Business Analysis is required to determine how a company can improve its productivity by improving its systems and processes. There are many different types of business analysis that cater to the different needs of a company. This blog post will explore the different types of business analysis so that you can determine which type would be best for your company.
1. Process Analysis:
Process analysis determines how a process is currently being done, and how it can be improved. This type of business analysis takes a close look at the individual steps in a process, in order to see where there may be room for improvement. Oftentimes, process analysis will find ways to automate steps in order to make the process more efficient.
2. Gap Analysis:
Gap analysis is conducted in order to find any discrepancies between the current state of affairs and the desired state. This type of business analysis is often used after a new system has been put into place, in order to make sure that the system is working as it should be. Additionally, gap analysis can also be used to find any gaps in knowledge or skills amongst employees.
3. Needs Assessment:
A needs assessment is conducted in order to identify what a company needs in order to reach its goals. This type of business analysis takes into account the current resources of the company, as well as any restrictions that may be placed on the company. Additionally, a needs assessment looks at what the competition is doing in order to gain an edge.
4. Cost-Benefit Analysis:
A cost-benefit analysis is used to determine whether or not a proposed change is worth implementing. This type of business analysis looks at all of the costs associated with making a change, as well as all of the benefits that would come from making the change. In order for a change to be worth it, the benefits must outweigh the costs.
5. SWOT Analysis:
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. A SWOT analysis looks at all of these factors in order to create a picture of where a company currently stands. This information can then be used to make decisions about where the company should go next. Strengths and weaknesses are internal factors, while opportunities and threats are external factors.
6. Business Process Reengineering:
Business Process Reengineering (BPR) involves completely redesigning a process from start to finish. This type of business analysis is usually only done when it is clear that simply improving an existing process will not be enough; The process must be completely redesigned in order for there to be significant improvement. BPR can be a huge undertaking, and so it should only be done when absolutely necessary.
7. Value Chain Analysis:
Value chain analysis is used to identify all of the activities that take place within a company in order to create value for customers .This type of business analysis can help companies to improve their efficiency by identifying areas where they may be wasting time or money . Additionally, value chain analysis can also help companies to focus on their core competencies.
8. Lean Six Sigma Analysis:
Lean Six Sigma (LSS) is a methodology that combines lean principles with six sigma principles . The goal of LSS is to help companies identify and eliminate waste within their operations . LSS relies heavily on data and statistical methods , which makes it well-suited for businesses that deal with large amounts of data.
9. Root Cause Analysis:
Root cause analysis (RCA) helps companies to identify why problems are occurring within their operations . Once the root cause(s) have been identified , corrective action can be taken in order prevent future problems . RCA is often used after an incident has occurred , but it can also be used proactively.
10. Critical Path Analysis:
Critical path analysis (CPA) helps companies to understand which tasks need to be completed first in order for other tasks to begin . CPA can also help companies to estimate how long projects will take , as well as identify potential bottlenecks . CPA is commonly used during project planning phases.
11. Benchmarking Analysis:
Benchmarking involves comparing your company’s performance against other similar companies . This type of business allows you to see where your company stands relative to others , as well as identify areas where your company could improve its performance.
As you can see , there are many different types of business analysis , each with its own strengths and weaknesses . The best way to determine which type of analysis is right for your company is to consult with an experienced business analyst who can deal with the specific needs and goals of your company.
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