By Rick Gregory                                                           Certified Business Analysis Professional (CBAP)

Over the last several years the role of the Business Analyst has been increasing in prominence and the BA is now seen as a pivotal player in a successful IT project.  The role has been around since the mainframe days in various forms, but the influence of the analyst seemed to wane as business moved to implement networks of personal computers.  What has caused the reemergence of the BA as a central member of the project team?

The failure rate of IT projects is a major driver.  Since the Standish Group released the original Chaos report in 1995, study after study has detailed IT project failures.  When an IT project fails to meet expectations, the most common assumption is that the project manager failed or the IT department wasn’t capable of delivering. 

However, an ESI study identified poor definition requirements (50%), communications problems (14%) and inadequate risk management (17%) as the major reasons given in a poll of 2000 business professionals.  That’s 81% of failures attributed to reasons that could be mitigated by effective enterprise analysis and requirements definition – the domain of the business analyst.  Only 15% cited poor scope control and just 3% cited lack of qualified resources.

Business units and IT departments have always existed as separate entities within organizations.  Business units are customer oriented and are concerned with return on investment, profit and loss, and driving revenue.  IT departments are technology oriented and are focused on new technologies, how they work and how to deploy them.  The groups seldom communicate effectively because the language of business and the language of technology are not the same.

The business analyst is the bridge between the two domains.  He’s the translator that interprets the requirements of the business unit into a project definition that the IT group can use to build a successful solution.  He also communicates the capabilities of the technical group to the business unit.  The goal is alignment, systems and software that reflect the business needs of the organization and position the IT infrastructure as a competitive advantage for the company.

Bridging the gap is as much an art as a science.  The business analyst must have extensive domain knowledge, an understanding of the business that is both wide and deep.  He must have enough technical acumen to understand IT technology and the capabilities of the technical staff.  And he must have the communication skills to elicit requirements and communicate them effectively to the internal business customers and the technical solutions group.

Outsourcing is another major driver for growth of the business analyst role.  Bridging the gap between the internal business customer and the IT function is more difficult and more critical when the technical group resides outside the organization.  An in house IT department has some basic knowledge of the business and how it functions.  An external IT group has none.  This makes effective enterprise analysis to define the project scope and accurate requirements definition critical to success.  Process and data modeling, and system testing also assume increased importance.

Other drivers include increased user demand, increased project complexity, technology migration and tightened budgets.  All of these demand effective analysis and requirements definition early in the process to insure success.

And, while more technical skills are being outsourced, companies are looking within to fill the BA position.  They are finding it difficult, if not impossible, to outsource domain knowledge.

So who can be an effective business analyst?  A successful business analyst can come from either the technical side or the business side of the organization.  A programmer who interacts well with internal customers and is effective at identifying solution requirements could be an effective analyst.  So could someone from a business unit with an adequate level of technical knowledge and effective team leadership skills. 

There’s no single path to the BA role, but in addition to business knowledge and IT knowledge, an effective analyst needs a skill set that includes translation skills, questioning and listening skills, critical thinking ability and negotiating and leadership skills.  For someone with the right mix of interpersonal and technical skills, there are a growing number of courses available to train them in the specific BA skills required.

There is also growing support for professionals in the business analyst role.  The International Institute of Business Analysis (IIBA) was formed in 2003 to maintain standards for the practice of business analysis in several professions, including information technology.  The IIBA has developed a Business Analysis Body of Knowledge (BABOK) and offers the Certified Business Analysis Professional (CBAP) certification.

Continued outsourcing, increasing project complexity, technology migration and increased user demands will fuel the demand for the business analyst and the BA will play an increasingly important role in making IT projects succeed.

© 2008 Bluestone Media, LLC