UNIT II Flashcards
is a description of the current situation within an organization,
comprising various dimensions including people, policies, processes, and
technologies.
Current State
also called as “AS-IS Analysis”
CSA
Is a management method
for identifying and evaluating a company’s processes and workflows.
CSA
What Bracket? Business Analysis Perspective and Organizational Change Management Perspective
Importance of Current State Analysis
to ensure requirements for the future state
are accurately captured so the new system and processes can be designed
to address gaps and requirements appropriately.
Business Analysis Perspective
to understand the
impact of the change – how large, how small, how complex – so strategies
can be developed to assist users through the change curve to quickly adopt
the new systems and processes.
Organizational Change Management Perspective
The Two Purposes of CSA (T-S)
The primary purpose for organizational change management is to help
stakeholders more easily navigate the transition from current state to future
state, leading to adoption and increased utilization of the new processes and
technology.
Also to identify each process’s strengths, weaknesses, opportunities, and
threats.
Benefits of CSA (I-T-E-W-V-S)
- Helps provide a clear picture of what is changing by identifying gaps in the
current state and requirements for the future state. - Ensures everything needed to enable the business process has been thought
through and accounted for in the future state. - Sets expectations for who, what, when, and how activities are to be
accomplished. - Helps identify weaknesses and opportunities to further improve your process
before implementation. - Helps stakeholders and users see and understand the change by being able
to visually compare the current and future state. - Can easily be augmented with screenshots and further details to become
process-driven training, which is more digestible for end users.
Guides for CSA (C-D-I)
Conduct Research
Document the process
Identify gaps, obstacles, orflaws
To develop an overview of the company’s current goods,
activities, and services.
Conduct Research
This helps the individual understanding of the
products and goods offered by the company
Conduct research
The process information can be documented in a
process map.
Document the process
This will help the firm capture the process inputs, systematic
support functions, full descriptions of completing the process and all process
outputs.
Document the process
To ensure the change is positive,
analysts use present processes to inform future state diagrams and strive to
innovate and experiment with new ideas.
Identify the gaps, obstacles, or flaws.
This will show the leadership skills
by recommending solutions for the issues.
Identify the gaps, obstacles, or flaws.
Tools in Analyzing CSA (D-V-C-G)
Diamond E-Framework
Value Chain Analysis
Competitive Analysis Framework
- SOAR Analysis
- SGA
- Porter’s Five Forces
- PESTLE Analysis
- VRIO Analysis
- Benchmarking
Growth Share Matrix
It identifies the key variables that need to be
considered in the analysis and it structures the critical relationships among them.
Diamond E-Framework
Strategy is the critical linking variable in the model.
Diamond E-Framework
Strategy tells you what
opportunities the business is pursuing in the environment, and, by inference,
what resources, organizational capabilities, and management preferences are
required for effective execution.
Diamond E-Framework
The double-headed arrows in the diagram
indicate that any of the variables can either drive strategy or constrain strategy.
Diamond E-Framework
Principle Logic of Diamond E-Framework (C-C-A-)
Consistency
Coherence
Alignment
The idea is that _________ among the
component variables in the Diamond-E will lead to successful performance, while
conflict or inconsistencies will lead to poor performance.
high internal consistency
means that the
Diamond-E framework is complete in and of itself as well as being internally logical
and consistent.
Coherence
It follows that a viable strategy needs to be in ________ with the
opportunities and challenges of the environment on the one hand and with the
internal capabilities, drives, and constraints of the business on the other hand.
alignment
z
strategic failure
environmental changes make the strategy _____
obsolete
short term or long term? Errors in reading the environment cause strategic failure
short term
short term or long term? environmental changes make the strategy obsolete
long term
________ exceed the capacity to execute
strategic demand
_______ develop inconsistently with strategy
internal capabilities
short term or long term? strategic demand exceeds the capacity to execute
short term
short term or long term? internal capabilities develop inconsistently with strategy
long term
arise from potential inconsistencies between strategy and
environment.
environmental risks
In the short run, the risk is usually one of miscalculating timing,
or potential, or competitive reaction: you think that a strategic initiative will
work but there is a chance that you may be misreading the situation.
environmental risk
arise from inconsistencies between strategy and the
resources/capabilities and drives within the firm.
capability risks
In the short run, a new
strategy may simply demand too much from a business unit’s resources and
capabilities.
capabilitiy risks
objectives of E-Diamond Framework (A-G-E)
(1)
assess the appropriateness of the firm’s current strategy, (2) generate new ideas
and strategic proposals, and (3) evaluate specific strategic proposals.
– this requires a careful assessment
of the forces at work in the environment and translates the observations
into the implications for the business in terms of strategic opportunities
and challenges.
The Strategy-Environment Linkage
It is important to assess the environment using
appropriate analytical tools. A
The Strategy-Environment Linkage
Tools for Strategy-Environment Linkage
PEST Analysis, Poster’s Five Forces Mode, VCA
this is to identify the resource
requirements for the current strategy or new strategic proposal and
compare of the required resources with the available or readily available
and identify any resource gaps of the business.
The Strategy-Resources Linkage
this includes the
strategic preferences of the managers in the business
The Strategy-Management Preferences Linkage
The analysis starts
with identifying the preferences to successfully execute the strategy.
The Strategy-Management Preferences Linkage
The
analysis of the strategy–management preferences linkage starts with the
identification of preferences that would be consistent with the successful
execution of the strategy.
The Strategy-Management Preferences Linkage
These are then compared with the preferences
of the business managers who are critical to the execution process.
The Strategy-Management Preferences Linkage
– this is usually the last step in the
Diamond-E analysis.
The Strategy-Organization Linkage
It includes in identifying the organizational
capabilities required to implement the strategy with consistency.
The Strategy-Organization Linkage
You
should start the strategy–organization analysis by identifying the
organizational capabilities required to implement the strategy, as deduced
directly by the strategy and indirectly from the gaps identified in the
resource and preference analysis.
The Strategy-Organization Linkage
The next step is to check for
consistency between the required capabilities and those evident in the
organization.
The Strategy-Organization Linkage
If these are consistent you can move on to forecast
performance, make choices, and work on execution.
The Strategy-Organization Linkage
If there are gaps,
however, you will need to determine the nature and feasibility of the
changes to develop the missing capabilities.
The Strategy-Organization Linkage
firms must manage the tension between what they____ given the competitive environment, _______ given their
organization, resources, and capabilities, and _____ given
management preferences.
“need” to do, what they “can” do, what they “want” to do
a strategy may
stretch what a firm “can” deliver.
need to do
a firm may satisfy key stakeholder
interests at the expense of not delivering exactly what the market needs, as
found in many entrepreneurial firms who are guided by what an entrepreneur ____
wants to do
Introduced by Michael Porter in 1985.
Value Chain Analysis
It is the set of
primary activities selected from the industry’s value chain that have been
integrated into the structure of an organization.
Value Chain Analysis
It is the process of looking at the
activities that go into changing the inputs for a product or service into an output
that is valued by the customer.
Value Chain Analysis
Primary activities under the VCA include: (I-0-0-M-S)
s inbound logistics, operations, outbound
logistics, marketing and sales, and after-sale service.
firm infrastructure, human resource management, management information
systems, technology development, and procurement.
Support activities under the VCA include:
This is a model or toll that can be used to
compare business plan or marketing strategy with other competitors.
Competitive Analysis Framework.
It will create
visual structure for a marketing competitive analysis which describes a
company’s competitors and provides detailed information about their sales,
strategies, and marketing efforts
Competitive Analysis Framework.
Benefits of Competitive Analysis Framework (6 Ms)
- Identify market gaps within an industry.
- Find market trends and patterns.
- Analyze effective marketing strategies.
- Identify measurable goals.
- Make data more visually appealing.
- Focus on a specific marketing area.
helps to evaluate the internal
(strengths and weaknesses) and external factors (opportunities and threats)
that impact a business or a course of action.
SWOT Framework
it is often used in
strategic planning to help identify a potential competitive advantage.
SWOT Framework
competitive analysis framework that analyzes
organizations in clusters based on the similarity of strategy.
Strategic Group Analysis
is an analysis framework that
classifies the products in your company’s portfolio against the competitive landscape
of your industry.
Growth Share Matrix
Growth Share Matrix is developed by?
the founder of the Boston Consulting Group in 1970
detects weaknesses, redundancies, and obstacles in existing processes
identifies gaps and inefficiences
other term for blockages
obstacles
establishes a reference point to measure progress and success
provides a baseline for change
ensures data-driven strategies rather than relying on assumptions
improves decision making
highlights opportunities for streamlining workflows and automation
enhances process efficiency
helps anticipate potential issues and minimize financial or operational risks
reduces risks and costs
ensures leadership, employees, and teams have shared understanding of challenges
aligning stakeholders
facilitates smooter transitions by preparing for future state implementation
supports change management
improves service delivery, employee productivity, and overall experience
boosts customer and employee satisfaction
helps the business stay ahead by adapting to marketing demands and trends
strengthens competitive advantage
encourages ongoing optimization for long term business growth
enables continuous improvement
have an immediate effect (cost
advantage) on the production, maintenance, sales and
support of the products or services to be supplied
primary activities
assist the primary activities, and they
form the basis of any organization
support activities
benefits of value chain analysis (C-D-I-C)
- Cost Advantage
- Differentiation
- Improved Decision-Making
- Competitive Positioning
strategic tool used to assess a company’s competitive position in
the market.
COMPETITIVE ANALYSIS
FRAMEWORK
It helps businesses understand their competitors,
industry dynamics, and opportunities for differentiation.
COMPETITIVE ANALYSIS
FRAMEWORK
The
insights gained from competitive analysis can guide decisionmaking in marketing, product development, pricing, and overall
business strategy.
COMPETITIVE ANALYSIS
FRAMEWORK
a strategic planning framework that focuses on an
organization’s positive aspects and future potential
SOAR Analysis
Identifies what the organization does well, its
core competencies, and competitive advantages.
strengths
Focuses on external trends, market possibilities,
and areas for growth.
opportunities
Defines the organization’s vision, goals, and
desired future state.
aspirations
Measures key performance indicators and
success metrics to track progress.
results
HOW TO CONDUCT SOAR ANALYSIS?
Step 1: Define the Objective
Step 2: Gather Data and Insights
Step 3: Identify Strengths
Step 4: Identify Opportunities
Step 5: Define Aspirations
Step 6: Determine Results & Key Metrics
Is a competitive analysis framework that
analyzes organizations in clusters based on
the similarity of strategy
strategic group analysis
HOW TO CONDUCT STRATEGIC GROUP ANALYSIS?
Step 1: Define the Industry and Competitors
Step 2: Identify Key Competitive Dimensions
Step 3: Create a Strategic Group Map
Step 4: Analyze Competitive Dynamics
a competitive analysis framework that helps
businesses assess industry structure and
competitiveness
Porter’s five forces
Measures how easy or difficult it is for
new competitors to enter the market.
Threat of New
Entrants
Assesses how much influence suppliers
have over pricing and availability of
inputs.
Bargaining Power of
Suppliers
Evaluates the power customers have to
demand lower prices or better quality.
Bargaining Power of
Buyers (Customers)
Determines the risk of alternative
products or services replacing the
company’s offering.
Threat of Substitutes
Analyzes the level of competition
among existing firms in the industry.
Industry Rivalry (Competitive Intensity)
HOW TO CONDUCT PORTER’S FIVE FORCES
ANALYSIS?
Step 1: Define the Industry
Step 2: Analyze Each Force
Step 3: Identify Key Insights
Step 4: Develop Strategic Actions
Identify the impact. High startup costs and brand loyalty create entry barriers.
Low
Identify the impact. Coffee beans are sourced from a few key regions; major brands have
strong supplier relationships.
medium
identify the impact. Many coffee choices available, giving customers more power.
high
identify the impact. Tea, energy drinks, and home-brewing machines offer alternatives.
high
identify the impact. Intense competition among global brands like Starbucks, Dunkin’, and
McCafé.
high
It helps organizations
understand risks, opportunities, and trends
in their environment.
PESTLE Analysis
HOW TO CONDUCT PESTLE ANALYSIS?
Step 1: Define the Scope
Step 2: Identify Relevant Factors
Step 3: Analyze the Impact
Step 4: Develop Strategic Actions
is a strategic analysis framework used to evaluate a
company’s resources and capabilities to determine if
they provide a sustainable competitive advantage.
VRIO Analysis (Value, Rarity, Imitability, Organization)
HOW TO CONDUCT VRIO ANALYSIS?
Step 1: Identify Key Resources
Step 2: Evaluate each Resources Using VRIO
Step 3: Interpret Results
