The Business Context (K Level 4/5) Flashcards
Why is Business analysis Important
- Business environment is ever changing
- BA valuable role in business change
- BA co-creates value for organisation via offering a portfolio of services via BASF & ensure effective deployment of business change in line with organisational need and strategy
What benefits can business analysis offer organisations?
BA’s have a broad toolkit, can benefit organisations in many ways e.g. RCA - generate options that actually fix the problem, not the perceived problem
Stakeholder analysis - anyone that has an interest in the change in considered in their own merit, reduces friction and creates champions of change
Strategy alignment - ensuring tactical options will enable the organisation to deliver strategy
The services offered under the BA Service Framework allow organisations to generate better questions/options for problems/opportunities they face at all levels
Biz analysis is a broad role, what can be used to help define it
Business analysis service framework
Why is the BASF useful?
Portfolio of 6 core services offered by BAs - basis for defining business analysis and the role of BAs
Steps away from techniques to services (and value of services) so understood by BAs and customers alike
What does BASF move away from
Techniques
Focus is on services and the value of services so it is understood by BAs and customers alike
What is business analysis?
A specialist service that co-creates value for the organisation via BASF services
Internal consultants
What is the overall aim of Business Analysis?
To instigate change projects that will enable the organisation to execute strategy, achieve objectives & turn TOM into reality
What must all BASF services relate to
Organisational strategic context
What is a TOM
Target Operating Model
A blueprint that outlines how an organisation intends to operate in the future to achieve its strategic objectives
Why is TOM useful
provide a clear vision of how the organization will function in the future, It guides decision-making during business transformation or strategic planning initiatives.
POPIT and TOM
TOM should cover all elements in POPIT
e.g. the skills of people in target state / the leadership structure etc.
6 services of BASF
Situation investigation and problem analysis
Feasibility assessment and business case development
Business process improvement
Requirements definition
Business acceptance testing
Business change deployment
Situation investigation and problem analysis
- Value proposition
- Investigated, analysed & stated problem
- Clear, defined solution scope
Feasibility Assessment and Business Case Development
- Value proposition
- Relevant, feasible options
- Rigorous financial case
Business Process Improvement
- Value Proposition:
- Well-formed process models
- Efficient and effective holistic redesign
Requirements Definition
Value proposition
- Business-aligned requirements
- Relevant requirements documentation
Business Acceptance Testing
Value Proposition
Tested & accepted solutions
Business Change Deployment
Value Proposition:
Business ready environments
Value co-created (with recipients of changes)
Link between first 4 elements of BASF
- Situation investigation and problem analysis: problem/scope/root cause
- FA/ BCD: identification and assessment of options
- BPI: redesigned processes, gaps & changes required
4: RD: elicited/analayse/defined requirement
Gap analysis in Situation Investigation and Problem Analysis and Business Process Improvement.
SI&PA: gap analysis of entire biz system
e.g. inefficient of current customer service / insufficient product knowledge by employees
BPI: gap analysis of specific process
What is not explicitly mentioned in BASF but is important
Stakeholder engagement / collaboration / communication / management
Why is POPIT/holistic view important?
The biz system consists of 5 elements that need to work in tandem. Changing one has an impact on the others
Each aspect must be considered/analysed to uncover the full range of biz improvement opportunity
Whats important to note about Information & Technology aspect of POPIT
They’re separate elements
Information: capture/recording/reporting/distribution of information
Technology:
Software/hardware/infrastructure
People element - POPIT
Looks @ individuals within the organisation (leaders/managers/those who conduct work)
People element - POPIT considerations
Skills/knowledge/motivation/understanding & alignment with strategy
Organisation element - POPIT
Structure of organisation (roles/responsibilities)
Organisation element - POPIT considerations
leadership & management style/culture/structure (inc documentation)/ cross functional working/well defined roles and responsibilities
Process element - POPIT
business processes & tasks within the organisation
Process element - POPIT considerations
all internal processes and those that have external touch points e.g. customers/suppliers
Process documentation/efficiency/quality of outputs/meet SH expectation/big delays?
Information element - POPIT considerations
capture/storage/reporting of data
accuracy of data/existence of data/can decisions be made quickly off the data/right data?/data as an asset
Information element - POPIT
Information/data assets
Technology element - POPIT
hardware/software solutions to support the work of organisation
Technology element - POPIT considerations
does technology support the business as required / do they meet staff and customer neeed? alignment to: business processes/enable strategy/accessible/alignment to technical architecture/ f & nf
POPIT & Gap Analysis
POPIT structures gap analysis
It ensures all areas where change may be required are considered
- Exisitng situation (POPIT used to ensure all areas covered)
- Target situation (BAM)
- Gaps to be addressed
- Options to address (e.g. merge swimlanes in a process has organisational impact)
POPIT & Situation investigation
Holistic view of business situation
POPIT & Impact assessment
Understand the potential risks and impacts of proposed change
POPIT & Readiness assessment
Used to assess how prepared a business area is to accept a set of changes
Issues is the holistic view is not taken
all 5 elements need to work in tandem , proposals that do not consider all are likely to fail
e.g. a redesigned process is undermined by untrained staff
3 key competencies of a BA
- Personal qualities
- Business knowledge
- Professional techniques
What shaped individuals are BA’s
T - Shaped
Personal qualities & business knowledge make up the ‘breadth’
Professional techniques make up the ‘depth’
What is a T-Shaped professional
- Breath: multi disciplinary knowledge & skills
- Deep domain specific skills & knowledge
Examples of personal qualities
Communication/ Relationship building / Influencing/ Facilitation
Why is communication an important personal quality for BAs
Build rapport/listening/influencing/building empathy
Communication styles should be tailored to SH
Why is influencing an important personal quality for BAs
BAs may suggest options and recommend a course of action - if this is agains preconceived ideas about what is required, influencing is essential
Why is relationship building an important personal quality for BAs
BAs need to encourage people to share information and opinions - we’re internal consultants
Examples of business knowledge
Commercial awareness
Financial awareness
Domain/Sector knowledge
Digital Technology
Organisational structures
Why is commercial awareness important?
understanding of the sector/industry to ensure changes align with biz environment
E.g. market trends / competitor analysis (S/W)
Helps BA build credibility
Why is financial awareness important?
Finance = universal language of business. Basic understanding of balance sheets/cash flows valuable to help evaluate biz case options
Why is domain/sector knowledge important?
Understanding of the drivers, issues & pressures of the business domain
Helps with: what would/would not be acceptable
use domain terminology
apply best practice/ideas from organizations facing similar issues
Why is digital technology knowledge important?
Lots of change projects require development/procurement of software
Areas include: Trends e.g. AI
Pros and cons of COTS vs Bespoke
Example of BA professional techniques
- SH analysis & management
- RE
- Business/data modelling
- gap analysis
- PM (small projects)
- benefits management
Why is SH analysis & management an important professional technique for BAs?
Ability to identify/assess significance
Analyse perspectives
Deliver stakeholder management strategies
Why is business modelling an important professional technique for BAs?
visualisation of business systems
data model: information requirements
Why is gap analysis an important professional technique for BAs?
compare as is to be
compare current situation vs conceptual BAM
capability needs vs those in the organisation
BA’s have many competencies, what should a good BA do?
Fit the right skills to the right situation
Whilst not in a legal sense, business analysis is often referred to as ____?
A profession
Why could Business Analysis be regarded as a profession
- Professional bodies e.g. BCS which define technical standards, code of conduct, develop certification & have the power to remove membersho[
Qualifications that recognise knowlege and expertise of BAs (recognised by employers)
Standards applied to techniques/documentation e.g. UML
Recognition of continued professional development
Importance of code of conduct & professional standards
Code of conduct: provides a definite guide on how you should work/act when doing your job
Professional standards: consistency and uniformity / stakeholder confidence /
Techniques to analyse external environment
Porters 5 forces
PESTLE
Why is external environment analysis important?
The external environment presents opportunities & threats & imposes restrictions- successful organisations retain an awareness of the environment they operate in (awareness of threats and capitalise on opportunities to grow/innovate and gain competitive advantage)
Also ensures any action taken within the business is aligned so we we set ourselves up for succes and do no waste time/money/resources in tactics that may fail (could be using them to capitalise on opp)
What are the dangers of not completing external environment analysis?
- Missed opportunity: for growth/innovation
- Competitive disadvantage: without external analysis it’s likely we’ll fall behind competitors
- Blindsided to threats
- Increased risk: economic downturn/shift in consumer behaviour/regulatory changes
Example of what could happen if PESTLE not used
E.g. a smartphone organisation may overlook emerging technologies such as touch screen phones
Fall behind competitors who may introduce innovative products & gain competitive edge
Example of what could happen if 5 Forces not used
Airline company fail to analyse threat of new entrants
New entrant enters the market with innovative business model and causes the existing airline challenges (decrease profitability/challenges to maintain market share)
Porters 5 Forces
- External environment analysis technique
- Looks at competitive pressures
- analyse the relative positioning and power of an organisation within an industry/domain