Enterprise Analysis

14% of the exam

24 questions

References
Ppt by Carol Pattyn 6/18/13
Enterprise Analysis by Barbara Carkenord
Enterprise Analysis : Building a Foundation
from the Top Down

Enterprise Analysis describes the work

necessary to define a business need, decide
on an approach to address that need, and
to determine if the organization should
invest in the proposed change.

Lets start by considering the words enterprise

and analysis

You perform analysis all the time, both at work

and in your personal life. Analysis means to break
a whole into its parts to study and understand it

An enterprise is a bold, difficult undertaking, or

an important undertaking for a business venture
or company. Someone who is enterprising is said
to be full of energy and initiative, willing to
undertake new projects.

Enterprise Analysis is the breaking apart of

an enterprise. This includes looking at the
people, processes, and technology aspects
of the enterprise to better understand it and
to recommend changes and improvements

BAs Help Define & Select Projects

Help an organization to select the projects with the most potential

value

Understand the business: its risks, processes, problems,

opportunities, goals and objectives, as well as the competitive
landscape

Most business people recognize their risks and their challenges,

but they may not know how to mitigate the risks or solve the
problems

Learning about the business gives you the opportunity to

understand how work is currently being done and to consider how
processes could be improved

Assessing needs involves measuring current, or as-is, processes

and risks. And it involves looking for opportunities to better utilize
organizational assets and resources

Operations Within a Typical

Enterprise

First, there are well-defined operating units that support ongoing

operations
Every organization makes or provides some type of product or service, so
it has a production, manufacturing, operations, or servicing group
Every organization also has some type of sales or marketing department
to make customers aware of their product or service
Finally, they all have financial operations and a human resource area.
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Operations With Projects

In addition to ongoing operations of an organization, there are

projects
Each project has a distinct beginning and end
Intended to develop a new product or service, or change the way the
organization conducts its business. These projects are initiated to
improve the ongoing business
Project managers and a team of people assigned to execute the
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Collect & manage customer

information

Start-up business - basic office automation packages

Collecting information on potential customers

5 to 10 potential customers - easy to keep track of names,

phone numbers, e-mail addresses, personal information

40 to 50 to 100 to 1000 potential customers - managing this

data became more difficult

Customer relationship management (CRM ) systems - capture

this data and allow reporting
Does the enterprise have enough resources (money and time) to acquire
such a package?
How much time is being consumed managing this data without a package?
Is it taking time away from more important taskslike delivering our
products?
What features do we really need? What features will be useful in the
future? How soon will we need them?

Organizations long term vision, strategic plan, and realistic

projections for expected sales and expenses
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Choosing the package

Which package is right for the business

Hundreds of CRM packages - very simple and
inexpensive to the very large and costly
Required features Current & future
Existing architecture
Conversion software availability
Billing software interface

Write down the requirements for the system, to clarify

them and to make sure everyone is in agreement
Business case to present to our investors - purchasing
this software would pay off for the organization over
time - researching costs, estimating conversion time,
and estimating the benefits
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Enterprise Analysis Work Performed in the Story

Knowledge Area
Task
Define Business Need
Assess Capability
Gaps
Determine Solution
Approach
Define Solution
Scope
Define Business Case

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Enterprise Analysis Work Performed in the Story

Knowledge Area
Task
Define Business Need Recognize that customer data is growing
and needs to be managed
Assess Capability
Gaps

Consider the current architecture, number

of users, and the expected growth of
company and customers; determine what
type of data is important to maintain

Determine Solution
Approach

Decide to purchase a CRM package

Define Solution
Scope

Decide to purchase a mid-size CRM

package that did not include billing
functions

Define Business Case Research costs, conversion times, and

estimated benefits; present data to
investors

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Definition - Enterprise Analysis

Describes the Business Analysis activities for
identifying a business need, problem, or
opportunity
defining the nature of a solution that satisfies the
identified need
justifying the investment necessary to deliver the
solution

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Key reasons to conduct EA

Better business alignment with strategic

goals

Improved planning

Improved decision-making

Risk mitigation

Reduction of duplicated efforts

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Tasks
Define Business Need
Assess Capability Gap
Define Solution Approach
Define Solution Scope
Define Business Case

Mnemonic = NGASC : No GAS for Cooking

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Define Business Need

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Define Business Need - Purpose

Identify and define why a change to

organizational systems or capabilities is
required

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Define Business Need - Description

An issue encountered in the organization, such as a customer

complaint, a loss of revenue, or a new market opportunity, usually
triggers the evaluation of a business need
BA questions assumptions and constraints in the statement of the
issue and proposes widest range of alternative solutions are
considered.

New business needs can be generated by:

From the top down the need to achieve a strategic goal

From the bottom up a problem with the current state of a process, function or
system

From middle management a manager needs additional information to make

sound decisions or must perform additional functions to meet business objectives

From external drivers driven by customer demand or business competition in the

marketplace or new technology or change in regulations

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Define Business Need - Input

Requirements (Stated)
Business Goals and Objectives

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Define Business Need Elements

Business Goals and Objectives (SMART)
Business Problem or Opportunity
Desired Outcome

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Business Goals and Objectives

Goals and objectives can relate to changes that the

organization wants to accomplish, or current conditions that it
wants to maintain

Goals are longer-term, ongoing, and qualitative statements of a

state or condition that the organization is seeking to establish
and maintain.
A goal may be to increase high-revenue customers and then further
refined into a goal to increase high-revenue customers through mergers
and acquisitions

As goals are analyzed they are converted into more descriptive,

granular and specific objectives, and linked to measures that
make it possible to objectively assess if the objective has been
achieved

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Business Goals and Objectives (SMART)

Define Business Need
A common test for assessing objectives is to ensure that they are
SMART:

Specific describing something that has an observable outcome

Measurable tracking and measuring the outcome

Achievable testing the feasibility of the effort

Relevant in alignment with the organizations key vision,

mission, goals

Time-bounded the objective has a defined timeframe that is

consistent with the business need

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Relating strategy and

implementation

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Example of a Smart Objective

Decrease legal costs of the Human Resources department by

25 % within two years by providing a more consistent level
of benefits and performance reviews to all workers
Objective is specific (decrease HR legal costs), measurable (by
25% ), and time-bounded (within two years)
We cant tell by reading this objective if it is achievable (realistic) or
relevant (important for the organization to do now), but those are
also critical characteristics.
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Business Problem or Opportunity

Define Business Need

Adverse impacts the problem is causing within the

organization and quantify those impacts (e.g., potential
lost revenue, inefficiencies, dissatisfied customers, low
employee morale)

Expected benefits from any potential solution (e.g.,

increased revenue, reduced costs, increased market share)

How quickly the problem could potentially be resolved or

the opportunity could be taken, and the cost of doing
nothing.

Underlying source of the problem.

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Desired Outcome
Define Business Need
Business benefits that will result from meeting the business need and
the end state desired by stakeholders. Proposed solutions must be
evaluated against desired outcomes to ensure that they can deliver
those outcomes.
Examples include:
Create a new capability such as a new product or service, addressing
a competitive disadvantage, or creating a new competitive advantage
Improve revenue, by increasing sales or reducing cost
Increase customer satisfaction
Increase employee satisfaction

Comply with new regulations

Improve safety

Reduce time to deliver a product or service.

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Define Business Need - Techniques

Benchmarking
Brainstorming
Business Rules Analysis
Focus Groups
Functional Decomposition
Root-Cause Analysis
Business Capability Analysis
Collaborative Games

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Define Business NeedStakeholders

Consumer or Supplier
Domain SME and End User
Implementation SME
Regulator
Sponsor

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Output

Business Need document

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Assess Capability Gap

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5.2 Assess Capability Gap

Inputs
Business Need
Enterprise Architecture
POLDAT: Process, Organization, Location, Data,
Applications, Technology

Solution Performance Assessment

Elements
Current Capability Analysis
Assessment of New Capability Requirements
Assumptions

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BAs Responsibilities
- Assessing Capability Gaps
Learn about current capabilities (enterprise
architecture) from both a business and technical
perspective
Obtain input from the customers, suppliers,
SMEs, and the sponsor regarding existing gaps in
capabilities, and the potential impact of
addressing those gaps
Review current system performance and defect
reports to identify gaps

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5.2 Assess Capability Gap

Techniques
Document Analysis
SWOT Analysis
Business Capabilities Analysis

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5.2 Assess Capability Gap

Stakeholders

Customer or Supplier
Domain, Implementation SMEs
End Users
Sponsor

Output
Required Capabilities

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Determine Solution
Approach

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5.3 Determine Solution

Approach

Inputs
Business Need
Organizational Process Assets
Required Capabilities

Elements
Alternative Generation (optional)
Assumptions and Constraints
Rank and Select Approaches

Agile: Agile development is a solution approach that provides a

faster delivery of value, supports incremental delivery and
allows for a different bargain regarding solution determination.

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5.3 Determine Solution

Approach

Techniques

Benchmarking
Brainstorming
Decision Analysis
Estimation
SWOT Analysis
Feasibility Analysis
Purpose Alignment Model

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5.3 Determine Solution

Approach

Stakeholders

Customer
Domain SME
End Users
Supplier
Implementation SME
Sponsor

Output
Solution Approach

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Define Solution Scope

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5.4 Define Solution Scope

Input

Assumptions and Constraints

Business Need
Required Capabilities
Solution Approach

Elements
Solution Scope Definition
Implementation Approach
Dependencies

Agile: Scope evolves during course of development, defined by

higher-level abstractions (themes and epics) and is detailed as
the project evolves.

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5.4 Define Solution Scope

Techniques

Functional Decomposition
Interface Analysis
Scope Modeling
User Stories
Problem and vision Statement
Business Capability Analysis
Story Decomposition
Story Mapping

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5.4 Define Solution Scope

Stakeholders

Domain SME
Implementation SME
Project Manager
Sponsor

Output
Solution Scope

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Define Business Case

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5.5 Define Business Case

Inputs

Defined Scope Solution

Business Need
Stakeholder Concerns
Assumptions and Constraints

Elements

Benefits
Costs
Risks Assessment
Measurement Process (Results Measurement)

Mnemonic = BC RAMP (Bic Ramp)

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5.5 Define Business Case

Agile: based on achieving a specific

business outcome within a specified cost
and time, revisited frequently as team
learns what it can deliver, how well it meets
the real need and whether the outcome can
be achieved within specified cost and time.

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5.5 Define Business Case

Techniques

Decision Analysis
Estimation
Metrics and Key Performance Indicators
Risk Analysis
SWOT Analysis
Vendor Assessment
Business Capability Analysis
Kano Analysis
Purpose Alignment Model
Real Options

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5.5 Define Business Case

Stakeholders

Domain SME
Implementation SME
Project Manager
Sponsor

Output
Business Case

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Resources
A Guide to the Business Analysis Body of
Knowledge (BABOK Guide) Version 2.0
The Agile Extension to the BABOK Guide,
November 2011
http://www.flashcardexchange.com/cards/ba
bok-chapter-5-enterprise-analysis-2230091

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