For a business to function effectively, it has to achieve its day-to-day operational goals, while also striving for its short and long-term objectives.
6 Factors That Influence Business Systems Analysis
When a business isn’t performing as well as expected, or executives wish to improve aspects of the inner operations of their business – they may rely on business systems analysis.
We’re going to take a look at what business systems analysis is and 6 areas or factors that are vital to the success of a business where a business analyst can uncover missing value inside a business.
What Is Business Systems Analysis & Optimization?
Business systems analysis involves the exploration and examination of all areas of the business to identify problem areas and opportunities.
The aim is to optimize business systems in relation to internal and external factors that affect operations and the business’s ability to meet short and long-term objectives.
This optimization process may include analyzing infrastructure and systems in an effort to automate processes and streamline their associated time requirements and costs.
In the field, a business analyst often works beside managers of various departments of the business, from project managers and supply chain managers, in order to inform the higher-level executives, such as a CEO and CFO, of findings and recommendations.
These are some of the areas that business systems analysis will explore and focus on to understand a business and improve its systems.
1. The Foundation & Flow of the Business’s Financial Operations
Analyzing the processes related to various functions of the business from a financial perspective is imperative to understanding where key systems may require improvement.
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Specific systems like manufacturing or payroll may be incurring costs that can be reduced or mitigated entirely.
This might be done through the recommendation and implementation made by a business system analyst.
These recommendations can have a positive financial influence on the operational costs of the business, its management, and the costs associated with reaching milestones.
2. Nature of the Business’ Organizational Culture
The team’s ability to achieve short-term goals and long-term objectives can be easily influenced by the type of organizational culture a company fosters and the way in which teams communicate.
This is why executives and hiring directors dedicate so much time toward finding worthy candidates to fill open positions, ensuring that their final recruits align with their values for the business and its future.
However, ensuring a great organizational culture isn’t limited to the recruiting phase…
Empowering your employees is another key component to ensuring your workforce is confident enough to deliver value to clients with the essence of the brand shining through.
The hierarchical culture of the organization also impacts the perceptions employees have of each other’s roles and the broader business vision.
A rigid and austere hierarchical structure is often one of the key contributors to the high staff turnover of large corporate companies.
New recruits enthusiastically join the company only to quickly find out that the working environment fosters a perception (or reality) that it’s incredibly difficult to grow – creating the fear that they may be at the bottom of the food chain forever.
3. The Workforce: Capabilities, Effectiveness & Development
Breaking down the ins and outs of a company’s workforce, and particularly the systems the business uses to interact and assign deliverables to employees has a key impact on business systems analysis.
Business systems analysis may take into account aspects of the employee base such as their output and effectiveness, time spent and compensation, KPIs, processing errors, and risks.
Systems may then need to be implemented to improve the management of employees, client information, and tasks associated with deliverables.
It’s also common to try and uncover the intrinsic motivations of employees during business systems analysis to mitigate risks and find new opportunities.
Business systems analysis may even take into account the continued professional development programs in place for employees which may help drive the business closer toward its broader business objectives and revenue goals in the future.
4. Sourcing of Supplies, Resources & Manufacturing Processes
Implementing systems that streamline the processes associated with supply and manufacturing is of the utmost importance for brick-and-mortar and online businesses.
These processes are thoroughly examined during business systems analysis to find areas that can be automated to improve efficiency and reduce costs.
As the sourcing of supplies and the processes associated with manufacturing are often costly operational components that businesses are desperate to streamline and this is where business systems analysis can come in handy.
In this case, a business system analyst may work alongside various to get a complete understanding of the business’s internal processes in an effort to streamline them.
5. Distribution Channels & Marketing Methods
The distribution of products and services and the way in which they are marketed are vital components contributing toward the completion of a successful business puzzle.
Due to the complicated nature of a company’s distribution strategy, business system analysis will take into consideration aspects such as inventory management, methods of distribution (online, in-store, via sales representatives, and so on), and the marketing strategy behind promoting products and services.
Behind each of these components are processes that are followed to ensure the business can meet the demand of its customers through effective distribution and marketing.
6. Approach to the Marketplace & Competitors
Sometimes the hardest element of business systems analysis is assessing the way in which the strategy of the business aligns with the nature of its marketplace and competitors.
The business’ understanding of external factors like its marketplace and competitors is usually formed by executives and strategists prior to the business’ inception, or in its early stages.
Business systems analysis may draw from this information to assess the company’s effectiveness in relation to its references from the marketplace to uncover looming risks and exciting opportunities.
This research analyzed by a business systems analyst can be used to better inform decision-makers about new ways they can explore positioning their products or services, and reaching markets better through various distribution channels.
Of course, the primary focus is on the ‘systems’ behind components of the business and how they can be optimized to help the business to compete with and beat competitors.
What Does a Business Systems Analyst Do?
Business system analysts focus on the implementation of these strategies, tools, and systems to help automate business processes and manage them better.
The key aims are to identify opportunities while reducing risk, costs and streamlining current business operations.
A business systems analyst, or the business, may need to purchase systems or hire firms to assist with improving problem areas of the business, and exploring exciting opportunities.
How Do You Start Analyzing Business Systems?
Business systems analysis is a fascinating, multifaceted field – which explains why it’s an expanding career path for those with entrepreneurial aspirations.
Businesses rely on this in-demand specialization to ensure they adapt to rapidly changing conditions and continue to meet key objectives.
The best way to start learning more is by enrolling in a business systems analysis course which can provide you with a solid foundation to build the skills vital for any budding business systems analyst.
Check out our other resources for entrepreneurs, including exciting topics covering marketing, sales, and branding.
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