business environment micro environment macro environment.pptx
Analytical Techniques - Basic Business analysis
1. Business Analysis
Techniques …
Session I & II
Referenced by International Institute of Business Analysis IIBA.
By Ashraf Diaa
Organizational Development & HR Director
2. Business analysis - definitions
An internal consultancy role responsible for investigating business situations,
identifying and evaluating options for implementation business systems, defining
requirements and ensuring the effective use of information systems in meeting the
needs of the business.
The methodical analysis, review and documentation of all or part of a
business in terms of business functions and processes, the information used
and the data on which the information is based.
The definition of requirements for improving any aspect of the processes
and systems and the quantification of potential business benefits. The creation
of viable specifications and acceptance criteria in preparation for the
construction of information and communication systems.
Business Analysis 2nd Ed., Debra Paul and Donald Yeates (eds), BCS, 2010
SFIA v5.0, 2011
5. How broad is Business Analysis
Business case
Business analysis
Requirements engineering
Solution development
Strategic analysis
6. The breadth of Business Analysis ?
Business case
Business analysis
Requirements engineering
Solution development
Strategic analysis
Systems Thinking
Decision / Action
Business Architecture
Solution Architecture
7. BA techniques in context
Techniques
Context
+ + +LifecycleRationale Roles Deliverables
ALWAYS
THE CURRENT
SITUATION
8. Some business analysis techniques
Critical success factors
Context diagram
Rich picture
Function hierarchy
Network architecture plan
Workflow diagram
Organisation chart
Entity relationship model
(high-level)
Business process model
High-level data flow diagram
Business object model
Use case diagram
Use case description
Technical architecture model
Functional dependency
diagram
Business scenario modelling
Task analysis
Business event model
Business roles definition
Logical data model
Class model
Relational data analysis
Website navigation model
Process dependency
modelling
Object interaction /
collaboration diagram
Object role models
User conceptual model
User interface object model
Screen navigation design
System event modelling
State transition diagram
State machine diagram
Object dynamic model
SWOT
PESTLE
Five Forces
Power/interest grid
MOST
Resource audit
BCG matrix
Balanced business scorecard
Key performance indicators
CATWOE
Business activity modelling
Event analysis
Payback calculation
DCF/NPV calculation
Internal rate of return
Benefits management
Benefits realisation
User acceptance testing
Swimlane diagrams
Business process
reengineering
Business process
management
Process streamlining
Business process redesign
Interviewing
Workshops
Questionnaires
Document analysis
Record searching
Special-purpose records
Activity sampling
Work measurement
Prototyping
9. More business analysis techniques
Give up yet?
Brainstorming
Round-robin
Columns and clusters
Bodyguards and assassins
Vernissage
Talking wall
Force-field analysis
Greenfield site
Transporter
Prioritisation
Time beam
Aargh!
Cost/benefit analysis
Impact analysis
Gap analysis
Standard costing
Marginal costing
Absorption costing
Ratio analysis
MoSCoW
Organisation diagram
Report writing
Presentation techniques
And even then people said “ You’ve missed …….”
10. If the statistics are
boring…The
numbers do not
make sense… Then
definitely the
analysis is wrong !
11. The role of the business analyst
Investigating
the situation
Stimulating
thinking
Modelling
business
processes
Analysing
strategy
Specifying
information
systems
Developing
business
case
Business
analyst
16. Selecting your techniques
• The situation:
• What is the Objective?
• How much money?
• How much time?
• Local standards!
• The ‘users’:
• Technical literacy
• Patience
• Decisiveness
• The business analyst:
• Personality
• Favourites
• Knowledge
• Experience
21. Your BA Toolkit
Business
Strategy and
Objectives
Investigate
Situation
Consider
Perspectives
Analyse
Needs
Evaluate
options
Define
Requirements
Manage
Change
PESTLE
MOST
SWOT
Resource Audit
POP-IT model
Rich
pictures
Interviews
Workshops
Context
diagrams
Stakeholder
Management
CATWOE
PARADE
BAMs
RASCI
Gap analysis
Value chain
Analysis
Organisation
Diagramming
Process Modelling
CRUD Matrix
Feasibility
Analysis
Impact
Analysis
Investment
Appraisal
Business
case
Scenarios
Storyboarding
Prototyping
Moscow
Time boxing
Cultural web
Learning cycle
SARAH
Benefits
Realisation
22. How did it all start ??
What
do you
think
Is the real
meaning of
the word
Analysis
24. Root Cause Analysis
Techniques - Five Why’s
Five Why's refers to the practice of asking, five times, why
the problem exists in order to get to the root cause of the
problem
Why? Why? Why? Why? Why?
Employee
turnover
rate has
been
increasing
Employees are
leaving for other
jobs
Employees are not
satisfied
Employees feel
that they are
underpaid
Other employers
are paying higher
salaries
Demand for such
employees has
increased in the
market
26. Pareto Analysis
The 80/20 is not the analysis it is the analytical hypothesis (prospective) or the
statement (retrospective).
It all started when a young Italian started thinking (analytically) about the land lords
of the Italian land.
The principle and the debate
27. Opening a wider view to the few
strong Vs the many weak
factors/responses.
28. The Pareto debate
Give 3 examples for indirectly proportional factors that
might not apply the principle.
29. PESTEL Analysis
P
• Political
Factors
E
• Economic
Factors
S
• Social Factors
T
• Technology
Factors
E
• Environmental
Factors
L
• Legislative
Factors
SWOT Analysis
Strengths Weaknesses
Opportunities Threats
Where we stand
32. The main objective is to create a wide but detailed explanation of the status quo
(current situation).
SWOT analysis can be used effectively to build organization or personal strategy.
Combines the easy formulation with the wide scope of research.
Helps analyst to reach awareness at each of the squares providing a proper
platform for strategic planning.
A common mistake done by analysts when putting all the effort in the SWOT
without coming out with a SWOT statement.
SWOT can be used through matching and converting. Matching is used to
find competitive advantage by matching the strengths to opportunities.
Converting is to apply conversion strategies to convert weaknesses or threats into
strengths or opportunities. (TOWS)
SWOT
34. TOWS … From analysis to strategy
Heinz Weihrich introduced TOWS as a practical framework of SWOT
TOWS
Strengths
ST1:
ST2:
ST3
Weaknesses
WK1:
WK2:
WK3:
Opportunities
OPP1:
OPP2:
OPP3:
Threats
THR1:
THR2:
THR3:
Actions
35. TOWS … From analysis to strategy
Apply TOWS technique to the previous exercise outcomes
TOWS
Strengths Weaknesses
Opportunities
Threats
Actions
36. P
• Political
Factors
E
• Economic
Factors
S
• Social Factors
T
• Technology
Factors
E
• Environmental
Factors
L
• Legal Factors
Sometimes referred to as PEST analysis.
Helps to identify “The Big Picture”.
A macro-analytical principle of marketing.
Used in both prospective and retrospective manner.
Tests the surrounding environment pre or post launch of product or
service.
Can be used to analyze performance or commercial deficit.
37. Political Factors Economical Factors Social Factors
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Technological Factors Environmental Factors Legal Factors
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Launching Service-lines
campaign in more than one
country.
38. Cause & Effect Analysis
(Ishikawa Fish-bone Model)
• Devised by professor Kaoru Ishikawa, a pioneer of quality
management, in the 1960s. The technique was then published in his
1990 book, "Introduction to Quality Control.“
• Helps finding the main cause of a certain problem.
• Identifies the process bottlenecks by finding where and why the
process did not work.
• Other analytical scopes/model could be used on the fish-bone model,
e.g.:
• 4M : Man, Method, Machine, Management, Material, Measurement.
• 4C: Communication, Coordination, Culture, Change
• CATWOE: Customers, Actors, Transformation process, Worldview
(weltanschauung) , Organization, Environment
• 4P: Product, Place, Price, People
41. Guiding principles for
business analysis
• Root causes, not symptoms (effects)
• Business improvement, not system change
• Creative but focused options, not prescribed solutions
• Feasible requirements, not all suggestions are valid
• Entire lifecycle, continuity
•Negotiation, not conflict avoidance
• Business agility, not business perfection