Essential Tools, Methods, and Software for Business Analysis

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Essential Tools, Methods, and Software for Business Analysis

System Analysis and Design · Chapter 2: Business Analysis Tools and Development MethodsSection 2.2 · lesson 8 of 6910 min · free with a free account

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In this lesson

SWOT, PESTLE, gap analysis, root causes, stakeholder mapping, and software.

  • Apply SWOT and PESTLE to internal capabilities and the external environment
  • Use gap analysis to find the actions between current and desired states
  • Trace problems to root causes with the fishbone and the 5 Whys
  • Map stakeholders by power and interest, and match software to tasks

Transcript

Everything said in the video, section by section (1,297 words). Read along, or search it.

Business Analysis Tools and Development Methods

Essential Tools for Business Analysis

Before an analyst recommends a solution, they need to understand the situation. This section is a toolkit for doing exactly that. None of these tools is an end in itself. Each one exists to answer a specific question. Where does the organization stand today? Why is this problem happening? Whose support will this initiative need? We will cover SWOT and PESTLE, gap analysis, and two root-cause techniques, the fishbone diagram and the five whys. Then stakeholder mapping, and finally the categories of software analysts use to capture and share their work.

Framing the Situation

SWOT Analysis

Start with SWOT. SWOT stands for strengths, weaknesses, opportunities, and threats. Its real value is the split it forces. Strengths and weaknesses are inside the organization's control. Opportunities and threats come from the external environment. Strengths are internal and helpful. Experienced staff, or strong customer relationships. Weaknesses are internal and harmful. Manual, error-prone processes, or outdated core systems. Opportunities are external and helpful. New market segments, or emerging automation technology. Threats are external and harmful. New competitors, or changing regulations. Analysts typically build a SWOT early in a project, to frame the problem before digging into more detailed techniques. So a retailer with strong brand loyalty and an aging point-of-sale system? Loyalty is a strength. The old system is a weakness.

Zooming Outward

PESTLE: 6 External Forces

SWOT gives a broad, internal-versus-external view. PESTLE zooms in on the external environment alone, and sorts outside forces into six categories. Political covers government policy, trade rules, and political stability. Economic covers interest rates, inflation, employment levels, and overall growth or contraction. Social covers demographics, lifestyle trends, and shifting customer expectations. Technological covers new tools and automation, and how fast the industry adopts them. Legal covers the laws and industry regulations the organization must meet. And environmental covers sustainability expectations, resource availability, and environmental regulation. Why run PESTLE as well as SWOT, rather than instead of it? SWOT already has an external half, but it does not force a systematic look at every kind of outside factor. PESTLE does. It walks through six specific categories, so an important force is less likely to be missed.

Current vs. Desired

Gap Analysis

Gap analysis compares where an organization stands today with where it wants, or needs, to be. Then it identifies exactly what has to change to close the distance. It is often laid out in three columns. Current state, desired future state, and the gap between them. For example, orders are currently entered manually into a spreadsheet. The desired state is orders flowing automatically from the web store into the order system. So the action is to build an integration between the two, and retrain staff on the new flow. Or, customer data is duplicated across three separate tools. The desired state is a single customer record shared across every tool. The action is to select a master data source, and migrate the other tools to reference it. All three columns matter. Without a future state, there is nothing to measure progress against. Without an action, there is nothing the team can actually do.

Root-Cause Analysis

Past the Symptom, to the Cause

Some problems keep coming back. When that happens, treating only the symptom rarely fixes it for good. Root-cause analysis pushes past the visible symptom, to find the underlying condition that produced it. Two techniques cover most situations an analyst will meet. The fishbone diagram, also called an Ishikawa diagram, organizes possible causes by category. Grouping causes keeps a team from fixating on one explanation, and makes them check every likely source. The five whys is simpler. It drills down a single chain of causation.

Figure 2

A Fishbone for a Delayed Delivery

Here is a fishbone diagram in action. The problem, or effect, sits at the head of the fish. In this case, a delayed project delivery. Possible causes branch off the central spine, grouped into categories. Under people, there are unclear roles, and skill gaps. Under process, there is no sign-off step, and there is scope creep. Under tools, there is no shared repository, and there are outdated templates. And under requirements, there are missed edge cases, and vague acceptance criteria. Notice what the structure does. It forces the team to look in all four places, before deciding which fix is worth making. Without it, the team would probably have blamed whichever cause it noticed first.

The 5 Whys

Tracing a Late Deliverable

Now the five whys. Start from the problem statement, and ask, why did this happen? Then use that answer as the input to the next why. Here, a client deliverable was submitted three days late. Why? The requirements document was not finalized until the deadline week. Why? Two stakeholders gave conflicting requirements, which took time to resolve. Why? There was no single sign-off point where conflicts had to be resolved early. Why? The project plan did not include a formal requirements sign-off step. And that is the root cause. The plan is missing a sign-off step, which lets conflicts surface late. Five rounds is a guideline, not a hard rule. You stop once further questioning stops producing a new, actionable cause. The real risk is stopping too early. The first answer is usually just a symptom, and the root cause would keep producing the same problem.

Stakeholder Analysis

Mapping by Power and Interest

Next, stakeholders. A stakeholder is anyone who affects, or is affected by, the initiative. Sponsors, end users, regulators, and support teams all qualify. No project has the time or budget to engage every stakeholder the same way. So analysts map each one along two dimensions. Their power over the outcome, and their interest in it. High power and high interest means manage closely. Involve them directly in key decisions, with frequent, detailed updates. A project sponsor usually sits here. High power but low interest means keep satisfied. Consult them on major changes, and keep them informed enough to stay supportive. A regulatory body is a good example. It holds real power, but little day-to-day interest. Low power but high interest means keep informed. Share regular updates, and invite feedback, because their interest is a source of useful detail. And low power with low interest means monitor. Track them for changes, with minimal routine communication otherwise.

The Analyst's Software

4 Categories of Business-Analysis Software

Finally, the software. Analysts use several distinct categories of software, to capture, organize, and share their work. Requirements management tools capture, organize, and trace requirements from origin through to delivery. Examples include Jama Connect, Azure DevOps, and IBM DOORS. Modeling and diagramming tools build process maps, flowcharts, and diagrams. Think Microsoft Visio, or Lucidchart. Collaboration and documentation tools share working documents, meeting notes, and decisions, such as Confluence and SharePoint. And survey and data collection tools gather structured input directly from stakeholders, such as Microsoft Forms and SurveyMonkey. Knowing which category a tool belongs to matters more than memorizing brand names. Organizations vary widely in which specific products they adopt.

Key Terms

The Vocabulary of This Section

Let's lock in the vocabulary. SWOT analysis sorts factors into strengths, weaknesses, opportunities, and threats. PESTLE analysis examines political, economic, social, technological, legal, and environmental forces. Gap analysis compares the current state with a desired future state, and names the actions needed to close the difference. A fishbone diagram groups possible causes of a problem into categories, branching off a central spine. The five whys repeatedly asks why, to trace a problem back through its chain of causes. And a power interest grid places stakeholders by their power and interest, to guide how each should be engaged.

Key Takeaways

What to Carry Forward

To pull this together. SWOT frames strengths, weaknesses, opportunities, and threats. PESTLE zooms into six categories of the external environment. Gap analysis makes the distance between the current and desired states explicit, along with the actions to close it. The fishbone diagram sorts possible causes by category, while the five whys follows a single chain to its root. Mapping stakeholders by power and interest points to a realistic engagement strategy for each group. And requirements management, modeling, collaboration, and data-collection tools each serve a distinct part of an analyst's work.

About System Analysis and Design at UPI Study

System Analysis and Design (Computer Science 390) is a self-paced online course of 69 video lessons in 9 chapters, from the analyst's role and requirements to UML modeling, interface and database design, testing, maintenance and project management. It carries a NCCRS credit recommendation for 3 semester credits.

Every lesson transcript is free on pages like this one, and the videos are free with a free UPI Study account. Enrolling adds a practice quiz after each lesson, the graded work and final exam that earn the credit, lifetime access, and an official transcript on completion. UPI Study has helped over 130,000 students with college credits. ACE and NCCRS have over 2,100 cooperating colleges that will consider accepting credits; the final decision is with the universities.

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Why students take System Analysis and Design with UPI Study

From business problem to working systemSystem Analysis and Design teaches how analysts study a business need and turn it into a system design: requirements, UML and data-flow models, interface and database design, implementation and project management. It is a core course in information systems and IT degrees.
Credit at a fraction of the priceThe same 3 credits can cost $750 or more at a US college. Here it is one payment, self-paced, with lifetime access.
Finish your degree soonerTransfer credits reduce the courses you still owe, so you can graduate earlier or lighten a heavy semester.
Strengthen an applicationA completed college-level course on an official transcript shows admissions and scholarship committees you can do the work.
Study on your own scheduleNo start dates, no deadlines. Watch the lessons, practice, and take the final when you are ready.
130,000+students helped with college creditsACE and NCCRS have over 2,100 cooperating colleges that will consider accepting credits; the final decision is with the universities.

Where the credit goes

Universities that work with NCCRS

System Analysis and Design carries a NCCRS credit recommendation. These universities work with NCCRS; some are UPI Study's signed partners. ACE and NCCRS have over 2,100 cooperating colleges that will consider accepting credits; the final decision is with the universities.

Thomas Edison State UniversityThomas Edison State UniversitySigned partnerUniversity of the PeopleUniversity of the PeopleSigned partnerCharter Oak State CollegeCharter Oak State CollegeSigned partnerStrayer UniversityStrayer UniversitySigned partnerColumbia Southern UniversityColumbia Southern UniversitySigned partnerIndiana TechIndiana TechSigned partnerPenn StatePenn StateWorks with NCCRSSouthern New Hampshire UniversitySouthern New Hampshire UniversityWorks with NCCRSSUNYSUNYWorks with NCCRS +many more cooperating universitiesFind my college →

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FAQ

Questions students ask us

About Essential Tools, Methods, and Software for Business Analysis

What is the difference between SWOT and PESTLE analysis?
SWOT sorts factors into internal strengths and weaknesses and external opportunities and threats, while PESTLE looks at the external environment alone, across political, economic, social, technological, legal, and environmental forces. SWOT gives a broad internal-versus-external view early in a project. PESTLE is used alongside it because it forces a systematic check of each category of outside factor, so an important force is less likely to be missed.
What is gap analysis in business analysis?
Gap analysis compares an organization's current state with its desired future state and identifies the actions needed to close the difference. It is often laid out in three columns: current state, desired state, and the gap or action. For example, if orders are typed manually into a spreadsheet and the goal is for them to flow automatically from the web store, the action is to build an integration and retrain staff.
How do a fishbone diagram and the 5 Whys find root causes?
Both push past a visible symptom to an underlying cause, but a fishbone diagram groups possible causes into categories, while the 5 Whys follows a single chain of causation. A fishbone, or Ishikawa, diagram places the problem at the head and branches causes such as people, process, and tools off a spine. The 5 Whys asks why repeatedly, using each answer as the next question, until no new actionable cause appears.
How do you map stakeholders using a power-interest grid?
A power-interest grid places each stakeholder by their power over the outcome and their interest in it, giving four engagement strategies. High power and high interest means manage closely, as with a project sponsor. High power and low interest means keep satisfied, as with a regulator. Low power and high interest means keep informed and invite feedback. Low power and low interest means monitor, with minimal routine communication.

About the System Analysis and Design course

How many college credits is System Analysis and Design?
System Analysis and Design (Computer Science 390) carries a NCCRS credit recommendation for 3 semester credits. ACE and NCCRS have over 2,100 cooperating colleges that will consider accepting credits; the final decision is with the universities.
How much does System Analysis and Design cost and what is included?
$250, paid once, with lifetime access: all 69 video lessons, a practice quiz after each, the graded work and final exam, and an official transcript when you finish. Students who want several courses choose UPI Study PRO instead.
Which universities accept UPI Study credits?
UPI Study has signed partner agreements with universities such as Thomas Edison State University, University of the People and Charter Oak State College, and works with universities such as Penn State, SNHU and SUNY. ACE and NCCRS have over 2,100 cooperating colleges that will consider accepting credits; the final decision is with the universities. Use "Find my college" on this page to check yours.
How long does System Analysis and Design take?
It is self-paced with no deadlines. The 69 lessons total about 9 hours of video; most students add reading and practice time and finish in a few weeks to a few months, on their own schedule.
How are the exams done?
Quizzes and assignments are online in the course. The final exam is taken online with proctoring; a person on the UPI Study team checks assignments, usually within two days.
How do my credits reach my college?
When the course shows 100% complete, request the official transcript from your dashboard. It is sent to the college you name, and you can send it to more than one. Check your college first with "Find my college" on this page, or ask Athena.

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69 video lessons, a quiz after each one, and the graded work that earns the credit. Recommended for credit by NCCRS.

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