From Cost Center to Strategic Asset: Repositioning the Business Analysis Function in Digital-Era Enterprises

By Gianni Fracchia | Written: August 3, 2023 | Posted: April 20, 2026

Business analysis (BA) functions possess the process intelligence, stakeholder facilitation, and capability assessment expertise that digital transformation demands, yet most operate as transactional order-takers. This study investigates how BA functions achieve repositioning from transactional to strategic roles through a mixed-methods design combining a survey of 150 BA function leaders, qualitative analysis of 12 repositioning cases drawing on 53 interviews and 219 documents over 24 months, and content analysis of 325 job postings. Three positioning clusters emerged: Transactional (43%), Transitional (38%), and Strategic (19%), characterized by executive engagement, outcome-based metrics, and measurable organizational impact. Executive sponsorship continuity was the dominant predictor of strategic positioning (β = 0.42, p < 0.001), followed by digital transformation context (β = 0.31) and Business Analysis Centers of Excellence structure (β = 0.28). Maturity model formalization showed no significant relationship (β = 0.08, p = 0.378). Four interdependent repositioning mechanisms operated concurrently in every successful case. Sequential activation consistently failed. This study introduces the capability-perception gap as a mediating construct extending resource-based view theory to internal professional service functions, demonstrates that digital transformation creates temporary but actionable repositioning windows, and provides an evidence-based framework for BA leaders navigating the transition from cost center to strategic asset.

The study produced the following findings:

• Only 19% of BA functions achieved strategic positioning. The majority remained transactional (43%) or in transition (38%) despite possessing the analytical capabilities their organizations needed most.
• Executive sponsorship was the single strongest predictor of strategic positioning. Technical capability metrics, certification levels, and maturity model advancement showed significantly weaker associations with strategic outcomes than political factors.
• Capability maturity models showed no significant relationship to strategic positioning. Organizations that invested in maturity model advancement without addressing political positioning were solving the wrong problem.
• Digital transformation created temporary repositioning windows. Organizational flux during transformation initiatives enabled structural adjustments that stable periods rarely permitted. The first 6–12 months of a transformation initiative represented the window of maximum flexibility. BACoE leaders who missed these windows faced significantly longer paths to strategic positioning.
• Successful repositioning required four simultaneous mechanisms: language evolution, deliverable transformation, engagement model shift, and measurement redefinition. Activating fewer than four consistently produced incomplete transitions that reverted under pressure.

These findings have direct implications for practice:

• BA functions frequently hold strategic analytical capabilities that organizational perception has not yet recognized. Waiting for recognition to arrive organically is not a viable strategy. The data showed that perception did not self-correct without deliberate intervention.
• The four-phase repositioning progression that emerged from this research (assessment, quick wins demonstrating strategic value, structural changes in reporting and charter, and institutionalization through updated metrics and talent systems) provides an evidence-based sequence applicable across industries and organizational contexts. This progression is consistent with the case evidence and warrants consideration as a practical framework, though longitudinal validation across a larger sample would strengthen its prescriptive application.
• Digital transformation initiatives represented the highest-probability repositioning windows available. BACoE leaders should treat active transformation programs as strategic opportunities rather than operational demands.

This paper is part of an ongoing empirical research series on BACoEs available on the Research and Findings page.

The findings and frameworks in this research inform The Business of Analysis: How to Build, Launch, and Sustain a High-Performance Business Analysis Capability.

For consulting or speaking engagements informed by this research, visit the Contact page.