IIBA Business Analysis Techniques: A Complete List

IIBA Business Analysis Techniques serve as tools for Business Analysts to enhance their work. New techniques in Business Analysis emerge as technology evolves. Additionally, selecting the appropriate techniques is a major concern for BAs, as handling data carries significant business implications.  

Business Analysts are crucial to an organisation’s success, as they help identify business needs, eliminate flaws and identify the best solutions. IIBA provides a set of Business Analysis Techniques to assist Business Analysts in gathering, organising, and sharing project data in a structured and valuable manner. 

Table of Contents 

1) Importance of IIBA Business Analysis Techniques 

2) List of IIBA Business Analysis Techniques 

    a) Strategy Analysis 

    b) Business Modelling 

    c) Environmental Analysis 

    d) Investigation Techniques 

    e) Stakeholder Management 

    f) Business Case Preparation 

3) Conclusion
 

Importance of IIBA Business Analysis Techniques

The IIBA body lists various techniques Business Analysts (BAs) can follow to improve their work efficiency. BAs will have to carefully select the appropriate techniques according to their project goals, as not all of them will be necessary to implement. Additionally, they should ensure they have the skills and knowledge to utilise their chosen techniques.  

The choice of the techniques will depend on which stage the BA is currently active in, as each technique will have its own distinct purpose after application. More importantly, the right techniques will make a considerable difference in the business's operations, decision-making and revenue.


 

List of IIBA Business Analysis Techniques 

Here is a list of analysis techniques designed to guide Business Analysts in streamlining their projects: 


 

Strategy Analysis 

Here is a list of analysis techniques designed to guide Business Analysts in streamlining their projects: 

a) TOWS Analysis: The TOWS analysis extends the SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis technique by going in-depth to match the strength with opportunity and the threat with weakness. The TOWS analysis can be conducted after SWOT to supplement the analysis process further. The technique has key intentions, such as threat reduction, exploiting strengths, eliminating weaknesses, and maximising opportunities.

The TOWS and SWOT technique is distinct in terms of the internal and external factors involved and their influences on one another. BAs will find it simple to conduct and realise a holistic perspective of the positives and negatives. They must do the analysis carefully as it can be crucial for decision-making. Additionally, the TOWS technique is time-consuming compared to other frameworks and demands a BA experienced with internal and external problems

b) McKinsey 7-S Model: The 7-S model by McKinsey helps define the areas an organisation requires for effective operation. BAs can leverage the 7-S technique to identify areas that need change during the implementation of a business strategy. They can also identify the areas affected by the proposed business changes.

The model emphasises the impact of changing one element on the others to maintain proper balance. The seven S’s in this model are Structure, Strategy, Systems, Skills, Style, Staff and Shared values. 

c) Key Performance Indicators (KPIs): KPIs are designed to define specific areas that must be monitored to determine whether the necessary level of performance is achieved. KPIs are Business Analysis Techniques that help a company measure its success against its objects and industry peers.

The tool is also called the Product Expansion Grid by the community of analysts and Project Managers. They can utilise this grid to examine growth initiatives and conceptualise risk levels associated with various growth strategies. The Business Analysis Technique has four sections: Market Penetration, Market Development, Product Development and Diversification.

d) Ansoff’s Matrix: The Ansoff Matrix is a tool BAs use to design a strategy providing a framework to assist marketers, executives and senior managers. The framework helps these professionals to develop their strategies for business growth. The tool is named after its Russian creator, Igor Ansoff, a Business Manager and an applied mathematician.

e) Balanced Scorecard: The Balanced Scorecard is a technique based on a framework containing performance measures supporting an organisation’s achievement of its vision. The framework also contains the organisation’s business strategy.

A scorecard is a management tool for a company’s performance strategy. Managers can take advantage of this tool to keep track of the activities executed by their staff. Balanced Scorecards help organisations get feedback about their processes and strategies and are very common among establishments across the US, the UK, Europe and Japan.

Balanced Scorecards are performance metrics introduced in 1992 by David Norton and Robert Kaplan. The founder-professor duo devised a powerful tool for business strategy and performance measurement for the benefit of managers. 

Business Modelling

Here is a list of modelling techniques that Business Analysts can utilise to deliver high-value projects to customers: 

a) Business Activity Modelling: This model represents the high-level activities that are expected to be performed to deliver high-value projects to stakeholders

b) Capability Modelling: The model offers an organisation a high-level representation of the tasks an organisation needs to do. These tasks help deliver value to customers through products and services.   

c) Organisation Diagram: The diagram integrates the external business environment with the internal value chain. It also presents a view of the high-level business processes that influence the successful delivery of the value chain

d) Value Stream Mapping: The various perceptions of value by different stakeholders are considered in the project. The different activity stages are then modelled to ensure the delivery of the stakeholders’ values. Multiple organisations may collaborate to achieve value delivery.

e) Value Proposition: The technique considers the customers' perspectives regarding an organisation. The proposition summarises why the customers prefer to work with organisations of their choice. The technique additionally presents what the customers desire from these organisations. 

Environmental Analysis

Here is a list of Environmental Analysis techniques designed to help Business Analysts discover pressure points and improve output: 

a) SWOT Analysis: The Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis is a Business Analysis technique classified into internal and external factors. The weaknesses and strengths come under the internal factors, while the threats and opportunities come under the external factors. The technique helps BAs to analyse past strategies derived from a large information base. They can also study the current situation and develop appropriate strategies for the future.

b) PESTLE Analysis: The PESTLE technique, short for ‘Political, Economic, Social, Technological, Legal and Environmental, provides BAs with a comprehensive framework to investigate and analyse the external environment for organisations. This is ideally done while identifying sources of change. BAs can get a view of the environment from various perspectives and keep track of them while developing a new plan. This technique has modified its structure as marketing leaders add their ideologies to the change elements.

c) Porter’s Five Forces: The technique is a framework that evaluates the business industry which an organisation functions within. It also identifies the pressure points in the business that the organisation may need to pay attention to.

Porter’s Five Forces are utilised to identify and analyse the five competitive forces shaping all industries. The five forces of this model are: 

a) Industry competition. 

b) Prospective entrants. 

c) The power of suppliers and customers. 

d) The threat of substitute products. 

It also helps BAs recognise an industry’s structure for determining its corporate strategy. The model can be implemented within any part of the economy to gauge the competitive levels inside the industry. As a result, an organisation’s long-term profitability is improved. 

d) Resource Audit: The Resource Audit is a technique that BAs can utilise to analyse important areas of internal capability. The analysis is done to identify the resources necessary to allow business change and those that may serve as roadblocks to such efforts. The audit is a great method for an organisation to assess its situation and its areas for improvement. 

e) VMOST Analysis: VMOST is an acronym short for ‘Vision, Mission, Objectives, Strategy and Tactics’ and represents the approach to a company’s internal analysis. BAs can analyse the vision and objective of an organisation and determine the strategy to achieve it with the help of this technique. A company can leverage its current or future strategies through the VMOST technique. It can also identify and eliminate any outdated means of operation and ensure its mission adoption throughout the professional hierarchy from top to bottom.   

Now, demonstrate your expertise and professional integrity by signing up for the IIBA Certification of Competency in Business Analysis (CCBA) course!   

Investigation Techniques

Here is a list of investigative techniques to help Business Analysts examine their project workflow: 

a) Document Analysis: The Document Analysis technique systematically examines data sources to analyse the requirements of a new computerised information system.   

b) Active Listening: The Active Listening technique involves actively clarifying what is conveyed during a conversation, both verbally and non-verbally. The non-verbal aspect involves body gestures and coherence between the person’s words, vocal tone and posture. The technique aims to understand a dialogue using a holistic approach fully.

c) Ethnographic Study: Gaining an in-depth understanding of how a culture works and the more intricate details of the organisation and their culture. The technique focuses on how people in different environments use a product.  

d) Focus Group: A group of people of a similar demographic who share mutual interests or experiences. A Business Analyst observes and analyses a focus group for their reactions to research questions. The BA then utilises the findings for qualitative research. 

e) Interview: A one-to-one discussion is carried out with the project’s stakeholders through which the BA conducts further investigations and fact-finding.   

f) Observation: As the name suggests, the technique involves observing people at work in their actual environment to discover any information associated with the requirements.   

g) Sampling: Quantitative data is obtained through this technique, specifically about how people spend their time.   

h) Workshop: Gathering stakeholders to collaborate on a project to achieve a specific outcome. 

Stakeholder Management

Here is a list of methods that help Business Analysts manage their project stakeholders: 

a) Background Research: The identification of stakeholders by examining and locating existing documentation.

b) CATWOE Analysis: CATWOE is a technique providing a framework for the definition and analysis of project stakeholder perspectives. CATWOE stands for ‘Customer, Actor, Transformation, Worldview, Owner and Environment’. The technique aims at resolving business problems involving conflicting interests of stakeholders. 

c) Cynefin: A term signifying the many interconnected environmental factors and how they influence our thought processes and interpretations. It is a framework designed to assist decision-making. Created by Dave Snowden in 1999 for IBM, it is also referred to as a ‘sense-making’ device.

d) RASCI Chart: The chart helps BAs assess and record the roles and responsibilities regarding a business problem, process or task. Also known as the ‘Linear Responsibility Chart’, RASCI clearly defines the members working on the project’s subtasks.

e) Root Definition: The root definition comprises the six elements from the CATWOE analysis, structured as a paragraph containing the stakeholder’s outlook. 

Business Case Preparation

Here is a list of techniques that can help Business Analysts prepare their business case for a better understanding of impacts on stakeholders: 

a) Cost Benefit Analysis: An analysis technique that investigates the costs of taking any particular action and its benefits. 

b) Impact Analysis: A technique that involves identifying and presenting a project’s impact. The decision to authorise the investment for the project can also be a part of the analysis.   

c) Investment Appraisal: The technique involves the process of comparing the financial benefits with the predicted costs from a project proposal. The appraisal helps to conclude if the project is worth taking.  

d) Vendor Assessment: The vendor Assessment technique involves evaluating a vendor’s ability to satisfy the requirements of an organisation through their services. The assessment is a stage in the procurement process initiated by the vendor’s management team.   

e) Risk Analysis: Risk analysis is a technique in Business Analysis that includes identifying and examining potential concerns. These concerns could negatively affect the business goals, and analysing them would help organisations mitigate the risks.   

Conclusion

The IIBA Business Analysis Techniques described in this blog will help BAs shape businesses for organisations and expand their repertoire. BAs practising Business Analysis will generally have a technique of their choice. They are most concerned with the consequences of depending on data. Choosing the appropriate technique will help them determine what a business needs and how to improve its products.
 
Demonstrate your professional commitment to Business Analysis by signing up for the IIBA Certified Business Analysis Professional (CBAP) Course now!