ba tecniques

7/21/2019 BA Tecniques

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Lecture-2, delivered on 06 Aug 2015

Prof. Hemant Kumar JainB.Sc (PCM), M.Sc (Phy) , B. Tech (Telcom & Elec) , MDBA, MS (Comp. Sc.) USA



Business Analysis – Definition.BA – Techniques.Role of Business Analyst

Basic Tools for BABusiness Architecture from BA PerspectiveGuiding Principle for BA

Agenda

1-2



Thinking Exercise # 2

You are likely to receive an amount

between Rs 40k to Rs 1.0L. Thismoney is to be spent today only.Please think , anticipate andprepare a list of items with approxcost you would like to purchase asper given format

MY Wish ListCategory S. No Item Name

Cost in Rs(Approx)

Priority as 1,2,3,4,5 etcMust Buy Should Buy Could Buy Won't Buy

Clothing

123…

Books12



Business Analysis - Definitions

The methodical investigation, analysis, review anddocumentation of all or part of a business in terms ofbusiness functions and processes, the information usedand the data on which the information is based.

The definition of requirements for improving any aspect ofthe processes and systems and the quantification ofpotential business benefits. The creation of viablespecifications and acceptance criteria in preparation forthe construction of information and communicationsystems .



The breadth of Business Analysis ?

Business case

Business analysis

Requirements engineering

Solution development

Strategic analysis



Business case

Business analysis

Requirements engineering

Solution development

Strategic analysis

Sys tem s Think ing

Bu siness Arch i tec ture

Solu t ion A rch i tec ture

The breadth of Business Analysis ?



Business Analysis Techniques

Business Analyst



Some business analysis techniques

Critical success factorsContext diagramRich pictureFunction hierarchyNetwork architecture planWorkflow diagramOrganisation chartEntity relationship model (high-level)Business process modelHigh-level data flow diagramBusiness object model

Use case diagramUse case descriptionTechnical architecture modelFunctional dependencydiagramBusiness scenario modellingTask analysisBusiness event modelBusiness roles definitionLogical data modelClass modelRelational data analysis

Website navigation modelProcess dependency modellingObject interaction /collaboration diagramObject role modelsUser conceptual modelUser interface object modelScreen navigation designSystem event modellingState transition diagramState machine diagramObject dynamic model

SWOTPESTLEFive ForcesPower/interest gridMOSTResource auditBCG matrixBalanced business scorecardKey performance indicatorsCATWOEBusiness activity modelling

Event analysisPayback calculationDCF/NPV calculationInternal rate of returnBenefits managementBenefits realisationUser acceptance testingSwimlane diagramsBusiness process reengineeringBusiness process management

Process streamliningBusiness process redesignInterviewingWorkshopsQuestionnairesDocument analysisRecord searchingSpecial-purpose records

Activity samplingWork measurementPrototyping



More business analysis techniques

BrainstormingRound-robinColumns and clustersBodyguards and assassinsVernissageTalking wallForce-field analysisGreenfield siteTransporterPrioritisationTime beam

Cost/benefit analysisImpact analysisGap analysisStandard costingMarginal costing

Absorption costingRatio analysisMoSCoWOrganisation diagramReport writingPresentation techniques

And even then people said “ You’ve missed …….”



Role of Business Analyst

Business Analyst

Investigatingthe situation

Stimulatingthinking

Modellingbusiness

processes

Analyzingstrategy

Specifyinginformation

systems

Developingbusiness

case



1. Investigating the situation

Workshops

Special purposerecords

Activity sampling

Workmeasurement

Interviewing

Recordsearching

Documentanalysis

Questionnaires<<extend>>

<<extend>>

<<extend>>

<<extend>>

<<extend>>

<<extend>>

Business Analyst



2. Analysing strategy

<<extend>>

PESTLE

SWOT

Five forces

<<extend>>

MOST<<extend>>

Resourceaudit

<<extend>>

CATWOE

<<extend>>

Business Analyst

And many o ther techn iqu es



3. Business Process Modelling

Business process modelling, often called processmodelling, is the analytical representation orillustration of an organization’s business processes.

Along with business process discovery, process modeling iswidely viewed as a critical component in successfulbusiness process management (BPM).

It is used to map out an organization’s current (or “as -is”)processes to create a baseline for process improvementsand to design future (or “to -be”) processes with thoseimprovements incorporated.



3. Business Process Modelling Cont …

Business process modeling is mainly used to map a workflow, so that aBA can understand, analyze and make positive changes to thatworkflow or process. Different techniques used are :-

• Business process modeling notation (BPMN)• UML diagrams• Flowchart technique• Data flow diagrams• Role activity diagrams• Role interaction diagrams• Gantt charts• Integrated definition for function modeling• Colored petri-nets• Object oriented methods• Workflow technique• Simulation model



4. Stimulating Thinking

A Business Analyst has to follow a number of different modes of

thinking for solving a problem

1. Critical thinking is a form of reasoning that challenges thinking and beliefs todetermine what is true, partially true, or false. For example, a business analystthinking critically would question the problem statement to make sure that it is

the real problem statement and not the description of a symptom beforeproceeding with the analysis.

2. Strategic thinking as applied by an individual involves the generation andapplication of insights and opportunities that extend beyond the presenttimeframe. While system thinking provides the business analyst the larger view interms of breadth, depth and context, strategic thinking provides the businessanalyst a larger view in terms of time.



4. Stimulating Thinking (Cont ….)

3. System thinking is the process of viewing problems as parts of whole systems rather

than individual occurrences. The business analyst needs to view the organization and itsbusiness processes as a system or systems within systems to truly understand the impactsof the changes to the organization that the business analyst is bringing about.

4. Analytical thinking is essential to problem solving and goes hand in hand withcritical thinking. Critical thinking is specifically focused on thinking while analytical

thinking is focused on everything else. It is often difficult to see the complete problem orthe entire situation in which the problem exists under given complexities of business andtechnology. The business analyst breaks the larger picture into smaller more manageableimages to make examination and understanding easier.

5. Visual thinking is the only mode that might require a bit of predilection in that somepeople are more visual than others. But this thinking mode brings us all the way back tothe initial premise that we don’t think in words, but in images and concepts: visions

.



4. Stimulating Thinking (Cont ….)

A business analyst should first do:

1. Thinking beforereacting

2. Questioning beforeaccepting

3. Verifying beforeassuming

5. Understandingbefore judging

6. Analyzing beforeconcluding

4. Viewing the wholeprocess before focusing

in on the detail issue

7. Visualizing beforewriting



5. Developing a Business Case

A business case is an argument, usually documented, that is intended to convince a

decision maker to approve some kind of action. The document itself is sometimesreferred to as a business case. It should have :-

What is the problem we are trying to solve?What is the business opportunity?Problem

How can we address the problem or takeadvantage of the business opportunity?Solution

What are the viable options available toimplement the solution?Approach

What are the risk associated with each option?What is the risk of doing nothing ?

RiskAssessment

What business value is generated from eachoption?Value

Analysis



5. Developing a Business Case

Benefitsmanagement

Cost /benefitanalysis

Impactanalysis

Benefitsrealisation

Presentationtechniques

Paybackcalculation

IRR

DCF/ NPV

Gap analysis

Marginalcosting

Standardcosting

Absorptioncosting

Ratio analysis

Business Analyst

Report writing



6. Specifying Information System

1-20

The information system must facilitate:-• Rapid realization of business goals• Integration of independent processes and systems

• Multiple and Changing

• business requirements

• business processes• technologies• standards• enterprise boundaries• partners



SWOTAnalysis

Oppurtunity

Threats

Strengths

Weakness

Technique is credited to AlbertHumphrey who led a researchproject at Stanford University inthe 1960s and 1970s.

Planning tool used to understandStrengths, Weaknesses,Opportunities, & Threatsinvolved in a project / business.

Used as framework fororganizing and using data andinformation gained fromsituation analysis of internal andexternal environment.

SWOT Analysis



WEAKNESSES

Characteristics that place the firm ata disadvantage relative to others.

Detract the organization from its ability toattain the core goal and influence its growth.

Weaknesses are the factors which do not

meet the standards we feel they should meet.However, weaknesses are controllable. Theymust be minimized and eliminated .

Examples – 1. Limited financial resources,

2. Weak spending on R & D,3. Very narrow product line,4. Limited distribution & Higher costs,5. Out-of-date products / technology,6. Weak market image, Poor marketing skills,7. Limited management skills,8. Under-trained employees.

SWOT Analysis



OPPORTUNITIES

Chances to make greater profits in theenvironment - External attractive factors thatrepresent the reason for an organization toexist & develop .

Arise when an organization can take benefit ofconditions in its environment to plan andexecute strategies that enable it to become

more profitable.

Organization should be careful and recognizethe opportunities and grasp them wheneverthey arise..

Examples – 1. Rapid market growth,2. Rival firms are complacent,3. Changing customer needs/tastes,4. New uses for product discovered,5. Economic boom,6. Government deregulation,

7. Sales decline for a substitute product .

SWOT Analysis



!

THREATS

External elements in the environment thatcould cause trouble for the business - Externalfactors, beyond an organization’s control.

Arise when conditions in external environment jeopardize the reliability and profitability of theorganization’s business.

Compound the vulnerability when they relate tothe weaknesses. Threats are uncontrollable.When a threat comes, the stability and survivalcan be at stake.

Examples – 1. Entry of foreign competitors,2. Introduction of new substitute products,3. Product life cycle in decline,4. Changing customer needs/tastes,5. Rival firms adopt new strategies,6. Increased government regulation,7. Economic downturn.

SWOT Analysis



P – Political The current and potential influences from political pressures

E - Economic The local, national and world economic impact

S - Sociological

The ways in which changes in society affect the project

T - Technological How new and emerging technology affects our project / organization

L - Legal

How local, national and global legislation affects the project

E - Environmental Local, national and global environmental issues

PESTLE



M.O.S.T.

MissionA good mission is ambitious and essential to broader business success. It couldeven be the entire reason for the organisation’s existence. Once it has beenestablished, the rest of the M.O.S.T. analysis can begin.Missions should be reviewed when they have succeeded or found to be flawed.

ObjectivesA good objective sets a clear target to achieve within a tight time-frame. Ideally,it will complement your other objectives to compound successes across theM.O.S.T. analysis.Objectives should be reviewed if they are found not to help the mission.

Objectives should be Specific, Measurable, Achievable, Realistic and Timely(S.M.A.R.T.), otherwise goal-creep will set in and objectives will become fuzzyand difficult to implement.



Strategies

Strategies are the options open to achieve objectives. These may be quitecomplex, involving many tactics, and they may overlap to an extent. Strategiesare an implementation detail. Strategies offer a way to quickly review andgroup the tactics implemented on the ground floor, so they make sense asmethods to achieve your objectives.If strategies do not accurately describe the tactics being used, or do not workdirectly towards your objectives, you should review them.

TacticsTactics are the methods you will use to carry out your strategies. They shouldbe simple and relatively discrete processes that can easily be understood andcarried out even by people who don’t have a high -level overview of theM.O.S.T. analysis.A good tactic is small and S.M.A.R.T. With effective tactics, your strategies willquickly lead to completed objectives.



Resource Audit

Resource audit can be described as analysis orinspection of resources of an organization. It canalso be called as Internal Resource Analysis.Resources includes tangible as well as intangible.

The term audit has been derived from Latin word“audire ” which means hear. In simple terms audit

can be defined as official inspection.



Resource Audit

STRATEGIC IMPORTANCE OF RESOURCES:

Resources which an organization possess. Resourcesthat are deployed into the activities of theorganization to create competences. Resourcesinclude both those that are owned by the organizationand those that can accessed to support its strategies.

Resources are grouped under the following heads :

Physical Resources, Human Resource, FinancialResources, Intellectual capital



Resource Audit



CAT WOE

Customers Who are they, and how does the issue affect them?

ActorsWho is involved in the situation? Who will beinvolved in implementing solutions? And what willimpact their success?

Transformation ProcessWhat processes or systems are affected by theissue?

World View What is the big picture? And what are the widerimpacts of the issue?

OwnerWho owns the process or situation you areinvestigating? And what role will they play in thesolution?

Environmental Constraints What are the constraints and limitations that willimpact the solution and its success?



The Five Forces

Force

Entry

Rivalry

Substitutes

Buyers

Suppliers

Method for Neutralizing Force

Erect ing b arr iers (isola t ing m echanism s) create& exploit economies of scale, aggressivedeterrence, design in switching costs, etc.

Compete on n onpr ice d imens ions : cost

leadership, differentiation, cooperation, etc.

Imp rov e a t t ract iveness com pared to substitutes :better service, more features, etc..

Redu ce bu yer un iqueness : forward integrate,differentiate product, new customers, etc..

Redu ce supp l ier uniqu eness : backward integrate,obtain minority position, second source, etc..



Organisation

Processes People

Information&

Technology

POPIT™ – taking a holistic approach

Business Architecture Blueprints

BusinessMotivations



Organisation

Processes People

Information&

Technology



Business Models

External Business EnvironmentOrganisational CapabilitiesOrganisational Memory



Organisation

Processes People

Information&

Technology



Business Models


Value Propositions

Value ChainsCore Business ProcessesBusiness Services

Roles and Job DescriptionsSkills and CompetenciesManagement ActivitiesCultureCommunication

k h l h



Organisation

Processes People

Information&

Technology



Business Models


Value PropositionsValue ChainsCore Business ProcessesBusiness Services

Roles and Job DescriptionsSkills and CompetenciesManagement ActivitiesCultureCommunication

Business Information ModelsInformation StandardsTechnical ArchitectureApplication Architecture

PARADE



PARADE

PARADE : These 6 factors mean:• PROBLEM -- What is the problem an organization is facing/faced?

• ANTICIPATED CONSEQUENCE -- What consequence an organization will faceif this problem continued without resolution?

• ROLE -- What was the role of a employee in resolving this problem?

• ACTION -- What action has been taken by an employee

• DECISION-MAKING RATIONALE – Explanation of the action taken. Optionconsidered? What other options were available? Why other options werenot chosen? Why this specific decision? What quantitative & qualitative datahas been considered?

• END-RESULT -- After an action has been taken, what happened? What wasthe outcome? Be specific -- when possible, cite a quantitatively measurableoutcome.



Rich Picture

Rich pictures are a strategy of Soft Systems Methodology(SSM), in which complex situations are represented in a largediagram with pictures and symbols. The principle behind richpictures is that drawing detailed representations ofproblematic situations can be a tool to organize thoughts,

better understand what is going on in the system, andidentify root problems. As such, the value of rich pictures isthat it encourages people to think deeply about the problemand understand it well enough to express it pictorially.

A Rich Picture is a way to explore, acknowledge and define asituation and express it through diagrams to create apreliminary mental model. A rich picture helps to opendiscussion and come to a broad, shared understanding of asituation.

Rich Picture



Rich PictureConstruction of Humper Bridge

Rich Picture



Rich Picture



Timebox Development

CSE 4317 44

The Timebox

Build &Evolve

Prototype P r o

t o t y p e

R e q u e s

t f o r

C h a n g eSystem

Definition/Priorities

Product

RequiresModifications/

Rejected

End-userReview &Feedback

Review BoardNeed for large-scale change orenhancement

Evaluate/DeliverSystem



A CRUD matrix (Create, Read, Update, Delete) is a table thatshows the links between processes and data, or betweenprocesses and resources. When a link exists, it shows whetherthe process performs a Create, Read, Update, or Deleteoperation on the data or resource.

When the CRUD matrix shows the links between a process anda data, it is called a Data CRUD matrix.

When the CRUD matrix shows the links between a process anda resource, it is called a Resource CRUD matrix.

CRUD Matrix



CRUD Matrix

Wh t i B i A hit t ?



What is Business Architecture?

“The structure and behaviour of a business system . Covering business functions

or capabilities, business processes and the roles of the actors involved in these.

Business functions and business processes are mapped to the business goalsand business services they support, and the applications and data they need”

"A blueprint of the enterprise that provides a common understanding of theorganization and is used to align strategic objectives and tactical demands."

“The business strategy, governance, organization, and key business processes.” TOGAF

or simply:

Business Architecture Guild



Uses of a Business Architecture

Develop a perspective on an organisation’s strategic/competitive

differentiators , and fully understand what it is and what it is doing

Understand the key value streams used to deliver its value proposition

Provide a way to quickly and effectively implement strategy throughdefined approaches, processes and organisation wide frameworks

Make better-informed and more comprehensive business decisions

Solve complex enterprise business problems

Define detailed business needs , to be used as input for business and ITsolutions

Ensure the success of an overall Architecture by serving as the drivingforce for the IT Architecture

Business Architecture fit within an organisation



Business Architecture fit within an organisation

Strategy Architecture Execution

Strategy drives changes toArchitecture

Architecture informs andrefines Strategy

Architecture translatesStrategy for Execution

Execution enables andgenerates improvements to

Architecture

Creates a direct, clear linkage between executive intent and organisational action

Provides a structured approach to making strategic and operational investment decisions



The role of the Business Architect

The Business Architect converts high-level business strategyand business needs …….

……. into an integrated vision of the future

……. and then redesigns the business capabilitiesnecessary to deliver the goals of the vision .

This provides a holistic, complete and co-ordinatedset of business models the best of which becomeroadmaps for future profit and growth.

These roadmaps can then broken down into initiativesfor implementation

B i A hit t F k



Business Architecture views(Blueprints)

Business

ArchitectureScenarios

Business Architecture Framework

BusinessMotivations

xamples of Business Architecture documentation



xamples of Business Architecture documentation

• Business Context• Business glossary of terminology and concepts• Business capabilities (represented in a Business

Capability Model)

• Detailed Business Capabilities (Business Requirements)• High level business processes (often represented in avalue stream model)

• More detailed business processes and workflows• Organisational units and roles• Business rules• Business data elements and metrics

S h d thi ff t R i t E i ?



So how does this effect Requirements Engineers?

• To contribute to the bottom-up construction of theBusiness Architecture

• Help evaluate business ideas and initiatives

• Assess impact of suggested changes

• Encourage re-use

• Model using architecture artefacts

• Understand knock-on effects of change

• Ensure changes are reflected back into the architecture



Guiding principles for business analysis

• Root causes: not symptoms

• Business improvement: not IT system change

• Creative options: not prescribed solutions

• Feasible requirements: not all suggestions

• Entire lifecycle: not just requirements definition

• Negotiation: not conflict avoidance

• Business agility: not business perfection

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