Uncovering the Core of Business Analysis: What Are the 5 Questions?

Introduction

Business analysis is an essential tool for ensuring that a company’s operations are running efficiently and profitably. Effective business analysis requires answering five critical questions. In this article, we will explore these questions in detail, providing insights and examples to help you better understand them.

Question 1: What is the Problem?

The first question is about understanding the problem that the business is facing. It’s vital to identify the cause of the issue to develop an effective solution. The problem could be a failing marketing campaign, a decrease in sales, or anything else that’s preventing the business from achieving its goals. Once the problem is identified, the company can create a plan to address it.

For example, let’s say a business is experiencing low website traffic. The business analyst will identify the cause of the issue, such as poor website design or inadequate social media promotion. Once the cause of the problem is identified, the company can create a plan to improve website traffic, such as redesigning the website or increasing social media promotion.

Question 2: Why is it a Problem?

The second question is about understanding the impact of the problem on the business. Is the problem impacting revenue, customer satisfaction, or both? It’s necessary to understand the severity of the issue to determine the resources that the company needs to allocate to solve it.

Using the low website traffic example, the impact could be lost sales, decreased brand awareness, and poor customer satisfaction. Understanding the impact of the issue helps the company prioritize the problem and allocate resources towards correcting it.

Question 3: What is the Solution?

The third question is about identifying potential solutions to the problem. After understanding the issue and its impact, the business analyst can work with the company to develop a plan of action. The solution could be a new marketing campaign, process improvements, or any other strategy that resolves the problem.

Continuing with the website traffic issue, the solution could be improving search engine optimization, increasing website loading speed, or creating more engaging content.

Question 4: How will the Solution be Implemented?

The fourth question is about developing a plan to implement the solution. This question involves defining the resources, team members, and timelines required for the solution’s successful execution. It’s the action plan for implementing the solution that was previously identified in question three.

For instance, in the website traffic example, implementing the solution could mean hiring an SEO expert, investing in better web design, or outsourcing social media marketing. The plan will detail the tasks, assign responsibilities and deadlines, and set up a process for monitoring and reporting progress.

Question 5: How will the Solution be Monitored?

The fifth and final question is concerned with measuring success. After the solution is implemented, it’s necessary to monitor its effectiveness and adjust the plan if necessary. Monitoring ensures that the company is on track towards achieving its objectives.

In the website traffic example, the company can monitor the impact of the solution by measuring website traffic, analyzing social media engagement, monitoring the sales leads generated, and more.

Conclusion

Effective business analysis can help companies identify and solve their operational and financial problems, which helps optimize resource allocation, improve customer satisfaction, and gain a competitive edge. The five critical questions discussed in this article – What is the problem? Why is the problem a problem? What is the solution? How will the solution be implemented? And, how will the solution be monitored? – provide the foundation for successful business analysis. Understanding these questions helps ensure that the company has the necessary information to make sound decisions that drive profitability and growth.