4 Strategies Every Business Analyst Needs in Their Arsenal
A professional business analyst addresses and treat problems within the organization through analysis. Every company is unique in how they function. Applying all strategies to every problem wouldn’t just be foolish, it’d be plain wrong.
But every business analyst needs several tools on their belt to solve problems efficiently. That’s why many analysts have studied PEST, SWOT, Risk, and Value Chain analysis.
1. PEST Analysis to Prevent Mishaps
PEST analysis examines factors at a macro-level. Political, economic, social, and technological factors exist for every business, but rarely will you have direct influence over it. Instead, you build your business while keeping them in mind.
Political factors deal with laws, politics, and regulations. Pre-determined by governmental parties, you’ve no influence on how they change or when.
Economic factors affect the economy, taxes, and interests. Your industry may be buzzing now, but in the event of a recession, would it survive?
Social factors are people and places. What influences buying decisions? Is it location, desire, or need? Reachability? Knowledge?
Technological factors primarily reference the technology at a company’s disposal. The influence can be large or small. For example, low internet speeds slow down business progression for the day. But the invention of the internet changed the existence of companies.
Analysts use PEST analysis to understand what factors negatively affect business. They must also know which regulations the stakeholders follow to make adequate, proper solutions.
2. SWOT Analysis for Narrowing Down
SWOT analysis addresses key internal and external factors that affect the company. It’s broken down into strengths, weaknesses, opportunities, and threats. SWOT analysis is popular because it’s simple to do and offers valuable insight.
An analyst can highlight what a company is doing right and wrong in a single SWOT analysis. They can identify opportunities for growth and threats before they worsen. Threats are based on a scale of low to high risks. The level affects problem-solving priority.
3. Risk Analysis for Planning
Risk analysis defines dangers in the company. Risks are both internal and external. Internal meaning projects and limitations. External ranges from anything addressed in PEST analysis to natural disasters.
When risks are identified, they can be ordered based on priority. A low impact, low risk threat is less crucial than a high impact risk, ready to explode at any moment. While the low impact risk needs to be handled, it can wait in the meantime. An analyst uses risk analysis to determine problem areas and when to fix them.
4. Value Chain Analysis for Priority
Value chain analysis identifies activities within an organization to determine how it can be improved. It’s ranked in order of value to determine competitive advantages and disadvantages. For example, does the company import an exotic resource? While it may be pricey, it might not be available to the competition. That’s a valuable advantage, especially if this ingredient is beloved by your customers.
However, some internal factors aren’t as valuable. And if they’re not valuable, they should be cut. In response, the company may see an increase in profits or fewer expenses. A business analyst uses value chain to improve the company internally.
These analyses complement each other, but not all are needed simultaneously. A professional business analyst will use the resources necessary to complete the job. Anything more could delay improvements.
Image: Uber Images/Shutterstock.com