Business analysis is a process companies go through to ascertain the viability of a project. Companies can use a number of different types of business analysis for use in this process. The most common overarching types of business analysis include contextual, conceptual, physical, and logical. These analyses look at business fluency, operational implementations, end-user reviews, and object-oriented results, respectively. Business analysts are typically the individuals most responsible for this process.
Contextual business analysis looks at the broad picture in terms of reviewing business operations. For example, if a process needs reengineering, business analysts take it into context. They provide information on the reason for the change and the expected outcome from the operational alterations. In some cases, contextual types of business analysis may end in negative results. This means different alternatives are necessary for a project.
Conceptual business analysis is a bit more in the planning stages. Here, business analysts look at potential changes that may increase a company’s profits or market share. Requirements for success may be part of this process. For example, owners and business executives often outline ideas and use analysts to provide the details on how to accomplish the project. Though a business analyst can make suggestions, the definition of success is usually part of the owner’s plan for the new project or operation.
All companies have physical resources in order to complete tasks and engage in business activities. Physical types of business analysis involve a review of current and needed resources for certain activities. Resources can include materials, labor, or other items needed to produce new goods or services. Retail outlets or locations are necessary to present the finished goods to consumers. Customer service support is also a part of physical analysis; this is necessary to ensure that consumers have the ability to provide feedback on new business activity.
Logical analysis helps a company determine how it can best produce goods or services at the lowest cost. For example, a company may need a supply chain in order to deliver goods from the production facility to the end user, or consumers. Logical types of business analysis examine the company’s structure and how well it can accomplish the individual goals that make up the new project or activity. This process may be a bit more difficult to complete. Logical analysis depends on the ability of each business analyst to comprehend and make decisions on current and future business activities.