The Value of Business Analysis and Analytics
Emphasis has been on the use of analytics to improve operations, ‘where the rubber meets the road’. Business analysis on the strategic and tactical level has not received the analytic update as operations analysis.
- Ensure that organizations make timely, informed decisions
- Help prevent costly planning mistakes
- Assure improvement of operational efficiency
- Align business and IT initiatives with organizational goals.
- Focus on addressing core issues
Strategic Analysis
Strategic Business Analysis is the practice of identifying business direction and business challenges particularly from the external landscape of the organization.
Key Benefits:
- Identifies the most effective path for achieving business goals.
- Enhances competitive positioning through informed decision-making.
- Enables organizations to anticipate and respond to market shifts.
- Strengthens long-term business sustainability.
Common Mistakes:
- Focusing too much on short-term gains instead of long-term value.
- Underestimating competitors and market dynamics.
- Lack of integration between strategy and execution.
- Misalignment between strategy and organizational culture.
Expected Outcomes:
- A well-defined strategic direction for the organization.
- Clear identification of competitive advantages and market positioning.
- A prioritized list of strategic initiatives with measurable objectives.
- Resource allocation plans aligned with strategic goals.
- Improved organizational alignment and execution of strategic plans.
Tactical Business Analysis:
Key Benefits:
- Breaks down strategic plans into actionable steps.
- Enhances operational efficiency and execution speed.
- Improves performance measurement through key metrics.
- Helps allocate resources effectively for achieving strategic goals.
- Enables quick response to immediate operational challenges.
Common Mistakes:
- Lack of analytical rigor
- Overcomplicating tactics, making execution difficult.
- Resistance from employees due to unclear objectives.
- Insufficient coordination between different business units.
- Lack of Cross-Functional Coordination .
- Siloed decision-making and poor collaboration.
Expected Outcomes:
- A breakdown of strategic initiatives into actionable steps.
- Clearly defined roles and responsibilities for execution.
- Implementation of performance tracking and key metrics.
- Improved operational efficiency and execution of business plans.
- Rapid identification and resolution of execution bottlenecks.
Read More: New Horizons in Business Analysis - An Example of Strategic Analysis