Business Analyst Interview Questions with Answers

  1. What is business analysis?

One should not restrict the BA role to only being a link between Non-It and IT or only for development projects.
A BA is someone who is able to bring in improvements, changes(technology, process, people etc.) in an efficient manner. So a BA could be part of the marketing team who helps the marketing team in providing estimates/high level solutions for a said project which is under the process of procurement. Or he could be someone involved during the Requirement gathering/analysis once the project is initiated. Or he could be someone who brings profit to the company by performing process improvement activities ROIs at process level.
Last but not the least BAs could be domain specific as well.

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  1. What is the career path for a Business Analyst?

A Business Analyst in the IT field has many varied directions among which to choose a career path. The most direct would lead to a Lead Business Analyst position and then Project Manager whereby the incumbent manages projects through the entire lifecycle from inception to post-implementation including the management of business analysts system analysts quality assurance analysts and most likely development project managers or team leads. That path would then lead to Program Management perhaps PMO management or Product Manager and on to Directorship.In addition a good Business Analyst may find they are heading toward a Customer Relationship Manager position whereby they become the primary IT interface to a given Business Unit (BU). This role most often leads to a position within the BU as a Manager of Applications or a Process Management role. Process Management opens many jobs including process re-engineering quality program development and large scale or enterprise process management programs such as ITIL or Six Sigma initiatives. These roles will continue to proliferate as companies realize the benefits of having a SME in process and quality.And still many Business Analysts find their understanding of business process entirely portable into purely system related positions in the business side that are only peripherally related to IT. These of course may lead to quantitative roles manager roles or operational roles such as supply chain logistics etc.Of central importance to a successful Business Analyst is the interest in speaking to people. Face to face verbal communication is paramount to support other tools such as surveys and diagrams. Incumbents must be interested in understanding not only the pieces that comprise a system but the people that comprise it and the realities that embrace the system. Briefly the Business Analyst must understand and not judge the what should be and the what is .

  1. How would you transform business requirements to functional requirements?

while preparing Business requirements documents you mention why you need to built a system, i.e. problem statement. What you need to do while creating functional requirements is you have to specify is, solution of the problem. Specify thoroughly business problem and explain solution for the same.

Business requirement documents does not necessarily contains solution part, functional requirement may contain it how end user wants the system to perform. Don’t forget to add non-functional requirements same doc.

Following is the instance of Business Requirement, Functional Requirement and Non-Functional Requirement.

Business Requirements :- sales order is made against customers purchase order. Sales order is given for approval to upper authority

Functional requirement:- Sales order shall be made with reference from Purchase order and it should be approved from upper authority.

Non-Functional Requirement:- Sales order should be in proper format (Specify format) and six copy of sales order should be printed from printer in 1 minute.

  1. How do you resolve issues?

I would rather focus on issues and the facts related. Origin of issue, severity of the issue, implications and possibles solutions to solve the issue. Try not to focus on the person who brought up the issue.

Another important part is how to avoid similar issues in future.

  1. What analysis and modeling techniques do you use to translate business objectives into system requirements?
  • Create project-initiation diagrams including business use cases, activity diagrams, workflow diagrams, flowcharts
  • Determine project scope and derive context diagrams and project use cases from the business diagrams
  • Detail the use cases by using activity diagrams or other techniques
  • Create high level analysis dataflow diagrams, domain class diagrams, and entity-relationship diagrams from the use cases or other high level diagrams
  • Recognize and understand the various design models, including the other relevant types of UML diagrams, detailed design entity-relationship diagrams, and decomposed dataflow diagrams
  • Determine when to use which modeling technique, following them through a project life cycle, and understand which diagrams are derived from others
  • Understand the basic concepts of normalization and decomposition so can converse intelligently on the topic and review diagrams that have been normalized or decomposed

6. Mention some of the tools commonly used by business analyst?

There might be various tools that you as a business analyst would be using depending upon the work environment.
The primary tools are:
MS-Office (Especially Word)
MS-Visio (for visualizing the concepts, creating diagrams)

But a lot of bigger organizations have been using Rational Software. Rational software licensing is expensive so you might not find it being used everywhere.
Rational Requisite Pro (for Requirement Management)
Rational ClearCase/ClearQuest (For change management)

I have also found that some places like using MS-SharePoint, telelogic DOORS and other tools for document collaboration. I would say, keep a working knowledge of MS SharePoint, at least.

Sometimes you might end up being a BA com QA. As such, it is nice to have a working knowledge of creating Test cases, using Load Runner, QTP etc.

Except for these tools if you have knowledge of RDBMS, Oracle, SQL, different operating systems, some OOP, it is always a plus.

7. Explain equivalence class?

Equivalence class a mathematical concept is a subset of given set induced by an equivalence relation on that given set. (If the given set is empty then the equivalence relation is empty and there are no equivalence classes; otherwise the equivalence relation and its concomitant equivalence classes are all non-empty.) Elements of an equivalence class are said to be equivalent under the equivalence relation to all the other elements of the same equivalence class. For each equivalence relation there is a collection of equivalence classes. Any two different equivalence classes are disjoint and the union over all of the equivalence classes is the given set. Equivalence classes and their corresponding equivalence relation are defined in set theory a vital foundation for mathematics and those fields that use mathematics. More details can be found in a study of equivalence relation.

  1. What are the problems solved by business analysis?

As a BA the most critical part is in gathering requirements (we should understand them very well from a Business User /stake holder point of view!!!)

Reason: There might be a chance for the whole project to go in the wrong path due to wrong understanding of the Business users/ Stake holders’ needs and the gathered requirements created for the work following that step… i.e. going from A to C instead of going from A to B.

Notes: (Business Users: are the individuals who work in organizations in different departments like Logistics accounting finance Inventory) in the company who wanted the software in Place for them to work on to help the Customers.

Stake Holders: Someone who is related to the Project? 2 types of People are involved:

Direct Stake holders: business end users customers developers tech team.
Indirect stake holders: management etc.
The Project Manager responsibility (usually) identifies the stakeholders determine their needs and expectations and more important must manage and take their help for the project success. (You should Understand them well to provide them with right service for the right success of the project)…

SME’s: are the Subject Matter Experts who know about that project and have in-depth knowledge about that software application used and that particular business domain knowledge like Finance (terms and permutations etc.) Accounting (Business Planning Ledger maintaining Forecasting) Mortgage (Local banking rules Knowledge about compliancy of applications forms/ applications that needs the authorizations of the local Government bodies or counties Underwriting conditions (How flexible the Loan lending organizations at the individuals credit check or History)

So The SME’s help the Project Manager or BA to help them understand about the necessities or needs of the Business Users or Stake holders like/interests- (How the Project help save time for the transactions or? how much secure/security is needed the application wise or profitable over long run) and SME’s explain How the Stakeholders or Business Users want the application to be or appear to be for the Customers or Business Users).

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