There is no one size fits all formula for IT project success. However, it is vital to plan the process to minimize the likelihood of failure. Successful project implementation can be attributed to effective business analysis. Who can perform it, how can it be done, and what are the costs? This article answers your questions.
Risk of failure in IT projects
IT systems are indispensable for all companies today, no matter what size they are. Heaps of work and resources are required to make them functional and meet users’ and customers’ expectations. Implementing new solutions or updating existing ones requires the collaboration of experts from several fields, including:
- business analysts,
- designers,
- UX designers,
- programmers,
- testers.
Are there any ways to ensure the work they put into a project pays off? For starters, it is crucial to plan the business analysis process. Annual CHAOS 2020, by Standish Group, reports that 66% of technology projects fail wholly or partially. Fifty thousand projects around the world were analyzed to arrive at this estimate.
The basis of an information system design is business analysis. When it is missing, it is unclear what assumptions and needs the solution is supposed to meet. Thus, it may end up being ineffective or utterly useless in the company’s daily operations. IT systems developed without a prior business analysis are often accused of the following:
- high degree of complexity within the service;
- inability to execute the most critical processes, which triggers the need to use additional tools;
- lack of cooperation with the company’s existing information systems.
It is sometimes the case that the IT systems created or enhanced are not what they should be, despite incurring substantial costs. Hence, the company may suffer severe consequences in multiple aspects of its operations.
IT project failure consequences
Suppose the business analysis was not carried out, and the project failed. As a result, wasteful expenses are generated, but that’s not all. The company may encounter several hurdles, depending on its purpose and target group, including:
- a decrease in employee motivation;
- loss of trust from customers and business partners;
- the cost of correcting further mistakes;
- incurring additional expenses to restore the system to proper operation.
What is business analysis all about?
Even experts struggle to define business analysis with precision. Nevertheless, it is assumed that when referring to the implementation of IT projects, this term refers to the study of customer requirements and needs for the IT solutions being implemented. An analysis of this nature entails converting customer information into specific tasks that are then assigned to programmers.
Using business analysis as a starting point of project development to integrate the business environment with IT teams is necessary. This process involves gathering information on the client’s current problems and future challenges. Analysts note what is working effectively and efficiently in order to take strengths and weaknesses into account when developing new or improved IT solutions.
Business analysis in the IT process can be utilized to catch potential risks early on, mitigate risks, and anticipate cost increases. Additionally, it allows for planning the integration or infrastructure necessary for the project. This ultimately affects product quality and cost. Experts use a variety of tools for business analysis, including:
- interviews,
- work observation,
- infrastructure analysis,
- documentation analysis.
As part of business analysis, it is essential to conduct it reliably and interact with the client to create clear documents for the intended audience. Those conducting it must have an understanding of why and for whom a system or application is being developed.
How does IT business analysis work in practice?
IT business analysis should precede a project start and include a series of meetings that gather a list of business requirements and analyze current documentation.
As a 5-step process, a business analysis entails the following:
- Defining the project’s business objectives – identifying the project’s stakeholders setting the project’s purpose, and gathering documentation.
- Business process analysis – identifies processes related to the IT system and identifies areas the proposed solution can improve.
- Technology analysis – diagnoses the state of the current technologies used in the company and determines the direction of change.
- Defining system requirements – lists of functional and non-functional requirements are created, and their requirements’ priorities and acceptance criteria are determined.
- Designing the solution – includes a plan to create a solution that meets functional and non-functional requirements and preparation of design documentation and cost estimation.
What is the cost of conducting a business analysis?
Several factors determine the final cost and timing of an IT business analysis. Among them are the project’s size and its difficulty or complexity level in terms of business and technology. Performing an analysis becomes more time-consuming and expensive when customer requirements change frequently.
Business analysis is an essential part of any IT project that aims to deliver a solution that meets customers’ needs. Among others, it helps avoid costly mistakes and eliminates the risk of implementing a flawed or inaccurate system.
Are you developing web applications, mobile applications, or your own IT system? Are you seeking support from an experienced technology partner? Solwit experts can assist you with a free consultation to develop a plan of action and perform a thorough IT business analysis to reduce the risk of project failure.
