Top 18 Business Analyst Interview Questions & Answers

In the past few years, with Big Data gaining ground in the industry, the role of a Business Analyst has become very important. Business Analysts are professionals who excel in improving the products/services, business processes, and software usage and implementation through data analysis. They act as a bridge between an organization’s IT and Business teams to facilitate effective communication and enhance productivity. 

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As the role of a Business Analyst is becoming increasingly popular across various enterprise sectors, their demand is soaring high.  MBA in Business Analytics from a reputed institution is good enough to bag Business Analyst jobs. However, you must also clear the Business Analyst Interview to seal the deal.

In a highly competitive market where hundreds and thousands of applicants are eyeing the same job roles as you, you need to separate yourself from the herd. Your interview could be the defining criteria for you – by showing in-depth knowledge of the domain coupled with the presence of mind and confidence, you can nail your Business Analyst Interview. Keep in mind that the complexity of the questions will depend on the position (entry-level, mid-level, senior-level) you are applying for. However, irrespective of the role you apply for, it is essential to get your basics right. 

Top Business Analyst Interview Questions & Answers

1. What are the core competencies of a Business Analyst?

A Business Analyst must possess the following competencies:

  • Expertise in business process management
  • In-depth industry and business knowledge 
  • Problem-solving and negotiation skills
  • Analytical thinking and decision-making skills
  • Technical and soft skills

2. What is a Use Case model?

 A Use Case model is a visual (diagram) representation of a system that shows how a particular system is used by a user to accomplish a goal. It includes the entire sequence of events and actions performed by the user. This model is an integral part of software engineering and software modeling.

3. Name some of the most commonly used tools by Business Analysts.

Here are some popular tools used by Business Analysts:

  • MS Office Suite
  • Google Docs
  • QlikView and Tableau
  • Python and R
  • Blueprint
  • Balsamiq
  • Axure
  • SWOT
  • SQL

4. What does SRS denote? What are the core elements of SRS?

SRS stands for System Requirements Specification/Software Requirements Specification. It is a document/set of documents that describe the features of a system or software application. Thus, SRS offers detailed insights about a system/software, its features, its behavior, the business processes it supports, the assumptions, and key performance parameters. 

The core elements of SRS include:

  • Scope of Work
  • Functional and Non-Functional Requirements
  • Dependencies
  • Data Model
  • Assumptions
  • Constraints
  • Acceptance Criteria

5. What is a Feasibility Study?

 Feasibility Study refers to the process or method of identifying and analyzing the success rate of a proposed idea/solution to a business problem. While it helps find solutions to possible business problems, it also allows a Business Analyst to identify new business opportunities for a project. 

6. What is a Business Model Analysis?

Business Model Analysis refers to the technique of analyzing whether or not a business is socially, financially, and economically viable and valuable. This analysis forms the foundation for business model change – it highlights the areas that could benefit from improvement and change. Business Model Analysis aims to encourage innovation and enhancement of the business model to stay relevant in a dynamic industry.

7. Define “Requirement Elicitation.”

Requirement Elicitation denotes the process of collecting all system-related requirements from the stakeholders, end-users, and customers. According to the BABOK guide, the requirement elicitation process comprises of nine different techniques:

  • Brainstorming
  • Interviews
  • Observation
  • Prototyping
  • Focus groups
  • Document analysis
  • Interface analysis
  • Survey/Questionnaire
  • Requirements workshops

8. Define “Gap Analysis.”

Gap Analysis refers to the technique of analyzing the gap between the existing system and its functionalities and the targeted system. By gap, we mean the changes or additional functionalities that are required to accomplish the proposed result.

9. What are the types of gaps that can occur during a Gap Analysis?

   A Gap Analysis can result in four types of gaps:

  • Profit Gap – It is the gap between the estimated and actual profit of a company.
  • Manpower Gap – It denotes the gap between the required number and quality of workforce and actual workforce strength in a company. 
  • Performance Gap – It is the difference between the actual performance and the expected performance.
  • Product/Market Gap – It is the gap between estimated sales and actual sales.

10. Name the five different stages of an IT project.

The five phases of an IT project include:

  • Project initiation
  • Project planning
  • Project execution
  • Project monitoring and control
  • Project closure

11. What are Non-Functional Requirements? How to capture them?

Non-functional requirements denote the performance-level features or characteristics of a system/software application in development. For instance, it refers to aspects like the speed of response, the fluidity of the UI, etc.

Non-functional requirements can be captured using two documents:

  • SDD (System Design Document)
  • FRD (Functional Requirement Document)

12. What is UML Modeling?

 UML or Unified Modelling Language is a visualization approach used for documenting, constructing, and visualizing the different components of a system. It is used mainly for software development, and also for defining and delineating organizational functions, business processes, and job roles.

13. What is BPMN? What are its core elements?

BPMN stands for Business Process Model and Notation. BPMN is a graphical representation of business processes consisting of five core elements:

  • Data
  • Flow Objects
  • Connecting Objects
  • Swimlanes
  • Artifacts

14. What is Benchmarking?

 Benchmarking refers to the process of measuring the performance and ability of an organization to compete in the industry. It takes into account the company policies, rules, goals, performance, and other aspects as necessary to measure its competitive index.

15. What is the difference between Business Analytics and Business Analysis?

The primary difference between Business Analytics and Business Analysis is that while the former is data-oriented, the latter is more inclined towards business functions and processes. 

Business Analytics deals with data and data analysis to uncover valuable business insights. There are four kinds of Business Analytics – descriptive analytics, decisive analytics, prescriptive analytics, and predictive analytics. On the contrary, Business Analysis focuses on identifying and analyzing business problems and needs and find solutions for the same.

16. Name the different types of Agile methodologies.

Agile methodology can be categorized into seven different approaches:

  • Scrum 
  • Kanban 
  • Crystal 
  • Extreme Programming (XP)
  • Lean Software Development
  • Feature Driven Development (FDD)
  • Dynamic Systems Development Method (DSDM)

17. What is Black Box Testing?

 Black box testing is a testing technique wherein a complete unit is tested without taking into account its inner components or parts. It focuses on the identified input signal to check whether or not the output behavior meets set expectations.

18. What is Scope Creep? How to avoid it?

Scope creep denotes the chain of uncontrolled changes in a project’s scope without any increase in other resources associated with the project (schedule, budget, workforce, etc.).

To avoid scope creep, a Business Analyst can do the following:

  • Document the scope of the project in a detailed manner.
  • Document the new requirements in the project log.
  • Communicate the impacts/results of the changes to all the relevant stakeholders before implementing the change.
  • Abide by proper change management procedures.

So, that’s eighteen of the most commonly asked Business Analyst interview questions. Although this should help you break the ice and get into the learning mode, it certainly helps to have an MBA (Executive) with Specialisation in Business Analytics to add credibility to your resume.

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