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Week 2

Strategic Analysis

Lecture Content Source

All content in these lecture slides are from


Hass, K. 2011, The Enterprise Analyst: Developing
creative solutions to complex business problems,
Management Concepts, Inc, Chapter 2
Paul D., Yeates, D., Cadle, J., 2010 Business
Analysis, British informatics Society Ltd, Chapter 3

Unless otherwise stated on the


slides
Marilyn Wells T1 2013 Simon Crawford T3 2014

LEARNING OBJECTIVES

Understand what strategy is and why it is


important, the assumption being that
strategy is important
Exploring some ideas about how strategy is
developed
Implementing strategy
Working out what all of this means for
business analysis
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WHAT IS A STRATEGY?

Is it a plan?
Is it a pattern of consistency in
behaviour over time?
Is it a position for a product/service
in a market?
Is it a perspective a leaders vision?
Is it a ploy to outwit an opponent or
competitor?

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The Context for Strategy


Business environment
becoming increasingly
unpredictable
Changing ways of employment:
contract, part time and
permanent
Growth of knowledge based
industries
Flattened organisational
structures and decentralised
decision
making
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http://www.sei.cmu.edu/reports/10tn018.pdf

The business architecture


Is the set of artefacts that comprise the
attributes and characteristics of the
business. It is a compilation of interrelated
elements that depict information about the
business: its operations, organizational
structures and physical locations, the
boundary of business processes, business
rules, policies and procedures, and the lines
of business used to flow value through to
customers.

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http://www.renovartis.ie/Business_and_IT_Alignment.html

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What is Strategy?

Strategy is the direction and scope of an


organisation over the long term, gives
advantage to the organisation through use
of it resources in a changing environment
and fulfils stakeholder expectations
Johnson, Scholes and Wittington (2008), cited
in Paul et al, Business Analysis (2010). (Kindle
location 1457)
Digital_strategy 6min
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Levels of Strategy
Different business units within an organisation may
have different strategies, and there are differing
levels of strategy within an organisation:
Corporate: involved with the overall purpose of the
organisation and forms the basis for all other
strategies within the organisation
Business unit: Each unit will have a distinguishable
market from other business units. Each units
strategy will be formed to leverage competitive
advantage for the unit
Operational: focuses on delivering the strategies
through use of the units resources, processes and
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Developing
Strategies
Four perspectives of developing a strategy
Design lens: deliberate positioning of an
organisation following a detailed
enterprise analysis. Strategy formulated
by executive management
Experience lens: organisational experience and culture
transform the strategy over time, continually changing,
each incremental change building on the last one
Innovation (ideas) lens: new ways of approaching
organisational problems, perhaps with the introduction
of new staff members
Politics: organisations\s are discrete political systems
and as such interest groups form to compete for
organisational resources and power to achieve their own
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outcomes

Sources of Power
Dependency: departments are dependent on those
who have control over organisational resources
Financial resources: who allocates the funds to
develop new ideas and/or projects
Position: where are the actors positioned within the
organisation? Are they generators of ideas or
organisational revenue?
Uniqueness: each group with special interests is
unique and each group has power
Uncertainty: power resides with people or groups and
people are unpredictable. During times of change
power holders often change
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Using PESTLE
Not a set of checklists
Key tasks:
Identify those few factors that will really affect
the organisation
Develop a real understanding of how they
might evolve in the future

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Porters five forces model

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M Porters 5 Forces 11min

MOST Analysis Technique

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Putting It All Together:


SWOT
AFTER the environmental scan has been
performed and the results are analysed a
SWOT analysis should be performed
Strengths: organisational strengths such as
market share

Weaknesses: such as financial position of the


organisation

Opportunities: what opportunities exist for the


organisation
Negative
Threats: how isPositive
the organisation performing?
Intern
Strengths
al
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Exter

Weaknesses

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Implementing Strategy
Issues to consider when implementing a
strategy
How quickly does the strategy need to be
implemented?
How big is the change? Is it new to the
business or is it incremental?
How quickly can the organisation absorb the
change? Do staff possess the necessary skills
to lead the change?
Is the organisation ready for the change?
Marilyn Wells
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Crawfordmanagement
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T1Do
senior
possess strategic
leadership skills?

Business Analyst Strategic


Roles
The business analyst plays
a key part in strategic
planning
Informing decision makers
about project investments
Involved in tactical
activities
Defines and manages
project business
requirements
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Validates that the solution

Business Analyst Roles in


Projects
Strategic
planning
Solution deployment and
change management

Solution
assessment and
validation

Requirements
management and
communication
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Figure 2.1 the Enterprise


Business Analyst,
Hass, Kathleen B. (Kindle
location 938)

Enterprise analysis

Planning and
requirements elicitation

Requirements
analysis,
specification and
validation

Strategic Planning (1)


Strategic planning is
the first step in
creating a project
Not normally
considered as a project
phase
Phase where the
current state of the
enterprise is examined
and the future state
determined
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Describe a broad set of
http://www.seandonovanconsulting.com/business-and-it-strategic-planning

Strategic Planning (2)


To ensure common understanding
the future state is documented
what the organisation will look like
once the strategy is achieved
Enterprise analysts identify gaps in
organisational capabilities to achieve
a successful strategic outcome
Converts future strategy to
measurable objectives
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http://www.ed.ac.uk/schools-departments/governance-strategic-planning/strategic-planning/strategic-plan-2012-16

Strategy-Execution
Framework
Called portfolio management
Driven by strategy planning and goal-setting
processes
Critical business process between strategic
planning and project execution
Phase where projects are evaluated selected,
prioritised, funded
Phase where strategic goals are converted to
actionable objectives, scope and approach
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Enterprise Analyst Tasks


Provide senior analysts with support by
performing tasks such as

Feasibility analysis
Competitive analysis
Problem analysis
Opportunity analysis
Financial analysis
Benchmark studies

Recommending innovative solutions to


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senior
staff

A Road Map
A strategic plan is a road map of how an
organisation is going to move from the as-is
state to the envisioned future
Dynamic and changes depending on the
environmental (competitive) climate
Is a link to what needs updating in the
project portfolio

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Balanced Scorecard
Frames strategic goals
Financial goals: measurable goals focussing on
organisational finance and accounting
outcomes
Customer goals: a measure of customer
satisfaction
Internal operations goals: measurable process
and operational performance against industry
benchmarks
Learning and innovation goals: measures how
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well an organisation applies learning, skills and

Corporate Scorecard (1)


Decision criteria: for-profit organisations
Tracks progress towards intended strategic
outcome
Strategic goals are ranked according to
organisational priority

Financial
Customer
Internal operations
Learning and innovation

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Corporate Scorecard (2)


Decision criteria: not-for-profit organisations
Tracks progress towards intended strategic
outcome
Strategic goals are ranked according to
organisational priority

Customer
Financial
Internal operations
Learning and innovation

Note the change of perspective of the first


two goals

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Planning Cycles
Volatile environments require evolving
strategies, goals and organisational change
Strategic goals and objectives are dynamic
Requires iterative planning cycles
Constant monitoring of progress towards goals
and objectives requires ability to make changes
as necessary
Business value expectations are raised at each
iteration
Business analysts provide expertise to ensure
that accurate information, analysis of business
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problems, creative and innovative solutions are

Enterprise Analysis
Not a phase but a series of activities
throughout the project
Mature organisations use enterprise analysis
to support strategy development
Provides conceptual and creative business
solutions for new business opportunities

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Enterprise Analysis
Activities
Core activities focus on:
Identifying new business opportunities
Research to determine most feasible solution
Develop business case or project proposal
recommending feasible projects to senior
management
Initiate new project planning activities
Are carried out over the life of the project
Continually validate project aligns with stated
project outcomes
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Activities continue after project completion

Organisational Strategic
Alignment

Hass, Kathleen B. The Enterprise Business Analyst: Developing Creative


Solutions to Complex Business Problems (Kindle Locations 1022-1023).
Management Concepts. Kindle Edition.

Strategic plans established

Portfolio projects selected based


on enterprise analysis and
business case information

Portfolio of
Projects

Supporting projects
launched

Project teams
execute

Foundation
Mature Business Analysis and Project Management Practices
Marilyn Wells T1 2013 Simon Crawford T3 2014Environment for Project Success

Strategy
execution
through projects

Strategic Alignment
Strategic plans and goals covert to portfolio
of programs and projects
Project leaders execute project plans to meet
objectives
Project outcomes are achieved

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Marilyn Wells T1 2013 Simon Crawford T3 2014

Enterprise Analysis in
Practice (1)
A significant role is played by enterprise
analysts when translating strategies into
innovative change initiatives
Analysing the enterprise and competitive
environment
Experiments and brainstorming session to
determine creative solutions
The enterprise BA works with small groups of
experts in discovery sessions to identify viable
initiatives
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Documents
requirements at a high level and
ensures requirements are traceable to each

Executing Strategy
Executing new strategy involves risk
because it involves change
Contextual issues
Role of the leader
Tools used by the business analyst
Balanced Business Scorecard
McKinsey 7-S Model

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Contextual Issues

Time
Scope
Capability
Readiness
Strategic leadership

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Role of the Leader

Challenge the status quo all the time and


set new and demanding targets
Establish and communicate a clear vision,
new mission, set out objectives, strategies
for achieving them and defining specific
tactics
Walks the walk demonstrates how to act
and behave
Empowers people to deliver their part of
the strategic change
Celebrate success with those who
achieve it

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Balanced Business
Scorecard

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McKinseys 7-S Model


Structu
re
Strateg
y

System
s

Shared
Values
Style

Skills
Staff

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AS 5037-2005 Knowledge
Management
KM Australian Standard provides guidance
on strategy and what drivers need to be
considered.
Business Analysis involves identifying
knowledge within the organisation, and
especially knowledge gaps.

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Knowledge Management
Standard
The strategic intent of the organisation
helps to answer the question of where are
we and where do we want to be. By
analysing the strategic context, you can
begin to identify the relevant drivers for your
knowledge efforts. Drivers act as pointers or
indicators towards what knowledge should
be developed or leveraged (Standards
Australia 2005, p.14).
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KM Drivers

(Standards Australia 2005, p.15)

Drivers

An example within an
organisation

Example of the
implications for the
knowledge ecosystem

Competitive
Pressures

There is a limited
understanding of the
marketplace to inform
strategic intent

Active knowledge
acquisition about
competitors, both direct
and indirect

Customer Service

The organisation
requires the highest
standard of customer/
client services

Effective and
coordinated flows of
knowledge about
customers/clients to key
operational units

Legislative
Requirements

Government body
requires regular
reporting to regulatory
authority

Processes for tracking


and reporting key
corporate knowledge

Operational
Effectiveness

Evidence of fragmented
business processes and
duplication of effort in
key processes

Analysis of the current


knowledge resources
and flows

Risk Management

There is a planned
restructure of
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departments

Address loss of
corporate knowledge
assets

What this Means for


Business Analysis?
Understanding what tools to use and what
information and knowledge will be identified
with each tool.
Identifying knowledge management drivers
that can indicate where development might
occur next (eg. Knowledge gaps).

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Planning and Requirements


Elicitation (1)
Involves customers, users, business
managers, architects and developers
Planned by the business analyst
collaborating with a team
Members are usually the project manager,
business visionary, and technology experts

Determine the approach (plan-based vs


adaptive)
Planning the activities to be undertaken
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Deciding which artefacts are to be produced

Planning and Requirements


Elicitation (2)

Establishes the communication strategy


Defines the change management approach
Conducts a stakeholder analysis
Ensures the project is properly funded
Ensures the requirements elicitation
activities are valid

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Elicitation Preparation
Activities include:
Gain an understanding of the organisational needs and
environment of internal and external stakeholders
Reviewing or creating the business case and supporting
documentation
Gain an understanding of the expected outcomes of any change
projects
Create and ensure the team understand the organisational
requirements
Determine which elicitation activities and modelling requirements
are appropriate for the project
Continually check and refine the requirements activities,
deliverables and schedule
Plan for change throughout the project

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Elicitation Goals (1)


Requirements are capabilities or conditions a
solution must fulfil
Requirements derive from business goals and
objectives
Solution success factor measured by the extent it
supports business objectives
Goals include:
Identifying the stakeholders who should be involved
in requirements gathering process
Identifying essential user tasks to support
organisational goals and operations
Identify and commence documenting requirements
that meet the needs of stakeholders
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Elicitation Goals (2)


During the
documentation of
requirements the BA is
not just a note taker for
groups
A collaborative
environment must be
created between the
stakeholders
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Elicitation Activities
The major activity is to ensure that the
correct and complete requirements are
collected
Iterative nature of elicitation for
Requirements gathering
Documenting
Validating

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Elicitation Techniques (1)


Workshops
Requirements elicitation workshops link business users with
developers
Conflicting and inconsistent requirements can be resolved

Interviews
Can be with individual or small groups (ideal for finding out how
a particular department operates)

Surveys
A amounts of data can be collected. Can be used to collect
initial information to drive workshops or interviews (anonymous
surveys ideal for collecting information that workshops or
interviews may not elicit)
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Elicitation Techniques (2)


Review existing system and documents
Helpful to understand the current conditions
and processes

Observation
By observing users carrying out day-to-day
operational functions these functions can be
used to validate information collected through
other techniques

Note-taking and feedback loops


Regular feedback sessions with stakeholders
allows continual validation of requirements

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Elicitation Deliverables
Reviewed and documented business
requirements
Documentation as approved by key
stakeholders
Project notes
Risks and issues documentation
Models and diagrams depicting the system
as-is and to-be
Other information pertaining to the project
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Requirements Analysis &


Specification
Simple terms are used to first describe
organisational requirements
Requirements analysis is the phase where
requirements are analysed, categorised and
refined for clarity, accuracy and completeness
Evaluating the requirements collected
Representing the requirements in different
forms to support analysis and decision makings
Setting priorities for the project
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Requirements Analysis
Activities

Organising and prioritising requirements


Requirements specification and modelling requirements
Determining assumptions and constraints
Verifying and validating requirements with stakeholders

Determine function and performance


Context
Stakeholder constraints
Effectiveness measures
Validation criteria

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Requirements Analysis
Techniques
Are many and varied refer to Hass text
(Kindle locations 1180 1190)
As a rule of thumb use those that encourage
collaboration and innovation.

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Requirements Specification
Activities
Production of detailed requirements derived
from information elicited from stakeholders
Production of models, graphs, statements
Productions of complete attribute set of
characteristics for each requirements
Refer Hass text (Kindle location 1211)
Identifying all precise attributes for each
requirements
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Requirements Specification
Techniques
Attributes are used to structure, group,
explain, select and validate requirements
Attributes enable the association of
information with individual or groups of
requirements
Enables filtering and sorting in the
requirements analysis phase
Refer to Hass text for a list of typical attributes
attached to requirements. These may be user
or system defined (Kindle locations 1235
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1253)

Requirements Analysis &


Specification Deliverables
Requirements must demonstrate the
business value to be delivered
Each must be traced back to business
objectives as stated in the business case
Must be structured to enable requirements
to be traced through to design, construction
and solution implementation

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Requirements
Documentation
Documentation should be in clear, concise and
natural language
Overly technical language should be avoided as
requirements will be used by all project stakeholders
Technical language to describe requirements such as
security, government regulations or other standard
may be expressed in formal technical language but
MUST be able to be traced back to business objectives

Refer to Hass text for a list of the characteristics of


good requirements (Kindle locations 1265- 1283)
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Requirements Validation
Techniques
Prototyping: provides a visual model of the solution
Test-driven requirements: can assist in defining
requirements difficult to define as by defining the testing
procedure the test will verify the requirement
Business scenarios: scenarios based on actual usage
Acceptance criteria: develop the criteria, performance
metrics and business benefits tests that the requirement
is complete
Structured walkthroughs: validates that the requirements
are clear, accurate, complete and accurate
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Requirements Management
Once requirements are defined to a stage when
defining and designing the solution can commence
ALL changes are noted
Involves tracking and coordinating requirements
allocation, status and any changes
Requires requirements validation before each
change to ensure business objectives are still being
met
Management techniques depend on the complexity
of the project
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Managing Changes to
Requirements (1)
Low to moderate complexity
Refer to Hass Figure 2.3 (Kindle location 1359)
Waterfall model effective for managing requirements for
low to moderate projects
Assumes events during the project are predicable, skilled
team members and once the phase is complete there will
be no need to return to it
This approach focusses on the importance of accurate
requirements

Unfortunately, projects rarely follow a sequential


pattern, and rarely are requirements not revisited
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Managing Changes to
Requirements (2)
Highly complex projects and programs
Less predictable than low to moderate complexity projects
Risk management plan developed with options for various
high-risk scenarios
Functions are prioritised depending on business value
Highest value components should be delivered first
Requires a change management system that is flexible
Focuses on the current component being delivered
Tools used for the category of project/program are
sophisticated , not the basic spreadsheets or tables

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Managing Changes to
Requirements (3)
Mega projects
Hard to predict due to changing compliance,
government regulations, environmental,
political issues

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Transitional Requirements
Change needs to be planned when delivering new products or
business solutions
BA tasks undertaken at this phase include:
Readiness assessment: evaluating organisational readiness for
change
Skills assessment: identifying any gaps in the skill set of
employees and organising training to reduce those gaps
Organisational assessment: does the current organisational
structure meet the new business objectives and solutions?
Communication assessment: develop a communication plan to
support the organisational; initiatives
Management support assessment: determine the support
management has for the project
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Maintaining and Enhancing the


Solution
BA contribution does not end when the
solution has been delivered and is
operational
BA responsible for tracking and reporting
actual business costs and benefits derived
from the solution
BA provides ongoing services to identify,
prevent and correct errors that may arise
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Activities
Refer to COIT20238_Wk02_Activites_T3_2014
document on the course website.

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Next Week
Creative Leadership
Hass chapters 4 and 5

Week 3: Portfolio due Week 4 Friday 1pm

Marilyn Wells T1 2013 Simon Crawford T3 2014