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Prof.

Hemant Kumar Jain


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

Lecture-2, delivered on 06 Aug 2015

Agenda
Business Analysis Definition.
BA Techniques.
Role of Business Analyst
Basic Tools for BA
Business Architecture from BA Perspective
Guiding Principle for BA

1-2

Thinking Exercise # 2
You are likely to receive an amount
between Rs 40k to Rs 1.0L. This
money is to be spent today only.
Please think , anticipate and
prepare a list of items with approx
cost you would like to purchase as
per given format
MY Wish List
Category S. No

Clothing

Books

1
2
3

1
2

Item Name

Priority as 1,2,3,4,5 etc


Cost in Rs
(Approx) Must Buy Should Buy Could Buy Won't Buy

Business Analysis - Definitions


The methodical investigation, analysis, review and
documentation of all or part of a business in terms of
business functions and processes, the information used
and the data on which the information is based.
The definition of requirements for improving any aspect of
the processes and systems and the quantification of
potential business benefits. The creation of viable
specifications and acceptance criteria in preparation for
the construction of information and communication
systems.

The breadth of Business Analysis ?

Strategic analysis
Business analysis

Business case

Requirements engineering
Solution development

The breadth of Business Analysis ?


Business Architecture
Strategic analysis
Business analysis

Systems Thinking

Business case

Solution Architecture

Requirements engineering
Solution development

Business Analysis Techniques

Business Analyst

Some business analysis techniques


Critical success factors
Context diagram
Rich picture
Function hierarchy
Network architecture plan
Workflow diagram
Organisation chart
Entity relationship model (highlevel)
Business process model
High-level data flow diagram
Business object model

Use case diagram


Use case description
Technical architecture model
Functional dependency
diagram
Business scenario modelling
Task analysis
Business event model
Business roles definition
Logical data model
Class model
Relational data analysis

SWOT
PESTLE
Five Forces
Power/interest grid
MOST
Resource audit
BCG matrix
Balanced business scorecard
Key performance indicators
CATWOE
Business activity modelling

Event analysis
Payback calculation
DCF/NPV calculation
Internal rate of return
Benefits management
Benefits realisation
User acceptance testing
Swimlane diagrams
Business process reengineering
Business process management

Website navigation model


Process dependency modelling
Object interaction /
collaboration diagram
Object role models
User conceptual model
User interface object model
Screen navigation design
System event modelling
State transition diagram
State machine diagram
Object dynamic model
Process streamlining
Business process redesign
Interviewing
Workshops
Questionnaires
Document analysis
Record searching
Special-purpose records
Activity sampling
Work measurement
Prototyping

More business analysis techniques

Brainstorming
Round-robin
Columns and clusters
Bodyguards and assassins
Vernissage
Talking wall
Force-field analysis
Greenfield site
Transporter
Prioritisation
Time beam

Cost/benefit analysis
Impact analysis
Gap analysis
Standard costing
Marginal costing
Absorption costing
Ratio analysis
MoSCoW
Organisation diagram
Report writing
Presentation techniques

And even then people said Youve missed .

Role of Business Analyst


Investigating
the situation

Analyzing
strategy
Modelling
business
processes
Stimulating
thinking
Business Analyst

Specifying
information
systems

Developing
business
case

1. Investigating the situation


Questionnaires

<<extend>>
Interviewing

<<extend>>
Workshops

Special purpose
records
<<extend>>

<<extend>>
Activity sampling

<<extend>>
Work
measurement

Business Analyst
Record
searching

<<extend>>
Document
analysis

2. Analysing strategy
Five forces
PESTLE
<<extend>>

<<extend>>

<<extend>>

SWOT

MOST

Business Analyst
<<extend>>

<<extend>>

CATWOE

And many other techniques

Resource
audit

3. Business Process Modelling


Business process modelling, often called process
modelling, is the analytical representation or
illustration of an organizations business processes.
Along with business process discovery, process modeling is
widely viewed as a critical component in successful
business process management (BPM).
It is used to map out an organizations current (or as-is)
processes to create a baseline for process improvements
and to design future (or to-be) processes with those
improvements incorporated.

3. Business Process Modelling Cont


Business process modeling is mainly used to map a workflow, so that a
BA can understand, analyze and make positive changes to that
workflow 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 to

determine what is true, partially true, or false. For example, a business analyst
thinking critically would question the problem statement to make sure that it is
the real problem statement and not the description of a symptom before
proceeding with the analysis.
2. Strategic thinking as applied by an individual involves the generation and

application of insights and opportunities that extend beyond the present


timeframe. While system thinking provides the business analyst the larger view in
terms of breadth, depth and context, strategic thinking provides the business
analyst 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 its
business processes as a system or systems within systems to truly understand the impacts
of 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 with
critical 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 or
the entire situation in which the problem exists under given complexities of business and
technology. The business analyst breaks the larger picture into smaller more manageable
images to make examination and understanding easier.

5. Visual thinking is the only mode that might require a bit of predilection in that some
people are more visual than others. But this thinking mode brings us all the way back to
the initial premise that we dont think in words, but in images and concepts: visions

4. Stimulating Thinking (Cont.)


A business analyst should first do:

3. Verifying before
assuming

1. Thinking before
reacting
2. Questioning before
accepting

6. Analyzing before
concluding

4. Viewing the whole


process before focusing
in on the detail issue

5. Understanding
before judging

7. Visualizing before
writing

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 sometimes
referred to as a business case. It should have :-

Problem

What is the problem we are trying to solve?


What is the business opportunity?

Solution

How can we address the problem or take


advantage of the business opportunity?

Approach

What are the viable options available to


implement the solution?

What are the risk associated with each option?


Risk
Assessment What is the risk of doing nothing ?

Value
Analysis

What business value is generated from each


option?

5. Developing a Business Case


DCF/ NPV
IRR
Benefits
realisation

Benefits
management

Payback
calculation

Ratio analysis
Cost/benefit
analysis

Report writing

Standard
costing

Business Analyst
Presentation
techniques

Impact
analysis

Marginal
costing
Absorption
costing
Gap analysis

6. Specifying Information System


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

1-20

A Basic Toolkit
Business
Strategy
and
Objectives
SWOT
PESTLE

Consider
Perspectives
Investigate
Situation

Stakeholder
Management

Evaluate
options
Analyse
Needs

CATWOE
MOST

Resource
Audit
POP-IT model

Rich pictures
Interviews
Workshops
Context
diagrams

PARADE
BAMs
RASCI

Feasibility
Analysis

Gap analysis

Impact
Analysis

Value chain
Analysis

Investment
Appraisal

Organisation
Diagramming

Business
Case

Process
Modelling

Manage
Change
Define
Requirements

Cultural
web

Scenarios

Learning
cycle

Storyboarding

SARAH

Prototyping

Benefits
Realisation

MoSCoW
Timeboxing

CRUD Matrix

POP-IT : People , Organisation , Process & IT


PARADE : Problem, Anticipated Consequence, Role, Action ,Decision-Making Rationale, End-Result
RASCI : Responsible, Accountable, Supported, Consulted, and Informed
CRUD : Create, Read, Update and Delete
SARAH : Shock, Anger, Rejection, Acceptance, Healing
PARADE : Problem, Anticipated Consequence, Role, Action ,Decision-Making Rationale, End-Result

SWOT Analysis
Technique is credited to Albert
Humphrey who led a research
project at Stanford University in
the 1960s and 1970s.

Strengths

Oppurtunity

SWOT
Analysis

Threats

Weakness

Planning tool used to understand


Strengths, Weaknesses,
Opportunities, & Threats
involved in a project / business.

Used as framework for


organizing and using data and
information gained from
situation analysis of internal and
external environment.

SWOT Analysis
STRENGTHS
Characteristics of the business or a
team that give it an advantage over
others in the industry.
Positive tangible and intangible attributes,
internal to an organization.
Beneficial aspects of the organization or the
capabilities of an organization, process
capabilities, financial resources, products
and services, customer goodwill and brand
loyalty.
Examples
1. Abundant financial resources,
2. Well-known brand name,
3. Economies of scale,
4. Lower costs [raw materials or
processes],
5. Superior management talent,
6. Better marketing skills,
7. Good distribution skills,
8. Committed employees.

SWOT Analysis
WEAKNESSES
Characteristics that place the firm at
a disadvantage relative to others.
Detract the organization from its ability to
attain 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. They
must 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 the
environment - External attractive factors that
represent the reason for an organization to
exist & develop.
Arise when an organization can take benefit of
conditions in its environment to plan and
execute strategies that enable it to become
more profitable.

Organization should be careful and recognize


the opportunities and grasp them whenever
they 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 that
could cause trouble for the business - External
factors, beyond an organizations control.
Arise when conditions in external environment
jeopardize the reliability and profitability of the
organizations business.
Compound the vulnerability when they relate to
the weaknesses. Threats are uncontrollable.
When a threat comes, the stability and survival
can 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.

PESTLE
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

M.O.S.T.
Mission
A good mission is ambitious and essential to broader business success. It could
even be the entire reason for the organisations existence. Once it has been
established, the rest of the M.O.S.T. analysis can begin.
Missions should be reviewed when they have succeeded or found to be flawed.

Objectives
A good objective sets a clear target to achieve within a tight time-frame. Ideally,
it will complement your other objectives to compound successes across the
M.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 fuzzy
and difficult to implement.

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

Tactics
Tactics are the methods you will use to carry out your strategies. They should
be simple and relatively discrete processes that can easily be understood and
carried out even by people who dont have a high-level overview of the
M.O.S.T. analysis.
A good tactic is small and S.M.A.R.T. With effective tactics, your strategies will
quickly lead to completed objectives.

Resource Audit
Resource audit can be described as analysis or
inspection of resources of an organization. It can
also 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. Resources
that are deployed into the activities of the
organization to create competences. Resources
include both those that are owned by the organization
and those that can accessed to support its strategies.
Resources are grouped under the following heads :
Physical Resources, Human Resource, Financial
Resources, Intellectual capital

Resource Audit

CATWOE
Customers

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

Actors

Who is involved in the situation? Who will be


involved in implementing solutions? And what will
impact their success?

Transformation Process

What processes or systems are affected by the


issue?

World View

What is the big picture? And what are the wider


impacts of the issue?

Owner

Who owns the process or situation you are


investigating? And what role will they play in the
solution?

Environmental Constraints

What are the constraints and limitations that will


impact the solution and its success?

The Five Forces


Force
Entry

Method for Neutralizing Force


Erecting barriers (isolating mechanisms) create
& exploit economies of scale, aggressive
deterrence, design in switching costs, etc.

Rivalry

Compete on nonprice dimensions: cost


leadership, differentiation, cooperation, etc.

Substitutes

Improve attractiveness compared to substitutes:


better service, more features, etc..

Buyers

Reduce buyer uniqueness: forward integrate,


differentiate product, new customers, etc..

Suppliers

Reduce supplier uniqueness: backward integrate,


obtain minority position, second source, etc..

POPIT taking a holistic approach


Business
Motivations

Organisation
Information
&
Technology

People

Processes

Business Architecture Blueprints

POPIT taking a holistic approach


Business Models
External Business Environment
Organisational Capabilities
Organisational Memory

Organisation
Information
&
Technology

People

Processes

Business Architecture Blueprints

POPIT taking a holistic approach


Business Models
External Business Environment
Organisational Capabilities
Organisational Memory

Organisation
Information
&
Technology

People

Processes

Business Architecture Blueprints

Value Propositions
Value Chains
Core Business Processes
Business Services

POPIT taking a holistic approach


Business Models
External Business Environment
Organisational Capabilities
Organisational Memory

Organisation
Roles and Job Descriptions
Skills and Competencies
Management Activities
Culture
Communication

Information
&
Technology

People

Value Propositions
Value Chains
Core Business Processes
Business Services

Processes

Business Architecture Blueprints

POPIT taking a holistic approach


Business Models
External Business Environment
Organisational Capabilities
Organisational Memory

Business Information Models


Information Standards
Technical Architecture
Application Architecture

Organisation
Roles and Job Descriptions
Skills and Competencies
Management Activities
Culture
Communication

Value Propositions
Value Chains
Core Business Processes
Business Services

Information
&
Technology

People

Processes

Business Architecture Blueprints

PARADE
PARADE : These 6 factors mean:
PROBLEM -- What is the problem an organization is facing/faced?
ANTICIPATED CONSEQUENCE -- What consequence an organization will face
if 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. Option
considered? What other options were available? Why other options were
not chosen? Why this specific decision? What quantitative & qualitative data
has been considered?
END-RESULT -- After an action has been taken, what happened? What was
the outcome? Be specific -- when possible, cite a quantitatively measurable
outcome.

Rich Picture
Rich pictures are a strategy of Soft Systems Methodology
(SSM), in which complex situations are represented in a large
diagram with pictures and symbols. The principle behind rich
pictures is that drawing detailed representations of
problematic situations can be a tool to organize thoughts,
better understand what is going on in the system, and
identify root problems. As such, the value of rich pictures is
that it encourages people to think deeply about the problem
and understand it well enough to express it pictorially.
A Rich Picture is a way to explore, acknowledge and define a
situation and express it through diagrams to create a
preliminary mental model. A rich picture helps to open
discussion and come to a broad, shared understanding of a
situation.

Rich Picture
Construction of Humper Bridge

Rich Picture

The Timebox
Product
Requires
Modifications/
Rejected

Build &
Evolve
Prototype

Prototype

System
Definition/
Priorities

Request for
Change

Timebox Development

Evaluate/
Deliver
System

End-user
Review &
Feedback
Review Board

Need for largescale change or


enhancement
CSE 4317

44

CRUD Matrix
A CRUD matrix (Create, Read, Update, Delete) is a table that
shows the links between processes and data, or between
processes and resources. When a link exists, it shows whether
the process performs a Create, Read, Update, or Delete
operation on the data or resource.
When the CRUD matrix shows the links between a process and
a data, it is called a Data CRUD matrix.
When the CRUD matrix shows the links between a process and
a resource, it is called a Resource CRUD matrix.

CRUD Matrix

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 goals
and business services they support, and the applications and data they need

"A blueprint of the enterprise that provides a common understanding of the


organization and is used to align strategic objectives and tactical demands."
Business Architecture Guild
or simply:
The business strategy, governance, organization, and key business
processes. TOGAF

Uses of a Business Architecture


Develop a perspective on an organisations 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 through
defined 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 IT
solutions
Ensure the success of an overall Architecture by serving as the driving
force for the IT Architecture

Business Architecture fit within an organisation


Creates a direct, clear linkage between executive intent and organisational action
Strategy drives changes to
Architecture

Strategy

Architecture translates
Strategy for Execution

Architecture

Architecture informs and


refines Strategy

Execution

Execution enables and


generates improvements to
Architecture

Provides a structured approach to making strategic and operational investment decisions

The role of the Business Architect


The Business Architect converts high-level business strategy
and business needs .
. into an integrated vision of the future
. and then redesigns the business capabilities
necessary to deliver the goals of the vision.
This provides a holistic, complete and co-ordinated
set of business models the best of which become
roadmaps for future profit and growth.
These roadmaps can then broken down into initiatives
for implementation

Business Architecture Framework

Business
Motivations

Business
Architecture
Scenarios

Business Architecture views


(Blueprints)

Examples 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 a
value stream model)
More detailed business processes and workflows
Organisational units and roles
Business rules
Business data elements and metrics

So how does this effect Requirements Engineers?


To contribute to the bottom-up construction of the
Business 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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