Business analysis in software development: guide for entrepreneurs (2025)

Are you exploring the option of partnering with a business analyst to ensure your software project avoids unnecessary costs? In this guide, you’ll learn all the ins and outs of business analysis in software development, so you can make an informed decision.

Imagine launching a software project, only to find out months later that half the features are unnecessary, the budget is gone, deadlines are missed, and stakeholders are frustrated. Hopefully, that’s not the case for your company. But how do you prevent such a nightmare? Business analysis can make all the difference.

Research conducted by McKinsey and the University of Oxford on more than 5,400 IT projects revealed a harsh reality – they routinely spiral out of control. On average, they go 45% over budget, take 7% longer, and deliver 56% less value than expected. Software projects are the most at risk.

Projects fail due to unclear objectives, misaligned expectations, and constant scope changes. When teams operate on assumptions, priorities shift mid-development, and features get built without proper validation. This leads to wasted resources and software that fails to deliver real value.

But what if every feature was carefully planned? What if software development followed a roadmap based on real business needs and user demands? Business analysis isn’t just an extra step – it’s the foundation of a successful software project.

In this article, you’ll explore:

• What business analysis is and how it increases chances of software success.
• Why BA is essential to prevent failure, reduce costs, and align development with business goals.
• How BA fits into each stage of software development.
• Real-world examples of how BA has saved companies hundreds of thousands of dollars.

At Volpis, we have experienced business analysts ready to help you navigate the process and ensure your project’s success. If you have any questions about how business analysis can benefit you, you can always reach out to us at info@volpis.com 

What is business analysis in software development?

Business analysis is the process of identifying business needs and transforming them into clear, structured requirements for software development.

Think of software development as constructing a building. Without a detailed blueprint, developers might add unnecessary rooms, forget key structural elements, or miscalculate costs. 

A business analyst is like an architect, ensuring that the software is designed efficiently, strategically, and with a clear vision in mind.

What exactly does a business analyst do?

A business analyst acts as the bridge between business stakeholders and technical teams. Their job is not just gathering requirements – it’s about ensuring software is strategic, efficient, and aligned with long-term goals.

A BA’s role is all about clarity, communication, and problem-solving, ensuring that software meets business needs while staying technically feasible. They help businesses:

• Define goals and functional requirements to ensure the software meets real needs.
• Set clear project scope to prevent unnecessary feature creep.
• Create specifications and documentation that developers and designers can follow.
• Validate decisions with data and research rather than assumptions.
• Ensure efficient communication between business leaders, product managers, and developers.

Without a business analyst, software projects often lack structure, direction, and validation, leading to costly mistakes. With a BA, development stays focused, efficient, and outcome-driven.

Role of business analysis in each stage of the software development process

Business analysis isn’t a single step, it’s woven throughout the entire software development process. From defining the initial idea to tracking long-term performance, a business analyst ensures that development is strategic, efficient, and aligned with business goals. With BA, every phase of development is structured, validated, and optimized for success.

1) Discovery phase: setting the foundation for success

Before any development begins, it’s essential to understand the problem, define objectives, and ensure feasibility. The discovery phase is where the BA shapes the project vision and aligns all stakeholders.

• Validating the business idea – Does this product solve a real problem? What are competitors doing?
• Competitor analysis – BA conducts thorough research on existing solutions to identify market gaps, assess competitor strengths and weaknesses, and uncover opportunities for differentiation.
• Defining clear business goals – What does success look like? Who are the users? What should the software achieve?
• Aligning stakeholders – Ensuring business leaders, product managers, and development teams share the same vision.
• Defining key requirements for the project – High-level Functional Requirements (what features should the software have?) and non-functional requirements (What performance, security, and scalability factors need to be considered?)
• Identifying risks: documenting potential risks (technical, business, compliance) and suggesting mitigation strategies to reduce project uncertainties
• Supporting the creation of a roadmap for the following phases: prioritizing features based on business value and feasibility, assisting in defining the project scope and roadmap, and helping the team estimate effort.

2) Design phase: when visual solutions take shape

This is where the blueprint is created, and the BA ensures that the blueprint is sound. The BA plays a crucial role in the design phase, ensuring that the end product will meet business objectives and user needs.

• Requirements elaboration – The BA takes the high-level requirements gathered in earlier phases and transforms them into actionable specifications for the design and development teams. This includes user flow definition (mapping out how users will interact with the system in detail) and functional specification documentation (creating documentation that describes how the system should behave). Later on this serves as the definitive guide for developers.
• Design validation – The BA acts as a bridge between business needs, user expectations, and technical possibilities. This involves validating that proposed designs adhere to both business and user requirements, ensuring the final product delivers the intended value, and working with developers to ensure that the design is technically feasible and can be implemented within the project constraints.
• Usability testing coordination – Gathering feedback on the designs from real users helps identify and address potential usability issues early on.
• Facilitating communication – Acting as a liaison between business stakeholders and UX/UI designers, ensuring that everyone is on the same page.
• Content strategy support – Collaborating with content creators to ensure that the content within the application is clear, concise, and user-friendly. This includes contributing to UX writing, user manuals, and tutorials.
• Scope management and prioritization – The BA ensures that the design phase focuses on essential features and functionalities, preventing scope creep and keeping the project on track.

3) Development phase: keeping the project on track

Even with a strong plan, software development is dynamic—priorities shift, challenges arise, and unexpected questions emerge. BA ensures that the project stays focused and aligned with business goals.

• Managing scope – Ensuring that only essential features are built first.
• Answering developer questions – Providing clarity on requirements, logic, and edge cases.
• Facilitating communication – Ensuring that business goals and technical decisions remain aligned.
• Validating features – Checking if completed work meets expectations before moving forward.

4) Post-launch phase: driving continuous improvement

A software launch is not the finish line—it’s the beginning of real-world testing and iteration. BA helps track performance, gather feedback, and guide future improvements.

• Measuring success – Are users engaging with the software as expected?
• Identifying gaps – Which features need improvement or removal? 
• Optimizing for growth – What should be added in future updates? 

A great product never stands still, new features keep it moving forward. As business needs change, the BA continuously gathers insights, refines requirements, and helps shape the product roadmap for future updates. Software development requires constant iteration, and a business analyst ensures that every enhancement is backed by data and business value.

Why is business analysis essential for the success of a software development project? 

Without business analysis, software projects can quickly turn into expensive, chaotic experiments. It bridges the gap between ideas and execution, ensuring projects stay on track, within budget, and truly solve business problems.

1) Preventing scope creep & unnecessary features

One of the biggest reasons software projects fail is scope creep – when stakeholders keep requesting “just one more feature.” These additions may seem harmless, but they inflate costs, delay timelines, and dilute the product’s core value.

Example: A logistics company initially planned a real-time tracking feature. After BA analysis, they realized a scheduled update system would achieve the same goal at 50% lower cost—saving $200K in unnecessary development.

2) Reducing development costs by eliminating guesswork

Software development is expensive, and every hour spent on unnecessary work drives up costs. BA ensures that development is focused on building only what’s necessary, nothing more. Business analyst facilitates priority setting and stakeholder involvement.

Example: A healthcare startup spent months building a complex patient portal—only to find that most users preferred phone support over digital interaction. A BA could have identified this upfront, saving hundreds of hours in wasted development.

3) Ensuring regulatory compliance 

Many industries, such as healthcare, finance, and e-commerce, must adhere to strict regulations. BA helps identify legal and security requirements early, preventing costly compliance issues.

Example: A banking app integrated AI-driven transaction approvals, but a business analyst revealed that local regulations required human oversight for high-value transactions. Addressing this early saved the company from potential legal fines and reputational damage. 

4) Being a bridge between technical teams, executives, and end-users

Business analysts translate business needs into software requirements, ensuring everyone is aligned and reducing misunderstandings. BA communicates fluently in both business and technical jargon, bridging the communication gap between stakeholders. They know when to involve stakeholders in the development process and how to explain technical points.

Also, BA is the main contact for the design team, always ready to clarify business goals and user needs. BA brings a comprehensive understanding of the system (technical aspects, user needs, business goals) to the design process to facilitate balanced design decision-making and is the first to approve designs. This helps save time.

Example: In a retail ERP project, a vague requirement led to a misunderstanding by the IT team, causing a six-month delay. Once a BA joined, they clarified the requirements early, preventing further misalignment and keeping the project on track.

5) Maintaining project focus and development process efficiency

BA ensures that software projects remain aligned with their original goals by documenting precise business and user requirements. This prevents distractions, conflicting priorities, and shifting objectives that can derail development.

Clear acceptance criteria set from the start help developers focus on coding, leading to faster development.

Example: A fintech startup wanted to launch a mobile banking app. Initially, stakeholders suggested multiple additional features like gamification and investment tracking. The BA prioritized core functionalities, ensuring the product was launched on time with essential banking features, avoiding unnecessary delays.

6) Risk mitigation

Business analyst identifies potential risks and constraints early in the project, preventing costly surprises during development. By asking the right (and sometimes complicated) questions, they uncover hidden dependencies, regulatory issues, and technical limitations before they become major roadblocks.

BA analyzes user feedback data to identify trends and areas for improvement. Offers alternative solutions and recommendations in response to identified issues.

Example: A SaaS company planned to integrate third-party APIs for payment processing. The BA discovered early on that the chosen API had compliance limitations in certain regions. Addressing this upfront saved the company from legal complications and costly mid-project changes.

7) Future-proofing your software 

BA anticipates future user needs and technological advancements, ensuring the product remains adaptable and relevant. This proactive approach minimizes costly redesigns and ensures long-term usability.

Example: A retail chain was implementing a new customer loyalty program. The BA conducted extensive user research and market analysis, revealing that while competitors focused on point-based rewards, customers were increasingly interested in personalized experiences. By designing a flexible reward structure upfront that could include various benefits (exclusive events, early sale access), the company easily adapted when consumer preferences shifted from monetary to experiential rewards, avoiding costly restructuring and retaining customer satisfaction.

8) Transparency of expectations and results

BA ensures transparency throughout the development process by continuously building a comprehensive product documentation pool. This documentation tracks project progress, clarifies expectations, and records decisions made during development. It serves as a valuable asset not only for future reference but also for evaluating the solution post-launch. 

Example: In a mobile banking app project, the BA kept detailed documentation of user requirements, technical specifications, and design changes. When unexpected issues arose during development, the documentation helped the team quickly address challenges and align with stakeholders. After launch, the documentation was used to evaluate the app’s performance and plan future updates.

How does a business analyst work with other product development team members

A business analyst connects different roles in a software team, ensuring smooth communication and clear requirements. Here’s how they collaborate with key players:

BA & Product Owner 

BAs work closely with Product Owners (POs) to maximize product value. Often, a BA takes on some PO responsibilities, acting as a Proxy Product Owner (PPO). This helps the PO focus on strategy while the BA handles day-to-day questions from the team, especially across time zones.

BA & Technical Lead

BAs understand business needs, while Tech Leads focus on technology. Together, they find the best technical solutions for business goals, improving project estimates and ensuring a predictable delivery timeline.

BA & Quality Assurance

Testers rely on BAs to clarify how the product should work. BAs help prioritize issues, define test cases, and ensure quality aligns with business goals, making testing more effective.

BA & Project Manager

BAs and PMs work together to align product features with project goals. BAs help define scope, communicate changes, and ensure requirements fit the business needs, while PMs integrate this into planning and approvals.

Our experience: implementing BA for cost-efficient AR landscaping software development & successful MVP launch 

The impact of business analysis isn’t theoretical, it has transformed many software projects by preventing failures, optimizing costs, and ensuring alignment with business needs. Let’s take a look at a case study on how our team at Volpis utilized business analysis to build a solid foundation for developing an AR-powered landscaping application.

Problem:

The owners of a landscaping company recognized the need for an IT solution that would help users visualize landscape designs using AR technology and execute them in real life. They had developed a detailed design concept for the app but needed expert support to refine it and ensure a structured development process.

How business analysis helped:

During the discovery phase, BA performed a thorough evaluation of the existing design and collaborated closely with the client to refine and structure the product. This process included:

• Business analysis workshops – Held regular sessions to elicit and document requirements.
• Design gap analysis – Validated user flows, identified usability gaps, and suggested improvements.
• Feature prioritization – Defined the most critical features for the MVP.
• Information architecture mapping – Structured screen relationships and documented essential content.
• System context analysis – Identified and evaluated necessary integrations.
• Risk analysis & mitigation – Assessed potential risks related to integrations and complex functionalities (e.g., handling 2D and 3D objects).
• Entity-relationship diagram – Designed the database structure.
• Requirements documentation – Defined all necessary functional and non-functional requirements.

Solution:

• Refined and validated user flows, addressing design gaps and adding missing flows.
• Structured and documented all requirements, creating a solid foundation for development.
• Shifted focus to an MVP strategy, defining a core feature set to efficiently test the concept in the market.

Result:

• A clear implementation roadmap backed by comprehensive product documentation.
• A streamlined development process fully aligned with the client’s vision, minimizing rework and uncertainty.
• A successful MVP launch which enabled the client to test the concept and market fit while optimizing time and resources before full-scale development.

Business analysis structured the product, refined requirements, and minimized the risk of misalignment with client expectations. This laid the foundation for a cost-efficient development process and a strategically prioritized MVP.

Does your project need a full-time or part-time business analyst?

A business analyst isn’t always a full-time role from start to finish. Their involvement depends on the project’s complexity and stage of development. The key question isn’t whether you need a BA, but how much risk your project can afford without one.

• At the beginning of the project, a BA plays a crucial role in gathering business and technical requirements, aligning stakeholders, and setting a clear development roadmap. This is often a full-time effort to ensure all teams have a shared understanding before execution begins.
• During active development, the BA’s role shifts to part-time engagement, stepping in to resolve requirement ambiguities, prevent scope creep, and facilitate communication between business and technical teams. Their presence ensures that development stays aligned with business objectives, reducing costly misunderstandings.
• In the post-launch phase, the BA continues to provide value by analyzing user feedback, assessing performance metrics, and identifying opportunities for optimization. Additionally, they play a key role in planning and defining new features, ensuring that future iterations align with business needs and market demands. Their insights help shape the product roadmap, prioritize enhancements, and prevent ad-hoc decision-making that could lead to inefficiencies.

Some teams try to proceed without a BA, but that often leads to misaligned priorities, rework, and inefficient development cycles. A well-integrated BA ensures every decision drives business value, preventing delays and unnecessary costs.

So before skipping this role, ask yourself: Is your project structured enough to avoid confusion, inefficiencies, and costly mistakes?

So, should you involve a business analyst in your project or not?

In software development, success isn’t just about writing code, it’s about building the right product. Business analysis is the missing link that ensures every decision is driven by data, not assumptions. But is involving a BA always necessary? 

Some companies hesitate, believing they can manage without one. Let’s break down the most common objections and see if that assumption holds up.

Concern 1: “We already know what we need. A BA is unnecessary.”

Reality: Many projects start with a high-level vision but lack clearly defined and validated requirements. Without a BA, assumptions turn into miscommunications, leading to costly rework. BA ensures that initial ideas are structured, prioritized, and aligned with real business and user needs.

Concern 2: “Our developers can gather requirements themselves.”

Reality: While developers are skilled at building software, their expertise lies in technical implementation, not business problem-solving. A BA bridges the gap between business needs and technical execution, ensuring that requirements are well-defined, feasible, and prevent scope creep. Also, when a developer takes on the BA role, they’re not focusing on their core task – software development. This leads to shifted development timelines and increased costs due to the developer’s time being spent on non-development activities.

Concern 3: “BA adds extra costs to the project.”

Reality: While hiring a BA adds upfront costs, it prevents much larger expenses down the road by avoiding unnecessary development, misalignment, and rework. Studies show that correcting a defect after release is 100x more expensive than fixing it during the planning stage.

Concern 4: “Our project is small. We don’t need a BA.”

Reality: Even small projects can benefit from clear scope, structured decision-making, and risk prevention. However, BA involvement is not always a full-time role. For smaller projects, a BA may only be needed during the initial planning and validation stages, while larger projects may require ongoing engagement.

Concern 5: “We can just iterate and figure things out as we go.”

Reality: While an agile approach is great for flexibility, it doesn’t mean skipping planning altogether. Without a BA, iteration often turns into guesswork, causing delays and budget overruns. BA helps teams balance flexibility with strategic decision-making, ensuring each iteration delivers real value rather than just reacting to problems.

Volpis – your trusted business analysis & software development partner 

Regularly ranked among the top custom software development companies on Clutch, Volpis leverages the expertise of our BA team to help business owners achieve unparalleled milestones through innovative technology solutions.

From the initial discovery phase through to deployment, our BAs work closely with clients to understand their unique objectives and user needs. They meticulously gather and document requirements, facilitate clear communication between stakeholders and development teams, and provide continuous support to ensure that the final software solution aligns perfectly with the client’s vision.

We invite you to explore our portfolio for a detailed look at the innovative software solutions we have developed for our cherished clients.

Read more reviews from our valuable customers here

We’d love to answer any questions you may have about business analysis during the software development process. You can always connect with us via info@volpis.com to clarify any concerns or to explore how we can be part of your journey.

Kostya Khuta( Chief executive officer at Volpis )

Kostya Khuta, the CEO of Volpis, is an expert in crafting custom software solutions for the Fleet Management, Logistics, and Transportation industry. With over 8 years of experience, he leads the way in delivering innovative and tailored solutions to meet industry-specific needs.