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Business Analyst Interview Questions

23 Nov 2022

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The job responsibilities of a business analyst are very crucial. To analyze the business progress amend technologies and make strategies that help to build a better understanding between the various stakeholders. 
Business analytics jobs are so advantageous that if proper study and gain great work experience, many lucrative job roles are available in the business industry.
If you are looking for a good position as a business analyst in the industry make sure you are well-prepared to face the interview with confidence.
There must be a lot many questions and concerns about facing the interview, let's make it simple. This article will guide you and will definitely boost your confidence to face the questions appropriate for the post of business analyst.
It will be in your great interest to be well-prepared for the following:

Basic Question Round, 
Technical Question Round and 
Situational Role-Specific Business Analytics Questions for Interview.  
To find out what can be these questions and make sure you are confident to crack the interview.

What are the Top Business Analyst Interviews Questions & Answers?

1. What is the job role of a business analyst?

This is very important information and it's very definite that the possibility to ask this question in an interview is high. Well, you can mention that a business analyst has a very important role in the organization which includes providing technical support and understanding the business optimally. Give intelligent solutions for business growth. Study and analyze the business with a smart vision. Developing great business clarity and relationship between various stakeholders in the organization, for better business solutions is one of the major roles of business analysts. The main responsibility of a business analyst is to fulfill the objectives of business growth and imply smart business solutions.

2. What are the important competencies of a business analyst?

The requirement of role to be played by business analyst have different areas and different expectations from the company. The job role defines the core competencies of the company, so study the company requirement thoroughly. You can begin by saying that business analysts should have phenomenal communication and negotiation skills. Problem-solving, decision-making attitude, Smart business strategist, and understanding latest business trends with amazing business management skills.

3. What tools are used by business analysts

Technical and non-technical tools often used by the business analyst are:
Google Docs, database knowledge, MS Office, SQL, ERP systems, QlikView, Axure, Python, Tableau, Blueprint, R Programming, documentation, business process management, and business strategies.

4. What is a flowchart?

A flowchart is a diagram that represents an entire sequence of events. It represents the data in the system, where it is stored, and how it will be channelized to achieve business prospects.

5. What is SDLC? 

The SDLC stands for software development life cycle. It involves the procedure of development, testing, planning, and deployment of the system.

6. What are the phases of SDLC?

The important five phases of SDLC are planning, analyzing, designing, deployment and maintenance.

7. What is SQUARE?

SQUARE is technically referred to as Security Quality Requirements Engineering. It handles the most important aspect of business analytics taking care of the documenting system requirements.

8. What is the Scope creeping into business analytics?

Scope creep is an outlook that expands the project scope during the process of an ongoing project without intimation. This scope however does not affect the project's process, budget, or time span.

9. What is meant by project deliverable?

There are certain services provided and also some products are delivered to the client/customer at the time of project submission, all this is part of the process of project completion.

10. How updated are you when it comes to the latest business trends and technologies?

It is always a smart move to let the interviewer know that you are well-updated when it comes to business trends. Just go with the flow and come up with an answer that introduces your engaging ability. You can mention the source news or reading material you prefer. Give the reference of industry publications; mention the events and technical conferences or programs you attend in the business industry.

What are the Top Business Analytics Technical Interview Questions?

1. What is Gap Analysis and what are the types of gaps that appear in the analysis?

Gap Analysis is the analyzing process between the various functionalities between the current system and the objective of the system. The gap is the advanced adjustments that are done to pull off the expected results.
  • Manpower Gap is the difference between the actual and required manpower force of the company.
  • Performance Gap is the difference between actual and expected performances.
  • Market gap is the change between actual and expected sales.
  • Profit Gap is the variation between the actual profit and the estimated profit of the company. 

2. What is business modeling?

Business modeling is the process of recognizing the business operation value. 
The main features of business modeling are:

  • Perception
  • Goal
  • Objective
  • Planning
  • Action Plan/strategy
  • Deployment

3. Elaborate on the steps taken in the business analytics process.

The following are the steps to be taken during the process of business analytics:
  • Get clear information about the project
  • Regulate the participants of the project
  • Determine the final expectation and goal of the client
  • Make a list of all the active options available or can generate in the process
  • Plan out the delivery task
  • Understand the project requirements
  • Deliver the project with all check marks

4. What is elicitation? Have you participated in any elicitation event/meet?

To collect all the relevant information from the users and the connected stakeholders and the perspective of collaboration with the users or the clients precisely is termed as elicitation. 

  • Documentation
  • Interviews
  • Prototype
  • Involvement/ brainstorming
  • Practical workshops
  • Focus
  • Interface analysis
  • Reverse engineering
  • Survey

5. How do different types of diagrams are used and how does it affect business analytics?

All HR wants to know is how well you are aware of the business analysis documentation, so you have to answer precisely mentioning the details points on exactly how you have implemented the documentation technique in your project. This will add value and work experience.
The most used diagrams in business analysis are;

Flowcharts: It is the clear linear diagrammatic representation of the complete process of the flow of the system.
Use case Diagrams: The diagrams depicting the picture of the defined set of actions, functions, and services that need to be implemented during the project process are referred to as use case diagrams.
Sequence Diagrams: The communication between the different objects and the time sequence of the interaction flow between them is referred to as a sequence diagram.
Collaboration diagram: These are known as interaction diagrams. The diagrammatic representation of the connection and interaction between the software objects in the affiliated modeling code.

You can specifically mention how many diagrams can be interrelated and be made in used to depict accurate information. Also how merging different models can generate the best output. 

6. How are personas useful in user-centric design method techniques?

Personas are created in place of actual users to study the detectable pattern in various situations. A system is developed keeping various prospects of the users in mind. Persona helps generate such systems.

7. What is SRS and its elements?

A system Requirement Specification (SRS) is a set of documents that defines the system or software application. SRS contributes a remarkable idea of the system and its attributes, effective process programs, and the key performance parameters for the system. The main elements are:

  • Work scope
  • Data Model
  • Functional – Non- Functional requirements
  • Dependencies
  • Predictions
  • Limitations
  • Acceptance Criteria

8. What is BRD?

BRD is Business Requirement Document. It is an agreement between the client and the company to develop a new product.

9. What is the Difference between Iterative Development and Incremental Development?

Iterative development is a continuous process that follows step-by-step procedures. Whereas in incremental development the product is manufactured and tested in stages until the product is released.

10. What is the Requirement Traceability Matrix and what does it do?

RTM (Requirement Traceability matrix) is a tool that records all clients’ requirements. It aims to ensure that all the expected tasks are well performed and executed.

11. What is a Basic Flow?

The basic flow defines how the company activities and action plans are implemented.

12. What is Alternate Flow?

The presentation of actions or activities which is not a part of the basic flow is called the alternate flow. 

13. What is Exception Flow?

The exception flow refers to the set of plans and actions taken in the case of an error. Hence the use case goal is not achieved. 

14. What is Kano Analysis?

Kano Analysis is the analysis technique that studies the system requirements and determines its effects on customer satisfaction. 

15. Explain the Pugh Matrix

Design matrix is another name for the Pugh matrix. The Pugh matrix is used to resolve the finest and the alternative solutions. 

16. What is INVEST?

INVEST is the composition for the Independent, Negotiable, Valuable, Estimable, Sized Appropriately, and Testable. It helps the technical teams in appraising the quality of services and products.

17. What are the elements that make the Requirements Work?

  • An overview of the project
  • The objectives and goals
  • Plan of Action
  • Access to resources
  • Time and money
  • A list of the most important issues
  • Final Deliverables

18. What is UML?

The Unified Modeling Language (UML) is a developmental modeling language that contributes a general perspective to visualize the system. It is assigned to study the system behavior and pattern to find and remove the defects.  

19. What is BPMN?

Business Process Model and Notation (BPMN).  It is a very essential part of business analytics which represents the graphical illustration to explain how the business processes execute.

20. What are the categories of the BPMN?

There are five categories of the BPMN :
Flow objects, connecting objects, artifacts, data objects, and swim lanes.

21. Define analytical reporting.

A business analyst needs to understand the significance and the negative aspects of analytical reporting. It is one kind of business reporting that endeavors data analysis, recommendations, and information. The recommendations are complex attributes that separate it from informational reporting. 

22. What are the different types of actors in the use case diagram?

There are two types of actors can be seen in a Use case-
Primary actors – It starts the process
Secondary actors – It assists the primary actor
 Actors are categorized into four types:
Human, System, Hardware, Timer

23. What is Benchmarking? 

Benchmarking measures the performance of the company to excel in the industry. It is a very crucial process, in which a company can measure its policies, performance, rules, and regulations.

24. What are the problems that a business analyst may face?

From the proposal to post implementation of a project a business analyst may face the following problems:

  • Employees-related issues
  • Business model errors
  • Technology-related problems
  • Access related
  • Business policies related issues

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

The basic difference between Business analysis and Business analytics is that business analysis is mainly functions and process related and the Business Analytics is data related.
The business analysis notes the business needs and presents the solutions to those problems. Tools and techniques like SWOT, FIVE WHY, PESTEL, and CATWOE, are used for business analysis.
Business analytics rectifies the data, and manages and analyzes data to get insights into a business. it generates details and reports. Tools Big data, BI is used for this purpose.
There are four types of business analytics that are used, and they are – descriptive analytics, decisive analytics, prescriptive analytics, and predictive analytics.

26. What are the essential components of the Activity Diagram?

Some of the main features in an Activity diagram are : Initial nodes, guard conditions, control flows, a fork.

27. What documents does a business analyst require?

Some of the documents that a business analyst requires are:

  • Business requirement document
  • change the request document
  • functional requirement document
  • use-case specification document
  • initiation document
  • gap analysis document
  • system requirements
  • specification document
  • requirements traceability matrix

28. What are OLTP System?

On-Line Transaction Processing (OLTP) is a term that focuses on the processing of data on a computer network. Data entry and database generation are the primary functions of these systems.

29. What is the Agile Manifesto?

An agile manifesto is a software that highlights the Agile development principles which ensure iterative solutions.

30. What do you know about Kanban?

Kanban is a tool that helps the agile team to practically guide and manages the work as it progresses through the process. Besides, it manages the time in Agile just-in-time production. The Kanban board is used to explain the present development report.

31. What are the four key phases of business development?

The four key phases of business development:

  • Forming
  • Performing
  • Storming Norming

32. Explain the term ‘increment’.

Increment identifies as the collection of all the product backlog items completed in one process. The new increment value also includes the increment of the previous sprints.

33. What are the different types of Agile methodologies?

  • Some of the agile methodologies are:
  • Feature-driven development (FDD)
  • Crystal Methodology
  • DSDM (Dynamic Software Development Method)+
  • Scrum
  • Lean software development and Extreme Programming (XP)

    34. What is OLTP Systems?

    The transaction process is optimized by the OLTP systems in the database. This type of system is typically used to support applications that require online transaction processing (OLTP) systems.

    35. What are the effective skills to solve any problem as a business analyst?

    The most effective skills that a business analyst should possess are:

    • Leadership skill
    • Excellent communication skill
    • Problem analysis skill
    • Technical knowledge
    • Domain knowledge

    What are the Situational Specific Business Analytics Questions for the Interview

    1. Let us know your project-related work tactic.

    The recruiting manager wants to explore all about your planning, management, and performance techniques. You can shine bright by answering all the step-by-step processes, work breakdown structure, and constructive planning.
    Every business project is different and in different situations, it requires different project handling. Here are the essential steps to achieve the expected task successfully.
    Define the work plan, steps to follow, timeline, and delivery process.
    Define an actionable list of availabilities of resources.
    Make sure technical support is available.
    Create documentation and train the users for solution implementation.
    Make sure you have a clear idea about the project requirement, you should be aware of the stakeholder’s point of view; the perspective should be clear. 

    2. How will you handle multiple stakeholders in a project? How will you influence them? 

    Recruiter will definitely want to test for management, communication, problem-solving, decision-making, and negotiation skills. 
    Keep the approach clear; in case of handling difficult stakeholders, it is very important to make a strategy very tactfully. Apply the STAR method to explain the situation in front of you, and emphasize your task and exact role in the case. Make a plan and outline the structure with your approach to solving that particular problem. And in the end, explain every point precisely and make sure the solutions are well described to the client or the stakeholders.
    As a business analyst, you must be skill full in handling various types of people in various situations very tactfully.

    3. According to the business analysis what is the difference between the requirement and the need?

    There is a basic fundamental difference between the requirement and the need from a business analytics point of view. Requirements are very particular, relevant, and significant with a time frame defining exactly what the business goal is. Whereas the needs are the wider and broader views that explain the general problem. It is very essential for a business analyst to understand the needs of the business and convert them into practical measurable, relevant, and time-frame-constrained requirements.

    4. What documents are required for the non-functional requirement in business analytics?

    There are quite a few various types of documents that are used to capture non-functional requirements. One such document is called a use case. A use case can be utilized to understand information as to how the system should actually work with what capabilities.
    The next type of document is a business requirement document. This kind of document helps to capture the information o the business prospects of the system with the various functions it should perform. There is also technical documentation which is used to capture the technical information from the system with details on its process.

    5. What is your opinion on the role of a business analyst in the testing department?

    The involvement of a business analyst varies from project to project, it depends on the company and the end results to be delivered. However, it is any time a plus point from a business analyst's point of view to be able to contribute to the testing during the process of any project. By implementing the testing for any project the analyst can easily provide many valuable insights and solutions for the business that meets the final delivery output.

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