IIBA ECBA – Requirements Architecture and Design Options (IIBA – ECBA) Part 4

10. Analyze Potential Value: Inputs and Elements

Analyze potential value inputs and elements. After completing this topic, you should be able to recognize considerations that are relevant when analyzing potential value. The purpose of Analyze potential value and recommend solution task is to estimate the potential value for each design option and to establish which one is most appropriate to meet the requirements. Inputs include using benchmarks to determine which components meet the value necessary to meet business goals. This includes information about performance expectations and metrics such as productivity increases, for example, reducing the wait time in the doctor’s office. Design options identified through facilitated sessions with stakeholders will be assessed against the value criteria.

The task Analyze Potential value and recommend solution provides an output which is a recommended solution. The business analyst reviews each option, working with stakeholders to determine the financial impact against the benefits or investment returns. The reputation of the organization also matters. By reducing wait times for patients, public health could publish positive results, increasing the public perception of the value of the organization just to keep in line with the previous example. Also considered is the reputation of the vendors, how well they support customers in the ease of the use and ease of implementation of upgrades.

In the case of an organization who sells a product, the potential increase in market share provided by components of each solution is considered. The task overview consists of inputs, a task and an output. Inputs include potential value and design options. Task includes analyze potential value and recommend solution, and the output includes solution recommendations. Requirements lead to design options which have potential financial reputation and market share value. Each design option is compared to the value of other design options.

There may be no best choice and therefore a combination of options may provide the best opportunity to realize value. Proofs of concepts may be developed to measure the performance of the most desirable options. More analysis may be required to determine the suitable option, and there is always the option to do nothing until such time as a possible solution is available.

 Benefits must outweigh the cost when selecting a solution. Value can include benefits, increased profits, reduced risk, compliance with business policies and regulations, a positive user experience and reduced defects or errors. Benefits are analyzed to determine how realistic the benefit is to obtain. Expected benefits can be calculated at the level of a requirement or a set of requirements and how they contribute to meeting business objectives. Benefits are often realized over time, even over years, so the comparison between benefits and cost is illustrated through a scale graphic weighing mostly intangible and positive value against intangible and negative value. Benefits include increased profits, regulatory compliance, better user experience, reduced defects and reduced risk. Cost includes resources, timeline, effort purchases, operation costs and maintenance.

The cost of resources, including people and technology, and the amount of effort necessary to implement the change are included in the cost section. Typically, the more complex the solution, the more effort required to implement, not only the purchase price of the solution is considered, but also the cost to operate and maintain the solution. One business case for scheduling solution cited that the purchase of an automated system, one that automates the business rules needed to determine who is eligible for a specific schedule based on overtime time off and based on collective agreements, would reduce the number of staff needed to manage the activities. It turned out that the same number of staff would be needed, leading one or to believe that the cost savings would not be realized. However, the employee level in the organization could move from senior staff to junior staff, which would contribute to some cost saving software as a solution. Options can reduce staff costs by moving the maintenance activities to the vendor.

Most benefits are tangible, such as an increase in productivity. However, nontangible benefits should also be included and value assigned to them in order to have a complete picture of the positive side of the equation. Needless to say, costs are necessary, but represent the negative side of the equation. When the cost exceeds the value, it’s very likely that this option would not be considered. Value is the result of benefits versus cost assessments. A positive value is realized when benefits exceed the cost. Take note that not all needs can be realized as a positive value. Value may increase for some stakeholders and decrease for others. This is where privatization comes into play when a high priority requirement offers more value than a lower priority requirement.

Organizational benefits take precedence over any one single group of stakeholders. Values must provide an estimate of purpose driven and monetary effects by determining both the tangible and intangible benefits and cost. So value is determined when you weigh the results of the benefits against cost assessment. Value may increase for some stakeholders and decrease for others. You must provide an estimate of purpose driven and monetary effects and also consider the degree of uncertainty when estimating. Always consider a degree of uncertainty when estimating costs. They may grow and the potential value may not be realized to the extent estimated. The business analyst will consider the following elements to determine which option has the best costbenefit ratio available resources in the case of people, their knowledge and skills are also assessed to determine if they can implement, use and support the proposed solution.

Constraints need to be considered constraints on the solution, such as technology and time dependencies between requirements means that the requirements that provide list value may need to be implemented in order to use a higher value. Requirement. Dependencies on other initiatives may cause a time lag, which can have a negative effect on benefits that have a shelf life. For example, if a component of a solution designed to provide value to customers during task session is delayed, vendor relationships should be considered. An existing positive relationship has less risk than an unknown relationship. Corporate culture may influence cost.

For example, if the culture is one that resists changes, additional organizational change management activities may need to be costed. Remember, trade offs need to be made in order to achieve optimum results. When assessing design options, you should consider the available resources. Constraints on the solution dependencies between requirements, dependencies on other initiatives, vendor relationships and your organization’s corporate culture.

11. Analyze Potential Value: Guidelines and Techniques

Analyze potential value guidelines and techniques. After completing this topic, you should be able to identify activities involved in analyzing potential value. When assessing potential value, the Business Analyst considers both the current State and the future State. The current State provides information about the context for work and the cost of the existing problem. These together are used to quantify the value of the selected or the solution. The Business Analyst looks also at the future State to ensure that the solution that is implemented has the designs that are appropriate, which designs will work best for the solution and which has the greatest value? Once the solution is implemented, the business analyst must also ensure that the solution meets the business objectives going back to the public health example. If the solution offers a 95% paperless solution, then it would provide the needed benefits to meet the objectives.

The level of risk and the risk appetite of the organization should also be considered. If the risk analysis is low, then the solution is a prime candidate. Solution scope is also considered to ensure that the value is realized within the boundaries. For example, does it provide a 95% paperless office? Guidelines for assessing potential value can apply to the current State description and a future State description. The current State description includes the context for work, the cost of the existing problem, and it is used to quantify value when the solution is implemented. For the future State description, three questions are asked are the designs appropriate, which design work best and which has the greatest value? Some further guidelines concern the business objectives, the risk analyzed results and the solution scope.

The following techniques help the business analyst assess potential value. If the solution meets most of the acceptance and evaluation criteria, it is probably a good candidate. Sport analyzes is used to determine if the solution optimizes strength, reduces weaknesses, takes advantage of opportunities and reduces threats. Backlog management is used to determine the value of each component as it’s realized. A Business model Canvas is used to assess solution against business strategy.

The Business model Canvas outlines key partnerships, activities of the organization, the resources the organization uses, the customer relationships and customer segments and channels, as well as cost structures and revenue streams which inform the business strategy. If a particular solution offers value by increasing positive customer relationships, these can be associated with increased revenue streams, thereby providing positive potential. There we have covered most of the techniques listed.

The business case is the one we haven’t covered in detail and I’ll just give you a short description. The Business Case is a key document used to evaluate potential value as it contains the cost benefit analyzes necessary to justify the change. Business analysts should always have access to the business case when looking at potential solutions, so techniques for assessing potential value include acceptance and evaluation criteria, SWOT analysis, backlog management, and business model canvas. There are five types of techniques analyzes modeling, group techniques, tools, and document reviews. Analyzes includes decision analyzes, financial analysis, risk analyzes, and management and SWOT analysis.

Modeling techniques include business model canvas group techniques including brainstorming focused groups, interviews, workshops, and surveys and questioners. Tools include acceptance and evaluation criteria, backlog management, estimation and metrics, and KPIs or key performance indicators. Document reviews include business cases. Implementation subject matter expert is key to assessing risk. The subject matter expert provides input on issues related to implementing design options and helps estimate cost and identify risk. The domain subject matter expert will provide insight into cost associated with staff, resources and operations and the potential value of the proposed solution. He or she would also provide input into what the benefits are of a particular solution.

While working on a project for a large bank, the project manager held a focus group to assess the proposed solution using paper based prototypes. The customer provided input into how they would use the web based product, why they would not use it, and how much they would use it. That’s just an example. This led to information about how much revenue could be realized from a customer. The percentage of customers willing to utilize products also provided information on costs such as networking and data storage. Cost the regulator identifies the risk of implementing design options and identifies any constraints on some of those potential values.

The end user provides input on the value of the change itself and which solution really meets their needs. Subject Matter Experts Implementation subject matter expert provides input on issues related to implementing design options and help estimate cost and identify risk. The domain subject matter expert helps identify potential cost and benefits, so the customer helps analyze benefits of requirements and cost of design options. The regulator identifies risk of implementing design options and identifies constraints on potential benefits. The end user provides input on value of change.

12. Recommend Solution: Elements and Outputs

Recommend the solutions, elements and outputs. After completing this topic, you should be able to recognize activities involved in preparing a solution. Recommendation typically, there are three options when choosing a solution selecting a solution with the best cost benefit ratio, choosing an option that meets other criteria, such as meeting regulatory requirements despite the cost and finally, doing nothing because the design options do not sufficiently address the needs at a cost that is reasonable. The project manager manages the selection process and provides input on the risks to the project.

The sponsor is accountable for the outcome and therefore will either approve or reject the recommended solution. To help the sponsor understand where some of the issues are, the business analyst will document the input from other stakeholders to support their recommended solution.

The sponsor will also release funding for the project and must be informed of any changes. The output of the solution recommendation is the most appropriate solution identified based on evaluation of all design options and one that maximizes value. This can be done through a presentation with key stakeholders and a sponsor, so a recommendation has three possible options choose option with best cost benefit ratio, choose option that meets some other criteria and reject all design options and do nothing. The project manager provides input on the value of the change. The sponsor approves the final recommendation, approves spending on resources, and is kept informed of any changes. The most appropriate solution is identified based on the evaluation of all design options. The recommended solution should maximize value. You.

13. Exercise: Creating RADD’s Final Output

Congratulations. You just finished the requirements. Architecture and Design Options course. This is the 7th course of the Business Analyzes certification program, which includes a total of 14 courses. This course is part two of Requirements analyzes and Design. Definition. It covers the last three tasks, which are all related to creating a requirements architecture.

You develop a set of designs and analyze those to determine where the best value is. And the final step is to develop the solution recommendation that represents the best design. Just to remind you, the first section of the course called Define Requirements Architecture included the following concepts requirements Architecture Overview define Requirements Architecture Inputs and Elements define Requirements Architecture Techniques and finally, an exercise on defining the Requirements architecture.

The second part of the course, called Define Design Options had the following structure define Design Options, Inputs, and Elements define design Options, Guidelines and Techniques define design options, stakeholders and Outputs and an exercise on defining design options. The third and last section, called Potential Value and Solutions, had the following structure analyze potential value inputs and elements, analyze potential value guidelines and techniques, recommend solution elements and output.

And finally, an exercise on creating requirements analysis and design definitions. Final Output. Remember, you can use this course to improve your business, analyzes knowledge and abilities, and to obtain the certifications provided by the International Institute of Business Analysis. That’s it. Thank you for watching and see you on the next course. You.