The present business landscape has seen drastic and continuous changes. Thanks to the emerging complexities of the world economy, the merger of business and the digital world and the superfast pace of the development of technologies; the business analysis process has become supremely challenging and so is the role of a business analyst.  Â
A business analyst needs to develop a deep understanding of business value propositions, pursue constant innovation and maintain a steady focus on product or service value always ensuring that they are at par with the customersâ demands. To meet this, a business analyst therefore must have a structure of knowledge, techniques and concepts to understand all the business requirements quickly and deliver the best solution accordingly.
What Is a Business Analysis Framework?
As the name suggests a business analysis framework is a conceptual and real blueprint that involves and describes all the vital requirements of running a business. The framework is built upon knowledge, various techniques and established concepts and critical analysis as well. Business analysis frameworks and methodologies is a step-wise approach that is implemented to match the business practices with the organizational goals.
âAs a business model framework is a theory-dependent description of the firm, its internal workings, and its relationships, the definition of a framework often takes the form of a normative statement about what should be included in itâ (Sanchez and Ricart, 2010).
Graphically business analyst framework can be presented as follows:
Making a business model analysis framework could be difficult at the initial stage, especially for a beginner business analyst. It will be better to have sequencing and the visualization of the steps required to create a framework. The beginner business analysts could go for an ECBA Course, which is the level one certification in the business analysis (BA) certification framework from the International Institute of Business Analysis (IIBA) or earn a Business Analyst Certification to get skilled with the nuances of business analysis.
An example of sequencing a business analysis service framework could be like the one mentioned below:
Business Model Analysis Framework
Analytical frameworks in business are useful tools often used by many business analysts and strategy consultants. There are hundreds of useful and innovative frameworks available in business, management and strategy. Some of the helpful and most common business analysis frameworks that are used in the present time business world are mentioned below:
1. Michael Porterâs Five Forces Model
Perhaps the most well-known and used business analyst capability framework is especially used for analyzing industries. This business impact analysis framework considers the competitiveness of an industry in the market based on 5 different factors or forces like:
- Rivalry among existing competitors.
- The threat from the new entrants or potential competitors.
- The threat of substitute products or alternatives.
- The bargaining power of the suppliers.
- The bargaining power of the buyers.
If these forces are strong, competition can be considered high and a business needs to do an in-depth study about its business viability and profitability before entering that specific industry. As per this framework business sectors that have little competition allow for greater margins and hence have more potential and attractions to enter into.
2. Hambrick and Fredricksonâs Strategy Diamond
This framework though sadly has not received the applause and attention it deserves, is great at explaining the true meaning of strategy and superbly distinguishes the different elements of a good strategy. This framework model considers 5 essential elements that together form a unified whole. These are Arenas, Vehicles, Differentiators, Staging and Economic Logic. A business must scrutinize each element to make a choice of what to do, and most importantly what NOT to do. Besides, choices made in one element must reinforce the choices made in other elements and only then will a company derive a sound and sustainable strategy.
3. Value Disciplines (Treacy and Wiersema)
This framework business analysis model proposes three value disciplines to choose from to become a market leader:
- Product Leadership (the best and the most innovative product offering)
- Operational Excellence (the cheapest products made via a cost-efficient production process).
- Customer Intimacy (outstanding customer service and customer relationship management).
4. Ansoff Matrix
This business analysis process framework has four growth strategies, which are:
- Market Intervention (bringing more of the current products to existing markets)
- Market Development (bringing the existing products to new markets)
- Product Development (bringing new products to existing markets)
- Diversification (bringing new products in new markets).
Each time a move is made to a new quadrant (horizontally or vertically), risk increases.
5. BCG(Boston Consulting Group) Growth-Share Matrix
The model aims to help a business understand its growth opportunities by reviewing its portfolio of products or service units to decide where to invest and divest. It is a superb tool for portfolio analysis and framing corporate strategy. The BCG matrix has four quadrants of business units (products or service units) that are based on two factors: market growth and relative market share. The quadrants are: Dogs, Question Marks, Cash Cows and Stars.