CONDUCTING STRATEGY ANALYSIS

LESSON: Transformational Change and Organizational Footing

I. INTRODUCTION

Business Analyst Job

Understand the present state > Determine how to get there > Determine the desired future state

Strategic Analysis Tasks

1. Analyze the current state
2. Define the future state
3. Assess risks
4. Define change strategy

Business Analysis Core Concept Model (BACCM) Perspectives

1. CHANGE
 Determine what transformation is required and future state is desirable.

2. NEED
 Define and prioritize needs base on understanding of present state and vision of the future
state.

3. SOLUTION
 Chart out the scope of the solution base on an understanding of strategic drivers

4. STAKEHOLDERS
 Engage with and elicit information from stakeholders to understand needs, strategic
drivers, and vision for the future.

5. VALUE
 Identify the value offered by the change initiative to determine if action is merited.

6. CONTEXT
 Evaluate the broader impact of potential changes on the enterprise at large.
II. SWOT ANALYSIS

Strengths Weaknesses Opportunities Threats

SWOT Quadrant

OPPORTUNITIES THREATS

Using strengths to
Using strengths to
STRENGTHS combat
leverage opportunities
weaknesses

Leveraging Identifying threats

WEAKNESSES opportunities to that align with
mitigate weaknesses weaknesses

Advantage
 Helpful in understanding the state of the organization, solution, or stakeholders.
 An effective tool for sharing information with stakeholders.

Disadvantage
 High-level in nature, unfit for incorporating substantial detail.
 The scope of the analysis must be clearly defined and strictly contained.
III. BALANCED SCORECARDS
 This is to assess how we are doing as an organization.
 A strategic tool that uses more than financial measures to assess organizational performance.
 May be used to gauge any level of an organization.

BALANCED SCORECARD

Five (5) Key Areas

1. Learning and Growth Perspective
- Employee training and skill level
- Level of technical capability
- Attitude toward continuous improvement and growth
- Innovation in product offerings and operations

2. Internal Business Process Perspective

- Organizational objectives
- Performance measures and targets
- Overall status of enterprise initiatives

3. Customer Perspective
- Customer satisfaction
- Product quality and compatibility
- Delivering value to the customer
- Overall customer experience
 4. Financial Perspective
- Profitability
- Revenue Growth
- Cost Efficiencies

IV. BUSINESS MODEL CANVAS

- How we create and deliver value to end-user?
- Illustrates the creation and exchange of value between the organization and its
customers.

Dimensions of Business Model Canvas

1. Key Partnerships
- Working with partners is often more optimal than handling all work internally.
- Coordination with partners is key to many risk management strategies.
- Partners often fill gaps in internal competency discovered in capabilities analysis.
- The organization may decide to acquire talent, rather than simply contract out work.

2. Key Activities
- Types of Additives Activities
1. Value-add: Activities and work directly tied to features of monetary worth to
the customer.
2. Non-value-add: Activities and work for which customers are not willing to
pay.
 3. Business nan-value-add: Necessary work that may be regulatory or
administrative for which customers are unwilling to pay.

3. Key Resources
- Types of Resources
1. Physical Resources: Machinery, plants, tooling, and other material assets
enabling work.
2. Financial Resources: The cash, credit, and sources of liquidity necessary to
fund a business model.
3. Intellectual Resources: Intellectual property, proprietary methods, data and
information repositories, and branding.
4. Human Resources: The staff, with requisite training and knowledge,
required to conduct the business in question.

4. Value Proposition
- Illustrates the value offered to a customer, and the compensation that value merits.
- May involve an individual service or product, or suite of related solutions.
- Similar to a business case, but from the perspective of the customer rather than the
business.
- Determines what value we offered to the customers or them to be willing to pay for a
certain amount.

5. Customer Relationships
- Efforts may be focused on the acquisition or retention of customers.
- The focus in this process is on external customers, not the internal “customers” of
change initiatives.
- Efforts range from completely personalized to largely automated, depending on the
nature of customer relationship management.

6. Channels
- All the methods by which the organization interacts with its customers.
- Marketing, distribution, sales, and support are among the potential channels to
consider.
 - Channels may be through an understanding of work processes and their inputs/outputs.

7. Customer Segments
- Methods of grouping customers based on shared needs and similar characteristics.
- Helpful determining alignment of products and value propositions to customer bases.
- Factors like profitability and distribution channel may also help in defining customer
segments.

8. Cost Structure
- Type of Cost Areas
1. Fixed Cost: Going to the development and offering of the product to the
customers.
2. Variable Cost: Incurred every time we fulfill the product or service to
customers.
3. Ongoing Cost: Required for the support, maintenance, warranty, and another
way to continue the conversation and the relationship with the customer
after the sale has taken place.

9. Revenue Streams
- Types of Revenue
1. Subscription and licensing
2. Transaction and usage fees: Something that is based on the volume of
interactions that the customer might have with the product or service.
3. Traditional Sales: Method of receiving revenue by providing products to
customers.
4. Lending, renting, and leasing: Temporary methods of simulating ownership
that can provide a customer with value,
V. BUSINESS CAPABILITY ANALYSIS
 Assesses the abilities an organization can bring to accomplish objectives.

Goals of Capability Analysis

1. Capabilities may drive revenue, reduce costs, or relate to customer experience.
2. Performance expectations can be derived from understanding capability.
3. Helpful in planning capability to align with future goals.
4. Ensures capabilities align with objectives and facilitate value proposition.
Business Capability Map