Core Concepts of Business Analysis

Core Concepts of Business Analysis

The Business Analysis Core Concept Model or BACCM is a framework used for business analysis. It is embodied in the BABOK Guide or the Business Analysis Body of Knowledge Guide. BACCM provides a conceptual framework that is common to any industry and has a common terminology so that business analysts can discuss and perform their work irrespective and independent of any industry, perspective, methodology, or levels they hold in the organization. A better understanding of the BACCM framework can be gained by completing a business analyst certification but in this article, we will discuss these core concepts of business analytics to give you a better understanding of the same.

What is Business Analysis
Business analysis is a research discipline that helps business analysts identify business needs and then come up with solutions to those identified business problems. These solutions include a variety of actions like the development of a system component or software, organizational changes, strategic planning, policy development, and improvement in processes. The business analysis offers deep insights and concepts into the development of the project and its initial framework. Its purpose is to identify problems that need improvement. It offers the key to guide the stockholders of any project as they perform business modeling in an orderly manner. Business analysis helps the company or organization in many ways:

It helps the business analyst to understand the dynamics and structure of the company.

It allows the business analyst to comprehend and understand current and new problems in the target organization.

It helps the business analyst in identifying the improvement potentials in the organization and recommending solutions to the company’s board to enable the company to achieve its goal.

It helps the business analyst in identifying and articulating the need for change.

It helps the business analyst in helping the company maximize the value delivered to the stakeholders by the organization.

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Core Concepts of Business Analysis
Irrespective of the area of expertise, core concepts are vital to establishing a common terminology between experts and professionals. The Business Analysis Core Concept Model or BACCM that establishes the conceptual framework on how to perform business analysis consists of six terms that have been explained in the BABOK Guide. These terms help in assigning a common meaning and help, and support discussions related to business analysis and its relationships.

Business analysis needs and encompasses a variety of skills, tasks, and knowledge that may vary in form, importance, or order for individual business analysts for different initiatives taking place within the organization. Business analysts need to know these core concepts of business analysis since they are essential and interconnected. They are needed to comprehend the information that is elicited, manages, and analyzed in the business analytics process and its tasks.

The six core concepts of BACCM are – Change, Solution, Value, Need, Stakeholder, and Context. They are all equally necessary and important and there is no ranking amongst them. No single concept among these six holds any greater significance or importance than the other. Each of these core concepts is dependent and defined by the other five core concepts and none can be fully understood without the other, hence it is essential to understand each concept completely.

The BACCM helps businesses and analysts perform better business analysis by comprehensively evaluating these six concepts and the relationship among them while also evaluating the effect of these relationships and concepts at every point during the project to establish a strong foundation and an efficient path forward. Let us discuss these six concepts in detail.

1. Change
Change is a transformation or an act of transformation within a company or organization in response to a need. The need can be either internal or external and necessitated by external factors such as any disruption in the market. The main purpose of the change is to improve and increase the performance of the organization or enterprise through various deliberate actions, which are controlled through different business analysis activities.

2. Need
Need is an opportunity or a problem that needs to be addressed by the business analyst. Needs can cause various changes by just motivating stakeholders to act. A change can also cause need by enhancing or eroding the value that is delivered by existing problems or necessitating the need for new solutions.

3. Solution
The solution is a specific way of satisfying or resolving one or more needs in a context. A solution satisfies the need by helping stakeholders take due advantage of any opportunity or by resolving a problem or issue faced by the stakeholders.

4. Stakeholder
Stakeholders are individuals or a group of individuals that have a relationship with a solution, need, or change. Stakeholders are also grouped based on their relationships to these three factors.

5. Value
Value is the worth, usefulness, or importance of something to the stakeholder within a context. A value can be either tangible (like realized returns, improvements, and gains) or intangible (like the employee’s morale, company’s reputation, or any other significant motivational component). It can also vary according to project and context and hence is the most controversial of all the six concepts.

6. Context
The circumstances that are influenced by or influence and provide a better understanding of change are contexts. While a change always and only occurs within an environment, a context is a term that is very wide-ranging and includes everything from the organization or company’s culture, goals, beliefs, attitudes, behaviors, infrastructure, demographics, and mission to competitors, sales, products, projects, technology, terminology, weather, languages, losses, and government policies. It is essential for the business analyst to carefully analyze and define the context within which the change is being administered to successfully implement the change.

The six core concepts offer a professional domain and common terminology to evaluate the completeness and quality of work being done and how each of the core concepts is addressed. In simple terms, when any one of these core concepts changes, it would cause business analysts to re-evaluate each core concept and its relationship with others to maintain a value delivery.

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