Business Analysis Techniques …Session I & II

Referenced by International Institute of Business Analysis IIBA.

By Ashraf DiaaOrganizational Development & HR Director

Business analysis - definitionsAn internal consultancy role responsible for investigating business situations, identifying and evaluating options for implementation business systems, defining requirements and ensuring the effective use of information systems in meeting the needs of the business.

The methodical 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.

Business Analysis 2nd Ed., Debra Paul and Donald Yeates (eds), BCS, 2010

SFIA v5.0, 2011

What do you see ??

An alternative definition

How broad is Business Analysis

Business case

Business analysis

Requirements engineering

Solution development

Strategic analysis

The breadth of Business Analysis ?

Business case

Business analysis

Requirements engineering

Solution development

Strategic analysis

Systems Thinking

Decision / Action

Business Architecture

Solution Architecture

BA techniques in context

Techniques

Context

+ + +LifecycleRationale Roles Deliverables

ALWAYS

THE CURRENT

SITUATION

Some business analysis techniquesCritical success factorsContext diagramRich pictureFunction hierarchyNetwork architecture planWorkflow diagramOrganisation chartEntity relationship model (high-level)Business process modelHigh-level data flow diagramBusiness object model

Use case diagramUse case descriptionTechnical architecture modelFunctional dependency diagramBusiness scenario modellingTask analysisBusiness event modelBusiness roles definitionLogical data modelClass modelRelational data analysis

Website navigation modelProcess dependency modellingObject interaction / collaboration diagramObject role modelsUser conceptual modelUser interface object modelScreen navigation designSystem event modellingState transition diagramState machine diagramObject dynamic model

SWOTPESTLEFive ForcesPower/interest gridMOSTResource auditBCG matrixBalanced business scorecardKey performance indicatorsCATWOEBusiness activity modelling

Event analysisPayback calculationDCF/NPV calculationInternal rate of returnBenefits managementBenefits realisationUser acceptance testingSwimlane diagramsBusiness process reengineeringBusiness process management

Process streamliningBusiness process redesignInterviewingWorkshopsQuestionnairesDocument analysisRecord searchingSpecial-purpose recordsActivity samplingWork measurementPrototyping

More business analysis techniques

Give up yet?BrainstormingRound-robinColumns and clustersBodyguards and assassinsVernissageTalking wallForce-field analysisGreenfield siteTransporterPrioritisationTime beam

Aargh!Cost/benefit analysisImpact analysisGap analysisStandard costingMarginal costingAbsorption costingRatio analysisMoSCoWOrganisation diagramReport writingPresentation techniques

And even then people said “ You’ve missed …….”

If the statistics are

boring…The

numbers do not

make sense… Then

definitely the

analysis is wrong !

The role of the business analyst

Investigating

the situation

Stimulating

thinking

Modelling

business

processes

Analysing

strategy

Specifying

information

systems

Developing

business

case

Business

analyst

Investigating the situation

Workshops

Interviewing

Questionnaires

Document

analysis

Record

searchingBusiness

analyst

Special-purpose

records

Activity sampling

Work

measurement

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Analysing strategyFive forces

MOST

Resource

audit

CATWOE

Business

analyst

SWOT

PESTLE

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Developing a business case

Business

analyst

Payback

calculation

IRR

DCF/NPV

Benefits

management

Cost/benefit

analysis

Impact

analysis

Gap analysis

Marginal

costingStandard

costing

Benefits

realisation

Absorption

costing

Ratio analysis

Report writing

Presentation

techniques

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Finding reasons not to

Selecting your techniques• The situation:

• What is the Objective?• How much money?• How much time?• Local standards!

• The ‘users’:• Technical literacy• Patience• Decisiveness

• The business analyst:• Personality• Favourites• Knowledge• Experience

Your Direction is the first step you

look for

Selecting techniques

•Type – Linear or Multi-dimensional

•Usage - analysis, modelling, communication

•Audience - shared, private

•Documentation – core Business, supportive Function

Phases of learning

Courses

Private study

Work Experience

Mastering techniques

Transversal Networking

Your BA ToolkitBusiness

Strategy and

Objectives

Investigate

SituationConsider

PerspectivesAnalyse

NeedsEvaluate

optionsDefine

Requirements

Manage

Change

PESTLE

MOST

SWOT

Resource Audit

POP-IT model

Rich

pictures

Interviews

Workshops

Context

diagrams

Stakeholder

Management

CATWOE

PARADE

BAMs

RASCI

Gap analysis

Value chain

Analysis

Organisation

Diagramming

Process Modelling

CRUD Matrix

Feasibility

Analysis

Impact

Analysis

Investment

Appraisal

Business

case

Scenarios

Storyboarding

Prototyping

Moscow

Time boxing

Cultural web

Learning cycle

SARAH

Benefits

Realisation

How did it all start ??

What do you think

Is the real meaning of

the word Analysis

Analysis is…

BreakingInto

smaller pieces

Root Cause Analysis Techniques - Five Why’s

Five Why's refers to the practice of asking, five times, why the problem exists in order to get to the root cause of the

problem

Why? Why? Why? Why? Why?

Employee

turnover

rate has

been

increasing

Employees are

leaving for other

jobs

Employees are not

satisfied

Employees feel

that they are

underpaid

Other employers

are paying higher

salaries

Demand for such

employees has

increased in the

market

5 Why Analysis

Getting a warning letter for being late

repeated times !

Pareto Analysis

The 80/20 is not the analysis it is the analytical hypothesis (prospective) or the

statement (retrospective).

It all started when a young Italian started thinking (analytically) about the land lords

of the Italian land.

The principle and the debate

Opening a wider view to the few

strong Vs the many weak

factors/responses.

The Pareto debateGive 3 examples for indirectly proportional factors that might not apply the principle.

PESTEL Analysis

P• Political

Factors

E• Economic

Factors

S• Social Factors

T• Technology

Factors

E• Environmental

Factors

L• Legislative

Factors

SWOT Analysis

Strengths Weaknesses

Opportunities Threats

Where we stand

Porter’s Five Forces

SWOT Analysis

Strengths Weaknesses

Opportunities Threats

Where we stand

Positiv

eN

egativ

e

Internal control

External control

The main objective is to create a wide but detailed explanation of the status quo (current situation).

SWOT analysis can be used effectively to build organization or personal strategy.

Combines the easy formulation with the wide scope of research.

Helps analyst to reach awareness at each of the squares providing a proper platform for strategic planning.

A common mistake done by analysts when putting all the effort in the SWOT without coming out with a SWOT statement.

SWOT can be used through matching and converting. Matching is used to find competitive advantage by matching the strengths to opportunities. Converting is to apply conversion strategies to convert weaknesses or threats into strengths or opportunities. (TOWS)

SWOT

SWOT Your departments

Strengths Weaknesses

Opportunities Threats

Department Analysis

TOWS … From analysis to strategy

Heinz Weihrich introduced TOWS as a practical framework of SWOT

TOWSStrengthsST1:ST2:ST3

WeaknessesWK1:WK2:WK3:

OpportunitiesOPP1:OPP2:OPP3:

ThreatsTHR1:THR2:THR3:

Actions

TOWS … From analysis to strategy

Apply TOWS technique to the previous exercise outcomes

TOWSStrengths Weaknesses

Opportunities

ThreatsActions

P• Political

Factors

E• Economic

Factors

S• Social Factors

T• Technology

Factors

E• Environmental

Factors

L• Legal Factors

Sometimes referred to as PEST analysis.

Helps to identify “The Big Picture”.

A macro-analytical principle of marketing.

Used in both prospective and retrospective manner.

Tests the surrounding environment pre or post launch of product or service.

Can be used to analyze performance or commercial deficit.

Political Factors Economical Factors Social Factors

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Technological Factors Environmental Factors Legal Factors

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Launching Service-lines

campaign in more than one

country.

Cause & Effect Analysis

(Ishikawa Fish-bone Model)

• Devised by professor Kaoru Ishikawa, a pioneer of quality

management, in the 1960s. The technique was then published in his

1990 book, "Introduction to Quality Control.“

• Helps finding the main cause of a certain problem.

• Identifies the process bottlenecks by finding where and why the

process did not work.

• Other analytical scopes/model could be used on the fish-bone model,

e.g.:

• 4M : Man, Method, Machine, Management, Material, Measurement.

• 4C: Communication, Coordination, Culture, Change

• CATWOE: Customers, Actors, Transformation process, Worldview

(weltanschauung) , Organization, Environment

• 4P: Product, Place, Price, People

The Steps

The Effect / Problem

Analysis Gates

Detailed sub-gates

Titanic

Crisis

Guiding principles for

business analysis

• Root causes, not symptoms (effects)

• Business improvement, not system change

• Creative but focused options, not prescribed solutions

• Feasible requirements, not all suggestions are valid

• Entire lifecycle, continuity

•Negotiation, not conflict avoidance

• Business agility, not business perfection

Thank you ..

See you soon !

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