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Enterprise Business Analysis Capability - Strategic Asset for Business Alignment and Driving Innovation

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Introducing the concept of Enterprise Business Analysis as a strategic resource to achieve business and IT alignment. Alignment means being able to draw a straight Line from business strategy through to delivered and operational solutions implemented to respond to businessn. Business and IT Alignment requires more than just relationship management – it requires actual engagement by IT with the needs of the business.

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Enterprise Business Analysis Capability - Strategic Asset for Business Alignment and Driving Innovation

  1. 1. Enterprise Business Analysis Capability - Strategic Asset for Business Alignment and Driving Innovation Alan McSweeney http://ie.linkedin.com/in/alanmcsweeney
  2. 2. Enterprise Business Analysis • Introducing the concept of Enterprise Business Analysis as a strategic resource to achieve business and IT alignment May 11, 2015 2
  3. 3. Business Objectives Business Operational Model Enterprise Architecture Solution Implementation and Delivery Management And Operations Business Processes And Analysis Required Operational Business Systems Business Strategy Business Systems Design/ Selection Business IT Strategy IT Function Strategy Required Operational Processes Required Infrastructure Business Systems IT/Support Systems Design/ Selection Business Solution Delivery In Context May 11, 2015 3 Solution Portfolio Solution Portfolio IT Function Structure And Processes
  4. 4. Business Solution Delivery In Context • Solution delivery needs to be a continuum from business strategy to operational and managed solution • Solution delivery needs to work in the context of business changes and the need for the business to respond to changes May 11, 2015 4
  5. 5. Business Objectives Business Operational Model Enterprise Architecture Solution Implementation and Delivery Management And Operations Business Processes And Analysis Required Operational Business Systems Business Strategy Business Systems Design/ Selection Business IT Strategy IT Function Strategy Required Operational Processes Required Infrastructure Business Systems IT/Support Systems Design/ Selection Business IT Requirements And IT Alignment May 11, 2015 5 Solution Portfolio Solution Portfolio IT Function Structure And Processes Business Solution Design And Delivery IT Function Underlying Solution Delivery And Operation Enablement Structure Business Needs Market Changes Regulatory Changes Customer Requirements Organisational Changes New Products/ Services Competitive Pressures
  6. 6. Business IT Requirements And IT Alignment May 11, 2015 6 Business Needs Market Changes Regulatory Changes Customer Requirements Organisational Changes IT Function Underlying Solution Delivery And Operation Enablement Structure Business Solution Design And Delivery Alignment New Products/ Services Competitive Pressures
  7. 7. Business Objectives Business Operational Model Enterprise Architecture Solution Implementation and Delivery Management And Operations Business Processes And Analysis Required Operational Business Systems Business Strategy Business Systems Design/ Selection Business IT Strategy IT Function Strategy Required Operational Processes Required Infrastructure Business Systems IT/Support Systems Design/ Selection Business Solution Delivery In Context May 11, 2015 7 Solution Portfolio Solution Portfolio IT Function Structure And Processes Alignment Means Being Able To Draw A Straight Line From Business Strategy Through To Delivered And Operational Solutions Implemented To Respond To Business Needs
  8. 8. Dimensions Of Changes May 11, 2015 8 Business Needs Market Changes Competitive Pressures Organisational Changes New Products/ Services Regulatory Changes Customer Requirements Business Needs Market Changes Competitive Pressures Organisational Changes New Products/ Services Regulatory Changes Customer Requirements Business Needs Market Changes Competitive Pressures Organisational Changes New Products/ ServicesRegulatory Changes Customer Requirements Pace And Impact of Business Changes Increasing
  9. 9. Business IT Requirements And IT Alignment … • … Means … • Having an IT function with an underlying delivery-oriented structure, attitude, approach, intention • Being able to analyse and define business requirements associated with business changes • Being able to analyse and define business processes associated with business changes • Being able to define and design business solutions that deliver requirements and processes • Rebuild the fragmented and disjointed conversation between business and IT − Business and IT Alignment requires more than just relationship management – it requires actual engagement by IT with the needs of the business May 11, 2015 9
  10. 10. Business Analysis And Business Operating Environment May 11, 2015 10 Business Strategy Business Objectives Changes In Products/ Services Changes in Organisation Process Changes Merger/ Acquisition/ Divestment Regulatory Changes Market Changes Competitive Pressure Changes In IT Solutions To Enable Business Change New Products/ Services Customer Requirements
  11. 11. Business Strategy Business Objectives Changes In Products/ Services Changes in Organisation Process Changes Changes In IT Solutions To Enable Business Change Business Analysis Across Business Operating Environment May 11, 2015 11 Enterprise Business Analysis Functional Business Analysis IT Business Analysis Business And IT Alignment
  12. 12. Levels Of Business Analysis And Business Analyst May 11, 2015 12 Functional Business Analyst Understand business objectives and solution functional requirements Analyse, define and optimise business processes Understand products and services provided and associated processes and solution Assist with the optimisation of the solution portfolio Participate in optimisation of organisation structure of business function Enterprise Business Analyst Assist with translation of business strategy to business objectives Ensure IT solution delivery is aligned with business strategy and business objectives Assist with optimising IT solution delivery activities Contribute to solution delivery governance Support optimisation of organisation structure IT Business Analyst Gather and analyse business requirements Map and document the business processes Assist with the creation of solution functional specifications
  13. 13. Business Strategy Business Objectives Changes In Products/ Services Changes in Organisation Process Changes Changes In IT Solutions To Enable Business Change Business Analysis Across Business Operating Environment May 11, 2015 13 Enterprise Business Analysis Functional Business Analysis IT Business Analysis Strategic Tactical
  14. 14. Effective Business Analysis Prevents Discontinuity And Fragmentation May 11, 2015 14 Local Fragmentation and Discontinuity Organisation Wide Fragmentation and Discontinuity
  15. 15. Levels Of Business Analysis And Business Analyst May 11, 2015 15 Functional Business Analyst Enterprise Business Analyst IT Business Analyst Greater Business Analysis Capability Delivers Greater Effectiveness
  16. 16. Preventing The Bumpy And Uncomfortable Journey From Business Strategy To Execution And IT Solution Delivery May 11, 2015 16 Business Strategy Business Objectives Changes In Products/ Services Changes in Organisation Process Changes Changes In IT Solutions To Enable Business Change
  17. 17. What IT All Too Frequently Delivers May 11, 2015 17 Lack of response to business needs Slow and costly solution delivery High solution maintenance and operation costs Fragile solutions with many manual workarounds Excessive and duplicated development effort and operation Duplicated and costly investments in many solutions Siloed applications with lack of integration Poor return on investment Too little, too late, not what was wanted or needed Business Needs Market Changes New Products/ Services Regulatory Changes Customer Requirements Organisational Changes Competitive Pressures The IT Funnel of Fragmentation and Discontinuity
  18. 18. Integrated Approach To Business Analysis Optimises Delivery, Removes Friction And Creates Effective Linkages May 11, 2015 18 From … To …
  19. 19. IT Does Provide Competitive Advantage • IT does really provide competitive advantages to organisations • Business really does need IT to operate and grow • Business can and does bypass the IT function if it does not listen to the business and deliver solutions that enable delivery of business objectives • The business will look elsewhere for the necessary IT solutions • The consequence will be a fragmented and balkanised IT solution landscape that is costly to operate and support May 11, 2015 19
  20. 20. Business Objectives Business Operational Model Enterprise Architecture Solution Implementation and Delivery Management And Operations Business Processes And Analysis Required Operational Business Systems Business Strategy Business Systems Design/ Selection Business IT Strategy IT Function Strategy Required Operational Processes Required Infrastructure Business Systems IT/Support Systems Design/ Selection Preventing The Balkanisation Of IT Solution Landscape May 11, 2015 20 Solution Portfolio Solution Portfolio IT Function Structure And Processes If This Is Not In Place … External Suppliers External Suppliers External Suppliers … Then The Business Functions Will Look To Bypass The IT Function External Suppliers
  21. 21. Business Objectives Business Operational Model Enterprise Architecture Solution Implementation and Delivery Management And Operations Business Processes And Analysis Required Operational Business Systems Business Strategy Business Systems Design/ Selection Business IT Strategy IT Function Strategy Required Operational Processes Required Infrastructure Business Systems IT/Support Systems Design/ Selection Preventing The Balkanisation Of IT Solution Landscape May 11, 2015 21 Solution Portfolio Solution Portfolio IT Function Structure And Processes External Suppliers External Suppliers External Suppliers … Leading To A Disconnected And Disintegrated Solution Portfolio External Suppliers
  22. 22. Enterprise Business Analysis • A highly capable business analysis function is a key enabler of business change • Identifier of solutions to business problems • Driver of solution innovation and renovation • Assist the business to address its challenges • Business and IT alignment is a continuous process • Assists in bridging the gap between the business and IT • Mediates between the business and IT • Ensures that IT is relevant to the business May 11, 2015 22
  23. 23. Business Strategy Business Objectives Changes In Products/ Services Changes in Organisation Process Changes Changes In IT Solutions To Enable Business Change Business Analysis Across Business Operating Environment May 11, 2015 23 Enterprise Business Analysis Functional Business Analysis IT Business Analysis Siloed Business Analysis Collaboration And Sharing Across Organisation Functions Organisation-Wide Analysis Capability With Consistent, Repeatable Processes
  24. 24. Business xNovation May 11, 2015 24 Business Strategy Business Objectives Changes In Products/ Services Changes in Organisation Process Changes Changes In IT Solutions To Enable Business Change Innovation Renovation
  25. 25. Business xNovation • Businesses need to: − Innovate – introduce new into the organisation − Renovate – update and modernise existing services, products and offerings and support systems and processes • Enterprise Business Analysis can play a central role in successfully driving xnovation through the business through to IT May 11, 2015 25
  26. 26. Business Objectives Business Operational Model Enterprise Architecture Solution Implementation and Delivery Management And Operations Business Processes And Analysis Required Operational Business Systems Business Strategy Business Systems Design/ Selection Business IT Strategy IT Function Strategy Required Operational Processes Required Infrastructure Business Systems IT/Support Systems Design/ Selection Business And IT Alignment Runs Both Ways May 11, 2015 26 Solution Portfolio Solution Portfolio IT Function Structure And Processes Business and IT alignment means managing expectations between both parties
  27. 27. Business And IT Alignment Runs Both Ways • An effective Enterprise Business Analysis capability within the IT function means that IT call sell itself to the business May 11, 2015 27
  28. 28. Business And IT Alignment Runs Both Ways • IT needs: − Enterprise Architecture that supports and enables solution delivery and operation − Enterprise Business Analysis function that provides a comprehensive view of business processes, solution portfolio, business requirements − Enterprise Business Analysis function that speaks the language of both business and IT and can act as a translator between both parties May 11, 2015 28
  29. 29. Enterprise Business Analysis Capability • Without Enterprise Business Analysis Capability − Siloed operation − Inconsistent and fragmented operation − Inconsistent and limited results − No focus on overall business strategy − Limited collaboration and sharing of knowledge and experiences • With Enterprise Business Analysis Capability − Consistent solution analysis process and approach with predictable results − Collaboration across organisation − Business knows it is being listened to and that commitments will be met − Effective knowledge management − Analysis governance and standards − Enable business respond to changes quickly and effectively May 11, 2015 29
  30. 30. It Is Not About The Project – It Is About The Solution • The IT project exists to deliver a solution that meets the requirements of the business and that is usable, operable, supportable, maintainable and cost-effective • The focus needs to change from project management to solution delivery • The individual business solution exists within the context of a portfolio of business solutions • The solution requirements – functional – what it must do – and non-functional – usability, performance, supportability, maintenance, reliability, availability – must be delivered on • Effective solution delivery requires effective business and IT alignment May 11, 2015 30
  31. 31. It Is Not About The Project – It Is About The Solution • Capable and effective enterprise-wide business analysis means the focus will remain on the solution rather than the project • A solution can only be regarded as successful if, over its lifetime, it delivers the defined business results to all its participants subject to schedule and budgetary constraints May 11, 2015 31
  32. 32. Solution Is Not Just Functionality • Solution success needs to be assessed against functional and service/operational factors: − Usability − Operability − Supportability − Maintainability − Security − Integration − Performance − Reliability − Integratability • Enterprise Business Analysis capability ensures that complete view of solution exists from the start • High probability of success is embedded into solution design from the start May 11, 2015 32
  33. 33. Solution May Not Just A Single Application May 11, 2015 33 External Manual Interaction External Manual Interaction External Manual Interaction External Manual Interaction Extended Application(s) System Component System Component System Component External Component External Component External Component Core Application End To End View Of Solution
  34. 34. Solution May Not Just A Single Application May 11, 2015 34 External Manual Interaction External Manual Interaction External Manual Interaction External Manual Interaction Extended Application(s) System Component System Component System Component External Component External Component External Component Core Application Limited View All Too Often Taken
  35. 35. Solution May Not Just A Single Application May 11, 2015 35 System Component System Component System Component External Component External Component External Component Automated Process Automated Process External Manual Interaction External Manual Interaction Manual Process Manual Process External Manual Interaction External Manual Interaction Manual Process Manual Process Extended Application(s) Core Application
  36. 36. May 11, 2015 36 Hierarchy Of Requirements – From Enterprise To Solution Business Vision and Goals Business Strategy Business Objectives and Plan Programmes for Strategic Objectives Solutions Operation of Solutions Solutions delivered by programmes and projects cascade from business vision to ultimate operation and service delivery Solutions delivered by programmes and projects need to be aligned to the overarching business vision and goal
  37. 37. Solution Delivery Boundaries May 11, 2015 37 Enterprise Architecture Defines the Solution Technical Boundary Business Data Technical Functional Implementation Management and Operation Solution Enterprise Business Analysis Defines the Solution
  38. 38. Solution May Not Just A Single Application • Overall solution may consist of core application and integration points with existing applications • Overall solution may operate with a mix of automated and manual processes in a structured or ad-hoc manner to deliver the required results • Understanding the overall set of integration points and processes and their operation is crucial to successful results • Need to see the entire picture to understand how a solution should operate − Core system/application are just one part of this solution universe • Unambiguous definition of processes is required • Processes that are to be automated define the scope of the development and implementation work May 11, 2015 38
  39. 39. Extended Dimensions Of Overall Solution May 11, 2015 39 Solution Core Application Functionality Solution Operational Characteristics
  40. 40. Enterprise Business Analysis • All too often complete end-to-end view of the solution is not recognised or appreciated • Enterprise Business Analysis enables the full scope of the solution and its operational framework to be understood, defined and scoped at an early stage • A realistic end-to-end view maximises the likelihood of solution success − All the functional and operational requirements are identified and quantified May 11, 2015 40
  41. 41. Achieving Alignment • No doubt that business and IT alignment is necessary and worthwhile • But − What exactly does alignment mean? − What are the goals of alignment? − How can its success be assessed? − What is needed to achieve it? May 11, 2015 41
  42. 42. Achieving Alignment • Alignment requires enterprise-level commitment and decisions made at an enterprise-level • Need enterprise business analysis context within which to operate • Need enterprise business analysis framework where business model, objectives and processes are held May 11, 2015 42
  43. 43. Enterprise Business Analysis Capability – Key Elements May 11, 2015 43 Approach Consistent and repeatable approach to business analysis Quick and predictable results Top-down approach Framework End-to-end business definitions Cross-functional process view Business process inventory Teamwork Collaboration across and between teams Management commitment Mentoring and training Forum Quality assurance and control Information Management Tools and Techniques Governance and Management Information sharing and collaboration tools Information management processes Complete set of templates, artefacts, tools Consistent implementation and use Management commitment, funding and support Measurement and reporting Demand and resource management
  44. 44. Achieving Enterprise Business Analysis Capability • Senior Commitment and Sponsorship − Without this, the initiative will fail − There must be a strong belief that the approach will work − View that Enterprise Business Analysis represents a strategic asset − Needed to overcome obstacles and setbacks • Defined Vision − Articulated goal of what is to be achieved • Achievable Implementation Plan − Financial and resource plan to achieve goals that is realistic and achievable • Business Acceptance − Target users of the service must accept the approach • Skills and Experience − Appropriately skilled and experienced team May 11, 2015 44
  45. 45. Summary • Business and IT alignment needs real engagement and not just relationship management • Enterprise Business Analysis capability provides a strategic approach to achieving business and IT alignment • Projects ≠ Solutions • Solutions ≠ Functionality • Enterprise Business Analysis ensures a complete end-to- end view of solution delivery maximising success and return on investment May 11, 2015 45
  46. 46. May 11, 2015 46 More Information Alan McSweeney http://ie.linkedin.com/in/alanmcsweeney

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