Analysis

The term analysis describes the process of segmentation or differentiation of a more complex entirety or fact into smaller segments or parts. It involves a break-down of characteristics, relationships and facts; emanating from the entity to the individual parts. This is in contrast to a synthesis, where the process occurs from the parts to the whole unit.

The application of analysis in practice: Analysis is one of the fundamental methods used in the evaluation of a situation or a system. In practice, there exist many concrete methodologies or analytical techniques which define the process of the analysis of a specific situation or system. An analysis makes it possible to discover different characteristics of phenomena, processes, systems and their make-up; it allows for the separation of their parts or conflicting tendencies, etc. Analysis makes it possible to separate the significant aspects from the insignificant ones and to distinguish between permanent and accidental relationships. Some kind of application of analytical techniques can be found in almost all aspects of entrepreneurship and management – it is possible to analyse the state of something, e.g. an organization and its parts (see organizational architecture) or an organization´s information system. It is also possible to analyse foundations or results of an activity retroactively and draw (either through induction or deduction) conclusions or gain suggestion or proposals for improvement. Analysis is fundamental for almost all areas of management, it is used in quality management, (see for example the PDCA cycle), strategic management, security and risk management, finance management and a number of other areas.