OE5091 - BUSINESS DATA

ANALYTICS
UNIT I OVERVIEW OF BUSINESS ANALYTICS
Introduction – Drivers for Business Analytics – Applications of Business Analytics:
Marketing and Sales, Human Resource, Healthcare, Product Design, Service
Design, Customer Service and Support – Skills Required for a Business Analyst –
Framework for Business Analytics Life Cycle for Business Analytics Process
What is a data analyst?
• A data analyst’s fundamental job is to tell compelling stories with data
 that empower organizational leaders to make better, more informed
decisions.
• The responsibilities of a data analyst often include: 
• Designing and maintaining data systems and databases, including
troubleshooting potential issues 
• Mining and cleaning data in preparation for analysis 
• Preparing reports which effectively communicate their findings to
organizational leadership and key stakeholders 
What is Data Analyst?
• To be effective in their roles, data analysts must possess the technical
skills necessary for data mining, hygiene, and analysis, along with
strong interpersonal skills to communicate their findings to decision-
makers. 
• Some of the most essential skills for data analysts include data
visualization and presentation skills, Microsoft Excel, 
Structured Query Language (SQL), and R or Python programming
knowledge. 
What is a business analyst?
• Business analysts are responsible for using data to inform strategic business
decisions.
• A business analyst might also hold job titles such as 
• operations research analyst, management analyst, or business data analyst.
• The duties of a business analyst typically include:
• Evaluating business processes for efficiency, cost, and other valuable metrics 
• Communicating insights with business teams and key stakeholders 
• Preparing strategic recommendations for process adjustments, procedures, and
performance improvements
• Some of the primary skills needed to become a successful business analyst include
• critical thinking, problem-solving, communication, and process improvement.
• These professionals must have a firm understanding of their
• organization’s objectives and procedures so that they can
• analyze performance, identify inefficiencies, and propose and implement solutions.
What is a business analyst?
• Business analysts must have at least a working knowledge of the
technology involved in analytics
• though the need for hard technical skills is generally lower than for data
analysts.
• For those looking for career advancement opportunities,
• however, developing an advanced knowledge of mathematics,
• computer science, and analytics can act as a significant differentiator in the
job market.
• Entry-level business analyst positions usually require a bachelor’s
degree
• Business administration or related area of study.
What’s the difference?
• While data analysts and business analysts both work with data
• the main difference lies in what they do with it. 
• Business analysts use data to help organizations
• make more effective business decisions.
• In contrast, data analysts are more interested
• gathering and analyzing data for the business
• to evaluate and use to make decisions on their own.
What are Business Drivers?
• Business drivers are the key inputs and activities that drive the
operational and financial results of a business.
• Common examples of business drivers are salespeople,
• number of stores, website traffic, number and price of products sold
• units of production, etc.
• In order to make internal choices about business strategy 
• build a financial model to value a company
• it’s critical to gain a solid understanding of the main drivers of a business.
 Examples of business drivers
• Drivers vary significantly by industry,
but they can all be determined using
the same type of root cause analysis.
• Here is a list of common business
drivers:
• Number of stores or locations
• Average size (i.e., square feet) per
location
• Number of products sold (volume)
• Prices of products/services sold
• Number of salespeople
• Effectiveness of salespeople
• Traffic volume to a website
• Conversion rate of traffic to a
website
• Production rate for manufacturing
• Efficiency rates and downtime
• Energy and electricity costs
• Rent and office space
• Salaries and wages per employee
• Commissions, fees, and other
selling expenses
• Foreign exchange rates
• Commodity prices (e.g., oil, copper,
pulp, rubber, etc.)
How to determine what the business drivers are?
• Drivers impact all financial aspects of a business:
• revenues, expenses, and capital costs.
• In identifying what the main drivers are, it’s important to do a root cause
type of analysis.
• Start by looking at the company’s financial statements, and ask the
question, “What drives this line item?”
• Let’s take revenue as an example.

• Q: For a company in retail (e.g., a clothing company), what drives revenue?

• A: Volume of products sold, multiplied by the average price
 
How to determine what the business drivers are?
• Q: What drives volume?
• A: The number of products and the number of salespeople
• Q: What drives the number of salespeople?
• A: The number of stores and the sizes of the stores
• Q: What drives the number of stores?
• A: This is a core business driver. It’s an operational and capital decision to
open more stores or not, so there’s nothing that precedes it.
• Number of stores is one of the key business drivers for this business.
• This process should be repeated for each line-item on each of the three financial
statements.
• Once completed, take the list of drivers and determine which are the most
important to focus on.
• These will be the ones that impact the main areas of the business and have the
largest effect on results.
Monitoring and improving business performance
• Once the most important business drivers have been identified (using the
process above),
• it’s important to monitor the results of the business and make strategic decisions to
improve performance in the future.
• Continuing with the example above, now that number of stores has been
identified as a key business driver,
• it is important to track that metric, along with the size of each store, the number of
salespeople per store
• the volume and price of products per store, and, finally, the revenue.
• By tracking all these figures, it will be possible to monitor how effective a
strategy of adding new stores is,
• relative to other drivers such as adding salespeople, raising prices, or
carrying a wider range of inventory.
Reporting on business drivers
• For any professional working in financial planning and analysis (FP&A),
a big part of the job will be reporting on key business drivers with 
charts, graphs, and tables.
• Once the data has been collected,
• the job of the financial analyst is to present it in a way that’s easy to
understand.
• A popular method is to create a dashboard that summarizes the key
metrics
• that helps executives and key decision-makers visualize what’s happening in
the business.
 Application of Business Analytics
Finance
BA is of utmost importance to the finance sector. Data Scientists are in
high demand in investment banking, portfolio management, financial
planning, budgeting, forecasting, etc.
For example: Companies these days have a large amount of financial
data. Use of intelligent Business Analytics tools can help use this data to
determine the products’ prices.
 Also, on the basis of historical information Business Analysts can study
the trends on the performance of a particular stock and advise the client
on whether to retain it or sell it.
Application of Business Analytics
Marketing
Studying buying patterns of consumer behaviour, analysing trends,
help in identifying the target audience, employing advertising
techniques that can appeal to the consumers, forecast supply
requirements, etc.
For example: Use Business Analytics to gauge the effectiveness and
impact of a marketing strategy on the customers.
 Data can be used to build loyal customers by giving them exactly
what they want as per their specifications.
Application of Business Analytics
• HR Professionals
HR professionals can make use of data to find information about
educational background of high performing candidates, employee
attrition rate, number of years of service of employees, age, gender,
etc.
• This information can play a pivotal role in the selection procedure of a
candidate.
For example: HR manager can predict the employee retention rate on
the basis of data given by Business Analytics.
 Application of Business Analytics
CRM
Business Analytics helps one analyse the key performance indicators, which further helps in
decision making and make strategies to boost the relationship with the consumers.
The demographics, and data about other socio-economic factors, purchasing patterns,
lifestyle, etc., are of prime importance to the CRM department.
For example: The company wants to improve its service in a particular geographical segment.
With data analytics, one can predict the customer’s preferences in that particular segment,
what appeals to them, and accordingly improve relations with customers.
Manufacturing
Business Analytics can help you in supply chain management, inventory management,
measure performance of targets, risk mitigation plans, improve efficiency in the basis of
product data, etc.
For example: The Manager wants information on performance of a machinery which has
been used past 10 years.
 The historical data will help evaluate the performance of the machinery and decide whether
costs of maintaining the machine will exceed the cost of buying a new machinery.
 Application of Business Analytics
• Credit Card Companies
Credit card transactions of a customer can determine many factors:
financial health, life style, preferences of purchases, behavioral trends, etc.
For example: Credit card companies can help the retail sector by locating
the target audience.
• According to the transactions reports, retail companies can predict the
choices of the consumers, their spending pattern, preference over buying
competitor’s products, etc.
• This historical as well as real-time information helps them direct their
marketing strategies in such a way that it hits the dart and reaches the right
audience.
What Is Descriptive Analytics?
• Descriptive analytics is the interpretation of historical data to better
understand changes that have occurred in a business.
• Descriptive analytics describes the use of a range of historic data to
draw comparisons.
• Most commonly reported financial metrics are a product of
descriptive analytics, for example, year-over-year pricing changes,
month-over-month sales growth, the number of users, or the total 
revenue per subscriber.
• These measures all describe what has occurred in a business during a
set period.
Descriptive Analytics
• Descriptive analytics is the process of parsing historical data to better understand
the changes that have occurred in a business.
• Using a range of historic data and benchmarking, decision-makers obtain a
holistic view of performance and trends on which to base business strategy.
• Descriptive analytics can help to identify the areas of strength and weakness in an
organization.
• Examples of metrics used in descriptive analytics include year-over-year pricing
changes, month-over-month sales growth, the number of users, or the total
revenue per subscriber.
• Descriptive analytics is now being used in conjunction with newer analytics, such
as predictive and prescriptive analytics.
• In its simplest form, descriptive analytics answers the question, "What
happened?"
 Descriptive Analytics
• Descriptive analytics is one of the most basic pieces of business intelligence a
company will use.
• Although descriptive analytics can be industry-specific,
• such as the seasonal variation in shipment completion times, analytics use broadly
accepted measures common throughout the financial industry.
• Return on invested capital (ROIC) is a descriptive analytic created by taking three
data points—
• net income, dividends, and total capital—and turning those data points into an
easy-to-understand percentage
• can be used to compare one company’s performance to others.
• Generally speaking, the larger and more complex a company is, the more descriptive
analytics it will use to measure its performance.
What Is Predictive Analytics?
• The term predictive analytics refers to the use of statistics and
modeling techniques to make predictions about future outcomes and
performance.
• Predictive analytics looks at current and historical data patterns to
determine if those patterns are likely to emerge again.
• This allows businesses and investors to adjust where they use their
resources to take advantage of possible future events.
• Predictive analysis can also be used to improve 
operational efficiencies and reduce risk.
Prescriptive Analytics
• Prescriptive analytics is a type of data analytics
• the use of technology to help businesses make better decisions through the
analysis of raw data.
• Specifically, prescriptive analytics factors information about possible
situations or scenarios, available resources, past performance, and
current performance, and suggests a course of action or strategy.
• It can be used to make decisions on any time horizon, from immediate
to long term.
• The opposite of prescriptive analytics is descriptive analytics, which
examines decisions and outcomes after the fact.
The Information-Action Value Chain

Descriptive Predictive Prescriptive

Analytics Analytics Analytics
Data Analytics tool for Business
• Here’s the list of 20 most popular Data • SAS
Analytics tools for businesses: • Xplenty
• Excel • SAP
• Tableau • Birst
• Qlik Sense • WebFOCUS
• ThoughtSpot • BusinessObject
• FineReport • IBM Cognos
• MicroStrategy • Board
• R & Python • Yellowfin
• Sisense • Bizzscore
• TIBCO • Jaspersoft
Step 1 – Get Oriented
• Often as business analysts, we are expected to dive into a project and start
contributing as quickly as possible to make a positive impact.
• Sometimes the project is already underway.
• Other times there are vague notions about what the project is or why it exists.
• Face a lot of ambiguity as business analysts and it’s our job to clarify the scope,
requirements, and business objectives as quickly as possible.
• But that doesn’t mean that it makes sense to get ourselves knee-deep into the
detailed requirements right away.
• Doing so very likely means a quick start in the wrong direction.
• Taking some time, whether that’s a few hours, few days, or at the very most a
few weeks
• to get oriented will ensure you are not only moving quickly but also able to be an
effective and confident contributor on the project.
Step 1 – Get Oriented
• Your key responsibilities in this step include:
• Clarifying your role as the business analyst so that you are sure to create
deliverables that meet stakeholder needs.
• Determining the primary stakeholders to engage in defining the project’s
business objectives and scope, as well as any subject matter experts, to be
consulted early in the project.
• Understanding the project history so that you don’t inadvertently repeat work
that’s already been done or rehash previously made decisions.
• Understanding the existing systems and business processes so you have a
reasonably clear picture of the current state that needs to change.
• This is where you learn how to learn what you don’t know you don’t know, so to
speak. This step gets you the information you need to be successful and effective
in the context of this particular project.
Step 2 – Discover the Primary Business
Objectives
• It’s very common for business analysts and project managers to jump right in to defining the
scope of the project. However, this can lead to unnecessary headaches. 
• Uncovering and getting agreement on the business needs early in a project and before
scope is defined is the quickest path forward to a successful project.
• Your key responsibilities in this step include:
• Discovering expectations from your primary stakeholders – essentially discovering the “why”
behind the project
• Reconciling conflicting expectations so that the business community begins the project with a
shared understanding of the business objectives and are not unique to one person’s
perspective.
• Ensuring the business objectives are clear and actionable to provide the project team with
momentum and context while defining scope and, later on, the detailed requirements.
• Discovering the primary business objectives sets the stage for defining scope, ensuring that
you don’t end up with a solution that solves the wrong problem or, even worse, with a solution
that no one can even determine is successful or not.
Step 3 – Define Scope
• A clear and complete statement of scope provides your project team the go-forward
concept to realize the business needs. Scope makes the business needs tangible in such
a way that multiple project team participants can envision their contribution to the
project and the implementation. 
• Your key responsibilities in this step include:
• Defining a solution approach to determine the nature and extent of technology and
business process changes to be made as part of implementing the solution to the
primary business objectives.
• Drafting a scope statement and reviewing it with your key business and technology
stakeholders until they are prepared to sign-off or buy-in to the document.
• Confirming the business case to ensure that it still makes sense for your organization to
invest in the project.
• Scope is not an implementation plan, but it is a touchstone guiding all of the subsequent
steps of the business analysis process and tasks by other project participants.
Step 4 – Formulate Your Business Analysis
Plan
• Your business analysis plan will bring clarity to the business analysis process that will be used
to successfully define the detailed requirements for this project. Your business analysis plan is
going to answer many questions for you and your project team.
• Your key responsibilities in this step include:
• Choosing the most appropriate types of business analysis deliverables, given the project
scope, project methodology, and other key aspects of the project context.
• Defining the specific list of business analysis deliverables that will completely cover the scope
of the project and identifying the stakeholders who will be part of the creation and validation
of each deliverable.
• Identifying the timelines for completing the business analysis deliverables.
• In the absence of defining a credible and realistic plan, a set of expectations may be defined
for you, and often those expectations are unrealistic as they do not fully appreciate
everything that goes into defining detailed requirements.
 Step 5 – Define the Detailed Requirements
• Detailed requirements provide your implementation team with the information they need to
implement the solution. They make scope implementable.
• Without clear, concise, and actionable detailed requirements, implementation teams often
flounder and fail to connect the dots in such a way that delivers on the original business case for the
project.  
• Your key responsibilities in this step include:
• Eliciting the information necessary to understand what the business community wants from a specific
feature or process change.
• Analyzing the information you’ve discovered and using it to create a first draft of one or more business
analysis deliverables containing the detailed requirements for the project.
• Reviewing and validating each deliverable with appropriate business and technology stakeholders and
asking questions to fill in any gaps.
• Effective business analysts consciously sequence your deliverables to be as effective as possible in
driving the momentum of the project forward.
• Paying attention to the project’s critical path, reducing ambiguity and complexity, and generating quick
wins are all factors to consider when sequencing your deliverables.
Step 6 – Support the Technical Implementation
• On a typical project employing a business analyst, a significant part of the solution
involves a technical implementation team building, customizing, and/or deploying
software. 
• During the technical implementation, there are many worthwhile support tasks for you
to engage in that will help drive the success of the project and ensure the business
objectives are met.
• Your key responsibilities in this step include:
• Reviewing the solution design to ensure it fulfills all of the requirements and looking for
opportunities to meet additional business needs without increasing the technical scope of the
project.
• Updating and/or repackaging requirements documentation to make it useful for the technology
design and implementation process.
• Engaging with quality assurance professionals to ensure they understand the business context for
the technical requirements.
• This responsibility may include reviewing test plans and/or test cases to ensure they represent a
clear understanding of the functional requirements.
Step 6 – Support the Technical Implementation
• Making yourself available to answer questions and help resolve any issues that
surface during the technical design, technical implementation, or testing phases
of the project.
• Managing requirements changes to ensure that everyone is working from up-to-
date documentation and that appropriate stakeholders are involved in all
decisions about change.
• When appropriate, leading user acceptance testing efforts completed by the
business community to ensure that the software implementation meets the
needs of business end users.
• All of these efforts help the implementation team fulfill the intended benefits of
the project and ensure the investment made realizes a positive return.
Step 7 – Help the Business Implement the Solution
• Your technology team can deliver a beautiful shiny new solution that theoretically
meets the business objectives, but if your business users don’t use it as intended and
go back to business-as-usual, your project won’t have delivered on the original
objectives.
• Business analysts are increasingly getting involved in this final phase of the project to
support the business.
• Your key responsibilities in this step may include:
• Analyzing and developing interim and future state business process documentation that
articulates exactly what changes need to be made to the business process.
• Training end users to ensure they understand all process and procedural changes or
collaborating with training staff so they can create appropriate training materials and deliver the
training.
• Collaborating with business users to update other organizational assets impacted by the
business process and technology changes.
• This step is all about ensuring all members of the business community are prepared to embrace
the changes that have been specified as part of the project.
Step 8 – Assess Value Created by the Solution
• A lot happens throughout the course of a project. Business outcomes are discussed.
Details are worked through.
• Problems, big and small, are solved. Relationships are built. Change is managed.
Technology is implemented. Business users are trained to change the way they
work.
• In this flurry of activity and a focus on delivery, it’s easy to lose track of the big
picture. Why are we making all these changes and what value do they deliver for the
organization?
• And even more importantly, are we still on track? Meaning, is the solution we’re
delivering actually delivering the value we originally anticipated?
• Nothing creates more positive momentum within an organization than a track
record of successful projects. 
• But if we don’t stop and assess the value created by the solution, how do we know if
we are actually operating from a track record of success?
Step 8 – Assess Value Created by the Solution
• Your key responsibilities in this step may include:
• Evaluating the actual progress made against the business objectives for the
project to show the extent to which the original objectives have been fulfilled.
• Communicating the results to the project sponsor, and if appropriate, to the
project team and all members of the organization.
• Suggesting follow-up projects and initiatives to fully realize the intended business
objectives
• the project or to solve new problems that are discovered while evaluating the impact of
this project.
 A Framework
for
Business Process
Do you know where your processes are?
Introduction

A Short Story
• Are you doing Process Re-Design?
• Reengineering? Improvement?
The Zachman
Framework
• Are you implementing Workflow?
A Business
Process • Document Management? Task Management?
Framework
• What’s a core process?
The Goal
• Support Process? Control Process?
How to Build It

Benefits
• What’s the difference between a Process
Discussion
• Activity, Task, Operation, Method
• Where do you put all those process models and
designs?
• Should you buy a Process Modeling, Process
Engineering, or Business Process Management
package?
Business Process Architecture
Introduction

A Short Story • Business NOT Systems Architecture

The Zachman
Framework
• Define the Key Terms and Components
A Business • “the stack”
Process
Framework • Represent Key Points of View
The Goal

How to Build It
• Support Process Innovation Methods
Benefits • Support Process Management Program
Discussion
• The Business “Blueprint”
 DATA
DATA PROCESS
PROCESS LOCATION
LOCATION ROLE
ROLE TIMING
TIMING MOTIVATION
MOTIVATION

BUSINESS
The Zachman Information Systems Architecture
List of things important to the
business.
List of processes the business List of locations in which the
performs business
.
.
.
operates
. .
List of business responsibilities. List of business events. List of business goals.

BUSINESS
BUSINESS
BUSINESS .
SCOPE
SCOPE SCOPE
SCOPE
Introduction
ENTITY: PROCESS: RESP.: class of business EVENT: class of significant
class of business thing class of business processes. NODE: business location. responsibilities business events. ENDS: mission(s)/goal(s).
Business entities & their inter- Flows between business Communications links between Business Organization. Business Cycles. Business Strategies
The Zachman
relationships processes locations
BUSINESS
Framework BUSINESS
BUSINESS BUSINESS
MODEL
MODEL MODEL
MODEL
A Business PROCESS: business process NODE: business unit
ENTITY: business entity LINK: business relationship RESP: work unit/structure EVENT: business event ENDS: goal(s)/mission(s)
Process I/O: business resource
REL'SHIP: business rule (org., product, information) WORK: business resources CYCLE: lapse/lag MEANS: tactics/plans
(including information)
Framework
Model of the business data Flows between application Distribution network Model of the access Model of the process control Service Support Environment
and inter-relationships functions requirements. structure.
INFORMATION
INFORMATION ---------------------- INFORMATION
INFORMATION
SYSTEMS
The Goal SYSTEMS
SYSTEMS SYSTEMS
MODEL
MODEL MODEL
MODEL
How ENTITY:
to Builddata
It entity PROCESS: application function NODE: I.S. function (processor, ENDS: service level agreements
I/O: user views (set of data storage, etc.). RESP: system privilege EVENT: logical process event MEANS: I/S plans & change
RELTNSHIP: data relationship elements). LINK: line characteristics WORK: access requirements CYCLE: precedence/timing tactics
Database Design
Benefits System Design System Architecture Access Design Processing Environment Availability Design
IBM AS/400

TECHNOLOGY
TECHNOLOGY TECHNOLOGY
TECHNOLOGY
MODEL
Discussion MODEL
MODEL MODEL
Mainframe

ENDS: benchmark models

IBM Compatible

ENTITY: segment, row, record PROCESS: computer function NODE: hardware/system softwareRESP: access authorizations EVENT: physical process event MEANS: availability of windows
RELTNSHP: pointer, key, index I/O: screen/device formats LINK: line specifications WORK: access group CYCLE: processing calendar and measures
Database Schema and Program Code and Control Configuration Definition Access Definition Job Processing Definition Performance Definition
Subschema Definition Blocks
TECHNOLOGY
TECHNOLOGY TECHNOLOGY
TECHNOLOGY
DEFINITION
DEFINITION DEFINITION
DEFINITION
ENTITY: fields, access privledge EVENT: transactions, job ENDS: benchmark targets
RELTNSHP: access methods, PROCESS: source code NODE: addresses RESP: access object
submittal MEANS: benchmark testing,
addresses I/O: control blocks LINK: protocols WORK: access profiles
CYCLE: job & region schedules system monitoring/tuning
Data Storage Structures and Executable Code System Configuration Access Privileges Processing Schedules System Management Facilities
Access Mechanisms
INFORMATION
INFORMATION Programs, jobs, Processors, networks, User-id’s, access Batch jobs, transactions, Monitoring facilities, problem INFORMATION
INFORMATION
SYSTEM Databases, data ..... SYSTEM
SYSTEM transactions..... switches. monitors..... controls ..... run/rerun instructions ..... management ..... SYSTEM

Source: Zachman, John A.: “A Framework for Information Systems Architecture.” IBM Systems Journal. V26:N3 1987.
Focuses or Topics
Introduction

A Short Story

The Zachman
Framework

A Business
Process
Framework

The Goal

How to Build It ? ? ? ? ? ?
WHAT HOW WHERE WHO WHEN WHY
Benefits (product) (process) (place) (person) (period) (purpose)
is it does are is do are
Discussion made it things involved things things
of function located happen done
? ? ? ? ? ?
Perspectives or Views
Introduction

A Short Story

The Zachman
Framework PLANNER Scope or Context View

A Business
Process
Framework OWNER Business/Product Requirements or Conceptual View

The Goal

How to Build It DESIGNER System Model or Logical Design View

Benefits

Discussion BUILDER Technical Model or Physical Design View

SUB-
CONTRACTOR Detail Representation or Out-of-Context View

CONSUMER End Product or Usage View

Zachman Framework for Enterprise Architecture
Introduction

A Short Story

The Zachman
Framework CONTEXTUAL List of List of List of List of List of
Scope List of things Processes Locations Organization Events Business
Units Goals/Stat.
A Business
Process
Framework Business
CONCEPTUAL Business Logistics Work Flow Master Business
Entity Model Process Network Model Schedule Plan
Business Model Model
The Goal

How to Build It
LOGICAL Logical Data Application System Human Processing Business
Model Process Network Interface Structure Rule Model
Benefits System Model Model Model Paradigm

Discussion
PHYSICAL Physical Application Network Presentation Control
Structure Technology Rule Design
Technology Model Data Model Chart Model Architecture Structure

OUT-OF-
CONTEXT Data Program Network Interface Timing Rule
Definition Components Components Definition Specification
Components

PRODUCT
DATABASE APPLICATION NETWORK ORGANIZATION SCHEDULE STRATEGY
Functioning System
Focuses for Process?
Introduction

A Short Story

The Zachman
Framework

A Business
Process
Framework

The Goal
WHY WHEN HOW WHAT WHO WHERE
How to Build It
(purpose) (period) (process) (product) (person) (place)
Benefits

Discussion Goal/ Events Processes Output Role/ Facility

Objective Skills

?
Meta Model
Introduction

A Short Story

The Zachman
Framework

A Business
PERIOD
PERIOD PROCESS
PROCESS
Process
Framework

The Goal

How to Build It

Benefits PURPOSE
PURPOSE PRODUCT
PRODUCT
Discussion

PEOPLE
PEOPLE PLACE
PLACE

Adapted from Don Soulsby

What’s your process “stack”?
Introduction

A Short Story

The Zachman PROCESS

Framework

A Business
Process ACTIVITY
Framework

The Goal
SUB-PROCESS
How to Build It

Benefits
Standards
Discussion

Instructions
TASK
Forms

Skills
Domain Layering
Introduction

A Short Story Business

The Zachman
Framework

A Business
Process
Framework

The Goal
Operations

How to Build It

Benefits

Discussion

Technical

Adapted from Don Soulsby

Perspectives or Views
Introduction

A Short Story

The Zachman
ENTERPRISE Strategic Planning

Business
Framework

Domain
A Business
Process
Framework BUSINESS Business Redesign/Reengineering

The Goal

How to Build It OPERATIONS Process Improvement

Benefits

DESIGNER

Technology
Discussion Requirements Model

Domain
BUILDER Applications Specification

OPERATOR Working System

A Business Process Framework
Introduction WHAT/
WHAT/ HOW/
HOW/ WHERE/
WHERE/ WHO/
WHO/ WHEN/
WHEN/ WHY/
WHY/
INPUTS
INPUTS&& PROCESSES
PROCESSES&& FACILITIES
FACILITIES&& ROLE
ROLE&& EVENTS
EVENTS&& MOTIVATION
MOTIVATION&&
OUTPUTS
OUTPUTS TASKS
TASKS EQUIPMENT
EQUIPMENT SKILLS
SKILLS DURATION
DURATION METRICS
METRICS
A Short Story

The Zachman BUSINESS

Framework
BUSINESS
SCOPE
SCOPE Business Model ENTERPRISE
ENTERPRISE
VIEWS
VIEWS

A Business
Process BUSINESS
BUSINESS
DIRECTOR/
DIRECTOR/
Framework MODEL
MODEL Operations Model OWNER
OWNER
VIEW
VIEW

The Goal
LOGICAL
LOGICAL ANALYST/
ANALYST/
How to Build It PROCESS
PROCESS
MODEL
MODEL Procedural Model DESIGNER
DESIGNER
VIEW
VIEW

Benefits
BUILDER/
BUILDER/
Discussion WORKFLOW
WORKFLOW
MODEL
MODEL
Workflow Systems Model MANAGER
MANAGER
VIEW
VIEW

OPERATOR
SPECIFICATION
SPECIFICATION
Physical/Technical Specifications OPERATOR
VIEW
VIEW

PRODUCTION MONITOR
MONITOR
PRODUCTION
Measurement & Control VIEW
VIEW
Planning for Change
Introduction

A Short Story Business Domain Technology Domain

The Zachman
Framework
Strategic
A Business
Process Plans
Framework
INNOVATION
The Goal Opportunities
Business
How to Build It
System TECHNOLOGY
Benefits PROJECTIONS
Discussion

PRODUCT PROCESS DATA APPLICATION

PEOPLE PLACE INTERFACE DISTRIBUTION

Business Models Technical Models

ALIGNMENT
Adapted from Don Soulsby
Words of wisdom

• “Always design a thing by

considering it in its next larger
context -
a chair in a room,
a room in a house,
a house in an environment,
an environment in a city plan.”
- Eero Saarinen
Goals of “Manage by Process”
Introduction
We will be managing by process when:
A Short Story

The Zachman
Framework We agree on what our processes are
A Business
Process We know how the processes interact
Framework
what each process delivers
The Goal
how each process produces it’s deliverables
How to Build It what skills are required for each process
Benefits how well each process performs
Discussion
We can measure effectively and
manage by these facts

We have an owner for each process

What’s a Model?
Introduction

A Short Story • A model is information

The Zachman • It contains:
Framework
– one or more pictures (diagrams)
A Business
Process
– information about the objects & relationships on the diagram
Framework – information about the relationships between objects in
The Goal multiple diagrams
How to Build It
– information about how the thing it “models” behaves or
performs
Benefits
• It is a vehicle for understanding how things work
Discussion
Create the Process Framework
Introduction

A Short Story • This is the overall solution to storing and

The Zachman managing enterprise process information
Framework
• We need this to support a process
A Business
Process
Framework
management program.
The Goal
• We need this to support our Business Process
How to Build It Planning method and services
Benefits • It will support business analysis and reuse of
Discussion business information (Strategic Integration)
• It will be the basis for – agility – strategic
repositioning
Build a Process Repository
Introduction

A Short Story

The Zachman
Framework
The Framework is a “blueprint” for a
A Business
Business Process Model ‘Repository’
Process
Framework

The Goal It is a map of the structure

How to Build It for the Business Process Model Repository
Benefits that can be used to
Discussion store, locate, access, and navigate
through enterprise process information
How To Build It
Introduction

A Short Story
• Build the Organizing Structure (the Framework)
The Zachman
Framework – information model
A Business – structural hierarchies
Process
Framework • Build role-based Views
The Goal – cross-structural perspectives
How to Build It – consistent levels of granularity
Benefits • Define Notation to express those views
Discussion – the diagrams & the objects that appear on them
• Define techniques to develop the models
– and the transitions between views
Benefits of a Business Process Repository
Introduction

A Short Story
• With an Business Process Model Repository in place:
The Zachman – a project team will have a place to store the business models
Framework
they create for future reference
A Business
Process
– the models can be integrated into an enterprise wide view
Framework – the models can be used in defining systems requirements
The Goal – a process’s information is available to anybody, anytime
How to Build It – the models can be used in change management
Benefits
– The models can be used as reference guides
– the repository can be used to do impact analysis
Discussion
– the models can be used in business planning
– the models can be used in IM planning
– the models can be used in training
Benefits of a Business Process Framework
Introduction

A Short Story • Common Frame of Reference

The Zachman
Framework
• Integrated views of processes
A Business • Consistent method of organization
Process
Framework – Persistent storage of process information
The Goal • the models are available
How to Build It
• the models are in a consistent format
Benefits • A new powerful information resource for the
Discussion organization to use in many new ways that were
previously not available or feasible
A Parting Thought...

Wisdom is knowing what to do next…

Skill is knowing how to do it, and…
Virtue is doing it!
- David Starr Jordan
What is the Business Analysis Framework?
• A Business Analysis Framework is a conceptual blueprint which describes
all the vital requirements for getting the business done.
• It is based around knowledge utilization, various techniques which
comprise the process and also the critical analysis.
• All these are essential for the analyst to boil down to the primary main
point of the business and also emphasizes various business enhancement
opportunities.
• It also ensures a step-wise approach is implemented to tailor your
business practices to the organization.
The Need for the Framework
• The domain of business analysis is highly diverse.
• There is a continuous rise in the number of business process requirements and
customer expectations, both spurred by changing business landscape flushed in
by technical breakthroughs.
• The framework provides a respite from the buzz around as a trusted source
which can help you tide your business through rough waters.
• It is evident that every organization has a specific process of business analysis.
• It helps in identifying and validating the business solutions to see if they can
meet the business needs and objectives.
Role of Business Analyst
• It is the primary responsibility
• business analyst to develop a deep understanding
• of the business process and document the same.
• It is a highly empowered role
• he or she is entrusted with many business secrets.
• A business analyst
• seek to understand the basic structure of the business organization and process.
• Further, he or she will try to identify the areas of improvement or weak-links which have been
generally overlooked.
• Once his groundwork is done, he or she now needs to be the most active participant of all the
business meetings and clearly convey the business process to the development teams.
• Even after the product launch, he or she has to ensure that the product is matching the customer
expectations.
• Also, it is important to note that a BA will have a key role at the beginning of product development as
he or she has to actually translate the product requirements to the development team and further on
will work in complete coordination with them to ensure the requirements are properly communicated
and interpreted.
Business Analysis Framework
1). SWOT Analysis:
As the name suggests, the term SWOT stands for
four components:
•Strengths: Here, all the strengths and positive
aspects of the business process are enumerated
and noted. These are the pillars on which the
organization inbuilt and have to be fostered.
•Weaknesses: Hera, all the weak links and points
of the business process, are marked and noted.
These need to be eradicated with time and
strategy.
•Opportunities: These refer to the potential scope
of growth in business. They refer to all the It is an elaborate analysis carried out by businesses on
four parameters which if worked out will give rich
external factors which need to be identified and
information which can be used further in business
worked into future products or services. processes. The first two, namely, the strengths and
•Threats: This generally refers to the threat of weaknesses refer to internal processes while the next two,
new entrants in the market in addition to other namely, the opportunities and threats, refer to external
factors which pose a threat to the survival of the processes.
business.
                                                                                         
     
2). Most Analysis:
Another powerful weapon in the hands of the business analysts for enhancing its strategy. It just helps
businesses to set definite targets for the entire team and organization
• It has four elements:
• Mission: Every business which wants to be successful needs to
have a clear mission in place. The goals and objectives of the
business have to be in sync with the larger mission of the business.
• Objective: Objectives are also part of the mission. They are
measurable and actionable bound by a specific time-frame. These
must be SMART as any lag often results in organizations not
meeting their goals.
• Strategy: A strategy is basically an action plan which makes it
possible for organizations to achieve their goals.
• Tactics: These define the methods by which the strategies are
worked out. The methods have to be easy and workable. It should
be clear to all the employees of the organization for its effective
implementation.
• This is usually undertaken to revitalize the look and appeal of the
organization when it is looking to refine the purpose and mission.
• 3). Business Process Modelling:
• It refers to a graphical representation of the business process of an organization or any
particular workflow which has been defined.
• In this process, a line of suggestions are presented to the business owners for modifying their
current model to make it more profitable and scalable. It is considered as a legacy process
used during the analysis phase of development.
• The International Institute of Business Analysis conducts the following tasks under the BPM:
• Planning strategically
• Business Model Analysis
• Defining and Designing Business Process
• Technical Analysis for Complex Solutions
• It is an easy choice for representation of a business process which is operated by different
roles.
• It is one of the biggest analysis techniques which are employed by the industry, especially the
IT industry.
• It helps the whole team to visualize the process of execution. It helps to make a more
straightforward analysis.
• 4). Non-Functional Requirement Analysis:
• This technique is generally used when there is a change in the technical solution to a
particular problem.
• The primary aim of the business analyst is ensuring system performance and
requirements of data storage.
• This is done for measurement of the performance factors for live data. The NFR Analysis
is taken up during the Analysis phase while it is implemented in the Design Phase.
• The non-functional requirements are as follows:
• Performance
• Security
• Logging
• Reliability 
• 5). Brainstorming:
• It is often carried out by the business analyst for capturing the
requirements of the clients and the customers.
• It is these sessions which usually lead to valuable insights for the
business and result in solving a complex problem. It is a group activity
carried out for a generation of more ideas, root cause analysis, and
even proposing solutions to various problems.
• It is the baseline technology which works for other business analysis
techniques as well as the SWOT analysis, Most analysis, etc.
• 6). Requirement Analysis:
• This is again a vital part of the product lifecycle, which is started when the
stakeholders usually come up with a solution.
• Here in a business analyst is required to undertake many 
interviews for understanding the basic intention of requirements. It is not
possible for a project to carry out the right development without a proper
requirement analysis. Some of the components of these interviews are:
• Questions
• Captures
• Interprets
• Workshops
• In addition to interviews, BA can also resort to the following techniques for an effective requirement analysis:
• Brainstorming: As discussed earlier, brainstorming forms a vital part of various functions and techniques as it
ends in the generation of novel ideas and plans. Often these sessions are conducted with a specific idea in
mind. It is a group activity.
• Shadowing: The main focus of the technique if on analysis of the actual business environment and thereby
observing the reactions and problems of the end-user.
• It is by keen observation that a BA will be able to record the present problems and suggest improvements. The
observations can be large of two types- passive and active.
• In the former, the BA will observe passively without disturbing the individual, but in latter, the BA has the
option to interact with the individual any time.
• Prototypes: It is an important requirement gathering technique which is helpful to the business analyst to seek
the most relevant feedback.
• The low fidelity prototypes are more helpful to the owners to understand the typical use case and hence give
their feedback on the same.
• Also, while walking through the design, the business owners will be able to understand more and hence give
more detailed feedback.
7). CATWOE
• It stands for a generic thought process for business analysis for the
understanding of the aim of business.
• It enumerates the main points and how will the proposed solution impact
both the business and its associated people.
• It is useful for bringing the perception of various stakeholders on common
ground.
• A business analyst is thus left in a better position to prioritize different
business perspectives based on their merits. CATWOE is basically an acronym
which stands for:
• Clients, Actors, Transformation, World View, Owner, and Environmental
Constraints
8). Use Stories:
• This is seen as a modern technique of business analysis primarily
used in the agile model.
• In the latter, there is an increased need for iterations for the gathering
of requirements, designing and building a project.
• Requirements are collected from the users to build the best of their
solutions. As this involves the user perspective as the central idea, so
this is highly effective.
Agile Development model
9)PESTLE Analysis:
• The main factors which are involved as known as Environmental factors have profound and
PESTLE, referring to: obvious impacts on the businesses and
• Political: This refers to government policies and have to be factored in during any kind of
initiatives strategic planning.
• Economic: This refers to the developing economic
conditions in the country and internationally. Interest
rates, inflation, cost of labor, energy, etc. are vital
factors.
• Social: This revolves around the population, culture,
education, media, lifestyles, etc.
• Technological: All kinds of innovations and
breakthroughs in technology:
• Legal: This stands for all the laws of the land, especially
regarding businesses, work-culture, employee welfare,
etc.
• Environmental: This stands to check the impact of the
business on the environment like pollution, recycling,
waste, etc.
Business analysis framework
The whole business analysis framework is divided
into five sections.
In each of this section, a business analyst
identifies, analyses and makes a note of all the
requirements.
There are many subtasks associated with each of
these sections, which will, in return, help the
business analyst to document the same
requirements from different business owners and
stakeholders.

                                                                                           
                                                                                           
                                                                                           
                                                                                           
Business analysis framework
• Investigation of the Situation: Being the first step, it is highly important. It helps the analyst to focus
on the present issues facing the business.
• One has to keep a broad scope to ensure that the issue at hand is properly analyzed. The business
analyst has to remember that he or she should never rush to conclusions without actually going
through a process.
• Perspectives: This is more of an understanding of the business owners and other stakeholders.
• A business analyst has to consider and understand their views and perspectives on the issues
under the lens.
• It is a critical task as the BA has to manage all the stakeholders and primarily consider the one
who has the decision-making authority.
• However, this means that the comments from all the stakeholders have to be duly respected.
Business analysis framework
• Analysis of Needs: this refers to the analysis of the current system and discussing the
improvements and enhancements which can be made to the current business.
• A gap analysis is also carried out to churn out the missing links between the current and the
required output in productivity.
• Evaluation of Options: This stage involves evaluation of all the possible options which are
mentioned under the process. The improvements are analyzed by comparing the present systems
with the ones which are desired.
• Definition of Requirements: this comprises detailed documentation for the analyst. BA is
supposed to spend valuable time for writing the necessary requirements by discussing the same
with the primary stakeholders.
Conclusion
• The main purpose of the business analysis framework is to make sure
that all the business processes are streamlined and carried out with
ease.
• It also reflects on all the techniques which can be used by business
analysts for the gathering of requirements and for carrying out
different aspects of analysis.
• A good business analyst always adheres to the fundamentals of the
basic framework.
• His role is basically to make the client and the customer happy by
ensuring their requirements have been met. The whole process works
fine is the prime responsibility of the analyst.