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To define the importance of effective business analysis in ensuring project success and delivery of business value
June 25, 2010
IT Challenge to Deliver Business Value
IT is viewed as a provider and enabler of business value IT faces pressure to deliver value
− − − − − Additional revenue Reduced or avoided costs Greater productivity Reduced risk Respond quickly to changing business environment and business needs
Provides Alignment Between Business and IT Managing IT Like a Business Managing IT for Business Value
Managing the IT Budget
Managing the IT Capability
IT needs to structure itself to deliver business value
June 25, 2010
Provides Metrics to Close the Loop on Value
Familiar View of Project and Project Portfolio Management Demand Management Project Approvals Strategic Alignment Project Portfolio Management Project Requests Supply Management Prioritising Projects Managing Projects Successfully Organisation Enablers Programme and Project Management Project Management Methodology People Management and Education • • • Contains the implicit assumption that the solutions being delivered by the projects are designed properly. 2010 4 . are implementable and operable and meet business requirements Is this correct? Is this the complete picture? More is need than just the right project managed the right way − The solution being delivered by the project must meet business needs June 25.
2010 5 .Aligning the Solutions Being Delivered to Business Needs and Delivery of Business Value • Need more than project management − Not the complete picture − Cannot treat project management in isolation • Need to ensure that the solution being managed meets business requirements Need to ensure business requirements are captured Need to ensure that solutions are designed to deliver business requirements and comply with organisation’s enterprise architecture • • • Fundamentally the project exists to manage the delivery of the solution that has been designed to meet agreed business requirements that assist with delivery of the business plan to achieve business value June 25.
Business Analysis and Design Builds Bridge From Business to Solution Problem Requirement Current State Business Analysis and Solution Design Solution Design: Translate Requirements into Solution Solution Desired Future State Business Analysis: Elicit Requirements Analyse Communicate Validate Business analysis is a key driver of business value • Solution delivery start with business analysis • June 25. 2010 6 .
Weaknesses in Business Analysis Capabilities and Competencies at the Root of Many Project Failures Poor Requirements Poor Analysis Practices Size/Capacity/ Complexity Poor Strategic Alignment Large Project. Complex. Difficult Changes and Processes Large Project Team and Multiple Stakeholders Inadequate Business Case. Changing Environment Solution Design Not Aligned to Business Needs Poor Focus on Business Needs June 25. Undefined Problem/Need Business Benefits Not Measured Business Requirements Not Captured Business Needs Not Met Opportunities Lost Inadequate Resource Allocation and Prioritisation Inadequate Business Involvement Unproven Technology Inadequately Explored Solution Options Investment Wasted Dynamic. 2010 Uncertainly/ Ambiguity Poor Solution Design 7 .
Complex. Undefined Problem/Need Business Benefits Not Measured Business Requirements Not Captured Business Needs Not Met Opportunities Lost Inadequate Resource Allocation and Prioritisation Inadequate Business Involvement Unproven Technology Inadequately Explored Solution Options Investment Wasted Dynamic. Difficult Changes and Processes Large Project Team and Multiple Stakeholders Inadequate Business Case.Analysis-Related Causes of Failures Poor Requirements Poor Analysis Practices Size/Capacity/ Complexity Poor Strategic Alignment Large Project. Changing Environment Solution Design Not Aligned to Business Needs Poor Focus on Business Needs June 25. 2010 Uncertainly/ Ambiguity Poor Solution Design 8 .
procedures and governance − Standardise on infrastructure. 2010 . complexity. redundancy and support complexity Align business and IT Enable re-use and faster time-to-market Present one face to the business (customer) Increase business value 9 June 25. analysis methods and operational procedures − Develop competence and skills • Key benefits − − − − − − − Implement solutions that meet business needs Increase the ability of the business to adapt quickly to changes Reduce risk.Consistent Approach to Business Analysis • Adopt a consistent and robust framework in business analysis − Enables effective benefits realisation through a solution which meets the business need • Key elements − Establish enterprise standards.
2010 Personal Underlying Competencies and Characteristics Techniques and Tools Experience and Skills 10 .Business Analysis Role Key Skills and Abilities Business Analysis Role Skills and Abilities Business Analysis Role-Specific Performance Competencies June 25.
What Makes a Good Business Analyst and Business Analysis Function? Business Analysis Role Skills and Abilities Business Analysis RoleSpecific Performance Competencies Business Analysis Planning and Monitoring Personal Underlying Competencies and Characteristics Techniques and Tools Experience and Skills Requirements and Information Elicitation Requirements Management and Communication Solution Assessment and Validation 11 Requirements Analysis Enterprise Analysis June 25. 2010 .
Negotiation. Leadership.Business Analysis Key Skills Business Analysis Role Skills and Abilities Business Analysis RoleSpecific Performance Competencies Personal Underlying Competencies and Characteristics Techniques and Tools Experience and Skills Analytical Thinking and Problem Solving Organisation and Trust Business. Industry and Organisation Knowledge Facilitation. Influencing and Teamwork June 25. 2010 Communication Skills Analysis Tools 12 .
Business Analysis Key Skills Business Analysis Role Skills and Abilities Business Analysis RoleSpecific Performance Competencies Personal Underlying Competencies and Characteristics Techniques and Tools Experience and Skills Data and Process Modelling Interviewing Functional and Nonfunctional Requirements Analysis Vendor and Software Assessment Requirements Workshops Metrics and Key Performance Indicators Prototyping June 25. 2010 Acceptance and Evaluation Criteria Definition 13 .
2010 14 .Business Analysis Challenges • • • • Lack of advance planning for projects and initiatives Lack of formal training for business analysts Inconsistent approach to business analysis Outsourcing and relying on external contractors to perform major roles in system development Impatience with the analysis/design/planning process Gap between what business analysts are assigned to do and what they should be assigned to do • • June 25.
What is a Project Failure? • • • • • • • • Over schedule Over budget Project cancelled Solution ultimately not used and withdrawn Does not deliver on business case Does not deliver on business benefits Does not deliver business value Poor system usability and/or high error rates requiring rework June 25. 2010 15 .
2010 16 .Business Analysis Contribution to Project Failure • Root cause analysis of many project failures − Poor focus on business needs that means the project is not what the business needs and will therefore use − Poor requirements capture and definition − Poor strategic alignment that means the business case is not well constructed − Poor solution design that means the solution does not deliver on the specified requirements • • Business analysis failures are at the root of these failures Well-executed business analysis fully integrated into the project management process ensures projects deliver on the expected benefits June 25.
Maximising Solution Value Throughout Lifecycle Good Solution Delivery Poor Solution Delivery Good Analysis and Design Achievement of Business Value Good Solution Delivery Good Analysis and Design Followed by Poor Solution Delivery is Better Than Poor or Inadequate Analysis and Design Followed by Good Solution Delivery Poor or Inadequate Analysis and Design June 25. 2010 Poor Solution Delivery 17 .
Maximising Solution Value Throughout Lifecycle Solution Design Solution Development Solution Transition Solution Operation Improved Delivery of Business Needs Improved Management of Transition Achievement of Business Value Improved Solution Design Improved Business Analysis June 25. 2010 18 .
even if it is followed by good project management Good project management does not make a bad solution good • • June 25.Maximising Solution Value Throughout Lifecycle • Good solution and project definition delivers superior business value Poor solution and project definition results in lower business value. 2010 19 .
•Disposal •External Support and Analysis and Design •Ongoing Test Maintenance Facilities •Subscription TOTAL SYSTEM COST BASIC SYSTEM COST •Hardware •Software •Development and Implementation •Management •Installation •Transition and Cutover •Conversion •Training •Documentation •Support Facilities •Parallel Running •Warranty June 25. Research. 2010 20 .Solution Life Cycle Cost Composition LIFE CYCLE COST SYSTEM ACQUISITION COST •Operations PROCUREMENT COST •Internal Support •Planning.
2010 21 . the operating costs can be 1-3 times the cost of acquisition Getting the solution design right at the start delivers very significant increased benefits throughout the solution’s life June 25.Solution Life Cycle Costs Total Cost of Ownership Operating and Support Cost System Acquisition Cost COST YEARS • • Depending on the life of the solution being implemented.
IT Investment Management and Project and Solution Lifecycle Cost Effective Operation of Delivered Solution and Effective Retirement/ Replacement/ Upgrade Decisions Business Analysis Solution Operation Structured Capture and Management of Requirements and Cost Benefit Analysis of Solution Costs Cost Effective Delivery of Projects and Management of Costs Programme and Project Management Key Phase in Solution Delivery to Drive Business Value Solution Architecture and Design Design/Selection of Cost Effective Solutions to Meet Requirements Including Evaluation of All Options Project Portfolio Management Prioritisation of Projects and Investment Decisions 22 June 25. 2010 .
2010 Operation of Solution 23 .Ensuring Strategic Project Alignment to Projects Business Vision and Goal Programmes and projects cascade from business vision to ultimate operation and service delivery Strategy Business Plan Business Analysis identifies the business needs and document the requirements of the solution Programmes and projects need to be aligned to the overarching business vision and goal Programmes for Strategic Objectives Projects Business Analysis we ensures that the right solution is designed June 25.
2010 24 .Hierarchy of Requirements – from Enterprise to Project/Initiative Re Business Vision and qu ire Goal me nts Hie rar Strategy ch y Solutions delivered by programmes and projects cascade from business vision to ultimate operation and service delivery –f De liv ery Ini an Strategic Objectives tia dO tiv es pe Solutions delivered by rat ion Systems and programmes and projects need to be aligned to the overarching business vision and goal Solutions Bu s in Business Plan ess to Sp eci fic Programmes for rom Operation of Solution June 25.
Accumulated Net Business Benefits Defines Business Benefits Delivered and Contribute to the Delivery of Business Value Strategy Programmes for Strategic Objectives Calculates Systems and Solutions Calculates Operation of Solution 25 June 25.From Strategy to Business Value to Business Benefits Business Vision and Goal Defines Organisational Targets Business Plan Calculates Defines Business Value Gains to the Organisation . 2010 .
Accumulated Net Business Benefits Defines Business Benefits Delivered and Contribute to the Delivery of Business Value Programmes for En sur Strategic Objectives eN Va ee lue ds Ge are Systems and ne Me Calculates Solutions rat t a ed nd Calculates June 25.From Strategy to Business Value to Business Benefits Ag ree Va and lue D to efin be e N De ee liv d a ere nd d Strategy Defines Organisational Targets Business Plan Defines Business Value Gains to the Organisation . 2010 Calculates 26 .
Complete Picture of Project Selection and Delivery • Need to consider all aspects of project selection and delivery: − What the business wants (requirements) − What the business gets (solution that delivers on requirements) − Delivered according to business priority (project portfolio management) − Implemented properly (project management) • • Cannot take an individual view without risking problems Need to emphasise the importance of the solution whole lifecycle and the interdependence of the roles June 25. 2010 27 .
Business Analysis Through the Solution Lifecycle • • Need to do more than capture requirements initially Requirements management needs to take place throughout the delivery lifecycle to confirm business needs and being met and business value will result Requirements changes must be managed throughout the solution lifecycle • June 25. 2010 28 .
categorising and specifying requirements • Review – Review and agree exactly what the requirements are Capture – Ensure that the new requirements or change requests are captured • Assess – Evaluate whether the changes will be actioned and approve or reject • Change – Undertake the changes June 25.Business Analysis Approach to Business Requirements Collection and Management During Solution Delivery Lifecycle e tur Cap ss As s e Gather Analyse Review Cha nge Requirements Definition • Requirements Management • Gather – Collecting requirements • Analyse – Analysing. 2010 29 .
Relative Cost of Fixing Errors During Project Lifecycle 1000 • (Logarithmic Scale) Errors/gaps/omissions become significantly more expensive to fix at later stages of project lifecycle 100 10 1 en ta tio n m en ts De sig rT es tin Te st m en t De pl oy n in g g Re qu ire Im pl em st em De ve lo pm en t/ Low Cost Estimate June 25. 2010 Sy Us e High Cost Estimate 30 .
and convert them into realistic achievable solution specifications Projects are all too frequently initiated and solution design and implementation started before there is a clear understanding of the business need High tolerance and acceptance of inadequate and ever-changing requirements leading to requirements and scope creep June 25.Business Analysis is a Key IT Competency • Business analysis function manages the entire solution requirements lifecycle from understanding the business need to ensuring that the delivered solution meets business needs and adds business value Projects all too frequently experience difficulties not from lack of technical expertise but from an a failure to gather. understand. analyse and manage business requirements. 2010 31 • • • .
business and leadership skills • June 25. resulting in a disconnect between what the business needs and what solution is delivered • Effective business analysis is a combination of technical. 2010 32 . analytical.Business Analysis is a Key IT Competency • Business analysis focuses on adding value to the business − Business analysis provides − Detailed project objectives − Business needs analysis − Well defined and structured requirements − Requirements trade-off analysis and requirements feasibility and risk analysis. and cost-benefit analysis Without business analysis poor requirements definition happens.
Business Analysis Skills • Identify and understand the business problem and the impact of the proposed solution on operations of the organisation Document project scope. added value and benefit expectations Translate business needs and objectives into system requirements Design and develop high quality business solutions Liaise with customers/stakeholders/users during installation and testing of new systems and services Evaluate business needs and contribute to strategic planning of information systems and technology directions Assist in determining the strategic direction of the organisation June 25. 2010 33 • • • • • • . objectives.
More Information Alan McSweeney firstname.lastname@example.org June 25. 2010 34 .