IIBA ECBA – Business Analysis and Strategy Analysis (IIBA – ECBA) Part 2

6. Analyse Current State: Guidelines and Techniques

Analyzing Current states guidelines and Techniques After completing this topic, you should be able to recognize the guidelines and techniques used in analyzing the current state. The following are guidelines and tools and a description of how the guideline or tool supports the current state analyzes. The business analyzed approach takes into consideration if the method used is predictive or adaptive. This will drive the formality of current state analysis. In an adaptive approach, only enough effort is required to describe the current state in order to address changes. The organizational strategy has goals and objectives that will be used to guide the future state solution performance goals will help to determine gaps between how the current state meets those goals and the desired state.

Performance measures provide insight into if the current state is meeting expectations and will identify gaps in performance. Stakeholder analyzes Identifies stakeholders who can provide information about and confirm the business analyst analyzes of the current state. The following techniques can be used for analyzing the current state benchmarking studies compares the current state to like organizations who are considered best in class business capability. Maps provide insight into the value delivered by a particular set of capabilities to the organization, the customer, and identifies performance gaps and risks related to performance of the capability at a column table. Introducing guidelines or tools and describing how they support the current state analyze shows up a business analyzed approach guides analyzes of current state enterprise limitation Provides understanding of enterprise challenges organizational strategy Provides goals regarding future state solution limitation Provides insight into challenges of existing solutions.

Solution performance goals Assist in setting future state goals solution performance measures Describe performance of existing solutions stakeholder analysis results Identify stakeholders who will contribute to analyzes process models describe the current activities that contribute to business outcomes. Issues related to an activity or group of activities may contribute to customer dissatisfaction or productivity problems. Process models illustrate where bottlenecks might be occurring or if downstream process outputs are an issue.

These models, along with observation, will help the business analyst to pin down key areas of improvement. Observation will help the business analyst to confirm the current state. Document analysis will also contribute to identifying current policies, processes, and organizational structure. Metrics and key performance indicators are used to compare the actual performance of an organization against actual results. This technique helps the business analyst to narrow down the areas for improvement and provides input for root cost analysis. There are five categories of techniques analysis, modeling, group techniques, tools and document reviews.

Analyzes techniques include benchmarking and market analysis, business capability analysis, financial analysis, process analysis, and SWOT analysis. Modeling techniques include model canvas, constant modeling, organizational modeling, process modeling and scope modeling. Group techniques are focused groups, interviews, surveys, and cash generators and workshops. The tools include data mining, functional decomposition, item tracking metrics and key performance indicators. Observation and risk analysis management document reviews include document analysis, business case lessons learned, and vendor assessment.

7. Analyze Current State: Stakeholders and Outputs

Analyze current State Stakeholders and Outputs After completing this topic, you should be able to recognize how stakeholders contribute to the development of the outputs of a current state analyzed. As with any other task, stakeholders are key. The domain subject matter expert provide information about the current state and will validate that the business analyst has captured it correctly. The domain subject matter expert will also provide insight into what works and where there are issues. The tester will have indepth knowledge of the information technology. Current state operational support is on the front line and will have input into the current issues and what is working well now. The project manager uses current state information when planning for the project.

The sponsor may have insight into the performance of the existing solution, such as how well it supports and does not support performance goals. The implementation subject matter expert provides information about the current environment, including issues. The customer, through customer satisfaction surveys and customer service records, will find out how the solution is meeting their needs or not. The operational stakeholders are the domain subject matter expert who provides insight into the current state the tester who provides insight into issues with the existing solution operational support, who identifies problems encountered while supporting the current state the project manager, who uses current state information as input for planning and the sponsor who may provide insight into performance of existing solutions.

The end user will provide insight into how the current state works beyond the documentation provided, and the business analyst will confirm the current state with the end user true observation. The regulator provides insight into how the current state applies regulation and which regulation it does not support. At the time of the analysis, a supplier may influence the current state. This is true for software as a service and hosted solutions. The supplier will likely have their own roadmap for changes and updates. The current state description includes the capabilities and or process maps of the organization, resources, and dependencies.

We will describe the current culture and external influences. Business requirements describe what is needed to make the change. It will include a description of the problem and the current state and what needs to be changed in order to meet goals and objectives. Other stakeholders are the implementation subject matter expert who provides insight into the current state the customer who provides insight into issues with the existing solution the end user, who provides insight into issues with the existing solution as well the regulator, who has insight into how the current state complies with standards and the supplier, who may influence the current state.

8. Define Future State: Inputs and Elements

Define future state inputs and elements. After completing this topic, you should be able to recognize considerations important when defining future state. The purpose of future state definition is to provide information that allows the stakeholders to agree on the scope, constraint, risk and details of the change that will be affecting the enterprise. The inputs to define future state include the business requirements. The business requirements include information about assumptions, constraints and risk and can include business processes, functions, organizational structures, locations, the data and information that will be used by the enterprise. Of course, the future state can also include requirements that define smaller changes. The description of the requirements or the business requirements include visual models and text. This helps to define the scope and boundaries. The task is to define the future state. The business requirements will provide information about the problems and opportunities and constraints that the future state will address.

The definition of the future state provide information for the implementation team as well as the stakeholders. The outputs include business objectives, a future state description and the potential value that the requirements bring to the business. The task defined future state has the input business requirements. The outputs are business objectives, future state description and potential value. The goal is to inform a statement of desired needs. They tend to be long term and are ongoing. Quantitative descriptions describe what needs to be accomplished, for example to reduce the cost associated with processing a customer order. Objectives are descriptive and describe what needs to be accomplished to meet the goal. They are granular and specific to the goal. They are measurable. For example, the cycle time to process an order will be reduced by 20%. They must meet the Smart criteria.

Smart stands for specific an observable outcome measurable measuring outcomes using metrics and key performance indicators, also known as KPIs. It’s achievable that is, it’s feasible and the goal can be achieved. It’s relevant, which refers to the alignment to the organizational vision and mission and finally it’s time bounded. It describes the situation when the results will be realized. The scope of the solution defines which options can be considered. It also includes important factors in deciding which option to consider, the value of each option, the time frame to achieve the goals and objectives, and opportunity costs, which are cost associated with not pursuing a different business need. Goals are a statement of desired state and are long term, ongoing and qualitative.

Objectives are descriptive, granular and specific measurable and meet Smart criteria. The scope solution of space defines which options can be considered. Important factors when deciding which options to consider as the value of each option time frame to achieve goals and objectives and opportunity cost. Some of the options that might make up the solutions base include changes to the organizational structure, capabilities, processes and technology.

Policies are a common source of constraints on the future solution. When changes to an existing policy are made, such as a policy allowing hosted solutions based on information security restrictions. These may open up new opportunities for a solution. Example of constraints include budget and timeline restrictions which will limit the future state options. Prioritization of stakeholder needs helps to mitigate issues in this area. Technology and infrastructure limitations such as integrating a software as a solution to existing databases may limit which solution is chosen for the future state. Limited resources are always a challenge when identifying the future state. The business analyst will have to consider this when determining the future state. Perhaps with automated solutions, management may determine that specific stakeholders are not affected by a new state.

This may cause the business analyst to determine if there are alternative solutions and workarounds. Organizational structure and culture have a considerable impact on the future state. There may be changes to reporting structures through the amalgamation of two departments which removes redundant activities. Examples of constraints include, let me remind you, budget and timeline restrictions, technology and infrastructure, team competencies and specific stakeholder requirements. Organizational structure and culture changes may be required to support future state. The business architecture may support organizational goals and objectives and the desired future state integrated into the overall organizational structure.

Through business architecture, solutions must support the desired future state of an organization, especially in the case of the new technology solution which must integrate into the organization’s technology infrastructure. The business analyst will determine which current resources can be kept. He or she will also determine new resources required to support the future state. Technology and infrastructure may pose constraints. For example, while working on a project for the Canadian government, the technology had to support both Canadian, French and English strategies are based on an assumption, a hypothesis if you will. The business analyst must identify assumptions behind the belief and document them.

For example, it may be assumed that 80% of customers will adopt the order processing approach. If this assumption is later determined to be invalid through focus groups, then the business can make the appropriate decisions to address the gap. The business analyst must identify potential value of the solution and it must be evaluated to support the change to the current state. The potential value of a change is based on the potential value less cost.

The business analyst should evaluate if there are increases or decreases to potential value from new technologies, competition and external opportunities. Business architecture solutions must support desired future state of organization internal assets determine current resources that can be kept in the new resources required to support the future state. Technology and infrastructure may pose constraint test assumptions, that is, identify assumptions behind belief that need will be met. Identify the potential value of a solution using the equation value equals benefit minus cost system.

9. Define Future State: Guidelines and Techniques

Define future state guidelines and Techniques After completing this topic, you should be able to recognize how guidelines and techniques are used when defining future state. The following are guidelines and tools to be used when describing the current state. The current state description is used as a starting point. You can’t get where you want to go unless you know where you are. It provides the context for the completion of work.

Metrics and key performance indicators are used to determine whether the desired state results are achieved and which gaps exist and could be addressed through requirements. The organizational strategy outlines the approach to achieve the desired future state. This could include a roadmap, method or approach needed to achieve the desired state. The following are a few techniques for defining the future state benchmarking will provide information about Bestinclass practices related to the desired future state. A baseline describes where the information is based on metrics and key performance indicators and provide information needed to determine what is reasonable possible in the future state. Process models will describe how work would be done in the future and is used to define new capabilities needed by the organization to be successful workshops.

Using process models is an effective way to get a group of stakeholders to describe the future state. Keeping in mind the goals and objectives of the organization. Vendor assessments help to determine the potential value provided by their solutions. The current state description is used as a starting point and provides context for completion of work.

Metrics and key performance indicators are used to determine whether desired results are achieved. The organizational strategy outlines the approach to achieve the desired future state. The analyzes techniques are benchmarking and market analysis, business analysis capability, financial analysis, process analysis, and spot analysis. The modeling techniques are business model canvas, concept modeling, organizational modeling, process modeling, and scope modeling.

The group techniques are focus groups, interviews, surveys, and questionnaires and workshops. The tools are acceptance and evaluation criteria balanced Scorecard, functional Decomposition, metrics and KPIs, mind mapping and prototyping. Document reviews include document analyzes, business case Lessons learned, and vendor assessment.

10. Define Future State: Stakeholders and Outputs

Define future state stakeholders and Outputs After completing this topic, you should be able to identify the outputs of the defined future state. Task a domain subject matter expert has experienced the challenges with the current state and will have suggestions on how to make improvements. The tester ensures that a future state can be tested and helps set an appropriate level of quality operational support like the domain subject matter expert has experienced the challenges and may have suggestions for the future state. They are also consulted to ensure the future state can be supported. The project manager may have opinions on how manageable the future state is and the sponsor will set expectations for the future state and approved funding for the project.

The implementation subject matter expel will provide input into how realistic and if the described future state technology can be integrated and supported. The customer can provide input about the usability of the future state through focus groups and surveys. The end user is key. They tend to have less influence over the change outlined by the future state. However, they are the most impacted. These stakeholders can provide insight into how usable the new state may be and provide suggestions for improvement.

The operational stakeholders are the domain subject matter who provide insight into current and potential future state the tester who ensure that the future state can be tested and helps to set quality metrics. Operational Support who determines the ability to support the future state, the project manager who gives input on whether future state is manageable and the sponsor who sets business objectives and approves funding. The regulator ensures the future state will comply with policies and rules.

If the supplier is providing a solution, they will help to define the future state. The output of the activities includes business objectives which provide direction on how to achieve the desired future state and the expected outcomes and measures. The future state description includes the desired capabilities that the organization has to adopt to reach the desired state. Policies may need to be added or changed to influence the future state.

Resources and infrastructure are described in enough detail to outline the scope of the technology and other resources needed to realize the potential value of the change. Dependencies and external influence are included in the description of the future state. What will be described are the dependencies that must be in place to move forward and how external influences such as regulation impact the change. The potential value of the proposed future state is also included. The value description may be something like the solution will enable insurance claim adjusters to meet to find cycle times.

Other stakeholders let me remind you are the implementation subject matter experts who provide insight into the feasibility of the future state the customer and end user who provide insight into the ability to use the solution the regulator who ensures the future state will comply with policies and rules and the supplier who may help to define the future state and own part in supplying solution. The business objectives are the direction to achieve the desired future state. The future state description covers desired capabilities, policies, resources and infrastructure, dependencies and external influences. It also covers the potential value of the proposed future State.