Put the ANALYSIS (back?) into Business Analysis

Analysis.

Easy to say, hard to do.

Easy to say "I analysed the situation" but just what did the analyst do? HOW did they do the analysis. Do they even know what 'analysis' means?

In a nutshell, analysis is the process of breaking a problem or situation down to expose the logical inter-relationships (cause and effect, dependencies, etc) that exist between the component parts.

There are 2 main types of analysis: deductive and inductive.

Deductive:
Fact 1: All fairies are pink.
Fact 2: Tinkerbelle is a fairy.
Deduced fact 3: Tinkerbelle is pink.
If fact 1 and 2 are true there is simply no alternative to the fact that was deduced.
The process was break down the situation in to 2 empirical facts and then combine them deductively.

Inductive:
Fact 1: Whenever I have let go of the hammer it falls to the ground.
Induced fact 2: Every time I let go of the hammer it will fall to the ground.
The process was to break the situation down to 1 empirical fact and then try to establish a truth by generalising it. The principle here was to induce that because in the past every time I let the hammer go it fell to the ground that every time past, present and future I let go of the hammer it will fall to the ground.

What - even if there is a table in the way?

Induced conclusions are not as robust as deduced conclusions.

Meanwhile, back in the real world, it is interesting to note that most of our analysis (whether we recognise it or not) is done inductively.

It would make sense to make our conclusions as robust as possible.

Perhaps we should exercise a good deal of care in breaking down the situation or problem in to its component parts? Perhaps we should try and demonstrate the relationships between those parts so that they can be verified and tested?

Now we are talking business analysis!

Want to know more? Want to try it out in the real world on your project?

Now you need to visit www.smart-ba.com!
.