1.1 Businesses Create Value

Question 1

What is a business process

Answer 1

A business process is a standardized set of activities that accomplishes a specific business task, involving both people and equipment.

Question 2

Why has increased data availability led to the rise of the business analyst role?

Answer 2

Increased data availability has led to the rise of the business analyst role because businesses perform numerous processes daily, and data is crucial for identifying valuable processes and making informed decisions.

Question 3

How do companies create value, and why is it vital for their survival?

Answer 3

Companies create value by using inputs like raw materials, skilled workers, and equipment to produce and sell more valuable outputs.

This is essential for their survival as it ensures revenue generation and long-term profitability, enabling competitiveness and sustainability.

Question 4

Define “business value” and explain how it is typically measured.

Answer 4

Business value encompasses all factors determining a company’s financial health, coming from suppliers, customers, employees, and information systems.

It is often measured through an increase in long-term profitability, considering both revenue and production costs.

Question 5

What are business processes, and why are they significant in creating value?

Answer 5

Business processes are standardized activities that help companies accomplish specific tasks.

They are significant in creating value as they optimize resource utilization and efficiency, contributing to a company’s overall success.

Question 6

Provide examples of business processes at various companies.

Answer 6

Examples of business processes include:

• Order acceptance (Amazon)
• Tax advice (KPMG)
• Billing (TruGreen)
• Manufacturing (Tesla)
• Contract writing (Fulton Homes)
• Advertising (eBay)
• Procurement (Toyota),
• Payment (DoorDash)
• Customer service (Procter & Gamble),
• Consulting (Boston Consulting Group)

Question 7

How do business analysts assist organizations, and what is their role?

Answer 7

Business analysts use data to answer managerial questions, identify valuable processes, and minimize costs.

Their role is to help organizations make effective decisions by curating and analyzing data, improving efficiency, and facilitating informed choices about resource allocation and strategies.

Question 8

How does the availability of data impact the work of business analysts, both positively and negatively?

Answer 8

The availability of data can positively impact business analysts by providing valuable insights and answers to managerial questions.

However, it can also have a negative effect, leading to data overload, which may hinder the proper synthesis and interpretation of data.

Question 9

Why is it increasingly important for businesses to train their employees to develop an analytics mindset?

Answer 9

It’s essential because an analytics mindset involves the ability to specify business questions, extract relevant data, analyze it, and report results to decision-makers.

With the abundance of data and automated collection, this mindset is crucial for making informed decisions.

Question 10

What does having an analytics mindset entail, and why are business analysts well-suited for it?

Answer 10

An analytics mindset involves being willing and able to identify critical business questions, extract pertinent data, analyze it, and report the findings to decision-makers.

Business analysts are well-suited for this role because they understand the business’s questions and the nature and quality of its data.