4 Popular Types of Business Analysis Tools

Key takeaways

Business analysis is a key component of a successful decision-making strategy. Professionals like business analysts use different tools to understand and leverage the data a company collects.

• Business analysis tools are software applications used to gather, identify, store, and analyze data sets to support a successful decision-making strategy.

• Business analysis tools assist you in making more informed decisions about the right steps and strategies to reach your business’s stated goals.

• You can leverage these insights to recommend actions that optimize processes, address issues, and identify potential opportunities.

Learn more about the different types of business analysis tools and how they can benefit your work. To build your skills in business analysis, consider enrolling in the Microsoft Business Analyst Professional Certificate.

What types of tools are used in business analysis?

Business analysis tools are software applications that help gather, identify, store, and analyze data sets. Each tool addresses a specific type of analysis and tends to depend on the individual project. Let's review four of the popular types of business analysis tools available:

1. Data visualization tools

Data visualization tools can help you create visual representations of the information contained within a data set. This technique makes data sets more easily understood across your organization’s departments. Data visualization tools are types of software that allow you to input a data set and create graphical representations, often with built-in templates. Some data visualization tools include:

• Google Charts is a free tool for creating interactive data charts that are hosted on the Internet. It can pull data from a wide range of sources and provides eighteen types of charts, such as histograms, pie charts, and bar charts.

• Tableau, owned by Salesforce, is one of the most popular software programs on the market. It provides desktop, web, and server-hosted versions that integrate with customer relationship management (CRM) software. Its robust offerings offer dozens of visualization options to best represent data sets.

• Infogram is unique because it allows you to create infographics that you can embed within presentations, documents, or websites.

2. Statistical analysis software

Statistical analysis software allows you to track data sets over time and identify trends and patterns that, in turn, inform actionable decisions. The results from this software can help you discover areas of weakness, forecast future events, and predict problem areas to address. Some statistical analysis software examples include the following:

• DataMelt supports the statistical analysis of massive volumes of data and is popular in engineering, the natural sciences, and financial marketing. 

• SAS/STAT Software uses proven techniques to analyze data sets of any size. This software updates regularly, which means you’ll have access to models based on the latest discoveries in the analysis field.

• IBM SPSS is proprietary software that provides advanced analysis, no matter your level of experience. It comes as a suite that allows for a wide range of statistical analysis, from detecting fraud to optimizing business strategies.

3. Process mapping software

Process mapping software allows you to visualize workflows and processes, which can help make those processes more effective by identifying those spaces that could use improvement. Some examples of process mapping software include the following:

• Microsoft Visio offers a wide range of templates that allow you to build out basic to advanced sequences and diagrams. This means you can visually represent every process detail, providing clarity to your team.

• IBM Blueworks Live allows you to pull from a single source of truth, which helps ensure that your team will work from the same information and minimizes the risk of discrepancies or inaccuracies.

• Pneumatic helps you build workflows that move from one team member to another as tasks are completed, keeping projects moving smoothly and efficiently.

4. Strategic analysis frameworks

Strategic analysis frameworks are structures that allow you to develop effective action plans, helping you to reach stated business goals. Some examples of these frameworks include:

• SWOT stands for Strength, Weaknesses, Opportunities, and Threats. It is a comprehensive way to examine your business's internal and external factors.

• PEST is a framework for analyzing external factors affecting your business, such as political, economic, social, and technological factors.

• MOST can help you analyze internal business factors, such as mission, objectives, strategies, and tactics.

What can you accomplish with business analysis tools?

Business analysis tools act as the bridge between raw data and strategic action. By leveraging these platforms, organizations can move beyond guesswork and base their trajectory on empirical evidence. Specifically, you can use these tools to:

• Optimize pricing and revenue models: Determine the ideal pricing strategy by analyzing market demand, competitor benchmarks, and historical sales data.

• Enhance customer insights: Build comprehensive profiles of your customer base to better understand their pain points, purchasing behavior, and feedback, allowing for more personalized service and product development.

• Streamline operational efficiency: Map out internal workflows to identify bottlenecks. By visualizing processes, tools can highlight where automation or restructuring can save time and reduce costs.

• Mitigate risk and predict pitfalls: Use predictive modeling to identify potential project or financial risks early in the planning phase, allowing for proactive contingency planning.

• Gain competitive intelligence: Stay ahead of the curve by monitoring industry trends and emerging technologies. These tools provide the data necessary to pivot quickly when market conditions shift.

• Facilitate data-driven decision making: Centralize disparate data points into cohesive dashboards, ensuring that stakeholders, from analysts to executives, are working from a "single source of truth."

Who can benefit from using business analysis tools?

A wide range of professionals find business analysis tools useful, including:

1. Business analysts

Business analysts collect and analyze data to identify opportunities and support teams as they work toward stated outcomes. They recommend courses of action and improvements for business processes, which can help increase profits and reduce costs.

2. Project managers

Project managers plan and oversee projects from inception to execution. They make sure that the projects proceed on schedule and stay within budget. They also monitor progress and communicate everything, from potential issues to updates, to business leaders and stakeholders.

3. Marketing specialists

Marketing specialists use data to help increase brand awareness and reach new and existing customers. They collaborate with other marketing professionals to create materials for outreach, campaigns, and promotions.

4. Strategic planners

Strategic planners use business data to identify short—and long-term goals and create actionable strategies to meet those goals. They research trends and prepare reports for business leaders that include their findings.

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