Insights In Hindsight - Edition 7

Leveraging Business Analysis Techniques for Success

In today’s data-rich and technology-driven environment, it is impossible to ignore the power and potential of information analysis. From streamlining processes and increasing efficiencies to identifying growth opportunities and implementing effective strategies, it is possible to leverage business analysis techniques for informed decision-making that drives short-term and long-term organizational success. Whether it is through a formal technique and model, or experiential data analysis and interpretation, all of us as business leaders and managers engage in some form of information analysis to identify a business need or opportunity or solve a business problem or critical decision.?

Personally, I am fascinated by the potential of formal business analysis techniques and how much they can contribute to every aspect of the business. But, besides investing in sophisticated tools and technology, we may also need to build a diverse team of business analysts with varied skill sets and experiences. Such resources not only need to excel at data analysis and business process mapping but should also have the ability to effectively communicate their findings and recommendations to various stakeholders throughout the organization. Moreover, they should be able to think critically and strategically, understand the broader business context, and develop sound solutions to address complex business problems and opportunities. Ultimately, it is a combination of the right people, the right tools and technology, the right timing, and the right business analysis techniques that can help our organizations gain a true advantage over the competition. ?

It is a combination of the right people, right tools and technology, right timing, and right business analysis techniques that can help our organizations gain true advantage over the competition. ?

Business Analysis Techniques Have Evolved

It is no surprise that a plethora of business analysis techniques have come up over the last few decades. Depending on the nature of the product or service offering, industry and market dynamics, and specific outcomes or organizational goals, certain techniques may be more relevant and effective than others.

• Business modeling: CATWOE (Customers, Actors, Transformation, World view, Owner, Environmental constraints) technique and User Stories may be most effective in issue identification and solutioning across different variables. Capability Modelling, Value Chain Analysis and Value Stream Mapping are also some of the more interesting business analysis techniques in the business modeling process.
• Environmental analysis: PESTLE (Politics, Economy, Social, Technology, Legal, and Environmental) analysis can help identify and minimize potential threats across the listed areas. Other techniques that help in environmental analysis and strategic planning include Porter’s Five Forces Framework, Boston Box, MOST (Mission, Objectives, Strategy, Tactics) analysis, and Resource Audit.
• Strategy analysis: From SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis, McKinsey’s 7-S model, and Balanced Score Card (BSC) to Ansoff’s Matrix, Key Performance Indicators (KPIs) and Critical Success Factors (CSFs), there is a wide range of tools that can aid in analyzing and strengthening organizational strategies.
• Problem identification: Techniques, such as Fishbone Diagram, Six Thinking Hats, Root Cause Analysis, Mind Map, and the 5 Whys Model specifically look at defining the real issues or challenges in order to improve the accuracy of problem-solving. ?

Every successful organization leverages some business analysis techniques

There are also many examples of large organizations that have consciously adopted a certain business analysis technique to drive specific outcomes. For example:

• Assessing competitive environment: Amazon used Porter’s Five Forces technique while developing their e-commerce platform strategies and logistics capabilities as it helped them gain a deeper understanding of the threat of new entrants/ substitutes, and the bargaining power of buyers and suppliers. Despite becoming the world’s most valuable retailer, Amazon continues to leverage the power of data and business analysis techniques to identify customer behavior trends, offer personalized purchase recommendations to consumers, and tailor their marketing strategies for improved alignment with the customers’ needs.
• Analyzing gaps between current and future processes: The IT industry often relies on the Business Process Modeling (BPM) technique to help clients evaluate the discrepancies between current and desired/ future business processes. Usually presented in an illustrative sequential workflow diagram, the four-step BPM technique is a simple and easy way to understand and demonstrate the phases of the execution process and how they will function in various roles.
• Strategy development: Coca-Cola has used PESTLE analysis while developing the strategy to respond to changing consumer preferences for healthier beverages. Analyzing the sociocultural factors that were driving this trend, helped the company develop new product lines and marketing campaigns to appeal to health-conscious consumers and maintain its market position. In fact, Coca-Cola was also able to devise other strategies related to water management, packaging, and environmental issues through the PESTLE technique.

When Walmart tracks inventory levels and product performance, or McDonalds enhances its menu offerings, it is all about optimizing its supply chains in order to improve profitability and customer satisfaction. When Apple or Amazon use data and business analysis techniques to identify emerging consumer preferences and market trends, their goal is to evolve the product or service offerings for better alignment with the customers’ needs. And when companies like Ford, Toyota, Samsung, or LG use data analysis, it can identify opportunities for cost-saving and efficiency improvements, in turn increasing their market share and profitability. The reality is that business analysis techniques are integral to organizational success and every company may use different techniques at different points, based on their strategic goals or desired outcomes.?

#businessanalysistechniques #businessanalysistools #businessmodelling #strategyanalysis #informationanalysis

Snippets Of Articles That May Interest You        

Remembering Shane Warne and His Leadership Lessons

Shane Warne is one of the most celebrated players in world cricket. Unfortunately, we lost him too soon. He has undoubtedly left behind an incredible legacy and many life lessons. In my first newsletter in July, I wrote about some lessons I have gathered from his noteworthy journey. Here's more .

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Zero-Based Budgeting — Enabling a Cultural Shift

CFOs across corporate India are increasingly relying on zero-based budgeting (ZBB) techniques or principles to save costs and redirect funds towards long-term strategic priorities. Here's my take .

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Updates From Practus        

Recently, I drafted a paper on the concept and applicability of Extreme Ownership. In the paper, I have discussed the core principles and how leaders with an Extreme Ownership mindset use strategy and tact to improve business growth. Read on

I had an opportunity to speak to FY19 about the role of a CFO and share some insights about the dynamic relationship that a CFO shares with other stakeholders in an organization. I also spoke about Practus' journey and our vision for the future. Here's more

That's all for this month! See you all next month!