What is the primary purpose of impact analysis in business analysis?

The primary purpose of impact analysis in business analysis is to assess potential consequences of changes. This process involves evaluating how changes in a project, process, or product could affect various stakeholders, systems, and elements within an organization. By conducting an impact analysis, business analysts can identify risks, benefits, dependencies, and possible outcomes that may arise from a proposed change. This understanding facilitates informed decision-making and helps ensure that modifications align with strategic objectives while minimizing adverse effects.

Assessing potential consequences is crucial for ensuring that all aspects of a change are understood before implementation, enabling stakeholders to address concerns and design appropriate strategies for managing impacts. This proactive approach helps in optimizing resource allocation, preventing project delays, and improving the likelihood of project success.