babok study group - meeting 2

05/01/2023 1

BABOKStudyGroup

Meeting 2. Enterprise Analysis

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AgendaChapter 5. Enterprise Analysis Techniques:• 9.2 Benchmarking• 9.8 Decision analysis• 9.12 Functional decomposition • 9.16 Metrics and KPIs • 9.24 Risk Analysis• 9.25 Root Cause Analysis• 9.27 Scope modeling• 9.32 SWOT Analysis

http://zubkiewicz.comPaweł Zubkiewicz


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BABOK – Knowledge Areas & Tasks

http://zubkiewicz.comPaweł ZubkiewiczSource: www.projerra.ca

5.4 Define Solution Scope

The sun icon marks tasks from which business analysis usually starts.


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5 – Enterprise Analysis



Paweł Zubkiewicz 5http://zubkiewicz.com

Task Name Inputs Elements Techniques Stakeholders Outputs5.1 Define Business Need Identify and define why a change to organizational systems or capabilities is required.

Business Goals and ObjectivesRequirements [Stated] Implicit Input: BA plan(s) (2.3)

1. Business Goals and Objectives (+SMART)

2. Business Problem or Opportunity

3. Desired Outcome

General:Benchmarking (9.2)Brainstorming (9.3)Business Rules Analysis(9.4)Focus Groups (9.11)Functional Decomposition (9.12)Root Cause Analysis (9.25)

Customer or SupplierDomain SMEEnd UserImplementation SMERegulatorSponsor

Business Need Implicit Output: BA perf metrics

5.2 Asses Capability Gaps To identify new capabilities required by the enterprise to meet the business need

Business Need (5.1)Enterprise ArchitectureSolution Performance Assessment Implicit Input: BA plan(s) (2.3)

1. Current Capability Analysis

2. Assessment of New Capability Requirements

3. Assumptions

General:Document Analysis (9.9)SWOT Analysis (9.32)

CustomerSupplierDomain SMEEnd UserImplementation SMESponsor

Required Capabilities (5.2) Implicit Output: BA perf metrics

5.3 Determine Solution Approach To determine the most viable solution approach to meet the business need in enough detail to allow for definition of solution scope and prepare the business case.

Business Need (5.1)OPAs – Org. process AssetsRequired Capabilities(5.2) Implicit Input: BA plan(s) (2.3)

1. Alternative Generation

2. Assumption and Constraints

3. Ranking and Selection of Approaches

General: Benchmarking (9.2)Brainstorming (9.3)Decision Analysis (9.8)Estimation (9.10)SWOT Analysis (9.32) Other:Feasibility Analysis

CustomerDomain SMEEnd userSupplierImplementation SMESponsor

Solution Approach (5.3) Implicit Output: BA perf metrics

5.4 Define Solution Scope To define which new capabilities a project or iteration will deliver.

Business Need (5.1)Required Capabilities (5.2)Solution Approach (5.3)Assumptions and Constrains (6.4) Implicit Input: BA plan(s) (2.3)

1. Solution Scope Definition

2. Implementation Approach

3. Dependencies

General: Functional Decomposition (9.12)Interface Analysis (9.13)Scope Modeling (9.27)User Stories (9.33) Other:Problem or Vision Statement

Domain SMEImplementation SMEProject MangerSponsor

Solution Scope (5.4) Implicit Output: BA perf metrics

5.5 Define Business Case To determine if an organization can justify the investment required to deliver a proposed solution.

Business Need (5.1)Solution Scope (5.4)Assumptions and Constrains (6.4)Stakeholder Concerns (3.3) Implicit Input: BA plan(s) (2.3)

1. Benefits2. Costs3. (initial) Risk

Assessment4. Results

Measurement

General: Decision Analysis (9.8)Estimation (9.10)Metrics and Key Performance Indicators (9.16)Risk Analysis (9.24)SWOT Analysis (9.32)Vendor Assessment (9.34)

SponsorDomain SMEImplementation SMEProject Manger

Business Case (5.5) Implicit Output: BA perf metrics

5 – Enterprise Analysis


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5.1 Business NeedNew business needs can be generated in several different ways:• From the top down − the need

to achieve a strategic goal• From the bottom up − a

problem with the current state of a process, function or system

• From middle management − a manager needs additional information to make sound decisions or must perform additional functions to meet business objectives

• From external drivers − driven by customer demand or business competition in the marketplace


Elements:• Business Goal vs. Objective• Business Problem or

Opportunity• Desired outcome


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5.2 Assess Capability Gaps

What is a capability?Capability - A function of an organization that enables it to achieve a business goal or objective.

A business capability is a particular ability or capacity that a business may possess or exchange to achieve a specific purpose or outcome. A capability describes what the business does (outcomes and service levels) that creates value for customers; for example, pay employee or ship product. A business capability abstracts and encapsulates the people, process/procedures, technology, and information into the essential building blocks needed to facilitate performance improvement and redesign analysis.

Source: A Business-Oriented Foundation for Service Orientation, Microsoft


http://msdn.microsoft.com/en-us/library/aa479368.aspx


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Change may be needed to any component of the enterprise, including (but not limited to): • business processes, • functions, • lines of business, • organization structures, • staff competencies, • knowledge and skills, • training, • facilities, desktop tools, • organization locations, • data and information, • application systems and/or

technology infrastructure.


Elements:• Current Capability

Analysis• Assessment of New

Capability Requirements

• Assumptions


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5.3 Determine Solution Approach

Some possible approaches include:• Utilize additional capabilities

of existing software/hardware that already is available within the organization

• Purchase or lease software/hardware from a supplier

• Design and develop custom software

• Add resources to the business or make organizational changes

• Change the business procedures/processes


Solution approach:• High level description

or picture of the solution idea used to help the stakeholders envision the change.

• It describes the general direction of the solution.


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Feasibility analysis (5.3.5)• Deliverable: feasibility

study• Is a way to assess options• We look at each option

from different perspectives such as technological, operational, schedule, and financial, and decide if it is possible given our environment and constrains.


Elements:• Alternative Generation• Assumptions and

Constraints (5.3.4.2)• Ranking and Selection

of ApproachesTechnique:• feasibility analysis


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Domain scope

Solution / Product scope

Project scope

Scope of BA Work

• Area undergoing analysis

• Capabilities needed to meet a business need

• Work needed to implement the solution

• BA work needed to support the project





Domain scope

Solution / Product scope

Project scope

Scope of BA Work

• Area undergoing analysis

• Capabilities needed to meet a business need

• Work needed to implement the solution

• BA work needed to support the project


Solution ScopeThe set of capabilities a

solution must deliver in order to meet the business need. See

also scope.

Product ScopeThe features and functions that characterize a product, service

or result.

SolutionA solution meets a business

need by resolving a problem or allowing an organization to

take advantage of an opportunity.

ProductA solution or component of a solution that is the result of a

project.



5.4 Define Solution ScopeTechnique: Problem or Vision StatementA problem or vision statement states the business need, identifies key stakeholders, and briefly describes the positive impact that meeting the business need will have on those stakeholders.


Elements:• Solution Scope

Definition• Implementation

Approach• Dependencies



5.5 Define Business CaseThe business case describes the justification for the project in terms of the value to be added to the business as a result of the deployed solution, as compared to the cost to develop and operate the solution.


Elements• Benefits• Costs• (initial) Risk

assessment• Results Measurement

Can be simple statement

If we fix this problem we will save 10 000 USD per year

Or complex analysis

Lots of tangible and intangible benefits & costs, and risks



For the exam!• At the end of Enterprise Analysis we have

deliverables:o Solution approach (is not a Business requirement)o Business requirements

• Business need • Required capabilities• Solution scope• Business case



05/01/2023Paweł Zubkiewicz 17

Q&A• Questions about tasks?


Techniques




9.2 Benchmarking


Technique Description

Elements Advantages DisadvantagesUsage Purpose

9.2 Benchmarking Benchmark studies are performed to compare the strengths and weaknesses of an organization against its peers and competitors.

• Identify the area to be studied

• Identify organizations that are leaders in the sector

• Conduct a survey of selected organizations to understand their practices

• Arrange for visits to best-in-class organizations

• Develop a project proposal to implement the best practices

Benchmarking provides organizations with information about new and different methods, ideas, and tools to improve organizational performance.

Benchmarking is time consuming. In addition, organizations may not have the expertise to conduct the analysis and acquire or interpret useful competitive information. benchmarking cannot produce innovative solutions or solutions that will produce a sustainable competitive advantage because it “copies” others

5.1 Define Business Need

Understanding what competing organizations and peers are doing allows the organization to remain at a comparable level of service or identify opportunities to increase efficiency.


Identify solution approaches that have proven effective in other organizations.



9.8 Decision analysisTechnique Description

Elements Advantages Disadvantages Usage Purpose

9.8 Decision Analysis To support decision-making when dealing with complex, difficult, or uncertain situations

1) Outcomes: Financial Analysis; Non-Financial Outcomes2) Uncertainty3) Trade-offs Decision trees

Decision analysis provides an effective technique to determine the expected value of an alternative scenario to the organization. Using consistent financial justification techniques in all business cases provides decision makers with quantitative measures upon which to make project investment decisions. Decision analysis may force stakeholders to honestly assess the importance they place on different alternatives.

Decision analysis requires specialized knowledge and skills, including mathematical knowledge, an understanding of probability, and similar concepts. The results of decision analysis may be treated as more certain than they actually are, if decision-makers do not understand the limitations of the model and the assumptions behind it. Decision-makers may be reluctant to revisit decisions, even when more information is available on areas of uncertainty that might change the optimal decision.

2.1 Plan BA ApproachMay be used to rate available methodologies against the organizational needs and objectives.

2.5 Plan Requirements Management Process

Can be used to assess the possible value delivered by a change and assess areas of uncertainty.


Rank and select possible solution approaches.

5.5 Define Business Case

Cost-benefit analysis compares the costs of implementing a solution against the benefits to be gained. Financial analysis includes the use of financial models that estimate the market value of an organizational asset

6.1 Prioritize RequirementsDecision analysis may be used to identify high-value requirements.

7.1 Assess Proposed SolutionDecision analysis methods directly support the assessment and ranking of solution options.

7.2 Allocate RequirementsCan be used to estimate the value associated with different allocation decisions and optimize those decisions

7.6 Evaluate Solution Performance

A cost/benefit analysis is typically used to determine the financial impact of the solution on the organization. While critical, it is important to ensure that non-financial costs (including opportunity cost) and benefits are evaluated.http://zubkiewicz.com

Definitions:• Return on

investment (ROI)• Discounted Cash

Flow• Net Present Value

(NPV)• Internal Rate of

Returns (IRR)• Payback period



9.12 Functional decomposition


Elements Advantages DisadvantagesUsage Purpose

9.12 Functional Decomposition To decompose processes, functional areas, or deliverables into their component parts and allow each part to be analyzed independently.

Similar to WBS

Creates a conceptual model of the work that needs to be completed to deliver the new business solution. Provides all stakeholders with a consistent view of the scope of the effort. Assists estimating in that estimates can be made for smaller, and therefore more readily understandable, subsets of the whole.

There is no way to be certain that all components have been captured. Decomposing a problem without fully understanding the relationship between pieces of the problem may create an inappropriate structure that impedes analysis.

2.3 Plan Business Analysis Activities

Decomposition of the tasks in a project or product can facilitate understanding of work and ease estimation tasks

5.1 Define Business Need

Convert business goals into achievable objectives and measures


To understand the scope of work and to break the solution scope into smaller work products or deliverables

6.2 Organize Requirements

Breaks down an organizational unit, product scope, or similar into its component parts. Each part can have its own set of requirements

6.3 Specify & Model Requirements

7.2 Allocate Requirements

Can be used to break down solution scope into smaller components for allocation




9.16 Metrics and KPIsTechnique Description Elements Advantages Disadvantages Usage Purpose

9.16 Metrics and KPIs The purpose of metrics and key performance indicators are to measure the performance of solutions, solution components, and other matters of interest to stakeholders.

1) Indicators2) Metrics3) Structure4) Reporting

Establishing a monitoring and evaluation system allows stakeholders to understand the extent to which a solution meets an objective, and how effective the inputs and activities of developing the solution (output) were. Indicators, metrics and reporting also facilitate organizational alignment, linking goals to objectives, supporting solutions, underlying tasks, and resources.

Gathering excessive amounts of data beyond what is needed -> too much analyzing and reporting A bureaucratic metrics program fails from collecting too much data and not generating useful reports that will allow timely responsive action. When metrics are used to assess performance, the individuals being measured are likely to act to increase their performance on those metrics, even if this causes suboptimal performance on other activities.

2.6 Manage Business Analysis Performance

Can be used to determine what metrics are appropriate for assessing business analysis performance and how they may be tracked.


Assessed to support benefit management, measurement and reporting, including where realignment of internal measures or systems is needed to ensure that the behaviors we are seeking can be seen, evaluated, and realized.

6.3 Specify & Model Requirements

6.5 Validate Requirements




9.24 Risk AnalysisTechnique Description

Elements Advantages

Disadvantages Usage Purpose

9.24 Risk Analysis To identify and manage areas of uncertainty that can impact an initiative, solution, or organization. May be positive or negative

1) Risk Tolerance: Risk Aversion Neutrality Risk seeking 2) Assessment 3) Response (for negative risk): Acceptance Transfer Avoidance Mitigation (For positive risk): Acceptance Share Enhance Exploit

Enables an organization to prepare for some-things that will not go as planned

Number of possible risks can become unmanageably large May be difficult to estimate impact of risk

2.2 Conduct Stakeholder Analysis

To identify risks may result from stakeholder attitudes, or inability to participate.

2.3 Plan BA Activities

To assess the risks associated with different approaches.

2.5 Plan Req Mgmt Process

To identify risks associated with the req mgmt process and risks associated with making or choosing not to make the change.


To assess the risks, costs, and benefits associated with the solution

6.1 Prioritize Requirements

To understand that the risk associated with a requirement can influence the order in which they are developed.

6.4 Define Assumptions & Constraints

To assess the risk should an assumption prove to be false or a constraint is removed.

6.6 Validate Requirements

To identify scenarios that would alter the expected value delivered by a requirement

7.3 Assess Org Readiness

To assess risks and determine mitigation strategies




9.25 Root Cause Analysis



9.25 Root Cause Analysis A structured examination to deter-mine the underlying source of a problem. Current business thinking and processes are challenged

• Fishbone (Ishikawa, Cause & Effect)

• Five Whys

A structured method to identify the root causes, ensuring complete understand-ing

Works best when facilitated by someone with formal training. Facilitator must remain objective

2.6 Manage Business Analysis Performance

To identify the underlying source of delivery problem.

5.1 Define Business Need To determine the underlying source of problem.

7.5 Validate Solution To ensure that the underlying cause of the defect


Fishbone



9.27 Scope modelingTechnique Description


9.27 Scope Modeling To describe the scope of analysis or the scope of a solution

• Context diagram

• Events • Features • Use Case

Diagram • Business

Process

Will make it easier to determine what is in/out of scope

Leaves much of the de-tailed scope needing

2.2 Conduct Stakeholder Analysis To identify key stakeholders

5.4 Define Solution Scope To identify boundaries for the solution scope

6.2 Organize Requirements

To group requirements according to the solution component that they are associated with




9.32 SWOT AnalysisTechnique Description

Elements Advantages Disadvantages Usage Purpose9.32 SWOT Analysis to quickly analyze various aspects of the current state of the business process undergoing change

1. Draw a grid SWOT

2. Conduct brainstorm and fill the grid

3. Facilitate discussion to analyze results

4. After validation of a problem define strategies for each cell

helps quickly analyze various aspects of the current state of the organization and its environment prior to identifying potential solution options.

SWOT analysis is a very high-level view; more detailed analysis is almost always needed.


Identify how current capabilities and limitations (Strengths and Weaknesses) match up against the influencing factors (Opportunities and Threats)


Useful method of comparing possible approaches


Demonstrate how the solution will help the organization maximize strengths and minimize weaknesses

7.3 Assess Organizational Readiness

Used to assess strategies developed to respond to identified issues.




BMMBusiness Motivation

ModelVersion 1.1

By OMGRelease Date: May 2010




Not on the exam!• BMM is not a part of BABOK Guide and you

will not be asked any questions about it on the exams. However, I mention it here as it can be very useful during Enterprise Analysis.

• You can also use ArchiMate 2 language. For more information about ArchiMate please visit my blog http://zubkiewicz.com/tag/archimate/

Anyway, I encourage you to read following slides


http://zubkiewicz.com/tag/archimate/




BMM overview




Key concepts• END: Describes the vision of the enterprise and the

goals and objectives derived thereof• MEANS: Describes which means the enterprise

deploys to meet the enterprise ends (desired results)• INFLUENCER: Describes to which influencers the

enterprise is exposed (market trends, actions of competitors, internal IT infrastructure)

• ASSESSMENT: Assesses neutral influencers on goals and means used; i.e. financial crisis could be a threat for enterprise

• External information: addresses important things covered by other standards i.e. organizational structure.




BMM metamodel




END• Vision: We are the leading

BPM training enterprise in Europe

• Goal: Our customers attest that we have very high BPM competency

• Objective: At the end of next year, 80% of our regular customers evaluate our BPM competency with 9 or better on a scale of 10




MEANS• Mission: We offer BPM training for

enterprises and individuals in D.A.CH.• Strategy 1: We publish in BPM area• Strategy 2: We cooperate with an equally

renowned Swiss training enterprise in the BPM area.

• Tactic 1: “Tim, Christian, and Andrea write the first book on the OCEB certification.”

• Tactic 2: “Andrea creates webinars and Web Based Training (WBT) for the OCEB certification.”

• BP: “Our ambition is always to exceed the expectations of every customer.”

• BR: “Graphics for publications and training presentations should be created using Visio.”




Motivation behind BMM

• Enterprises do not, or should not, act randomly. When an enterprise executes a business process or applies a business rule, it should be able to say why.

• Business processes realize courses of action. Courses of action are undertaken to ensure that the enterprise makes progress towards one or more of its goals (which might include “to stay where we are, relative to our market and competitors”). Goals are defined because people in authority in the enterprise:o assess the effect of some influences on the enterprise,o decide what the goals should be.

• Some of the logic of business processes may be expressed in business rules. Business rules are derived from business policies. Business policies are defined because people in authority in the enterprise:o assess the effect of some influences on the enterprise,o decide what the policies should be.

• Since much of the motivation for what an enterprise does is based on people in the enterprise deciding what is best for it, the enterprise should be able to say who decided, and on what assessments of what influences. And when.

• In practice, real businesses do not have complete traceability of motivation. But, as and when they choose to move towards it, the Business Motivation Model will support it.




How to use it




Example


Source: http://www.visual-paradigm.com/product/vpuml/tutorials/bmm.jsp


http://www.visual-paradigm.com/product/vpuml/tutorials/bmm.jsp

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