IIBA®, the IIBA® logo, BABOK® and Business Analysis Body of Knowledge® are registered trademarks owned by International Institute of Business

Analysis. CBAP® and CCBA® are registered certification marks owned by International Institute of Business Analysis. Certified Business Analysis

Professional, Certification of Competency in Business Analysis, Endorsed Education Provider, EEP and the EEP logo are trademarks owned by

International Institute of Business Analysis.

Business Analysis: knowledge and tools for business model development

24th June 2015 – Rome

Felice Chierichetti,

Head of Consulting, NTT DATA Italia

2

In 1903, Henry Ford’s lawyer, HORACE RACKHAM , expressed a statement that remained famous and is also often on facebook pages worldwide «THE HORSE IS HERE TO STAY, BUT THE AUTOMOBILE IS ONLY A NOVELTY –A FAD».

WHERE IS THE MISTAKE in this sentence?

Apart from visionaries… making SCENARIO FORECASTES requires knowledge and application of METODOLOGIES and TECHNIQUES

History teaches us…

3

Too often we forget that the future is deeply rooted in the present: to predict or interpret it you do not need to be a visionary, but you must have developed professionalism, skills and techniques

The paradox is that: WITHOUT DATA CONCERNING REALITY, FUTURE IS UNPREDICTABLE ?For these reasons NTT DATA believes in BUSINESS ANALYSIS as a fundamental element for the GROWTH OF ITS HUMAN CAPITAL

QUALIFIED PEOPLE , skilled with METHODOLOGIES AND TECHNIQUES , able to analyze the present and define the EVOLUTION OF OUR CUSTOMERS’ BUSINESS

…that the art of making predictions requires professionalism and skills

4

A Business Model describes the rationale of how an organization creates, delivers and captures value

Alexander Osterwalderwww.businessmodelgeneration.com

What is a Business Model?

… in other words, how it addresses its

stakeholders’ needs

5

HOW DO ORGANIZATIONS DEVELOP their business model? Which are possible levers to introduce a DIFFERENTIATING FACTOR versus competitors?

BUSINESS MODEL CANVAS –universally recognized technique introduced in BABOK v3

Using the Business Model Canvass to describe three recent case studies

6

PAYMENT INSTITUTION

BANKINGRETAIL

Three recent case studies of evolution of a Busines s Model

7

RETAIL

How to seize the opportunities of the eCommerce channel?How to offer a distinctive service wrt. competitors?How to mitigate the cannibalization of the physical channel?

Retail: business needs

8

World growth of online

grocery sector (e-grocery) has

reached interesting numbers

The click & collect model takes the form of a winning multi-channel

strategy

eCommerce is growing in Italy but is behind

schedule in the large

distribution

ONLINE GROCERY IS GROWING FAST(+20% in many European Countries)The ADOPTION of a SHOPPER FRIENDLY approach,supported by an EFFICIENT MODEL is a critical success factor

The CLICK & COLLECT MODEL is the EMERGING CONCEPT in online grocery merging together multi-channel experience drivers, customer service and service costs.

eCommerce IN ITALY is growing fast (+18%), but is still behind schedule in grocery sector (2% of 11Bln€). The eCommerce in grocery is limited to a few players: the distribution model is constantly being redefined

Retail: the competitive scenario

Source: Osservatori.net Digital Innovation – Osservatorio Innovazione Digitale nel Retail - 19/11/2014

9

Through the offer of CLICK & COLLECT service, alongside the traditional model, the Retailer offers A NEW VALUE PROPOSITION to its customers, aiming at satisfy the needs of previously hardly reachablecustomer segments

Introduction of new E-COMMERCE CHANNEL to offer Retail’s customers an alternative way to place an order

The Retailer both introduced NEW OPERATIONALPROCESSES and changed existing processes, to address the tasks required for the provision of the new service, from customer care to the preparation and delivery of orders

Retail: how the business model satisfies business needs

10

Customer Journey• Set up of CUSTOMERS and EMPLOYES’ USER EXPERIENCE by the identification of PERSONASand definition of applicable JOURNEYS

Scenario Analysis• Definition of the framework for SCENARIO ANALYSIS , supported by BENCHMARKING , to define the TARGET MODEL

Operative model• EVALUATION of impacts on CURRENT PROCESSES (review) and DESIGN of NEW PROCESSES for the introduction of the service

Business Plan• DEVELOPMENT OF A 5 YEARS BUSINESS PLAN according to both Retailer’s data on the physical channel and market and benchmark evidences

• Identification of all the ACTIONS NEEDED FOR THE INTRODUCTION OF THE SERVICE, measured in terms of estimated effort and priorities, in order to define a COMPREHENSIVE ROLL-OUT PLAN

Roadmap

Retail: how the business analysis supported the business model development

11

BANKING

How to reach new customer segments? How to innovate customer interaction with the bank all along the customer journey?

Banking: business needs

12

DIVERSIFICATION OF DIGITAL TOUCH POINT to reach NEW CUSTOMER SEGMENTS and MARKET NICHES

MULTICHANNEL COMMERCIAL SERVICE (self caring / dedicated pool) optimized for business goals (technical support vs cross selling)

Increase of the effectiveness of COMMERCIAL STRATEGIES for the creation of QUALIFIED TRAFFIC on digital assets and the GROWTH of the ACQUISITION RATE

Introduction of «SMART» SOLUTION for PERSONAL SAVING, to make the customer autonomous in developing his/her OWN PROJECTS

Tapping the potential of the WEB and SOCIALCHANNELS to change the BRAND PERCEPTION and AWARENESS (- corporate & + personal)

Exploit the external

ecosystem to overcome the

traditional boundaries of

the Bank

Rethinking supply services

by portfolio diversification

and introduction of innovative

services

Increase the engagement of the customer through a pull

and pushmulti-channel

strategy

Banking: the competitive scenario

Source: F. Fabrizi - H. El Tagiuri - Reshaping the Bank - Come le nuove sfide ridefiniscono le architetture delle Banche e il loro modello di governance – Atti dal Workshop ABI Lab - Arch' IT del 13/11/2014

13

Development of a BUSINESS MODEL built around the needs of «DIGITAL ADDICTED » customers (online / mobile DIGITAL PLATFORM )

Incentive based acquisition model with DIGITAL BONUSES (e.g. gift cards) based on an ECOSYSTEM of PARTNERSHIPS (each customer chooses the preferred incentive). Use of CO-MARKETING strategies and PERFORMANCE FEES.

"STELLAR " USER EXPERIENCE, through intuitive graphical applications supporting INNOVATIVE PRODUCTS (such as Personal Finance Mgmt).

Fully PAPERLESS interaction processes. MULTICHANNEL COMMERCIAL ASSISTANCE(es.:webcam, chat). Post sell Model and REMOTE ADVISORY.

Banking: how the business model satisfies business needs

14

Acquisition Model Assistance & Development Model

Opening of Online Current Account through an IDENTIFICATION process

VIA WEBCAM

DIGITAL SELF-SERVICE ASSISTANCE with a wide range of functions for caring and

support. Dedicated user experience for high value customer segments

Outsourcing Insourcing

Commercial Partners

Direct Acquisition

Qualified Partners

Digital Acquisition

Assets

Content Strategy €

€€

StandardContact Channel

High Value Contact Channel

Bank

@

Seg

men

tatio

n E

ngin

e

Banking: how to apply a new user experience through the entire business model

15

Banking: methodology and techniques to design the user experience

A COMBINATION OF CUSTOMER JOURNEY TECHNIQUES AND AG ILE METHODOLOGY TO ACHIEVE AN EXCELLENT CUSTOMER EXPERI ENCE

Personas

Touchpoints

Journey

THINK – DO – FEEL

• Identify CORE PROCESSES andCUSTOMER PERSONAS who are representative of target segments

• Analyze CHANNELS and correspondingTOUCHPOINTS

• Design a CUSTOMER LIFECYCLE• Analyze TOUCHPOINTS to ALIGN main

goals and usage

• Draw CUSTOMER JOURNEY• Identify possible SOLUTIONS

16

PAYMENT INSTITUTION

Create a new revenue stream leveraging on the mobile channel as a means for payments and money transfer

Payment institution: business needs

17

The retail sector is facing with the phenomenon of DIGITALIZATION OF CONSUMER EXPERIENCE (increased by 14% in 2014*)

* Source: Osservatori.net Digital Innovation – Dati 2014 ** Source: Analisi NTT DATA – Dati 2014

The «TIME OF PAYMENT» is the primary OBSTACLEin the PURCHASING PROCESS, as it is seen as a waste of time (e.g. queue at the counter) by 63% of consumers**.

90% of Italian people use a SMARTPHONE INSIDE THE STORE to compare prices (42%), to talk about purchases (30%) or to look for information on products (25%)*.

75% of retailer has declared their intention to IMPLEMENT 3 INNOVATIONS IN 2015*.

PAYMENT is the SECOND MOST IMPORTANT STEP in PURCHASING PROCESS (after the sale). Consumers are asking for self check-out and mobile payment solutions**.

Increasingly pervasive use of

the Internet in everyday life

Growing interest in high

level UX solutions to simplify the

payment process

Rapid development of

solutions for self-service

purchasing (e.g. Click & Pay)

Payment Institution: the competitive scenario

18

Redirect offers to SPECIFIC CUSTOMER TARGETS: -BUYERS (people without bank accounts, tourists, students);-RETAILERS -THIRD PARTS

Develop INNOVATIVE MOBILE PAYMENT SERVICES to seize market opportunities offered by recent innovation

Offer services through «INNOVATIVE CHANNELS» (mobile and web), without neglecting the traditional ones (enrollment, cash deposit and withdrawal)

Create NEW REVENUE STREAMS providing ADDITIONAL SERVICES (e.g. Loyalty) INTEGRATED IN PLATFORMS shared with partners which are provided with payment services (phone credit, pay TV, public transport tickets, …)

Set up of a PAY PER USE MODEL linked to effective volume growth over time

Payment Institution: how the business model satisfies business needs

19

A solution for all or for few?

Offer apersonalized and

engaging experience

Exploit the ecosystem of

both technological

and commercial

partner

Multidimensional analysis allows to identify BUSINESS OPPORTUNITIES and the most suitable CHARACTERISTICS of products and services

CONSUMERS and MERCHANTS are classified in terms of «BEHAVIOUR» according to degree of digitization, use of traditional channels, spending/sale habits, with the aim of CREATING AN «EMOTIONAL» SHOPPING EXPERIENCE

The Company Payment’s PARTNER could return its investment by the acquisition of new customers, using promotion tools such as «MEMBER GET MEMBER» on SOCIAL CHANNELS; by the expansion of its customer base leveraging Company Payment’s customer base; by the provision of its services through all NEW CHANNELS

How to break down the guiding principles through an internal/external action plan

20

The Value of Business Analysis

21

The BUSINESS ANALYSIS TOOLS and the PROPER use of its TECNIQUES are the sole WEAPONS that enable organizations to address the “battle" that force them to fight in the MARKET, facing

actively the most difficult CHALLENGE: the EVOLUTION of their own BUSINESS MODELS

supports the STRATEGICAL DECISIONS ensuring their completeness

allows RISK MITIGATION

improves COMPETITIVENESS of products, services and organizations

Based on an analytical approach, business analysis:

22

What was the fate ofHORACE H. RACKHAM ?

23

Just for the record: Horace H. Rackham invested 5.000 $ in Ford Motor Company shares, in the same year in which he pronounced his famousstatement (1903).

He sold his shares to Ford in 1919 for $

Thanks to those earnings, his wifeMary Rackham founded the HORACE H.

RACKHAM SCHOOL OF GRADUATE STUDIES .

The Fate of Horace Rackham

12.500.000

IIBA®, the IIBA® logo, BABOK® and Business Analysis Body of Knowledge® are registered trademarks owned by International Institute of Business

Analysis. CBAP® and CCBA® are registered certification marks owned by International Institute of Business Analysis. Certified Business Analysis

Professional, Certification of Competency in Business Analysis, Endorsed Education Provider, EEP and the EEP logo are trademarks owned by

International Institute of Business Analysis.

THANK YOUFelice Chierichetti,

Head of Consulting, NTT DATA Italia

felice.chiericetti@nttdata.com