Level III

Unit of Competence:- Improve Business

Practice
 LO 1 Diagnose the business
 Organizational Diagnosis
 Organization diagnosis is a process that helps organizations
to improve their capacity to assess and change inefficient
patterns of organizational behavior as a basis for greater
effectiveness.
 Organizational diagnosis is an effective ways of Looking at
an organization to determine gaps between current and
desired performance and how it can achieve its goals.
There are six step processes for major organization
development efforts. These are:-
1. Clarification of whole organization objectives,
2. Data gathering and sharing,
3. Diagnosis of organization strengths and weaknesses,
4. Joint action presentation of organizational development
interventions to correct weaknesses
5. Implementation of organizational development intervention, a
6. Periodic progress review of results.
• Diagnosis is a cyclical process that involves data gathering,
interpretation and identification of the problem areas and
possible action programs.
• Each organizational culture profile reflects underlying attributes
including the management style, strategic plans, climate,
reward system, leadership, and basic values of the organization.
. So, changing the culture requires that these various elements of
culture be identified and altered.
 Organizations try to achieve a sustainable competitive advantage
by learning its environment through a scanning process as the
environment is a determinant of human resource management.
 Diagnosing the environment is an assessment process that focuses on
determining the readiness of the target group to accept change.
 Some major data gathering methods are:-
 Secondary sources of data:- which are generated for other organizational
purposes that can be used in identifying problem areas, such as
performance indicators, accounting data, productivity and quality data.
 Direct observation of people :- behaviors is another important source of
data. This can include member actions or reactions to specific situations,
and communication patterns. The other method of data collection is
employee survey. The data provide a snapshot of an existing situation,
and can be used to compare an organization’s current state with some
desired state.
 Questionnaire-based :- surveys are one of the most effective tools for
organizational diagnosis practitioners to understand and evaluate
organizational issues.
 Interviews:- (can be structured, semi-structured or informal) are also the
most widely used data gathering technique in organizational diagnosis
programs.
 LO 2: -Benchmark the business
How Do I Find a Good Business OPPORTUNITY?
 What is a Business Idea?
 A business idea is the response of a person or persons, or an
organization to solving an identified problem or to meeting
perceived needs in the environment (markets, community, etc.).
 Finding a good idea is the first step in transforming the
entrepreneur’s desire and creativity into a business opportunity.
 Why Generate Business Ideas?
 You need a great idea to start a new business
 Business ideas need to respond to market needs
 Business ideas need to respond to changing consumer wants and needs
 Business ideas help entrepreneurs to stay a head of the competition
 Business ideas use technology to do things better
 Business ideas are needed because the life cycles of products are limited
 Business ideas help to ensure that businesses operate effectively and
efficiently
 Why should you Generate Business Ideas?
There are many reasons why entrepreneurs or would-be entrepreneurs
need to generate business ideas. Here are just a few
You need an idea :– and a good one. A good idea is essential for a
successful business venture – both when starting a business and to
stay competitive afterwards.
To respond to market needs :-Markets are made up essentially of
customers who have needs and wants waiting to be satisfied. A
business can become successful if it provides new products or
services, or manages to reach a new group of clients, or finds a new
channel to reach customers better. Many businesses starters who copy
the business idea of others, are not successful because they do not
respond to a market need.
Changing fashions and requirements :- provide opportunities for
entrepreneurs to respond to demand with new ideas, products and
services.
To stay ahead of the competition :- Remember, if you do not come up
with new ideas, products and services, a competitor will. The
challenge is to be different or better than others.
To exploit technology :– do things better Technology has become
a major competitive tool in today’s markets, with the rate of
change forcing many firms to innovate. There are several
companies in the world, operating in the electronics and home
appliances industries, which come up with dozens of new
products every month.
Because of product life cycle :- All products have a finite life. As
the product life cycle chart shows even new products eventually
become obsolete or outmoded. Thus, there is a need to plan
for new products and the growth of these. The firm’s prosperity
and growth depends on its ability to introduce new products
and to manage their growth.
To spread risk and allow for failure :- Linked to the product life
cycle concept is the fact that over 80 % of new products fail. It is
therefore necessary for firms to try to spread their risk and allow
for failures that may occur from time to time by constantly
generating new ideas.
 Generating a Business Idea
• A good business idea is essential, or even a prerequisite, for a
successful business venture. However, good business ideas
do not usually just occur to an entrepreneur . Rather, they
are the result of hard work and effort on the part of the
entrepreneur ingenerating, identifying and evaluating
business ideas that can be developed into a business
opportunity.
 Two things should however be noted:-
(a) Although it is a prerequisite, a business idea is only a tool.
(b) An idea by itself, however good, is not sufficient for success.
• In other words, notwithstanding its importance, an idea is
only a tool that needs to be developed and transformed into
a viable business opportunity. Out of 30 business ideas,
there may be only one good business opportunity.
 What is Creativity ?
• Real , successful entrepreneurs are creative in identifying a
new product, service or business idea and turning it into a
business opportunity.
 Meaning of Creativity
 Creativity is the ability to design, form, make or do
something in a new or different way.
 Creativity is the ability to come up with innovative solutions
to needs/problems and to market them. An entrepreneur’s
creativity is often the difference between success and
failure in business.
 Creativity often distinguishes high-growth or dynamic
businesses from ordinary, average firms.
 To be creative, entrepreneurs need to keep their mind and
eyes open to their environment.
 LO 3 Develop plans to improve business performance

 Sources of Business Ideas

• There are millions of entrepreneurs throughout the world and their
testimonies suggest that there are many potential sources of business
ideas. Some of the more useful ones are outlined below.
 Sources of Business Ideas
 Hobbies/Personal Interests
 Personal Skills and Experience
 Franchises
 Mass Media (newspapers, magazines, TV , Internet)
 Business Exhibitions
 Surveys
 Customer Complaints
 Changes in Society
 Brainstorming
 Being Creative
1. Hobbies/Interests
• A hobby is a favorite leisure-time activity or occupation. Many
people, in pursuit of their hobbies or interests, have founded
businesses. If, for example, you enjoy playing with computers,
cooking, music, traveling, sport or performing (to name but a
few), you may be able to develop this hobby/interest into a
business. To illustrate this, if you enjoy traveling, performing
and/or hospitality, you may consider going in to tourism, which
is one of the biggest industries in the world.
2. Personal Skills and Experience
• Over half of the ideas for successful businesses come from
experiences in the workplace. For example, a mechanic with
experience in working for a large garage who eventually sets up
his/her own car repair or used car business. Thus, the
background of potential entrepreneurs can play a crucial role in
the decision to go into business as well as the type of venture
to be created.
3. Franchises
• A franchise is an arrangement whereby the manufacturer or sole distributor
of a trade mark, product or service gives exclusive rights for local
distribution to independent retailers in return for their payment of royalties
and their willingness to conform to standardized operating procedures.
Franchising may take several forms, but the ones of interest to potential
entrepreneurs are the types that offer a name, image and method of doing
business and operating procedures.
4. Mass Media
• The mass media is a great source of information, ideas and often
opportunity. Newspapers, magazines, television, and the Internet are all
examples of mass media . Take a careful look, for example, at the commercial
advertisements in a newspaper or magazine and you may well find
businesses for sale. One way to become an entrepreneur is to buy an
existing business. Articles in the printed press or on the Internet or
documentaries on television may report on changes in fashions or specific
consumer needs. For example, you may read or hear that people are now
increasingly interested in healthy eating or maintaining their physical fitness.
• You may also find advertisements calling for the provision of certain services
based on skills, for example accounting, catering or security.
5. Exhibitions
• Another way to find ideas for a business is to attend exhibitions and trade fairs. These
are usually advertised on the radio or in newspapers. By visiting such events regularly,
you will not only discover new products and services, but you will also meet sales
representatives, manufacturers, wholesalers, distributors and franchisers.
6. Surveys
• The focal point for a new business idea should be the customer. The needs and wants
of the customer, which provide the rationale for a new product or service, can be as
curtained through a survey. Such a survey might be conducted informally or formally
by talking to people. Surveys may be conducted using a questionnaire, through
interviews or through observation. You may start by talking to your family and
friends to find out what product or service they think is needed or wanted but is not
available in the market. Or, for example, whether they are dissatisfied with an existing
product or service and what improvements or changes they would like to see. You can
then talk to people who are part of the distribution chain that is manufacturers,
wholesalers, distributors, agents and retailers. These people have a good sense of what
is required and what will sell and what will not sell.
• Finally, you should talk to as many customers as possible (both existing and potential
customers). The more information you can get from them, the better. Besides talking
to people, you could also get information through observation. For example, in
deciding whether to open a shop on a particular street, you can observe and count
the number of people going past on given days and compare these numbers to other
sites.
7. Complaints
• Complaints and frustrations on the part of customers have led to many a
new product or service. Whenever consumers or customers complain
bitterly about a product or service, or when you hear someone say “I wish
there was .....” or “If only there were a product/service that could ....”, you
have the potential for a business idea. The idea could be to set up a rival
firm offering a better product or service, or it might be a new product or
service which could be sold to the firm in question and/or to others.
8. Change
• The world is constantly changing. Change can be a threat; however, most
entrepreneurs consider change as a challenge and opportunity to trigger
new needs for products and services. An innovative entrepreneur always
responds to changes in a positive manner.
9. Brainstorming
• Brainstorming is a technique for creative problem-solving as well as for
generating ideas. The objective is to come up with as many ideas as
possible.
• Brainstorming usually starts with a key question or problem statement.
Each idea leads to one or more additional ideas. As a result, you will have in
a good number of business ideas.
 FOUR RULES FOR BRAINSTORMING:-
Don’t criticize or judge the ideas of others
Free wheeling is encouraged ideas that seem to be wild or crazy are
welcome
Quantity is desirable the greater the number of ideas, the better
Try to combine and improve upon the ideas of others
 What is a Business Opportunity?
• A business opportunity may be defined simply as an attractive investment
idea or proposition that provides the possibility of a monetary return for
the person taking the risk. Such opportunities are represented by
customer requirements and lead to the provision of a product or service
which creates or adds value for the buyers or end users.
 Identifying Business Opportunities
• Seeing, seeking and acting on opportunities is one of the characteristics of
successful entrepreneurs. It is also the basis for starting and maintaining
successful ventures. It involves not only generating ideas and recognizing
opportunities, but also screening and evaluating them to determine the
most viable, attractive propositions to be pursued.
 What is a business opportunity?
• However, a good idea is not necessarily a good business
opportunity. For example, you may have invented a brilliant
product from a technical point of view and yet the market may not
be ready for it. Or the idea may be sound, but the level of
competition, and the resources required may be such that it is not
worth pursuing. Sometimes there may even be a ready market for
the idea. but the return on investment may not be acceptable. To
underscore the point further, consider the fact that over 80% of all
new products fail. Surely, to the inventors (and their backers) the
idea seemed a good one, yet clearly it could not withstand the test
of the market. What turns an idea into a business opportunity? A
simplified answer is when income exceeds costs and generates a
profit. In practice, to be comprehensive, you need to examine the
factors listed below.
 Characteristics of a good business opportunity
• To be a good business opportunity, it must fulfill, or be capable of
meeting, the following criteria:-
 Real demand :- responds to unsatisfied needs or requirements of
customers who have the ability to purchase and who are willing to buy
 Return on investment :- provides acceptable returns or rewards for the
risk and effort required
 Be competitive :- be equal to or better (from the viewpoint of the
customer) than other available products or services
 Meet objectives :- meet the goals and aspirations of the person or
organization taking the risk
 Availability of resources and skills :- the entrepreneur is able to obtain
the necessary resources.
 Assessing Business Opportunities
• Ideas and opportunities need to be screened and assessed for viability
once they have been identified. This is not an easy task, and yet at the
same time, the assessment of business opportunities is extremely
important. This assessment can make the difference between success
and failure, between making a fortune and losing everything. While
the assessment exercise does not guarantee success, it certainly helps in
minimizing the risks and reduces the odds for failure.
 Identifying and assessing business opportunities
involves, in essence, determining risks and
rewards/returns reflecting the following factors
discussed below.
 Identifying and Assessing Business Opportunities
 A good business opportunity should take into account:-
– Industry and market, real demand for a product or service
– Length of the ‘window of opportunity’
– Personal goals and competencies of the entrepreneur
– Management team (human resources)
– Competition
– Capital, technology and other resource requirements
– Business environment (political, economic, legal,
government regulations etc.)
a. Industry and market
• The key question to be answered is whether there is a market for the idea. A
market in this context consists of customers potential or actual who have needs
and wants, and who have the ability to purchase your intended product or
service. There is also a need to consider whether what the customer wants can
be provided at the right price, in the right place, and in a timely manner.
Another important consideration is the size of the market and the growth rate
of the market. The ideal situation is a market that is large and growing, where
getting even a small market share can represent a significant and increasing
volume of sales.
• If market data is readily available and if the data clearly shows significant
potential, then it is likely that a large number of competitors will enter the
market and the opportunity will not be as good. There are several sources of
published information (also called secondary information), including libraries,
chambers of commerce, investment promotion centers, government
ministries, universities, foreign embassies, the Internet, newspapers, and so
on.
• In addition to the above, there is often the need to collect information at the
source (also called primary research) by interviewing key people, such as
customers and suppliers. In that case, you will need to conduct survey
research
b. Length of the ‘window of opportunity'
• Opportunities are said to have a ‘window of opportunity.’ That is, they
do exist, but they do not remain open forever. Markets grow at
different rates over time, and as a market gets bigger and more well-
established, conditions for success are not as favorable. Timing is
therefore important. The issue then is to determine the length of time
the window will be open, and whether the opportunity can be created
or seized before the window closes.
c. Personal goals and competencies of the entrepreneur
• Personal motivation is an essential attribute of a successful
entrepreneur. Unless a person really wants to do that kind of
business, he or she should not venture into it.
• A related question is whether the potential entrepreneur has the
necessary competencies (including the knowledge, skills and abilities)
for the requirements of the business and, if not, whether other
people could be brought in. Many small business owners/managers
have entered into business based on the strengths of their own skills
and ability.
d. Management team
• In many ventures, particularly those involving a large
amount of capital, high risk, sophisticated markets and
high competition, the management team is usually the
most important dimension in determining the success
of a business. The experience and skills that the team
possesses in relation to the same or a similar industry
often determine success or failure of a new business .
This explains why venture capitalists, or those people
who provide finance for businesses, put so much
emphasis on the management factor . Investors often
say that they would rather have good management
with an average idea/product/service than brilliant
idea/product/service with bad management.
e. Competition
• To be attractive, an opportunity must have a unique competitive
advantage. For example, a business may have a competitive advantage by
lowering costs in terms of production and marketing. Or better, a business
may offer better quality. In addition, the availability of entry barriers which
could take the form of high amounts of capital required, protection such as
patents or regulatory requirements, contractual advantage such as exclusive
rights to a market or with a supplier can make the crucial difference
between a ‘go’ and a ‘no go’ investment decision. If a business cannot
keep most would-be competitors out of its market, or if it faces existing
entry barriers, then the opportunity may not be very attractive.
f. Capital, technology and other resource requirements
• The availability and access to capital, technology and other resources such
as skills determine the extent to which certain opportunities can be
pursued . As a general rule, the more difficult the resource requirements
are to obtain, the more attractive the proposition, provided of course that
there is a market for the idea/product/ service. To give an example, while
marketing a break through product based on a patented technology is no
guarantee of success, it certainly creates a formidable competitive
advantage
g. Business environment
• The environment within which the business will operate has a
great influence on the attractiveness of any opportunity. By
business environment, we are referring not only to the
physical environment, which is important and increasingly so,
but also the political, economic, geographical, legal and
regulatory contexts. Political instability, for example, renders
business opportunities unattractive in many countries,
especially for those ventures requiring high investment with a
long payback period. Similarly, inflation and exchange rate
fluctuations, or a weak judiciary system, are not a good
environment to start a business, even if the potential
returns are high. The lack of infrastructure and services (such
as roads, electricity, water supply, telecommunications,
transportation, and even schools and hospitals) also affect
the attractiveness of an opportunity in a given environment.
 LO4 :- Develop marketing and promotional plans

Introduction
• A market survey must be conducted to ascertain
the true demand and supply position. Information
on other entrepreneurs planning to enter the same
field must be collected. Once it is established that
there is good possibility of the unit being able to
establish it, a preproduction market development
program should be undertaken. This is to ensure
that the enterprise does not face the problem of
want of sales after commencement of production.
The role of marketing starts even before taking a
decision to set up a manufacturing unit.
 Marketing Activities
1.Research 7. Packaging
2.Planning 8. Merchandising
3. Branding 9. Ware housing
4. Pricing 10. After- sales service
5. Distribution 11. Sales promotion
6. Selling 12. credit control
 Research
• - Market research is a continuous activity
 Branding
• Branding is essential for consumer products, consumer durable s as well as industrial
products. Some product with widely diverse specification is available from different
manufacturers.
• Branding helps the manufacturer, retailer and consumer in the following manner
1. The consumer can effectively and easily identify the product of a particular manufacture
2. the retailer uses a popular brand to attract customers and he can sell other product also
 When selecting a brand, remember this word RIPPS
R. Remember, name of brand should be easily to remember
I. Image, the name should create an image of the product in the minds of consumers
P. Pronounce- It should be easy to pronounce the name
P. Protect able- the name should not be easily copied with out infringe patents
S. Short- the name should be short

 Pricing
1..Value
2. Status
3. Quality
4.durability
 Factors of pricing
• Price should be economically attractive to customer
• Different price levels will result in different sales volume
• Reaction of the competitors
 Recruitment
• Recruitment involves search of personnel as indicated by manpower
planning, identification of sources, receiving the applications and passing
on for selection process .
 Sources of manpower
• Internal sources include existing personnel
• External sources by campus recruitment
 Training and development
o This activity aims at the following
 Increase In efficiency
 Increase in morale of employees
 Better human relations
 Reduced supervision

 There are two types of training methods
 On- job training
 Off- the job training
 Legal aspects of small business
- An entrepreneur will have to comply with some legal obligations during planning,
Implementation and operation of the enterprise. There are different acts and rules to
be followed. These acts can be broadly classified in to three groups.
1. Tax laws
2. Industrial laws
3. labor laws
 Principle of taxation
Business enterprise and the business man are subject to several taxes. Taxation is
required to raise revenue to met government expenditure in the following function
areas
1. Administration
2. Defense against external aggression
3.polices for maintenance of law and order
4. judicial courts for administration
5. Education of population through schools and colleges
6. Health care of the public through hospitals
 The general principles of taxation
1. Taxation should be equal, proportional to their income and
people should feel the burden of tax equally
2. Taxation should be certain.
The form, quantity and manner of payment of tax should clear to
the contributors
3. Taxation should be timely and there should be convenience of
payment and collection of tax
4. Taxation should be Economical to collect. Cost of collection of
small incomes can be difficult.
 Direct and indirect tax
1. Direct tax
• It is imposed on persons who are desired and intended to pay . For
examples, incomes tax, corporation tax (profit of companies),
capital gains tax etc. the tax payer knows what to pay, why to pay
and when to pay the direct tax. Direct taxes are collected at the
source of income.
2. Indirect tax
An indirect tax is passed on by one person on what whom
it is imposed to other person. These taxes are set on
goods and services when purchased and are called out
lay taxes.
The amount of tax depends up on the use of the taxes
goods or services. Examples are
 Sales tax
 Excise duties
 Local tax
 Professional tax
 Service tax
Indirect taxes make no distinction between the rich and
poor
 LO 6: Implement and monitor plans

 Developing Implementation Plan

You should already know about compiling business needs. This
resource will help you to determine technical requirements within
an information technology environment.
o In this topic you will learn how to:-
 review and assess business problems, opportunities and objectives
 identify technical requirements in respect of input/output,
interface, process flow or quality requirements
 develop business solutions in response to problems and technical
requirements as identified
 investigate a range of supplier products to determine which one
best meets technical requirements
 document results and make recommendations against business
requirements
 Identify technical requirements
• Identifying technical requirements involves
 assessing the business problem (including input/output requirements, interface
requirements, process requirements)
 developing a business solution
 investigating products
 and documenting results.
 Assess the business problem
• To assess a problem or an opportunity faced by a business, it is necessary to look at
the technical requirements of the business. These fall into three general categories:
 input/output requirements
 interface requirements
 process requirements.
• Once the technical requirements have been identified, it is possible to develop a
solution such as software or hardware upgrade, network installation, inventory
management or an e-commerce solution. At this stage, the solution will include an
investigation into suitable products. Finally, the recommendations will need to be
measured against the technical requirements and documented. The following
figure illustrates the relationship between the systems within a business and the
data flow between the systems.
Image :- Diagram with arrows showing data flow between
internal support systems and a proposed system and
the data flow between the proposed system, suppliers,
customers and the customer’s computer system
Figure 1:- Business systems and data flow relationships
 Automation of processes
• Computers and applications are commonly used to automate stable
repetitive tasks. In the past, the focus was to automate internal
processes, and this remains a priority today. However, many
organisations that are satisfied with the automation of internal processes
are now shifting their focus to automating processes which integrate
interaction with their suppliers and customers.
 Supply chain management
• Supply chain management covers a broad spectrum of business activities
including contractual arrangements, service level agreements,
relationship development, disclosure of information, and more. Our
interest is to identify the technical requirements for the computer-
based interaction.
 Interacting with customers
• Organisations are actively pursuing methods of automating procedures
for communicating with customers. Two of the main types of automation
are.
1..interfacing with external computer systems .
1. Interfacing with external computer systems
Interfacing with external computer systems means you are accessing
a computer outside of your organisation.
In a business-to-business (B2B) environment you may need to
consider the following
in a sales system :- there is a need to provide data (price, availability,
invoice number, etc.) to the buyer's computer system.
in a purchasing system :- there is a need to provide data (order
number, product identification, quantity, delivery address, etc.) to
the seller's computer system.
if the system requires data from third parties :- such as credit-check
information or authentication of users, you need to consider the data
that must be provided and what data will be returned.
Image :- Diagram of an arrow with the word data connecting two stars with
proposed system on one and customer’s computer system on the other.
Figure 2 :- Business-to-business environment
The other side of interfacing with customers' systems is interfacing with
suppliers' systems. The organisation's position within the supply chain
determines whether it is a customer or a supplier.
2. Enabling self-service over the Internet
Enabling self-service over the Internet means you are enabling customers to
negotiate and search your website for information. More advanced self-
service involves enabling the customer to enter data to automate or
trigger a business process.
In a business-to-consumer (B2C) environment you may need to consider the
following
if the system supplies information : -what information should be displayed
on screen? How should the customer interact with the system?
if the system is an e-commerce solution :- you will need to consider the
technical requirements of a payment gateway for a financial institution.
if the system deals with confidential or personal information : - you may
need to consider passwords and encryption.
Image:- Diagram of an arrow with the word data
connecting a star with the words Proposed system
to four figures and the word Customers underneath
Figure 3:- Business-to-consumer environment
An ideal example of self-service is an e-commerce
transaction where the customer selects a product,
then provides their delivery address and credit card
details to enable the transaction.
 Interface requirements
• Many systems need to provide data for other business systems or for users.
For example:
• if the system is a sales system it may need to source or provide data to the
inventory or accounting systems.
• if the system is to be used by remote workers you may need to provide
dial-up access or enable .
• if the system is a web-based e-commerce solution you may need to
interface with backend sales systems.
 Interfacing with computer systems
• Many computer-based systems require data from other systems and/or
provide data to another system.
• Consider an e-commerce solution. Customers want to know if products
are in stock, so the e-commerce solution may need to interface with the
backend inventory system to enable the identification of product
availability. In addition, the e-commerce solution will capture data
regarding customer transactions. this information is required for
accounting and sales systems. The methods of interfacing with backend
systems vary depending on the desired level of automation and control.
 Interface methods
• Four possible levels of interface are provided here. The examples are
not fully comprehensive; that is, other interface options exist.
1. Data from one system is printed and re-keyed into another system. This
method has inherent risks of errors and fraud and is labour intensive
and costly. This method is not recommended!
2..Data from one system is manually uploaded/downloaded from one
system to another . This method reduces the risk of typing errors and
reduces the risk of fraud, but if data is not uploaded/downloaded in a
regular and timely manner, there may be risks of inaccuracy in the
backend systems .
3. Data from one system is uploaded/downloaded in automated batch
processing . This method reduces errors and fraud; however, there are
still risks of data inaccuracy in the backend systems between the batch
uploads/downloads. The duration between batch processing's may be
specified from minutes to overnight to weekly. The greater the
frequency of batch processing, the lower the risk of data inaccuracy, but
there will also be an increase in network traffic and CPU usage.
4. Data from one system is seamlessly interfaced with another
system. In this situation a shared database may be used or
systems are dynamically connected. This method reduces the risk
of errors associated with data inaccuracy but increases the risk of
hacking into backend systems. In addition, there may be less
control over inappropriate data transfers.
• The technical requirements for each of the interface systems
above are significantly different.
 Interfaces for internal users
• Staff within the organisation may need to access information or
enter data into the system. You need to consider the display
requirements and the data capture requirements for internal
users. Typically, the interface required for internal users is an on-
screen display or report, such as
 data entry in a sales or accounting system
 an order screen for a purchasing officer
 sales reports for a sales manager.
When assessing technical requirements for interfacing with internal users,
you need to consider exactly what data needs to be captured, and you
also need to consider any protocols that may be appropriate. For
example:-
• is an encryption system required?
• will there be a password field that shouldn't display clear text?
• which job roles should have access to reports and data entry screens?
There may be other interface-related requirements specified by the client
such as screen colour and type of navigation.
Table 2:- Identifying interface requirements
The stages involved in identifying the interface requirements:-
• Identify the sources of required data.
• Identify the data items and data structures required for the exchange.
• Consider alternatives or select methods of data exchange.
• Identify relevant protocols for the data exchange. Document or
reference the technical requirements for data exchange including the
source, data items, data structures, timing, method and protocols.
 Process requirements
• Most computer-based systems perform some automated procedures
or processes. even the simplest website enables a visitor to navigate
around the site to find information . More complex websites
authenticate visitors and may automate transactions through e-
commerce.
• Technical requirements for system procedures and processes identify
the non-functional specifications of the proposed system itself. The
non-functional requirements can include the following:
1. performance or speed of the system
2. quality
3. environmental requirements or business rules
4. size
5. ease of use
6. reliability
7. robustness
8. portability.
 Here are some examples:-
 If the system is a sales system technical requirements may address
the number of transactions per minute.
 If the system is a website the technical requirements may address the
page display speed, compatibility with browsers and hardware
platforms.
 If the system is a database-centred system the technical
requirements may address the constructs of the database, number of
records or processing time.
 If the system is an inventory control system the technical
requirements may address the ability to set the alarm levels for high
and low stocks.
 If the system is a network the technical requirements may address
download or response times, application access, redundancy
procedures, disk access speeds, number of users, etc.
• In addition, technical requirements for system procedures and
processes may address the application architecture, development
environment or network topology and protocols.
 System requirements
• To date we have discussed the technical requirements for
transferring data to and from external suppliers, external
customers and internal systems. This section discusses the
technical requirements for the system itself.
• The technical requirements for the system will influence
the design and construction of the system. You need to
have some idea of the technology to be used in the solution
before defining the technical requirements for the system.
The technical requirements for the proposed system
describe what the system will do and how it will do it.
• Technical requirements for the proposed system should be
high level - that is, the requirements or specifications may
constrain the design but they should not determine the
design.
Environmental requirements
. the client will specify an environment in order to standardise their computing
infrastructure. You may need to locate and read the client's IT infrastructure
policy.
• Environmental requirements may constrain the solution. In addition, the
environmental requirements may determine the skill set of project team
members. The extent of environmental influence must be confirmed with the
client.
• An example of an environmental requirement specified by the client is that
the client requires a database built for Microsoft Access.
o Generally, technical requirements influenced by the environment are
associated with one or more of the following:-
 systems hardware
 network infrastructure
 operating system
 application architecture
 internal/external interface requirements and protocols
 the development tools
 industry standards or guidelines
 Website development example
• If the system being developed is a website, there are likely to be
environmental requirements related to usability and accessibility.
• These are constraints based on general industry standards or guidelines.
These requirements are not necessarily imposed by the client. The client
may not in fact know what these guidelines are . However, a professional
site should conform to these guidelines.
• To determine these requirements, the developer may need to conduct an
’environmental scan’ of industry websites and/or publications.
 Identifying technical requirements for processes and quality
• The stages in identifying technical requirements for how the system will
function and what the system will do include:-
 identifying the process, quality and environment requirements of the
system, such as the clients, the infrastructure policy or industry
standards.
 confirming with clients any boundaries or constraints associated with
the environment.
 documenting the technical requirements.
 Develop Business Solutions
• Once you have assessed the business problem and identified the
technical requirements, you need to develop a solution based on
these requirements. In an iterative approach to system
development, you need to develop an initial solution and present
this to the client for feedback. The feedback is then incorporated
(where appropriate) into the specifications and another solution is
developed. The ‘solution’ in this case does not refer to the full
implementation of the system - just a description, model or
prototype of the solution.
 Modeling techniques
• When the requirements of a business have been determined, the
relevant information is gathered, organised and documented. As
part of requirements analysis, this information is then analysed and
descriptions of the recommended solution are generated. Analysts
and developers need a language to construct visual and other
models at different levels of abstraction for the current system
requirements and/or the proposed solutions.
 Modeling system
• One of the better ways to develop technical requirements for the system is to use
modelling techniques. The choice of modelling technique is based on the proposed
solution and the technology to be used. For example:-
• A website modelling technique is prototyping (either paper-based or computer-based).
This shows selected pages of a website and the navigation between the pages.
• A database-centred modelling technique uses data flow diagrams (DFD) and entity
relation ship diagrams (ERD). These diagrams show the data stores, processes which
interact with the data stores and where the data has been sourced or supplied.
 Prototyping
A prototype is an appropriate technique at both the requirements and design phases of
development. At the technical requirements stage, however, the focus is more on
technical issues such as testing a solution within a specific operating environment.
• A prototype can be paper-based illustrating screen shots of the interface, navigation
elements etc . It is more detailed than a storyboard.
• A computer-based prototype involves the development of a cut-down version of the
proposed system. The developer implements just enough of the system to provide the
stakeholders with a working example of the system. A useful prototype would probably
show the interface design and the typical functions provided by the system.
• The following example illustrates this. Notice there is no content added, just the
navigation and major divisions in the web page
Prototypes are used in rapid application development
(RAD) because they provide a means to communicate the
proposed solution to the client quickly and effectively. The
client is able to provide feedback and suggestions about
whether the prototype meets their needs. This feedback is
used to make adjustments and so the process continues
until a solution is reached which is acceptable to all key
stakeholders. The graphic below illustrates this.
Image :- Rapid application development cycle develop outline specification, build
prototype, test prototype, is the system adequate? If yes, deliver system; If no,
return to build prototype . Figure 6 : -Rapid application development (RAD)
prototyping Proto typing is an appropriate technique for many applications
including website design.
 Structured analysis
• Structured analysis is most appropriate for use with business information
systems as these systems are usually data-driven. A data-driven system begins
with the input of data. The data is then moved through processes and changed
into information. The data and the processes that change the data into
information must be modelled and documented. Each process's logic must
also be included in the documentation.
• The toolset for structured analysis may include - but is not limited to - the
following:-
 data flow diagram :- used for process modelling to represent the flow of data
through the system
 context diagram :- a top-level DFD that represents top-level functions and their
components
 data dictionary :-a text document that contains detailed definitions of all data
flows, processes and data stores
 structured English :- a descriptive method used to describe
process decision logic (often called ‘mini-specs’)
 decision trees and tables :- a diagrammatic method used to
illustrate process decision logic
 system flow charts :- primarily used for the physical modelling
of the major processes, inputs and outputs of a system
 structure charts :- a hierarchical diagram of system
components
 entity relationship diagram :- used for data modelling to show
entities, their attributes and relationships.
 Object-oriented analysis
 Object-oriented analysis is most appropriate for the
development of complex event-driven systems with real-time
functionality such as e-commerce. Models evolve as
requirements are defined and refined. Models of real-world
events and interactions can be produced.
 System description
• Describe top-level functions of the system and the system environment.
Diagrams (e g use cases and context diagrams) can be used to model the
system and interactions with its environment.
• For example, if the system is a website you could include a top-level
storyboard to demonstrate to the client the main functions.
 Functional requirements
• Define the services that the system provides. Examples of mandatory
and desirable functional requirements might include the following
 The system must associate non-stock purchases of raw materials to a
specified customer order.
 The system must associate design work as well as production work to
customer special orders.
 The system must provide a users' guide for products.
 The system must capture customer details online.
 The system may have password protection for a members-only section.
 The system may track the completion status of customer special orders.
 Non-functional requirements
• Define any constraints within which the current system operates, such as
database size, response times, web page download times, etc.
• This is the section that will be added in the technical requirements phase of the
requirements definition. It should specify
1. requirements
2. interface requirements
3. process requirements
4. performance or speed of the system
5. quality
6. environmental requirements or business rules
7. size
8. ease of use
9. reliability
10. robustness
11. portability.
 Information domain
• Define the data requirements of the system. Entity relationship diagrams, class
diagrams and data dictionaries are common techniques used to describe a system’s
data.
 Project costs
• Define estimated costs of the project in terms of development and running costs.
 Benefits
• Define the areas that the new system will improve. This includes benefits
measurable in dollars (tangible) and those that cannot be measured in dollars
(intangible) but are important nonetheless.
 Other project-specific topics
• Define any other topics that may impact on the project. These may include such
things as methodology, legal implications or employee acceptance.
 Alternative document layouts
• For an example of the IEEE standard structure see
The IEEE standard structure for requirements documents .
 Summary
• Technical requirements are not goals - they are requirements and should be
achievable and measurable. The purpose of this resource is to reinforce this and
demonstrate identification and documentation methods for technical requirements.
The common data capture interface methods are:-
 data from one system is printed and re- keyed into another system:- This method
has inherent risks of errors and fraud, is labour-intensive and costly and is not
recommended.
 data from one system is manually uploaded/downloaded from one system to
another:- This method reduces the risk of typing errors and fraud, but if data is not
uploaded/downloaded in a regular and timely manner there may be risks of
inaccuracy in the backend systems.
 data from one system is uploaded/downloaded in automated batch processing:-
This method reduces errors and fraud; however, there are still risks of data
inaccuracy in the backend systems between the batch uploads/downloads. The
duration between batch processing may be specified from minutes, to overnight, to
weekly. The greater the frequency of batch processing, the lower the risk of data
inaccuracy, but there will also be an increase in network traffic and CPU usage.
 data from one system is seamlessly interfaced with another system:- In this
situation a shared database may be used, or systems are dynamically connected.
This method reduces the risk of errors associated with data inaccuracy but
increases the risk of hacking into backend systems. In addition there may be less
control over inappropriate data transfers .Note that the technical requirements and
resulting cost for this type of interface system may be significantly different than
the above methods.
 Group assignment

1. how Diagnose the business

2. Explain What is Benchmark of business
3. Explain how Develop plans to improve business
performance
4. Explain What Develop marketing plans
5. Explain how Develop business growth plans
6 . Explain how Implement and monitor plans
7. Say prepare of business plane . notes:- one
group not grater than 10 members and pare
pr in our department.