BUSINESS ANALYSIS

Chapter 2:
The Business Analysis
Process Model

HCM – Jul-15

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 Objectives

Be able to:
❑ Understand creative problem-solving
approach
❑ Explain the Business Analysis Process Model
❑ Understand Procedure, Inputs, Outputs and
Techniques in each phase of Business
Analysis Process Model

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 Agenda

❖ An approach to problem-solving
▪ Introduce
▪ Example
❖ The Business Analysis Process Model
▪ Investigate situation
▪ Consider perspectives
▪ Analyze needs
▪ Evaluate options
▪ Define requirements
▪ Delivering changes
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 An approach to problem-
solving

❖ Business analysts
▪ Examine the entire business area
▪ Take a thoughtful or even creative approach
to developing ideas for solutions.

❖ Creative problem-solving:
▪ Develop innovative ideas in order to respond
to changes in the business environment,
including actions from competitors
▪ Many people find this difficult because feel
under pressure to produce ideas quickly
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 An approach to problem-
solving
• Understand the complexity of the problem situation, document
Mess finding with a rich picture or mind map

• Analyse opinions, concerns, knowledge and ideas identify

Data finding where supporting data will help quantify this information

• Using the work of the two previous stages uncover the heart of
Problem finding the problem

• Use creative problem solving techniques to generate a wide

Idea finding range of ideas e.g. brainstorming, assumption reversal,
random words or pictures

• Evaluate the ideas that could provide solutions to the

Solution finding problem(s)

• Is concerned with managing the

Acceptance finding • implementation of the solution

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 EXAMPLE: INVIVO
DIAGNOSTICS

❖ A $300M pharmaceutical company built

on the strength of a single product that
accounts for over 75% of revenues.
❖ In 18 months, the patent for this
product will expire.
❖ The CEO wants to explore ways to plug
the expected $100-$200M revenue gap
as revenues from this product decline.

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 Mess finding

❖ What problems or opportunities do we

face?
❖ Where is there a gap between the current
situation and the desired one?
❖ What are the stated and unstated goals?
❖ This stage is complete when we have:
▪ A description of the situation
▪ Identified (not gathered) key facts and data

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 Data finding

❖ What are the symptoms and causes?

❖ What measures of effectiveness seem
appropriate?
❖ What actions are available?
❖ This stage is complete when we have:
▪ Found and organized relevant data
▪ Made initial hypotheses about problem
causes and solutions

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 Problem finding

❖ Which is the most important problem?

❖ Is this problem like others we have
dealt with?
❖ What are the consequences of a broad
versus narrow problem statement?
❖ This stage is complete when we have
produced a working problem statement.

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 Idea finding

❖ What decisions are open to us?

❖ What solutions have been tried in
similar situations?
❖ How are the various candidate solutions
linked to outcomes of interest?
❖ This stage is complete when we have
produced a list of potential solutions.
▪ Perhaps also a list of advantages and
disadvantages

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 Solution finding

❖ How does this solution impact each of

the criteria?
❖ What factors within our control could
improve the outcomes?
❖ What factors outside our control could
alter the outcomes?
❖ This stage is complete when we have
produced a recommended course of
action along with justification.

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 Acceptance finding

❖ What are the barriers to successful

implementation?
❖ Where will there be support and
motivation, or resistance and conflict?
❖ Are the resources available for
successful implementation?
❖ This stage is complete when we have
produced an implementation plan and
begun execution.

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 Homework

❖ Get 1 real problem in your life and use

problem-solving approach to resolve it

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 The Business Analysis Process
Model

Business strategy and objectives

Investigate Consider Analyze Evaluate Define Delivering

situation perspectives needs options requirements changes

• Uncover • Analyze • Identify • Examine the • Gather and • Consider

potential
issues and stakeholder where improvements document how the
problems s and their improvemen identified so far the detailed requirement
perspectives ts can be developing some requirement s are to be
business options,
on the made to the evaluate them for s for delivered,
situation business acceptability and changes to the changes
system by feasibility and the business implemente
produce a
doing a ‘gap Business Case system d and the
analysis’ business
benefits
realized

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 Investigate situation

❖ Procedure
❖ Inputs
❖ Outputs
❖ Techniques
▪ Investigation techniques
▪ Documenting business situations

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 Investigate situation -
Procedure

❖ Study background material: project

initiation document, terms of reference
❖ Carry out initial investigation with key
stakeholders
❖ Document the results of the
investigation

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 Investigate situation –
INPUT-OUTPUT

Input
• Terms of reference or project
initiation document
• Business objectives and
strategy

Output
• View of the existing
business situation
• List of issues/problems
• Business needs log
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 Investigation techniques

Qualitative Quantitative
Interviews Questionnaires

Observation Special purpose

records
Workshops
Activity sampling
Scenarios

Prototyping Document analysis

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 Documenting business
situations

Rich pictures

Mind maps

Business process models

Spaghetti maps

Fishbone diagrams
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 The Business Analysis Process
Model

• Uncover issues and problems

Investigate
situation

• Analyze stakeholders and their perspectives on the

Consider situation
perspectives

• Identify where improvements can be made to the

Analyze business system by doing a ‘gap analysis’
needs

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 Consider perspectives

❖ Procedure
❖ Inputs
❖ Outputs
❖ Techniques
▪ Stakeholder identification and analysis
▪ Stakeholder perspectives
▪ Business activity modelling

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 Investigate situation -
Procedure

❖ Identify key stakeholders

❖ Investigate the values, beliefs and
priorities of the key stakeholders.
❖ Develop and analyse the stakeholder
perspectives.
❖ Build conceptual models of activities.
❖ Explore and resolve conflicts between
stakeholder perspectives.
❖ Synthesise conceptual models into one
view of the desired business system.
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 Investigate situation –
INPUT-OUTPUT

Input
• Project initiation document
• Business objectives and
strategy
• Identified stakeholders

Output
• Stakeholder perspectives
• Business activity models
• Agreed single business
activity model

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 Techniques

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 Techniques

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 The Business Analysis Process
Model

• Analyze stakeholders and their perspectives on the

Consider situation
perspectives

• Identify where improvements can be made to the

Analyze business system by doing a ‘gap analysis’
needs

• Examine the potential improvements identified so far developing

some business options, evaluate them for acceptability and
Evaluate feasibility and produce a Business Case
options

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 Analyze Needs

❖ Procedure
❖ Inputs
❖ Outputs
❖ Techniques
▪ Analysing activities
▪ Analysing business processes

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 Analyze Needs - Procedure

❖ Examine the activities on the business activity

model.
❖ Consider how well each activity is carried out in
the current business system and how well it is
supported by the organisation’s information
systems.
❖ Identify the key business events to be handled
within the business system and develop ‘as is’
business process models
❖ Develop ‘to be’ business process models for the
key business events.
❖ Analyse the gaps between the existing and the
desired situation
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 Analyze Needs –
INPUT-OUTPUT

Input
• Agreed business activity model
• View of the existing business system
• Business objectives and strategy

Output
• Analysis of activities, including
identified weaknesses
• As is’ and ‘to be’ business process
models
• List of potential improvements to the
business system

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 Techniques

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 Techniques

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 Techniques

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 The Business Analysis Process
Model

• Analyze
• needs
• Identify where improvements can be made to the business system
by doing a ‘gap analysis’
• Evaluate options
• Examine the potential improvements identified so far developing
some business options, evaluate them for acceptability and
feasibility and produce a Business Case
• Define requirements
• Gather and document the detailed requirements for changes to the business
system

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 Evaluate options

❖ Procedure
❖ Inputs
❖ Outputs
❖ Techniques
▪ Identifying potential options
▪ Assessing feasibility

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 Evaluate options - Procedure

❖ Identify a range of business options.

❖ Explore the acceptability of options and
reduce them to a shortlist.
❖ Develop and document each option in
detail. In particular, consider the
business, technical and financial
feasibility of each option.
❖ Develop a business case, including
presenting options and
recommendations to business
managers.
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 Evaluate options –
INPUT-OUTPUT

• Input
• Project initiation document
• Business objectives and strategy
• List of potential improvements to the business system
• Output
• Shortlist of business options
• Business case, including options, feasibility assessment and
• recommendations

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 Techniques

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 Techniques

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 The Business Analysis Process
Model

• Evaluate options
• Examine the potential improvements identified so far developing
some business options, evaluate them for acceptability and
feasibility and produce a Business Case
• Define requirements
• Gather and document the detailed requirements for changes to the
business system
• Delivering changes
• Consider how the requirements are to be delivered, the changes implemented and
the business benefits realized

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 Define requirements

❖ Procedure
❖ Inputs
❖ Outputs
❖ Techniques
▪ Requirements engineering
▪ Modelling IT systems

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 Define requirements -
Procedure

❖ Gather the requirements:

▪ Elicit and analyse the business requirements
for the new business system.
▪ Document and manage the requirements.
▪ Validate the documented requirements.
❖ Document the requirements for the new
business system
▪ business process models;
▪ catalogue of business requirements;
▪ models of the IT processing and data;
▪ glossary of terms.
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 Define requirements –
INPUT-OUTPUT

• Input
• Selected option for revised business system
• Business objectives and strategy
• Terms of reference/project initiation document
• Output
• ‘To be’ process models
• Job definitions
• Revised organisational structure
• Validated requirements document

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 Techniques

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 Techniques

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 The Business Analysis Process
Model

• Evaluate options
• Examine the potential improvements identified so far developing
some business options, evaluate them for acceptability and
feasibility and produce a Business Case
• Define requirements
• Gather and document the detailed requirements for changes to the
business system
• Delivering changes
• Consider how the requirements are to be delivered, the changes implemented and
the business benefits realized

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 Delivering changes

❖ Procedure
❖ Inputs
❖ Outputs
❖ Techniques
▪ Delivering the requirements
▪ Implementing the business changes

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 Delivering changes - Procedure

❖ Decide the lifecycle and approach to be

adopted.
❖ Develop the business change solution.
❖ Plan the implementation:
▪ Consider the environment for the change
▪ Consider the culture of the organisation
▪ Define the learning approach and develop
the required learning materials
❖ Review the predicted benefits.
❖ Identify any actions required to realise
the benefits.
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 Delivering changes –
INPUT-OUTPUT

• Input
• Business change process and organisation design
• IT software solution
• Business case
• Output
• Business change plan
• Communication plan
• Training approach and materials
• Revised job roles and descriptions
• Post-implementation review document
• Benefits realisation plan

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 Techniques

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 Review Questions

1. Problem solving model has six stages. Four of these are

mess finding, data finding, solution finding and acceptance
finding. What are the other two stages?
2. What are the five key stages of the Business Analysis
Process Model?
3. In which stages of the Business Analysis Process Model are
the following produced?
▪ Cost/benefits analysis
▪ Business activity model
4. Are the terms of reference for a project an input or an
output of the first stage of the Business Analysis Process
Model?
5. Whose perspectives are considered in the “Consider
Perspectives” stage of the Business Analysis Process Model?
6. In which stage of the Business Analysis Process Model
would you conduct a gap analysis?
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BUSINESS ANALYSIS

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 For Next Week

❖ Read Chapter 5
▪ An approach to problem-solving
• Introduce
• Example
▪ The Business Analysis Process Model
• Investigate situation
• Consider perspectives
• Analyze needs
• Evaluate options
• Define requirements
• Delivering changes
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