the red hat talks about the emotional components, the black hat group talks about the negative result, and so on., This allows comprehending ideas from various perspective which are then later rejoined with stronger ideas and objectives.
Benefits of Six Thinking Hat Analysis:
- As each and every angle of thinking is considered in this analytic technique, this promotes a highly organized process of thinking and streamlined decision-making.
- This systematic technique prevents arguments and unnecessary conflicts promote cooperation and collaboration and encourages accountability for the outcome of the product or service.
- The Technique allows for making a decision after evaluating all the key points.
Frequently Asked Questions:
Q1) What is the difference between Business Analytics and Business Intelligence?
Business Analytics focuses on real-time data and analyzing it to find solutions or trends that will help to predict the future. In contrast, Business Intelligence is more about past and present to develop forecasts based on past data. Business Intelligence comes under the umbrella term of Business Analytics. Also, Business Analytics can be applied to both structured and unstructured data whereas Business Intelligence can be applied to only structured data.
Q2) What is the scope of a Business Analyst?
As Business Analysts support decision-making with real-time analysis, the demand for Business Analysts is only likely to increase in the current scenario for the growth and development of the business. In recent times, it has become a promising career for aspirants.
Q3) What are the most used Analyics Techniques used?
SWOT, PESTLE, MOST, CATWOE, and Business Process Modelling (BPM) are various business analytics techniques that are most widely used for the need of the organization and the organization’s success. The techniques are used based on the business type and the need of the business.
Q4) Why is the concept of Business Analytics booming?
The growth volume of digital data generated by businesses has led to the development of the business analytics market. Further, the business analytics techniques provide a better understanding of their customers, smart decision-making, and enhance the business. The data and statistics assist organizations in taking data-driven decisions with confidence.
Q5) Is Data Analytics and Business Analytics the same?
Both Data Analytics and Business analytics are data-driven and work with data. Business Analytics deals with the data and explores the data primarily to make decisions that profit the organization with success. Whereas, Data Analytics deals with collecting the data, manipulating it, and transforming their findings into digestible insights.
Business Analytics processes can solve problems and identify opportunities to improve business performance. As some of these techniques are business-centered or project-centered, a Business Analyst must be acquainted with applying liable Business Analytics Techniques or strategies that align with their business goals and objectives.