Business Analysis Tools
Business analysis tools will help to dissect your business problems and give actionable insights in increasing business performance. Right now business Analysis is popular to many company owners with the functions to analyze, examine data, and figure out the most appropriate plan or priority for the company to achieve their goals. We have several business analysis tools used to support businessmen to perform a business analysis. This article has highlighted 10 most effective analytical tools used in analyzing the process of a business that you can take into your account. You can learn more by attending the IIBA JK Michaels Business analysis certification Course
Business Analysis Tools:SWOT analysis
SWOT analysis is a business analysis tools that examine both internal and external factors that affect the performance of a company. Usually this analysis is mostly applied in the initial stages before the company launches any new plans, especially strategic marketing plans. Using this analysis, there are four contributing elements need to be examined to complete the analysis, namely strengths, weaknesses, opportunities and threats. And among them, strengths and weaknesses refer to any criteria within and under the control of a company; therefore, they are also called internal factors. In contrast, external analysis focuses on examining outside factors. Therefore, these factors are then grouped in opportunities and threats for the enterprise.
Strengths and Weaknesses
This set of analysis figures out all advantages and disadvantages that the company has regarding human resources, capital resources, infrastructure, organization structure and so on.
Opportunities and Threats
This step also focuses on identifying the outside environment to figure out the supporting element as well as deterrence to the development of the company. And this analysis concerns the effects from competitors, rules and regulations from local governments, economic situation, and so on.
This PEST analysis is business analysis tools that stand for Political, Economic, Sociological, and Technological is a method used to analyze the outside impacts on the performance of any enterprise. This analysis involves the process where business owners are provided with various external factors that directly and indirectly exert impact on their businesses.
Mostly, political situation is the main subject to study in this analysis. also, the current situation and projected situation in the future are considered carefully to predict how it affects the workflow of the company
This economic factor basically concerns in both a local and global scale.
This factor understudies how community affects the decision-making process of the company. In this analysis, customer demands and hot trends are the most popular examined criteria.
This factor is also greatly important to examine, especially the outburst of the fourth industrial revolution is on the way to come.it examines emerging technology and the most favourable technology help business owners to keep up with the fast pace of advanced technological development.
The MOST method is a business analysis tools suitable for any company looking to performing internal analysis since it helps the owners sure that they are on the right pattern. As the name implies MOST is an acronym for mission, objectives, strategies, and tactics. The business needs to clearly define where they want to drive their business to, what goals do they need to obtain to achieve their mission, what is the detailed plan, and how to perform the defined plan.
This is another model that studies the important factors of a business venture at the beginning of assessment process. This business analysis tools is completed by examining 7 fundamental elements which are; market opportunity, product or solution, execution plan, financial engine, human capital, potential return, and margin of safety.
De Bono’s Six Thinking Hats
This business analysis tool is most suitable when you want some new ideas for your business. Employing this analysis during the brainstorming process helps you generate different ideas and examine them to figure out the most appropriate one. However, this analytical tool restricts people to think in certain directions. Also, to complete De Bono’s Six Thinking Hats, there are 6 moods you should think about: pure and logical facts, creativity, positivity, negativity, emotions, and ability to control.
This business analysis tool is used to force businessmen to brainstorm their goals within limited time. We have 6 essential factors: customers, actors, transformation process, world view, owners, and environmental constraints to make this analytical tool, which also make up the acronym for its name.
This particular business analysis tool is usually applied when the company wants to identify the causes of a problem. And it provides the owners the general overview about what is really happening to their businesses.
Most businesses often choose this business analysis tool when they have numerous tasks to handle and they need to decide which task will receive priority. This is done by listing the tasks and analyzing them, business owners can quickly make decision based on the validity of requirements for each task, we have 4 factors in this analytical tool, which are: Must have, Should have, Could have, and Won’t have.
Another applicable business analysis tools is SCRS. Employing this method, it means that the company will follow the order of the current state and requirements from a business strategy to look for suitable solutions. This name contains an acronym for four steps respectively: strategy, current state, requirements, and solution.
This business analysis tools enables users to make decision when they have to examine different expectations from several opinions about a system. As the name implies; values, policies, events, content, and trust.
In conclusion , there are various business analysis tools available for a company when they want to do a business analysis. Because each analytical tool is suitable with a particular business depends on the aim of the company, current situation, and so on, business owners should think carefully before choosing the most appropriate tool for their companies. Once they can identify the best method for their enterprise, it will be much easier for them in decision making process or generating a strategic marketing plan.