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Try to imagine that you are starting work on a software product. You have your own idea, and you have gathered the right budget. You are also thinking about a company that will take care of creating the software project for you. This is a good start, but it doesn't mean it's time to put your plans into action. Your situation is like building a house. You have an idea of what it will look like. You have bought the materials and taken care of the construction crew. What remains to take care of are the permits, the land registry and the surroundings.

The permissions and exploration of the environment in software development is business analysis. It handles gathering the necessary information about market, competitors or users. Business analysis also includes financial details and risk identification. This is why business analysis can be called an all-in-one product. Without it, successful software project is difficult to imagine.

Table of Contents:

1. How to do business analysis in software development?

1.1. Customer interviews (User stories).

1.2. Good connection.

1.3. Discovering Business Plan.

1.4. What is the software product?

1.5. Meet and understand the end user's perspective.

1.6. A lot depends on project sponsor.

1.7. Who is your competition? Market gap analysis.

1.8. Risk identification.

2. Data analysis of business objectives.

2.1. The scope of the project.

3. Summary.


How to do business analysis in software development?

Before you know how, you need to be aware of when to conduct a business analysis. Every software development project should begin with a business analysis. Quality analyses involve the opinions of experts in programming and design fields. Their experience helps to develop the future product and avoid potential obstacles. Usually, a business analyst or a designated manager is responsible for the detailed analysis.

With proper research and calculations, it is possible to develop a good project. Software project that meets the expectations of creators and consumers. To achieve this, several factors must be taken into account.

business analysis in software development

Customer interviews (User stories)

This is the right time to clarify the role of the future product and customer expectations. You can also find out a bit more about your competitors when talking to customers. It is up to you which tools and methods you use to get information. The customer interview with data analysis stage helps you to prioritize the emerging software.

Good connection

Working with any client is team building. Both sides should have a common goal and strive to achieve it. It is equally important to know your business partner well. Understanding experience and strengths helps define the business goals of cooperation. That's why the client and software developer should specify their needs before starting the project.

Discovering Business Plan

Defining the vision of the software architecture and putting it into a proper plan is very significant. The plan makes it possible to set a long-term goal for the product to function in the market. It is also responsible for development and implementation. When developing the plan, it is worth taking into account several important issues. Where did the idea to develop the product come from? What is the business aim? What is the mission and vision? What kind of development environment do you have at your disposal?

active software development process

What is the software product?

This section of the analysis is responsible for all aspects of the product. Thanks to requirements analysis process you should get to know its functionalities better. This is also the right moment to compare expectations with possibilities. The stage allows you to make the improvements that the recipients are waiting for. The evaluation of business processes is also included in the definition of the product's role.

Meet and understand the end user's perspective

Knowledge of end user's perspective and expectations from the final product is some of the most essential data. This is the business point that helps to create functionality for them. You can better understand their acceptance criteria, and find out which elements of the product they need. This way, the development team can focus on working on the user experience.

A lot depends on project sponsor

The financial business analysis is another step to better solution development. Knowing your budget allows you to understand your financial capabilities and expectations. This applies to both the product technical expertise and market entry phases. Awareness of the available money allows you to select proper system requirements that will be part of the final product.

customer journey mapping for stakeholder expectations

Who is your competition? Market gap analysis

Being aware of your competitors is important. Not just because of the competition. Competition is a large source of knowledge and experience. Thanks to it, you can get rid of the mistakes they have already made. It is also a motivation to create better and better system elements and provide the client with something before unavailable.

Risk identification

Software development like many other activities is fraught with risk. There are no projects that do not involve risk. So, the ability to predict all possible obstacles may prove to be the key to success. Awareness combined with a set of solutions can add value to your work.

Data analysis of business objectives

With access to so much information, it is essential to organize it. Identifying any obstacles that may need further investigation is crucial. It is worth using the in such cases. With this solution you will verify your plan, see its strengths and weaknesses and learn what steps to take to achieve success.

business analysis in software development

The scope of the project

The scope of the project is the set of functional requirements that need to be met for the product. This is required to consider it complete. For projects such as software development, the scope of the project is in the backlog. This is a list of tasks that you need to complete to bring the finished product to the market. A well-created Project Scope can reduce project preparation time. Additionally, the work of the project team can be systematized thanks to it.


Business analysis in software development is an important foundation during the business process. Especially in software development project, where there are a lot of details. It is an important element in setting the goal of any project and its implementation. This is also a tool to help make things real. In this way, you will avoid mistakes resulting from ignorance.

Watch the webinar that will improve your project management

If we have attracted your interest in the topic of business analysis, then you may be interested in our webinar. Face 2 Face with the Discovery Phase is a video material where our experts talk a bit more about validating a business idea. You will learn about real examples of companies that decided to take this step during the software development project.

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