Tag Archives: business understanding

Importance of Business understanding for business analysts

Understanding the business is one of the important qualities of a business analyst. You should know the essential background and foundation of the business you are working with. Having domain knowledge is advancement in the understanding in the field the organization is working. I don’t believe that BAs should be domain experts but if they have an overview of the domain, it can always be helpful in taking critical business decisions. So we can say in talking with business experts the communication skills are not the only requirement, you should also have domain knowledge in order to explain the business terms. You being finance expert would not be able to take decisions in telecom domain but that doesn’t mean you can’t understand the profit-loss definition. Business domain knowledge enables an analyst to be more efficient. While an analyst that is gifted with analysis skills and techniques might be able to do an adequate job without deep business domain knowledge, it’s reasonable to think that an analyst that does have a strong sense of business context should be able to more quickly determine the right questions to ask, and the right approach for handling business challenges.

A lower level to domain knowledge begets subject matter expertise. The type of work done decides the expertise you gain in any stream. A BA with the deep knowledge in any of the business domains and a specific area will be able to pinpoint the nitty-gritties of the business and help in taking the quick and reliable decisions. But I would say that doesn’t mean if you are a generalist you cannot take quick decisions. A debate on being specialist and generalist is never ending and thus depending on the organizational needs and requirements both are valuable. Continue reading