introduction to babok- enterprise analysis

Introduction to BABOKTM : 

Introduction to BABOKTM IT BUSINESS ANALYSIS LECTURE 3 ENTERPRISE ANALYSIS

Enterprise Analysis : 

Enterprise Analysis The Enterprise Analysis Knowledge Area describes the business analysis activities necessary to identify a business need, problem, or opportunity, define the nature of a solution that meets that need, and justify the investment necessary to deliver that solution. Enterprise analysis outputs provide context to requirements analysis and to solution identification for a given initiative or for long-term planning. Enterprise analysis is often the starting point for initiating a new project and is continued as changes occur and more information becomes available. It is through enterprise analysis activities that business requirements are identified and documented.

Enterprise Analysis : 

Enterprise Analysis Define Business Need

Enterprise Analysis : 

Enterprise Analysis Define Business Need Purpose Identify and define why a change to organizational systems or capabilities is required. The definition of the business need is frequently the most critical step in any business analysis effort. The business need defines the problem that the business analyst is trying to find a solution for. The way the business need is defined determines which alternative solutions will be considered, which stakeholders will be consulted, and which solution approaches will be evaluated.

Enterprise Analysis : 

Enterprise Analysis Define Business Need Key Points Business goals and objectives describe the ends that the organization is seeking to achieve. Goals and objectives can relate to changes that the organization wants to accomplish, or current conditions that it wants to maintain. As goals are analyzed they are converted into more descriptive, granular and specific objectives, and linked to measures that make it possible to objectively assess if the objective has been achieved. A common test for assessing objectives is to ensure that they are SMART: ▶Specific – describing something that has an observable outcome ▶Measurable – tracking and measuring the outcome ▶Achievable – testing the feasibility of the effort ▶Relevant – in alignment with the organization’s key vision, mission, goals ▶Time-bounded – the objective has a defined timeframe that is consistent with the business need

Enterprise Analysis : 

Enterprise Analysis Define Business Need INPUTS Business Goals and Objectives: Business goals and objectives usually have to be refined in order to define the business need. In some cases the goal or objective may be exploratory—the business need may be to understand if a methodology or business model can work. Requirements [Stated]: Elicitation must be performed in order to assist stakeholders in defining their perceived needs. Ensure that they reflect actual business requirements, as opposed to describing solutions.

Enterprise Analysis : 

Enterprise Analysis Define Business Need TECHNIQUES Benchmarking Brainstorming Business Rules Analysis Focus Groups Functional Decomposition Root Cause Analysis

Enterprise Analysis : 

Enterprise Analysis Define Business Need Benchmarking Benchmark studies are performed to compare the strengths and weaknesses of an organization against its peers and competitors. Benchmarking requires that the business analyst: ▶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

Enterprise Analysis : 

Enterprise Analysis Define Business Need Business Rules Analysis A business policy is a non-actionable directive that supports a business goal. A business rule is a specific, actionable, testable directive that is under the control of an organization and that supports a business policy. Types of Business Rules: 1. Operative Rules Operative rules are rules that the organization chooses to enforce as a matter of policy. They are intended to guide the actions of people working within the organization. e.g. An order must not be placed when the billing address provided by the customer does not match the address on file with the credit card provider. 2. Structural Rules Structural rules are intended to help determine when something is or is not true, or when things fall into a specific category. e.g. An order must have one and only one associated payment method.

Enterprise Analysis : 

Enterprise Analysis Assess Capability Gaps

Enterprise Analysis : 

Enterprise Analysis Assess Capability Gaps Purpose To identify new capabilities required by the enterprise to meet the business need and to determine if it is possible for the organization to meet the business need using its existing structure, people, processes, and technology.

Enterprise Analysis : 

Enterprise Analysis Assess Capability Gaps Key Points Current Capability Analysis Gather as much enterprise architecture information as is available about the current state of the areas of the enterprise affected by the business need. The goal is to understand the organization’s business and how the business and technology architecture are supporting that business. If adequate information is not available, it will be necessary to develop the models and other descriptive information about the area of the enterprise that is under review. Once the current capabilities of the enterprise are fully described, they must be assessed against the desired objectives to determine whether the organization currently has the capability to meet the business need.

Enterprise Analysis : 

Enterprise Analysis Assess Capability Gaps Key Points (Contd.) Assessment of New Capability Requirements If current capabilities are insufficient to meet the business need, the business analyst must identify the capabilities that need to be added. The business analyst will develop the models and other descriptive information about the future vision and describe the future state of the organization. A comparison of the current and desired future states will identify gaps in organizational capabilities that need to be filled to support the business vision, strategy, goals and objectives.

Enterprise Analysis : 

Enterprise Analysis Assess Capability Gaps INPUTS Business Need: Capabilities are assessed against the business need to identify gaps. Enterprise Architecture: The enterprise architecture defines the current capabilities of an organization. Solution Performance Assessment: Identifies shortcomings, problems or limitations of an existing solution. In some cases, a solution may have capabilities that an organization is not using (most often, this occurs with a packaged solution or with outsourced services) which can also be assessed against a business need.

Enterprise Analysis : 

Enterprise Analysis Assess Capability Gaps TECHNIQUES Document Analysis SWOT Analysis

Enterprise Analysis : 

Enterprise Analysis Assess Capability Gaps SWOT Analysis SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats. A SWOT analysis is a valuable tool to quickly analyze various aspects of the current state of the business process undergoing change.

Enterprise Analysis : 

Enterprise Analysis Assess Capability Gaps SWOT Analysis

Enterprise Analysis : 

Enterprise Analysis Assess Capability Gaps SWOT Analysis

Next: Determine Solution Approach : 

Next: Determine Solution Approach

Enterprise Analysis : 

Enterprise Analysis Determine Solution Approach

Enterprise Analysis : 

Enterprise Analysis Determine Solution Approach Purpose 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.

Enterprise Analysis : 

Enterprise Analysis Determine Solution Approach Key Points The solution approach describes the general approach that will be taken to create or acquire the new capabilities required to meet the business need. To determine the solution approach, it is necessary to identify possible approaches, determine the means by which the solution may be delivered (including the methodology and lifecycle to be used) and assess whether the organization is capable of implementing and effectively using a solution of that nature. Some possible approaches include: ▶Utilize additional capabilities of existing software/hardware 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 ▶Partner with other organizations, or outsource work to suppliers

Enterprise Analysis : 

Enterprise Analysis Determine Solution Approach INPUTS Business Need: Possible solutions will be evaluated against the business need to ensure that it can be met by the selected approach. Organizational Process Assets: The organization may require that specific approaches be taken to solutions of a given type (such as specific methodologies). Required Capabilities: Identifies the new capabilities that any solution must support.

Enterprise Analysis : 

Enterprise Analysis Determine Solution Approach TECHNIQUES Benchmarking Brainstorming Decision Analysis Estimation SWOT Analysis Feasibility Analysis

Enterprise Analysis : 

Enterprise Analysis Determine Solution Approach Feasibility Analysis A feasibility study is a preliminary analysis of solution alternatives or options to determine whether and how each option can provide an expected business benefit to meet the business need. A feasibility study may address either a business problem to be resolved or a business opportunity to be exploited. Formal feasibility studies use reliable data and apply statistics and market research to identify and analyze potential solution options.

Enterprise Analysis : 

Enterprise Analysis Define Solution Scope

Enterprise Analysis : 

Enterprise Analysis Define Solution Scope Purpose To define which new capabilities a project or iteration will deliver. The purpose of this task is to conceptualize the recommended solution in enough detail to enable stakeholders to understand which new business capabilities an initiative will deliver. The solution scope will change throughout a project, based on changes in the business environment or as the project scope is changed to meet budget, time, quality, or other constraints.

Enterprise Analysis : 

Enterprise Analysis Define Solution Scope Key Points The solution is described in terms of the major features and functions that are to be included, and the interactions that the solution will have with people and systems outside of its scope. The implementation approach describes how the chosen solution approach will deliver the solution scope. For example, if the solution approach involves partitioning the proposed project into releases that will deliver useful subsets of functionality to the business, the implementation approach will describe the functionality in each release and the timeframe that it is expected to be delivered in. Define major business and technical dependencies that will impose constraints to the effort to deploy the solution, including dependencies that may exist between solution components.

Enterprise Analysis : 

Enterprise Analysis Define Solution Scope INPUTS Assumptions and Constraints: Relevant assumptions and constraints may include assumptions about how stakeholders will respond to a new product or service or about the availability of technology. Constraints may include limitations on what may be included in the solution scope. Include any schedule or funding limitations and significant standards, policies, regulations to be followed and supporting data required. Business Need: The goals, objectives, and desired outcomes of the organization. Required Capabilities: Describes the new capabilities required to meet the business need, which serve as the basis for the solution scope. Solution Approach: The general approach taken to delivery of the new capabilities required by the business will be used when assessing options for the implementation of solution components.

Enterprise Analysis : 

Enterprise Analysis Define Solution Scope TECHNIQUES Functional Decomposition Interface Analysis Scope Modeling User Stories Problem or Vision Statement

Enterprise Analysis : 

Enterprise Analysis Define Solution Scope User Stories A user story is a textual description of things that the solution needs to allow users to do. User stories are typically a sentence or two that describes who uses the story, the goal they are trying to accomplish, and any additional information that may be critical to understanding the scope of the story. A user story includes a short description of the problem to be solved. This is from the perspective of the user. The only detail that needs to be included is information that reduces the risk of misunderstanding by developers that create the estimate. A user story includes: ▶Actor: Stakeholder who benefits from the user story. ▶Description: A high-level overview of what functionality the user story includes. ▶Benefit: The business value the story delivers.

Enterprise Analysis : 

Enterprise Analysis Define Solution Scope Problem or Vision Statement A 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.

Enterprise Analysis : 

Enterprise Analysis Define Business Case

Enterprise Analysis : 

Enterprise Analysis Define Business Case Purpose To determine if an organization can justify the investment required to deliver a proposed solution. The 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.

Enterprise Analysis : 

Enterprise Analysis Define Business Case Key Points Benefits: Measure the benefits of the recommended solution in terms of both qualitative and quantitative gains to the enterprise. Where possible, benefits should be quantified. Costs: Estimate the total net cost of the solution. This requires estimates to be made of capital expenditures for the new investment, costs of developing and implementing the change, opportunity costs of not investing in other options, costs related to changing the work and practices of the organization, total cost of ownership to support the new solution and consequential costs borne by others. Risk Assessment: The purpose of the initial risk assessment is to determine if the proposed initiative carries more risk than the organization is willing to bear. This initial risk assessment focuses mainly on solution feasibility risks, and is revisited throughout the project. Results Measurement: The business case articulates not only the projected costs and benefits to be realized, but also how those costs and benefits will be assessed and evaluated.

Enterprise Analysis : 

Enterprise Analysis Define Business Case INPUTS Assumptions and Constraints: Include assumptions about the revenue generated or retained by the solution or non-financial improvements it will deliver. Business Need: Defines the value that a solution will deliver to the organization and how it aligns with the business goals and objectives. Solution Scope: Defines the capabilities that will be implemented, the methods that will be used to deliver them, and the areas of the organization that will be affected. Stakeholder Concerns: May include risks or issues that must be accounted for in the business case.

Enterprise Analysis : 

Enterprise Analysis Define Business Case TECHNIQUES Decision Analysis Estimation Metrics and Key Performance Indicators Risk Analysis SWOT Analysis Vendor Assessment

Enterprise Analysis : 

Enterprise Analysis Define Business Case Vendor Assessment When solutions are in part provided by external vendors (who may be involved in design, construction, implementation, or maintenance of the solution or solution components), or when the solution is outsourced, there may be specific requirements in regard to the involvement of that third party. Some of the common assessment criteria are as follows: ▶Knowledge and Expertise ▶Licensing and Pricing Models ▶Product Reputation and Market Position ▶ Terms and Conditions ▶ Vendor Experience and Reputation ▶ Vendor Stability

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Q&A : 

Q&A