Business analysts – connecting business and technology
Business analysis is a critical skill for 21st century organisations, and the global demand for good business analysts greatly exceeds the supply. Technology applications have moved out of the back office and into the consumer and social domain. While traditional IT systems still form the backbone of modern applications, business solutions as a whole have become immeasurably more complex and are now used by a range of stakeholders and users who are both demanding and technology literate. Consequently, the traditional IT function must design, develop, implement and maintain the complex systems that form part of the solution.
A spin-off of this is that business has begun to demand much more value from its investment in IT. Unsurprisingly, this places additional pressure on the IT function, which is now required to divert attention from its more technical focus and deliver solutions against business value objectives.
IT organisations have traditionally delivered solutions using a range of technical resources – such as software developers, systems analysts and a variety of other specialists – which are primarily technology oriented and rely on the business to be able to articulate its own vision, needs and requirements accurately. Unfortunately, this practice largely fails because of the different contexts, goals and vocabularies within which business and IT people operate.
Enter the business analyst
The main role of the business analyst is to act as an intermediary between business and IT. The core responsibility of the business analyst is to identify business goals and requirements, and to convey these in a coherent way to IT. But increasingly, companies are beginning to demand that their business analysts also take on the responsibility of ensuring that business value is delivered along with the solution.
What business value can business analysts add?
Senior or experienced business analysts, acting proactively on behalf of business, act as an internal business consultant by:
- Solving all sorts of business problems proactively and permanently,
- Increasing access to critical information,
- Speeding up projects (which saves time and money),
- Helping to create business efficiencies and effectiveness, and
- Reducing organisational risk.
A fly in the ointment is the worldwide short supply of senior-level, experienced business analysts who have this special mix of business acumen, experience, IT knowledge and interpersonal skills. South African companies are suffering from a lack of qualified specialists in this domain, a problem which is exacerbated by weaknesses in our educational system.
The Knowledge Age requires (and benefits) people who're technology literate
It's widely acknowledged that our educational system isn't generating enough people with the skills to benefit from the new world of employment. Universities and other tertiary institutions, which should be the primary source of individuals with these skills, are just not turning enough people at the appropriate level of core skills. Senior business analysts need workplace experience as well as training and skills, which universities aren't well positioned to provide. When one takes into account brain drain and the fact that many other jobs are competing in the same pool of multi-skilled individuals with the same basic skills sets, the extent of the problem becomes obvious.
Some companies are experimenting with outsourcing options
While there is some value in consulting with external specialists, or in using contract business analysts to identify and document known requirements, forward-thinking companies are starting to realise how much business knowledge and expertise is accumulated by experienced business analysts.
It may make economic sense to outsource many IT service functions. However, it doesn't always make sense to outsource a function, such as business analysis, that incorporates so much knowledge of a company' core business and operational know-how.
The implications of skills shortages in critical skill sets provide both opportunities and threats
Forward-thinking companies that rely on business analysis will be looking seriously at recruitment, training and retention policies as they seek to develop their business analyst portfolios from within, and retain good staff.
Individuals with the right skills profiles will be starting to invest in their education and training with a view to entering or progressing in this lucrative career. Small businesses, consulting firms and service providers who can provide or resource quality business analyst services will open up business opportunities.
There is no real practical limit to the potential for business analysts. Because they are multi-skilled, they have a number of specialisations open to them. As business and business roles continue to evolve, we will see roles like business architect emerging as the natural progression for a senior business analyst.
