In the previous post we introduced the BABOK® Guide and the organization behind it: the International Institute of Business Analysis®. This post is dedicated to basic concepts of business analysis profession. These concepts work as a compass helping business analysts to speak the same language among themselves and with their stakeholders.
BABOK® Guide defines business analysis as “the practice of enabling change in an enterprise by defining needs and recommending solutions that deliver value to stakeholders”. It defines the business analysis work through 6 interrelated concepts:
This model is called the Business Analysis Core Concept Model™ (BACCM™ for short). It has neither a beginning nor an end. It helps to explain to others what you do as a business analyst. Imagine you are invited to a party and someone you see for the first time asks you about what you do. Your answer “I am a business analyst” results in a puzzled look at the other side. How to explain business analysis activities? In such a situation, the BACCM™ comes to the rescue. You can start defining the business analysis from a random place on the model.
Stakeholders have interest in an initiative or outputs of the initiative. They help defining needs and solutions that address them. They have to adopt change to ensure the value of implemented solutions can be delivered.
Needs are defined as business problems or opportunities worth addressing. When an organization decides to pursue them, needs result in changes, that may affect organizational structures, stakeholders and their activities, organizational processes and associated IT support.
A solution is an answer to the need. It may be a product, a service or a combination of both. The organization develops and delivers a solution through a series of changes. Solutions support the organization and its stakeholders in meeting their objectives.
Change affects stakeholders and their way of working. It is a vehicle for delivering the solution and harvesting value.
IIBA® defines the Value as a degree to which the implemented solution met the stakeholders’ needs. The perception of value depends on the context in which stakeholders operate.
Nothing exists in vacuum. Context represents the environment in which needs arise and solutions are developed. This may be represented by external or internal environment. New regulation, products of competitors or unique organizational culture are elements of the context.
The descriptions of the concepts prove that the concepts are strongly related to each other. The Business Analysis Core Concept Model™ is essential for the business analysis profession. As a business analyst you identify and manage stakeholders, clarify needs based on stakeholders’ inputs, define solutions that provide value, help implementing solutions by deciding upon meaningful changes that take place in a certain context (environment). The BACCM™ offers a common vocabulary for teams and organizations. Thanks to it everyone in your organizations can speak the same language.
In the next post we will focus on the business analysis framework.
If you wish to get more in depth information about these knowledge areas, competencies or techniques please consider buying the BABOK® Guide, or become a member of International Institute of Business Analysis. As a IIBA member you receive your own (electronic) copy of the BABOK® Guide for further study.
BA Coach also provides an online workshop about the BABOK® .
– BABOK Guide V3
 The definition is from the BABOK® Guide section 1.2 “What is business analysis”, pg. 2