27 January 2022

All You Need to Know About Business Analysis in Software Development, Explained


Do you know the most common reasons for software development projects failure? Here's the kicker: unclear requirements and lack of defined business goals are among the most frequent. 

All of this can be avoided if you enlist the support of a business analyst (BA) from the very beginning.  

In fact, the presence of a business analyst can make the difference between the success and failure of a project. The BA works with stakeholders to assess and record business processes, as well as work out the intricacies of the software project and business requirements to set the direction of the project. 

What is the purpose of business analysis (BA)? Read on to learn why you need business analysis in software development projects. 

What is business analysis?

So let us take a closer look. Broadly speaking, business analysis enables the transformation of organizational structure by identifying business requirements and recommending solutions that add value for stakeholders. Put simply, BA is responsible for narrowing the gap between IT and the business by assessing processes and providing data-driven insights to project management and stakeholders. 

Although business analyst is not directly responsible for the finances of a project, they can influence them by clearly describing needs and avoiding rework. The business analyst creates a strategy that specifies each phase and the time needed to complete it. This helps us better manage our time and ensures the timely delivery of a high-quality end product. 

The main role of a business analyst is to find answers to stakeholders' challenges. In this sense, it is essential to identify requirements, using business analytics tools. However, needs may change during the software development process. In this case, a business analyst must analyze stakeholder requirements and goals in order to provide viable solutions. 

Do I actually need business analysis?  

If you run a business, whether it's software development, language teaching, or an online store, you need a business analysis to research the market, perform data analysis, set business goals, and ensure communication between the development team and stakeholders. 

One of the main reasons why you need a BA in software development is to properly define business goals. Without well-outlined goals, you may lose track of what needs to be accomplished. An IT business analyst conducts primary research and reviews company documents to rule out such a scenario. He also conducts a thorough internal study of an organization's goals and provides solutions on how to achieve each goal. They are commonly referred to as needs elicitation techniques. 

What is more, you need business analysts in your software project team to develop high-level plans for enhancing goods, services, and business processes, as well as adopting digitalization to compete in today's digital economy. With BA, you will look at business operations from a comprehensive perspective, including the organizational framework and existing business processes and IT systems. 

You will also need BA if you wish to effectively examine business needs, capture and document the scope and requirements of future systems, and explore business objectives and stakeholder expectations. 

When do I need business analysis? 

There is a significant difference between the client and the programmers, and a third party is essential to adequately bridge that gap. This is not due to a lack of communication between the client and the development team, but to completely different levels of thinking. 

You need a business analyst if you also want to ensure:  

Cost reduction

One of the most important benefits of business analysts is that they can help you minimise business costs. Thanks to the services of BA, large amounts of data can be analysed to provide real-time techniques that minimise project expenses in the long run. By removing unnecessary functionalities of the software, a company can speed up the project and use the saved funds for the development of more important procedures. 

Good Competitor and Market analysis 

Competitor auditing is an effective approach to business analysis that allows us to gain a better understanding of the client's sector and market thanks to detailed business analysis. BA also enables us to conduct a thorough digital product review. Business development analysts study stakeholder requirements to develop a market demand perspective and match it with the company's potential. When you have a suitable marketing analytics company at hand, you can be sure to get tangible results. 

Determine the risk variables

As you know, possible difficulties that could affect the product are called risks. The task of BA is to identify all visible and hidden dangers that a project may face and find a means to eliminate them or transform them into viable solutions. Thanks to a business analyst and their business analysis techniques, your software development project can avoid a considerable number of otherwise unforeseen problems. 

Project planning and assessment

The planning and deployment of an application or software solution that is required to satisfy the business demands of an active product are included in the development phase. The business analysis process is critical in the deployment and assessment, collaborating with the assessment team to evaluate the functionality of the developed software.  


Extra costs, ill-defined goals, and failed promises are the spectre of every IT company. The cooperation of business analysts can turn the tide.  

As shown above, BA is an important part of software development. It not only guarantees that software companies provide the best quality of services, but also ensures a clear business plan and smooth processes and strategies.  


If you would like further assistance in performing business analysis for your software development project, please take a look at our extended model - we will do our best to meet your requirements 

Andrzej Senator
International Sales Director /Sweden

A successful, experienced senior manager and business professional with a track record of growing both revenues and margins. He has over 30 years of managerial experience in the fields of strategic, operational and sales in leading local and international companies operating in Sweden and Poland. Specialties: Business Development, Sales management, Start-ups.