How Strong Business Analysis Capabilities Give Organizations a Competitive Edge in the Market

How Strong Business Analysis Capabilities Give Organizations a Competitive Edge in the Market

 

In today’s fast-paced and competitive world, companies are seeking ways to gain a competitive advantage. One of the most effective methods they can apply to achieve this is to enhance their business analysis capabilities.

Over the years, business analysis has evolved from a simple support function to a vital element in strategic planning and operational execution. Companies with strong business analysis capabilities can predict market trends, tackle process inefficiencies, and take advantage of new opportunities. Business analysis enables companies to stay flexible and responsive to market changes.

There are many areas that can profit from strong business analysis capability. In this article, we focus on three:

  1. Decision-making.
  2. Business process optimization.
  3. Improved stakeholder collaboration and communication.

Let us explore them in more detail.

Making better-informed decisions

Data-driven decision-making means that business decisions are based on hard data rather than relying on intuition or personal experience. According to a survey by McKinsey in 2023 [1], data-driven decision-making is one of the major shifts companies are making. The times are uncertain, and thus, customer development and retention are important. According to the McKinsey report, companies that base their decisions on data are 23 times more likely to outperform their competitors in new-customer acquisition, demonstrating the impact of customer analytics on corporate performance. Business analysis includes quantitative research and provides a framework for gathering, interpreting, and acting on data. By leveraging insights from market data, customer feedback, and performance metrics, organizations’ companies can make informed decisions that reduce risk and increase the likelihood of success.

Netflix is a classic example of data-driven decision-making linked to business analysis [2]. Business analysis plays a crucial role in interpreting vast amounts of customer data, such as viewing habits or preferences. This data-driven approach enables Netflix to make informed decisions about which shows and movies to produce, ensuring they align with audience demand, making it the most successful streaming service.

Process optimalization

Companies rely on well-defined business processes that produce and deliver products and services to customers. A study by Forrester [3] in 2023 showed that most companies are committed to process improvement. 56% of surveyed companies consider these initiatives as strategic investment. 71% of respondents see the end-to-end process automation as a primary business driver. These changes cannot be realized without strong business analysis capability. Identifying inefficient workflows and implementing strategies to improve them is an important aspect of business analysis. In the end, it leads to cost savings and increased competitiveness.

In 2023, NVIDIA [4] implemented an AI-driven order management system, reducing processing time by 98% and manual work by 50%. This example highlights the role of business analysis in identifying inefficiencies and driving automation initiatives. Business analysts played a key part in evaluating NVIDIA’s order management process, identifying areas for improvement, and ensuring the alignment of AI solutions with business goals.

Improved stakeholder collaboration and communication.

Effective communication between stakeholders is essential for the success of any business change initiative. Business analysts act as intermediaries. They ensure that communication flows smoothly between different departments, or departments and external parties. According to a 2023 study by PMI “Pulse of the Profession” [5], companies with effective stakeholder engagement run their initiatives more successfully when the power skills* were applied. 72% of respondents claimed their projects were finished in line with business goals.

*Power skills embrace communication, problem-solving, collaborative leadership, and strategic thinking, all present in the business analyst toolbox.

In conclusion, strong business analysis capabilities empower companies to make informed, data-driven decisions, streamline operations, and enhance stakeholder collaboration. This allows companies to remain agile, optimize processes, and expect market demands, securing a competitive advantage in today’s dynamic business environment. Moreover, investing in the education and development of business analysts brings long-term value by equipping professionals with right skills to drive strategic initiatives. The latest IIBA report [6] “2023 Global State of Business Analysis” reports that an overwhelming 95% of respondents recommend a professional certification to their colleagues to support career development. Well-educated business analysts help companies to adapt quickly to market changes, innovate, and sustain a strong competitive position.

About Author:

Katarzyna Kot
.

Katarzyna Kot is a seasoned business analysis expert and the founder of BA Coach, a company dedicated to enhancing business analysis and requirements engineering practices. With over 20 years of experience in the high-tech and financial sectors, she specializes in enhancing business analysis and requirements engineering practices, helping organizations adopt systems engineering, agile, and human-centered approaches like Design Thinking. Katarzyna has worked with renowned companies such as Philips, NXP Semiconductors, ASML, Rabobank, and AEGON. As an accredited EXIN/BCS trainer and certified Design Thinking facilitator, she is passionate about developing future business analysis professionals and fostering innovation in systems engineering and business analysis. She is also an active member of international professional communities, like IIBA and INCOSE.

References:

[1] https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/healthy-organizations-keep-winning-but-the-rules-are-changing-fast

[2] https://about.netflix.com/en/news/what-we-watched-a-netflix-engagement-report%22%22

[3] https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/five-facts-how-customer-analytics-boosts-corporate-performance

[4] https://www.supplychain247.com/article/how-nvidias-ai-driven-order-management-propelled-239-stock-growth-a-2023-case-study/would-it-actually-be-cheaper-and-faster-to-3d-print-you-514007016

[5] https://www.pmi.org/about/press-media/press-releases/pulse-of-the-profession-2023

[6] 2023 Global state of business analysis report, part 2: certification and career development. http://Iiba.org