Business Analysis Techniques

Business Case & Feasibility Analysis

Briefcase

Business Cases

Provides the business justification for a proposed initiative based on benefits, costs, and risks.

Estimation

Estimation

Assessing the effort, cost, and resources required to complete tasks or deliver solutions.

Estimation Methods

  • Top-down
  • Bottom-up
  • Parametric
  • Rough order of magnitude (ROM)
  • Rolling wave
  • Delphi
  • PERT

Estimation Sources

  • Analogous situations
  • Historical enterprise experiences
  • Expert judgement

Magnifier dollar

Financial Analysis

Evaluating financial data to support business decisions and assess economic feasibility.

Financial Calculations

  • Return on investment (ROI)
  • Discount rate
  • Present value
  • Net present value (NPV)
  • Internal rate of return (IRR)
  • Payback period

Magnifier risk

Risk Analysis and Management

Identifying, analyzing, and evaluating potential risks to business or project success. Setting up plans to respond to those risks in order to mitigate uncertainty.

Risk Level = Likelihood x Impact

Risk Responses

  • Mitigate
  • Avoid
  • Transfer
  • Accept
  • Increase

Business Strategy & Capability Analysis

Market research

Benchmarking & Market Analysis

Techniques used for comparing performance metrics and market conditions to industry standards. The information gathered can be used to improve the enterprise’s operations.

Balance scorecard

Balanced Scorecard

Strategic planning and management tool for aligning business activities to the vision and strategy using performance measurement.

Balance Scorecard Dimensions

  1. Learning and growth
  2. Business process
  3. Customer
  4. Financial

Canvas

Business Model Canvas

Strategic tool for visualizing the key components of a business model to understand value creation.

Business Model Canvas Elements

  1. Key partnerships
  2. Key activities
    • Value-add
    • Non-value add
    • Business non-value add
  3. Key resources
  4. Value proposition
  5. Customer relationships
  6. Channels
  7. Customer segments
  8. Cost structure
  9. Revenue streams

Skills

Business Capability Analysis

Assessing the organization's capabilities to support strategic goals. The results can be modeled using a capability map.

Swot analysis

SWOT Analysis

Tool for analyzing the current internal and external environment of an enterprise.

SWOT Elements

  • Strengths: positive, internal
  • Weaknesses: negative, internal
  • Opportunities: positive, external
  • Threats: negative, external

Stakeholder & Organizational Analysis

Organizational hierarchy

Organizational Modeling

Used to describe the structure, roles, and relationships within an organization.

Types of Organizational Models

  1. Functionality-oriented
  2. Market-oriented
  3. Matrix model

Business rules

Business Rules Analysis

Identifying, defining, validating, and refining business rules that influence business behavior and decision-making.

Types of Business Rules

  1. Definitional rules
  2. Behavioral rules

User persona

Stakeholder List, Maps, and Personas

This technique involves identifying and analyzing individuals or groups impacted by, or influencing, a solution.

Tools for Stakeholder Identification

  1. Stakeholder lists
  2. Stakeholder map
    • Stakeholder matrix
    • Onion diagram
  3. Responsibility (RACI) matrix
    • Responsible
    • Accountable: only one stakeholder can have this designation
    • Consulted
    • Informed
  4. Personas

User permissions

Roles and Permissions Matrix

Used to review access levels and responsibilities for users and stakeholders, and to identify gaps and/or missing roles.

Handshake

Vendor Assessment

Evaluating external providers to determine their suitability and alignment with business needs.

Vendor Assessment Criteria

  • Knowledge and expertise
  • Licensing and pricing models
  • Vendor market position
  • Terms and conditions
  • Vendor experience, reputation, and stability

Elicitation Techniques

Interview

Interviews

Collaboration: individual

An organized conversational approach with stakeholders to elicit information, requirements, and insights. This technique allows deep exploration of individual perspectives.

Types of Interviews

  1. Structured interview
  2. Unstructured interview

Types of Questions

  1. Open-ended questions
  2. Close-ended questions

Factors for Successful Interviews

  • Domain knowledge of the interviewer
  • Experience of the interviewer in conducting interviews
  • Readiness of both the interviewer and interviewee
  • Clarity on the main goal of the interview
  • Successfull prior identification of interviewees
  • Pre-defined list of questions
  • Proper logistics planning (location, time, etc)
  • Definition of confidentiality

Observation

Observation

Collaboration: individual

Studying users in their work environment to understand processes, workflows, and pain points. It helps uncover requirements that users may not explicitly articulate. Also known as Job Shadowing.

You must let the stakeholder(s) that they are not being evaluated on their performance. Keep in mind that when people know they are being observed, they might (consciously or unconsciously) alter their practices.

Observation Approaches

  1. Active / Noticeable
  2. Passive / Unnoticeble

Survey

Surveys and Questionnaires

Collaboration: individual

A set of structured questions distributed to a large audience to gather quantitative or qualitative data. Useful for reaching dispersed stakeholders quickly.

Types of Questions

  1. Open-ended questions
  2. Close-ended questions

Workshop

Workshops

Collaboration: group-based

Facilitated sessions involving key stakeholders to collaborate on planning, scoping, defining requirements, priorities, or solutions. They promote shared understanding the building of consensus.

The need for a strong and neutral facilitator is key for a successfull workshop.

Focus groups

Focus Groups

Collaboration: group-based

Guided discussions with a selected group of stakeholders to gather opinions, perceptions, and feedback about a product, process, or idea.

There are typically 6-12 pre-qualified participants.

Brainstorming

Brainstorming

A creative technique used to generate a wide range of ideas or solutions in a short time. Encourages free thinking and broad participation without judgment.

G
Collaborative games

Collaborative Games

Collaboration: group-based

Structured activities designed to engage stakeholders and encourage innovative thinking. They promote discovery and prioritization in a fun, interactive way.

Mind map

Mind Mapping

A visual technique that organizes ideas and concepts around a central theme to explore connections. It aids in structuring thoughts and complex ideas.

Document analysis

Document Analysis

Research

Reviewing existing documentation to gather relevant information, identify gaps, or validate current processes. Useful for understanding legacy systems and compliance constraints.

Prototyping

Prototyping

Experiments

Creating a preliminary version of a solution—such as wireframes, mockups, or interactive models—to visualize requirements and gather early feedback. It helps clarify stakeholder expectations and refine functionality.

Prototyping Approaches

  1. Throw-away
  2. Evolutionary or functional

Prototyping Examples

  1. Proof of Concept (POC)
  2. Form study
  3. Usability
  4. Visual
  5. Functional

Prototyping Methods

  1. Storyboarding
  2. Paper prototypes
  3. Workflow modeling
  4. Simulation

Requirements Definition & Analysis

User story

User Stories

Short, simple descriptions of a feature told from the perspective of the end user, commonly used in Agile to capture functional requirements in a lightweight, iterative manner.

User stories typically follow the format “As a [user role], I want [goal] so that [benefit/motivation]

Aspects of User Stories (3Cs)

  1. Card
  2. Conversation
  3. Confirmation

User case

Use Cases and Scenarios

Use cases describe how a user interacts with a system to achieve a specific goal, often including main flows and alternate paths.

Scenarios detail specific instances or examples of those interactions to illustrate behavior and edge cases.

Use Case Diagram Components

  1. Actors
  2. Association
  3. Boundary Box
  4. Use Case
  5. Relationships
    • Extend
    • Include

Use Case Description Components

  1. Name
  2. Actor(s)
  3. Flow of events
  4. Pre-conditions
  5. Post-conditions
  6. Extension points

Evaluation criteria

Acceptance & Evaluation Criteria

Clearly defined conditions that a solution and designs must meet to be accepted by stakeholders. They guide testing, validation, and decision-making by establishing measurable success standards.

Performance

Non-Functional Requirements (NFR) Analysis

Identifying and analyzing quality attributes to ensure the solution’s effectiveness beyond just functional behavior.

Common Non-functional Requirements

  • Availability
  • Compliance
  • Compatibility
  • Extensibility
  • Localization
  • Maintainability
  • Performance
  • Portability
  • Reliability
  • Scalability
  • Security
  • Usability

Backlog

Backlog Management

Ongoing process of creating, refining, prioritizing, and tracking requirements or tasks (often in a product backlog). It ensures transparency and alignment with business value in iterative development environments.

Priority

Prioritization

Evaluating and ranking requirements, tasks, or features based on factors like business value, risk, urgency, or cost. It supports decision-making to focus efforts on what matters most to stakeholders.

Prioritization Techniques

  1. MoSCoW
  2. Kano model
  3. Value vs Risk model

Process & Logic Modeling

Functional structure

Functional Decomposition

Breaking down high-level processes or functions into smaller, more manageable components. It helps clarify scope and identify all necessary elements of a solution.

A work breakdown structure (WBS) is a hierarchical decomposition of work.

Scope

Scope Modeling

Visually defining the boundaries of a system, project, or solution by identifying what is in and out of scope. It ensures alignment among stakeholders on expectations and deliverables.

Concept modeling

Concept Modeling

Creating a structured representation of key terms, entities, and relationships within a business domain. It supports shared understanding and consistency in communication.

Interface analysis

Interface Analysis

Identifying and examining the interactions between systems, users, and external entities. This helps ensure smooth data exchange and integration between components.

Interface Types

  1. Human–System interaction
  2. People external to the solution
  3. Business processes
  4. Data interfaces between systems
  5. Application programming interfaces (APIs)
  6. Hardware devices

Process analysis

Process Analysis

Examining current business processes to understand performance, identify inefficiencies, and recommend improvements. It forms the foundation for redesign or automation efforts.

Common Process Analysis Methods

  1. Suppliers, Inputs, Process, Outcomes and Customer (SIPOC)
  2. Value Stream Mapping (VSM)

Process modeling

Process Modeling

Creating visual diagrams that depict how a business process works, including steps, decision points, and flows. It helps communicate and analyze current or future processes.

Process Modeling Levels

  • High-level (enterprise or context)
  • Medium-level (operational)
  • Low-level (system)

Types of Process Models and Notations

  1. Flowcharts and Value Stream Mapping (VSM)
  2. Dataflow diagrams and unified modeling language (UML)
  3. Business process model and notation (BPMN)
  4. Integrated definition (IDEF) notation and input, guide, output, enabler (IGOE) diagram
  5. SIPOC and value stream analysis

Sequence

Sequence Diagrams

Illustrates the chronological flow of messages between actors and systems over time. This technique is useful for understanding dynamic system behavior and interactions."

Sequence Diagram Components

  1. Lifeline
  2. Activation box
  3. Message

Types of Messages

  1. Synchronous call
  2. Asynchronous call

State diagram

State Modeling

Involves representing the various states an object or system can be in and the transitions between them. It clarifies system behavior in response to events or conditions.

Decision analysis

Decision Analysis

The process of evaluating different options based on defined criteria, risks, and outcomes. It supports rational, evidence-based decision-making.

Types of Decision Matrices

  1. Simple decision matrix
  2. Weighted decision matrix

Decision tree

Decision Modeling

Capturing and structuring business decisions, including the rules, inputs, and logic that drive them. It helps formalize complex decision-making processes.

Types of Decision Models and Notations

  1. Decision tables
  2. Decision trees
  3. Decision requirements diagram

Data Modeling & Information Architectures

Glossary

Glossary

A curated list of business terms and their definitions used within a project or organization. It ensures consistent language and shared understanding among stakeholders.

Data dictionary

Data Dictionary

A detailed repository of data elements, including their names, types, formats, and allowable values. It provides structure and clarity for data definitions used in systems and documentation.

Data model

Data Modeling

Defining and organizing data elements, structures, and their relationships. This supports effective database design and data architecture planning.

Types of Data Models

  1. Conceptual data model
  2. Logical data model
  3. Physical data model

Data flow diagram

Data Flow Diagrams

Visual representations of how data moves through a system, including sources, processes, data stores, and outputs. DFDs are useful for analyzing and improving data processing activities.

Data Flow Diagrams Levels of Abstraction

  1. Level 0
  2. Level 1
  3. Level 2, 3, etc.
  4. Logical DFD
  5. Physical DFD

Data mining

Data Mining

Analyzing large volumes of data to discover hidden patterns, correlations, or trends. It helps generate actionable insights for strategic and operational decision-making.

Data Mining Techniques

  1. Descriptive
  2. Diagnostic
  3. Predictive

Performance Measurement & Optimization

Item tracking

Item Tracking

Used to capture, monitoring the status, progress, and resolution of work items such as requirements, defects, or tasks. It helps maintain transparency and ensures accountability throughout the project lifecycle.

Item Record Elements

  1. Item identifier
  2. Summary
  3. Category
  4. Type
  5. Date identified
  6. Identified by
  7. Impact
  8. Priority
  9. Resolution date
  10. Owner
  11. Resolver
  12. Agreed strategy
  13. Status
  14. Resolution updates
  15. Escalation matrix

KPIs

Metrics & KPIs

Defining and using quantitative measures to assess the success of the solution, solution components, or initiative. Key Performance Indicators (KPIs) track performance against strategic objectives.

Key Factors for Successful Metrics

  • Reliability
  • Validity
  • Timeliness

Reviews

Reviews

Examination of work products such as documents, models, requirements, designs, or code to verify quality, completeness, and compliance with requirements. Reviews help identify issues early and improve deliverable quality.

Formal Review Techniques

  1. Inspection
  2. Formal walkthrough (AKA team review)
  3. Single issue review (AKA technical review)

Informal Review Techniques

  1. Informal walkthrough
  2. Desk check
  3. Pass around
  4. Ad hoc

Root cause

Root Cause Analysis

Identifying the underlying cause of a problem rather than its symptoms. This technique supports effective corrective action and long-term process improvement.

Root cause analysis can be used for reactive or proactive analysis.

Analysis Activities

  • Problem statement definition
  • Data collection
  • Cause identification
  • Action identification

Root Cause Analysis Tools

  1. The Fishbone Diagram (AKA Ishikawa or cause-and-effect diagram)
  2. Five Whys
Lessons learned

Lessons Learned

Documenting insights, successes, and failures from completed work to inform future projects. It helps organizations build knowledge and avoid repeating past mistakes.