Is business analysis worth your time?

When it comes to business and business-systems analysis reviews, streamlining and speeding up the #applicationdevelopment process often come up as the most notable gains. It is undeniable, though, that when I look at it from my viewpoint as the person responsible for drafting the proposals, something else is equally important. Let's return to the moment before the first code line is created.

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BUSINESS ANALYSIS = NECESSITY

Preparing an analysis before programming an application or system is a wise and common practice. Rarely, however, do I encounter clients that already have such documentation when asking for a quote. The most common approach is to hand off all tasks to an #outsourcing company. This is, conversely, a disadvantageous solution from the client's point of view in some respects. Why?

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●????Even the best technology partner cannot figure out how the application should work without complete client documentation. A higher labor intensity is assumed to ensure the project's profitability, resulting in a higher final cost (read: it’s more expensive).

● ?????Lack of business and system analysis increases the risk of change requests - at the information-gathering stage, questions are asked that can sometimes shatter or expand the original vision of the application (read: it's more expensive, time-consuming, and nerve-wracking).

● It prolongs the bidders' submission process (a large number of questions and requests for extensions), leading to a risk that the bids submitted won't be comparable (read: it’s more time-consuming and nerve-racking),

Simply put - projects that lack business analysis can end up costing more, taking longer to complete, and failing to meet expectations.

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IF YOU CAN, DO IT... SOONER.

What stands in the way of a business analysis beforehand? Nothing really, because the analysis is (at least by design) a universal document. You can always hire an entirely different contractor if you outsource it.

A word of advice - when outsourcing business analysis, ensure the copyright is protected. By owning it, you can use the documentation freely, request multiple suppliers for quotations, and select the best one.

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However, numbers evoke the imagination like nothing else. Before I go any further, though, let me point out one crucial fact: this calculation is solely based on my ten years of professional experience. Maybe someone will say this isn't true, and they'll be right - after all, we may have encountered different cases.

LET THE NUMBERS DO THE TALKING

Typically, business analyses cost around 10% of the final development value. So, for a system valued at EUR 200,000, the analysis costs EUR 20,000. Even when a client seeking a fixed price quote brings a thorough business analysis, a slight buffer is usually assumed for unanticipated changes. This usually oscillates around 10%.

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What if a customer approaches me with just a draft document outlining the basic functions of the application? This is without detail on, for instance, the expected design or integration with other systems. Normally, the buffer for "unexpected" changes is 30%, but it can reach 40% in this case. In the end, instead of paying EUR 240,000 (cost of development + analysis + 10% buffer), the client pays EUR 286,000 (cost of development and analysis + 30% buffer).

EUR 46,000 sounds like the equivalent of maintaining your app's infrastructure for a few years to come. This could also be some additional modules or a brand-new Tesla in the car park - it's up to you.

If you're seeking the right partner for your analysis - leave a comment or write a private message. :)