Business Analysis Steps

Business Analysis Steps

Business analysis steps are the flow of activities used in analysing and improving business performance. Business analysis can be defined as a research discipline that helps you to find the business needs and defining solutions to business problems. Also, it includes a software-systems development component.

Most Business Analysis steps offers concepts and insights into the development of the initial framework for any project. And It stores the key to guide stakeholders of a project who performs business modelling in an orderly manner.

Business Analysis Steps

Here below are the steps for Business Analysis:

  1. Business Analysis Planning and Monitoring
  2. Requirements life cycle management
  3. Elicitation and Collaboration
  4. Strategy Analysis
  5. Requirements Analysis and design definition
  6. Solution Evaluation

Business Analysis Steps 1:Business Analysis Planning and Monitoring

The Business Analysis Planning and Monitoring knowledge area tasks organize and coordinate the efforts of business analysts and stakeholders. These tasks produce outputs that are used as key guidelines for the other tasks throughout the BABOK® Guide


The following activities are as follows:

  • Plan BA Approach
  • Plan Stakeholder engagement
  • Plan BA Governance
  • Plan BA information management
  • Identify BA performance improvement

Plan BA Approach

The purpose of Plan Business Analysis Approach is to define an appropriate method to conduct business analysis activities.

Plan Stakeholder engagement

The purpose of Plan Stakeholder Engagement is to plan an approach for establishing and maintaining effective working relationships with the stakeholders.

Plan BA Governance

The purpose of Plan Business Analysis Governance is to define how decisions are made about requirements and designs, including reviews, change control, approvals, and prioritization.

Plan BA information management

The purpose of Plan Business Analysis Information Management is to develop an approach for how business analysis information will be stored and accessed

Identify BA performance improvement

  • The purpose of Identify Business Analysis Performance Improvements is to assess business analysis work and to plan to improve processes where required.


Business Analysis Steps 2:Requirements life cycle management

  • The Requirements Life Cycle Management knowledge area describes the tasks that business analysts perform in order to manage and maintain requirements and design information from inception to retirement.

The following activities are as follows:

  • Trace Requirements
  • Maintain Requirements
  • Prioritize Requirements
  • Assess Requirements Changes
  • Approve Requirements

Trace Requirements

  • The purpose of Trace Requirements is to ensure that requirements and designs at different levels are aligned to one another, and to manage the effects of change to one level on related requirements.

Maintain Requirements

  • The purpose of Maintain Requirements is to retain requirement accuracy and consistency throughout and beyond the change during the entire requirements life cycle, and to support reuse of requirements in other solutions.

Prioritize Requirements

  • The purpose of Prioritize Requirements is to rank requirements in the order of relative importance.

Assess Requirements Changes

The purpose of Assess Requirements Changes is to evaluate the implications of proposed changes to requirements and designs

Approve Requirements

The purpose of Approve Requirements is to obtain agreement on and approval of requirements and designs for business analysis work to continue and/or solution construction to proceed

Business Analysis Steps 3:Elicitation and Collaboration

  • The Elicitation and Collaboration knowledge area describes the tasks that business analysts perform to obtain information from stakeholders and confirm the results. It also describes the communication with stakeholders once the business analysis information is assembled.

The following activities are as follows:

  • Prepare for Elicitation
  • Conduct Elicitation
  • Confirm Elicitation Results
  • Communicate Business Analysis Information
  • Manage Stakeholder Collaboration

Prepare for Elicitation

  • The purpose of Prepare for Elicitation is to understand the scope of the elicitation activity, select appropriate techniques, and plan for (or procure) appropriate supporting materials and resources.

Conduct Elicitation

  • The purpose of Conduct Elicitation is to draw out, explore, and identify information relevant to the change.

Confirm Elicitation Results

  • The purpose of Confirm Elicitation Results is to check the information gathered during an elicitation session for accuracy and consistency with other information

Communicate Business Analysis Information

  • The purpose of Communicate Business Analysis Information is to ensure stakeholders have a shared understanding of business analysis information.

Manage Stakeholder Collaboration

  • The purpose of Manage Stakeholder Collaboration is to encourage stakeholders to work towards a common goal.


Business Analysis Steps 4:Requirements Analysis and design definition

  • The Requirements Analysis and Design Definition knowledge area describes the tasks that business analysts perform to structure and organize requirements discovered during elicitation activities, specify and model requirements and designs, validate and verify information, identify solution options that meet business needs, and estimate the potential value that could be realized for each solution option.

The following activities are as follows:

  • Specify and Model Requirements
  • Verify Requirements
  • Validate Requirements
  • Define Requirements Architecture
  • Define Solution Options
  • Analyze Potential Value and Recommend Solution

Specify and Model Requirements

  • The purpose of Specify and Model Requirements is to analyze, synthesize, and refine elicitation results into requirements and designs.

Verify Requirements

  • The purpose of Verify Requirements is to ensure that requirements and designs specifications and models meet quality standards and are usable for the purpose they serve.

Validate Requirements

  • The purpose of Validate Requirements is to ensure that all requirements and designs align to the business requirements and support the delivery of needed value.

Define Requirements Architecture

The purpose of Define Requirements Architecture is to ensure that the requirements collectively support one another to fully achieve the objectives

Define Solution Options

The purpose of Define Design Options is to define the solution approach, identify opportunities to improve the business, allocate requirements across solution components, and represent design options that achieve the desired future state.

Analyze Potential Value and Recommend Solution

The purpose of Analyze Potential Value and Recommend Solution is to estimate the potential value for each design option and to establish which one is most appropriate to meet the enterprise’s requirements.

Business Analysis Steps 5:Strategy Analysis

  • Strategy defines the most effective way to apply the capabilities of an enterprise in order to reach a desired set of goals and objectives.
  • Strategies may exist for the entire enterprise, for a division, department or region, and for a product, project, or iteration

The following activities are as follows:

Analyze Current State

Define Future State

Assess Risks

Define Change Strategy

Analyze Current State

  • The purpose of Analyze Current State is to understand the reasons why an enterprise needs to change some aspect of how it operates and what would be directly or indirectly affected by the change.

Define Future State

  • The purpose of Define Future State is to determine the set of necessary conditions to meet the business need.

Assess Risks

  • The purpose of Assess Risks is to understand the undesirable consequences of internal and external forces on the enterprise during a transition to, or once in, the future state. An understanding of the potential impact of those forces can be used to make a recommendation about a course of action.

Define Change Strategy

The purpose of Define Change Strategy is to develop and assess alternative approaches to the change, and then select the recommended approach

Business Analysis Steps 6:Solution Evaluation 

The Solution Evaluation knowledge area describes the tasks that business analysts perform to assess the performance of and value delivered by a solution in use by the enterprise, and to recommend removal of barriers or constraints that prevent the full realization of the value.

The following activities are as follows:

  • Measure Solution Performance
  • Analyze Performance Measures
  • Assess Solution Limitations
  • Assess Enterprise Limitations
  • Recommend Actions to Increase Solution Value

Measure Solution Performance

The purpose of Measure Solution Performance is to define performance measures and use the data collected to evaluate the effectiveness of a solution in relation to the value it brings.

Analyze Performance Measures

The purpose of Analyze Performance Measures is to provide insights into the performance of a solution in relation to the value it brings.

Assess Solution Limitations

The purpose of Assess Solution Limitations is to determine the factors internal to the solution that restrict the full realization of value.

Assess Enterprise Limitations

The purpose of Assess Enterprise Limitations is to determine how factors external to the solution are restricting value realization.

Recommend Actions to Increase Solution Value

The purpose of Recommend Actions to Increase Solution Value is to understand the factors that create differences between potential value and actual value, and to recommend a course of action to align them.

Attend JK Michaels Certified Business Analysis Professional   to get the details on business analysis steps,framework and techniques.