Why Is Business Analysis Important In Software Development

Business analysis has now become a staple of every modern firm that wants to improve its performance using IT. The main reasons for business analysis initiated by companies are:

  • Difficulties in their current business processes can be resolved.
  • And, can make use of new opportunities to scale.

The business analysis approach provides insight into the development of the first draft of each project. And it has the key to lead the project participants. In this blog, we will learn about the role of business analysis in software development.

What is business analysis?

The business analysis allows for a change in organizational structure by identifying the needs and recommendations of solutions that bring value to stakeholders. A systematic approach enables organizations to introduce and control change, whether for profit or not. Moreover, Business analysis is also used to understand, analyze the business activities and proactively implement solutions.

While there are many definitions, it depends on the organization. Popular business analysis projects include:

  • Investigate business processes from a holistic perspective. It usually includes a review of the components of organizational and human resource development frameworks and existing processes and IT systems.
  • Evaluate measures to improve the performance of a business plan. Also, an assessment of organizational structure and staff development needs may be required to ensure that they are compliant with any process redesign and design of IT systems.
  • Write to support the needs of an IT business using appropriate documentation standards.

What is the business analysis objective?

The purpose of the business analysis is very clear.

  • The primary purpose is to get a real-time business idea to explain the first point before a solution is found.
  • The second goal is to identify what needs to be built and what specific features help solve a customer’s existing problem.
  • The third goal is to develop a solution while minimizing risk and cost and maximizing value and benefit.

Why business analysis is important in software development?

We first need to analyze the standard software development process to understand the role of business analysis in software development. Let’s understand the stages in software development.

  • Idea: Understand your issues and needs through forums and stakeholders who communicate their needs and values.
  • Plan: Draft user news (feature requirements, analyze user information and interface, and update the screen layout.
  • Build: Choose technology, design structure, work rate, and duration, recommend team composition and budget.
  • Upgrade: Build app and customer services in an Agile way, including a database, API/web services, and mobile client applications.
  • Iterate: Good software is a product of user feedback and performance as well as experience and improvement.

Benefits of business analysis in software development

If you still want reasons to understand the role of business analysis in software development. Check the following advantages:

1. Implementation of project requirements

BA will work closely with all potential teams such as engineers, product managers, and other executives to understand the technical and business necessities of building an MVP or the outcome of the final product. Ideally, this study will involve consumers or end-users because they use the product effectively and are better able to provide you with information about product performance, their challenges, successes, and product failures.

Unless the business analysis is complete before software development, companies may develop incomplete systems that fail to solve their intended problems. Worse still, when a lot of effort and money is already invested, the software may need to be rebuilt or uninstalled to restart from the beginning.

2. Bridge of communication between interested parties

Business Analyst acts as a bridge between stakeholders and the development team that enables engineers and engineers to understand the needs of the business technically. In addition, BA ensures that all stakeholders are on the same page by comprehending the challenges in the project.

This protects against misconceptions and the ability to produce a product that does not conform to the consumer’s point of view. It also reduces the risk of misinterpretation of the product demand or specification and maintains good business communication.

3. Project development and evaluation

The development phase includes the preparation and implementation of an application or software solution that is essential to meet the business needs of an active product. In the implementation and evaluation process, business analysis plays a vital role in working with the evaluation team to evaluate the overall performance of the applications.

The business analysis also helps predict complexity and evaluate change during the implementation and evaluation phase. This increases the chance of the final product meeting the end-user expectation in a specified time and budget.

4. Reduction of costs

The great advantage of business analysis is that it helps to reduce business costs. BA uses data analysis to create cost-cutting solutions for the project and recommends operational methods.

BA informs the team how it works and monitors the process to ensure that any problems or potential improvements may be encountered, depending on the software development framework, the team under which it operates. This contributes to reducing costs and improving the time of the completed application in the market. Therefore, business analysis can help reduce costs and surpass projects by a thousand ways.

5. Identify the market status

The value your firm offers customers and stakeholders and who you can compete with, all areas where business analysis helps you understand and makes you the right fit in the market. Today’s data analysis provides a place to store consumer and competitive information. But it can’t explain the whole issue of emotional values ​​, and indeed you want that help to achieve your software product. However, the problems users face and gain from their use and how your roadmap completes a competition you will never meet.

An analysis of all of these factors and an easy-to-understand presentation that helps product owners decide how to proceed with project development are critical functions of a business analyst. A great business analyst and an excellent narrator who uses visual presentation to reduce complex data into processable captions gives team members and participants a complete view of the market situation.

Essential elements of business analysis

According to IIBA’s recommendation, Business Analysis Guide (BABOK), the business analysis contains the following:

1. Business assessment

Identify and understand the needs and choose the best solution strategy for a particular organization or industry. The BA should define the number of solutions a company can use effectively and consider the scope of the solution concerning the business case.

2. Acquisition requirements

Identify clients’ direct and indirect expectations, which means they cannot be linked to the specific purpose of the program. In this context, BA prioritizes and defines stakeholder needs and solutions so that the project team can implement a solution that meets customer expectations.

3. Planning and control of requirements

Planning and explaining the key to their performance and changing the regulatory framework for document needs. The BA must defend the agreement regarding the scope of the solution between the business stakeholders and the project team.

4. Requirements for documentation

Adjusting the definition and details of needs that designers/systems can effectively develop and implement. Documents, if done correctly, can improve service delivery through increased stakeholder engagement.

5. Requirements for communication

In other words, discuss project participants with analytics documents. It also provides participants with information on changes in needs estimates etc.

6. Validation

Determining whether they best meet the needs of the business. The test will also identify potential gaps and weaknesses and indicate any necessary adjustments or modifications. To understand their value and determine the potential for future development, BA evaluates the effectiveness of operational solutions.

In short, the business analysis includes the following:

  • Effective implementation of new solutions: The business analyst coordinates and clarifies the transformation process, especially concerning defining precise business needs within the project.
  • Discovery of organizational needs: A business analyst can analyze the organization’s new requirements and help the company better adapt to the changes needed to achieve sustainable success.
  • Prioritizing business needs: To ensure that shareholder efforts focus on priorities, the business analyst uses the approaches required at different life cycle stages.


As you can see, business analysis is an essential part of software development. The benefit of business analysis is to ensure that the best quality of products, services, and customer connections is best known to software firms.

No other research facility has the great promise of reducing project costs, improving production speed and efficiency, and creating less expensive, cost-effective solutions for all types of staff, customers, and end-users.

When it comes to embracing new technologies and digital processes during digital transformation, the business analysis provides all the benefits, tools, and strategies needed to help every company thrive.