What is typically the first step in the business analysis process?

Identifying business needs is typically the first step in the business analysis process because it lays the foundation for all subsequent actions. Understanding what the business needs allows analysts to align their activities with the organization's goals and ensures that the solutions developed will address the right problems. This step involves gathering input from stakeholders, assessing current conditions, and defining what outcomes are necessary for success.

When business needs are clearly identified, it simplifies the process of setting priorities and creating a roadmap for further analysis and project planning. Without a clear understanding of the underlying needs, efforts such as drafting project plans or conducting analyses may miss the mark, leading to wasted resources and ineffective solutions. This foundational step is crucial in guiding the direction and focus of the business analysis efforts.