The Business Analysis Body of Knowledge

In 2003, the International Institute of Business Analysis (IIBA) was formed as an independent non-profit association for business analysts. It has, since then, steadily grown to encompass more than 29,000 members (2018). Today, the IIBA is the leading association for all who work, at different levels and capacities, as business analysts. One of the main contributions of the IIBA is BABOK (Business Analysis Book of Knowledge). BABOK is now the recognized standard of business analysis practice, encompassing all areas of knowledge including tools, skills, competencies and aspects for good business analysis. AsBABOKis the standard, this book is aligned with BABOK (version 3) and can be used as an introduction to business analysis.

The purpose of the BABOK Guide [3] is to be the standard for the practice of business analysis. The BABOK Guide defines the business analysis profession, captures, describes and lists knowledge areas, associated tasks, skills and a repository of tools and techniques necessary to effectively perform business analysis. It also functions as “a guide to the business analysis body of knowledge” for business analysts, and is an important resource for anyone who works in business analysis.

The BABOK Guide begins with “Business Analysis Key Concepts” which provides definitions of terms and concepts (such as BACCM discussed previously). Following this, the BABOK Guide organizes the business analysis tasks into the following six knowledge areas:

• Business Analysis Planning and Monitoring: This knowledge area gathers all activities that are performed for the purpose of organizing and coordinating the work that is to be done.
• Elicitation and Collaboration: This knowledge area collects all tasks related to planning, preparing, and performing elicitation activities and to confirming the results.
• Requirement Life Cycle Management: This knowledge area describes tasks related to requirement management from their inception to completion.
• Strategy Analysis: This knowledge area encompasses all tasks required for understanding, identifying and analyzing the business needs including what is required to address those needs.
• Requirement Analysis and Design Definition: This knowledge area covers the tasks to structure and organize elicited requirements, and design the recommended solution.
• Solution Evaluation: This knowledge area lists the tasks performed for the purpose of evaluating and improving the value delivered by a solution.

Each knowledge area describes its main components by stating its purpose, inputs, elements, resources required (guidelines and tools), the list of techniques that can be used, the stakeholders involved, and the outputs of each task. Following the knowledge areas, the BABOK Guide lists and explains the underlying competencies reflecting the skills, knowledge, qualities required to perform business analysis work (those defined in the knowledge areas). Each competency is elaborated by describing its purpose, definition and how to determine if a person masters the competency. The final part of the BABOK Guide lists 50 techniques (not an exhaustive list) describing different ways the tasks of the knowledge areas can be performed. For each technique, its purpose, description, elements and usage considerations are briefly discussed.

Finally, the BABOK Guide describes five major perspectives that are used in the business analysis that is more specific to the context. These are Agile (when projects are within an agile environment), Business Intelligence (work in the context of transforming, integrating, and enhancing data), Information Technology (work in the context of information system), Business Architecture (work in the context of higher levels involving architecture of a business), and Business Process Management (within the context of business process development and/or improvements).

The Business Analysis Process

Business analysis varies from project to project and each project has its specific context. Accordingly, a business analyst may perform selected tasks from the knowledge areas of the BABOK Guide in a sequential order, iteratively or even simultaneously. The analyst might also perform other activities not listed in the BABOK Guide. In short, there is no prescribed sequence of how the tasks are to be performed. A project might be of smaller size and therefore, several tasks are performed simultaneously whereas another project is significantly larger and requires a more systematic approach. It is also possible to analyze the current state and then define the problems but also equally effective to first define the needs followed by a current state analysis. Consequently, the BABOK Guide does not prescribe any order in which the tasks of each knowledge areas are to be applied. The interaction and relation between the knowledge areas are more iterative. The iterative nature is part of the work. If the project is fairly contained and small, the tasks of several knowledge areas might take place in a day or two. In such cases, it is possible that current state analysis, problem analysis and defining the future state are performed seamlessly as if it was one activity. However, if the problem is complex and many processes are involved, it might take months before a project can be started. It is also probable that new information emerges, making it necessary to re-visit previously completed tasks. The tasks are not completely independent of each other, but they do not come with prescribed instructions as to in which context they are to be used. The analyst will use these tools depending on the context.

Activities of the Business Analysis Process

Every project will be different in regard to what activities are performed, which tools, techniques, and methods are applied. It is a dynamic process at work. As such, the work can be understood as a process with different steps, each covering a set of activities that move a step closer to the final outcome. There are different suggestions as to how such a process looks but most share a common set of core steps.

The process begins with a stakeholder perceiving there to be a specific problem that needs to be solved, a need that should to be fulfilled or an opportunity, if taken, that has potential value. When the business analyst is involved, he or she has to initiate and plan the work ahead. The analysts’ next step is to consider the business context and perspectives when planning the business analysis work. Once the preliminary plan has been set, the current state is analyzed. This step also includes gaining a clear understanding of the problem, needs or the opportunities. Following this, the analyst can begin defining the future state (how it is desired to be) and generate alternative solutions. Next, the solutions are compared, evaluated and the most suitable alternative is selected. Following this, the solution is designed in more detail and delivered (implemented). Finally, the solution is evaluated to ensure it delivers the intended value.

It is important to note that the business analysis process does not rigidly follow the described steps. The process will depend on a number of factors such as the size and complexity of the problem, the effort required to deliver the solution, and standards adopted by the company. Although the work of an analyst might not follow a clear process with easily defined steps, it is helpful to think of the work as a process for our purpose of introducing business analysis.

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