APPLICATION OF ANALYSIS OF BUSINESS PROBLEMS

Analysing business problems involves examining business issues or challenges to understand their causes and impact, and in most cases, find potential solutions. The process typically involves the collation and analysis of data; identifying patterns and trends; and developing recommendations for further action or actions as the case may be.

Most times the requirement for analysis comes up when problems, that are not structured come up, that is problems with no predetermined solution. There are problems that are structured, those whose solutions were already predetermined and sometimes already put in a manual or developed as a standard operating procedure (SOP).

Over time, it is seen that dealing with a structured business problem is easy, compared to dealing with an unstructured business problem. In the course of our study, we were exposed to the methodological way of analysing an unstructured business problem, which is a six-step method. The process has proven to be quite useful in managing a variety of business problems and has had a positive impact on managers and their work output.

The six-step method of analysing business problems is first problem definition then a determination of the root cause of the problem; then the development of alternatives; the selection of a solution; the implementation of the solution; and then an evaluation of the outcome.

The six-step method of analysing business problems provides an almost fail-proof alternative to analysing business problems because it ensures consistency; eliminates biases; encourages collaboration and eliminates confusion, which is usually the result of using different problem techniques in solving the same business challenge.

The application of business problem analysis is quite numerous and varied. They include:

• Risk Management: By carefully conducting an analysis of potential risk and threats to the business, organisations, through an analysis of their business problems, is able to develop strategies that mitigate or eliminate those risks identified and reduce their impact on the business;

• Customer Service/ experience improvement: An analysis of customer feedback, behavioural patterns, and engagement with the customers help businesses gain insight into their customers’ needs, preferences,   and pain points. This enables the development of strategies that improve the overall customer experience;
• Product development: An analysis of trends, consumer needs and competitor activities, help businesses develop new products or services that meet the needs of their customers, making such businesses stand out among their industry peers;
•  Strategy development: Analysis of business problems can help businesses identify areas where changes should be made in their strategy to remain competitive and it also helps them identify opportunities for cost savings, revenue growth, and improved profitability; and
• Process improvement: Through analysis of business processes, organisations are able to identify their inefficiencies and other issues slowing down their operations and they are further enabled to develop recommendations on how to make improvements;

In summary, analysis of business problems is a critical process for organisations desirous of improving their operations. It also helps these organisations identify growth opportunities and mitigate risks by leveraging on data and insights established, from the six-step method of analysing business problems. This enables them to develop actionable recommendations, which position them for long-term success.