The importance of business analysis and the necessity of doing a technical analysis of projects
Business analysis has become necessary, primarily when investing in any new market. There is a need to know many things required to make a successful investment. By thinking deeply about it, we can deduce a set of questions to arrange and organize the entry process to invest in a new market. Those questions represent in:
· In which project can I invest?
· What do I need to understand the use and distribution of my resources in a development project?
· How is the follow-up of the development of that project to profit from it?
· How can I identify the points that need improvement in the startup's development?
If those questions have already crossed your mind, you are now conducting business and technical analyses for your upcoming project. However, it's more complex, especially if your project is technically built on complex software and intelligent systems.
Technical projects don't succeed simply by conducting a random study and having a solid software structure. It requires accurate technical analysis and comprehensive planning for all project lifecycle stages. Only specialists in this field can conduct technical accounting and business analysis for projects. It's preferable to rely on reliable companies proficient in providing business analysis services for projects before starting the software design and construction process. We at Alalmiya Alhura Company will be the best support and analyst to help you create your project with a solid foundation.
In this article, we will identify essential elements and tools that need to be focused on in business analysis when making investment decisions through technical projects. These elements and agencies will also assist you in conducting technical research for the projects you plan to invest in.
A roadmap is a tool developed by the project manager and directed to the partners who want to know how and when the project will be created. It also helps the project developer to get the project started on the right track based on a comprehensive technical analysis of all aspects of the project.
The roadmap includes budget, development strategies, questions and answers that may arise during the project, business objectives, deadlines, and much more. This is done to see each stage of development and testing and how we can relate that information to the business aims you do on schedule.
This way, you can better understand how the project will develop, when it is ready, etc. It is a plan and course of action that helps you immensely as an investor and all persons concerned.
Roadmaps can also be used to compare your business goals or expectations as an investor with the development team's plan to align both or make necessary adjustments. The ultimate goal is to develop the program efficiently and appropriately for all parties involved.
As its name indicates, this study can help you understand the actual feasibility of a project even before you start as an investor. If you do this, what are the risks to your capital because they are the same startup risks?
Feasibility and risk analysis includes several areas related to the project being developed. These include technology, time, law, economics, political or tool use, maintainability, operating costs, etc. The goal is to know, anticipate, or be ready for any challenge or obstacle your project may face. All these are determined by doing an integrated technical analysis of the project.
Non-Profitability:
Profitability is what every business person and investor wants to have. This situation sometimes comes slower than they expect. For this reason, the lack of profitability may be one of the main reasons for not going ahead with the project.
How to prepare for that? How long is the project estimated to be profitable? When will I get a return on my investment? All these aspects are evaluated while doing a technical analysis of projects. In this way, you know what to expect as an investor. Undoubtedly, everything in the project is created from this study.
Legal aspects:
This is one of the most sensitive areas. You considered that an activity could be legal in one country and punishable in another. With the progress of the internet and technology, you must be sure of the legal aspects of the country or city where you will launch your business. If your project is a mobile app, it must also comply with the App Store or Play Store rules.
These legal and technical analyses can make the software you invest in unable to be published, or when you decide to invest, that was legal. In the development process, it is no longer. This information is vital and part of the risks you take as an investor, owner, or head of a startup company.
Burn rate:
The burn rate is the ratio of long-term cash required to the percentage of estimated expenses for all months. This is where you must make the necessary investment so that the startup becomes productive.
It may not be a risk factor in itself, but it can become one if it is not calculated correctly and considered during the technical analysis process. Entrepreneurs usually have this information calculated, but we also recommend that you do so as an investor. This allows for a lower margin of error.
Lack of market experience:
There are different opinions on this point; some consider that investors can invest regardless of their market experience. Our view is more relevant to those who believe that at least essential expertise is necessary.
You don't have to be an expert, but at least conducting business analysis to analyze risks and probabilities (with knowledgeable individuals) allows you to understand the market you're heading towards and the strengths and weaknesses of the project and conduct a study to analyze risks and probabilities. All of this is determined during the technical analysis process of the project.
Why do we use business analysis?
We use business analysis for many reasons, the most important of which are:
- A better understanding of the project: Business analysis helps to understand the project better, identify its objectives and the risks it may face, and this helps to make better decisions.
- Improving the business strategy: Business analysis helps to identify the opportunities and challenges facing the project and then improve the business strategy to achieve the project's objectives in the best possible way.
- Time and effort saving: Business analysis helps identify priorities and essential tasks that need to be done, saving time and effort to complete the project as quickly as possible.
- Effective communication: Business analysis helps identify project problems and needs and communicate effectively with everyone involved. This helps improve work coordination and avoid mistakes.
- Increased profitability: Business analysis helps identify the most profitable products and services and focuses on them to increase profitability and achieve project success.
Tools and Techniques for Business Analysis
Business analysis transforms massive data into valuable information that can be used in decision-making. This can be achieved using a variety of tools and techniques, including:
- Database management systems: Tools used to store, manage and analyze various data, including procedures such as Oracle, Microsoft SQL Server, and PostgreSQL.
- Custom query languages: Programming languages like SQL, R, Python, and others allow analysts to extract and analyze data.
- Big data analytics tools: Tools like Hadoop, Spark, and others are used to process massive data and turn it into valuable information.
- Data visualization techniques: Tools like Tableau, Power BI, and others allow analysts to visualize data visually.
- Social network analysis: Techniques used to analyze social communication and social networks data.
- Machine learning and artificial intelligence techniques: Techniques used to analyze data more complexly and identify patterns, trends, and predictions.
What is Business Analysis?
Business Analysis is collecting and analyzing information and data and converting them into valuable information and a viable strategy to improve operations and achieve business goals. The business analysis includes several steps, such as defining the business problem, analyzing current processes, designing future processes, identifying functional and non-functional requirements, and developing strategies for improvement and change.
Business analysis tools also include many techniques and methods such as charts, statistical analysis, mathematical models, data analysis, artificial intelligence, machine learning, economic analysis, financial analysis, and other tools used to analyze data and extract valuable information.
The Difference Between Business Analysis and Data Analysis
Business and data analysis are two different concepts, although they may share similarities. The business analysis aims to understand the processes, systems, and business activities, analyze and improve them, and achieve the organization's strategic goals. The business analysis uses data to answer specific questions, such as "Who are my primary customers?" or "What products do customers prefer?". It uses statistical analysis, data modeling, quantitative and qualitative analysis, data mining, machine learning, and more.
On the other hand, data analysis focuses primarily on extracting patterns, relationships, and predictions from data, using tools such as statistical analysis, machine learning, data mining, quantitative and qualitative analysis, and more. Data analysis is widely used in areas such as marketing, medicine, commerce, social sciences, education, and others, where it can be used to extract patterns from large and complex data and transform it into valuable information and a clearer picture of reality.
What is Technical Analysis?
Technical analysis is an analytical technique used in the stock, currency, and commodity markets to analyze historical prices and market movements and to determine future price trends. Technical analysis examines prices, changes in volume, trading, and technological indicators of markets using charts and technical indicators.
The technical analysis technique assumes that market price movements reflect the balance of supply and demand and that price movements follow specific and recurring patterns. Technical analysts can use charts and indicators to determine future price trends and make appropriate trading decisions. Traders and investors around the world widely use technical analysis.
Powered by Froala Editor
