Enterprise Analysis Module 5 - CBAP(r) is a registered certification mark owned by International Institute of Business Analysis. Topics to be covered are: Business Needs company capabilities analysis Solution Scope Risk analysis Economic Feasibility analysis Future Value Present Value defining the business Case.
Enterprise Analysis Module 5 - CBAP(r) is a registered certification mark owned by International Institute of Business Analysis. Topics to be covered are: Business Needs company capabilities analysis Solution Scope Risk analysis Economic Feasibility analysis Future Value Present Value defining the business Case.
Enterprise Analysis Module 5 - CBAP(r) is a registered certification mark owned by International Institute of Business Analysis. Topics to be covered are: Business Needs company capabilities analysis Solution Scope Risk analysis Economic Feasibility analysis Future Value Present Value defining the business Case.
Enterprise Analysis Module 5 - CBAP(r) is a registered certification mark owned by International Institute of Business Analysis. Topics to be covered are: Business Needs company capabilities analysis Solution Scope Risk analysis Economic Feasibility analysis Future Value Present Value defining the business Case.
CBAP is a registered certification mark owned by International Institute of Business Analysis.
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Enterprise Analysis
Agenda Topics to be covered are: Business Needs Company Capabilities Analysis Solution Scope Risk Analysis SWOT Analysis Economic Feasibility Analysis Future Value Present Value Determining Solutions Approach Defining the Business Case
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Enterprise Analysis
Business Needs What is a business need? A business need is a perceived weakness or improvement the client sees as vital to achieving the clients goals and objectives.
Business goals and objectives
A business goal is the benefit from achieving a specific objective.
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Enterprise Analysis
Business Needs (contd.)
Smart It is an acronym used to define the parameters of a solution. Techniques for defining the business need. Elicitation of consensus from SMEs and domain
stakeholders. Stakeholders There are many types of stakeholders and the stakeholder
analysis helps to identify roles and responsibilities.
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Enterprise Analysis
Company Capabilities Analysis
Current capabilities analysis Does the company have the human and material assets to meet the need requirements? Capabilities gap analysis The technique used to determine company capabilities Requirements management Whenever requirements are changed, they need to be updated in the requirements list and requirements package, for validation by stakeholders. SWOT analysis The primary tool for analyzing an existing or proposed scenario, or solution.
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Enterprise Analysis
Company Capabilities Analysis Diagram
Business need Requirements list Solution assessment Enterprise architecture
Company capability (GAP)
analysis
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Determine solution approach
Define solution scope Prioritize requirements Verify requirements Requirements management and communication
Enterprise Analysis
Solution Scope Pre-elicitation solution scope The starting point for building the solution scope.
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Enterprise Analysis
Solution Scope (contd.)
Assumptions and constraints Validation of assumptions and constraints is a priority before building solutions and requirements. Techniques for determining the solution approach Objective measurements are not always the best way to define a solution approach.
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Enterprise Analysis
Risk Analysis Risk tolerance The best solution may carry excessive risk for the company. Risk assessment techniques There are many ways to assess risk but stakeholder and SME input is essential to understand the subtleties of risk and risk tolerance of the sponsor.
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Enterprise Analysis
Fishbone Diagram for Risk Analysis
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Enterprise Analysis
SWOT Analysis
Advantages SWOT is a very popular analysis tool. Disadvantages There are some disadvantages of the SWOT technique. Strengths What are the companys competitive advantages? Weaknesses What are the areas of greatest concern? Opportunities What needs to be done to take advantage of the opportunities? Threats What are the greatest threats for the companys survival?
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Enterprise Analysis
Solution Scope Approach
Constantly morphing As the analysis process progresses, the need-requirementsolution chain can change. Focus on methodology A disciplined approach to how changes to the solution scope must be followed. Stakeholder impact There are different levels of impact that solutions have on stakeholders. Solutions must be clearly defined and validated Clear consistent communications about solution design and implementation are important for success.
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Enterprise Analysis
Solution Scope Approach Diagram
Business need Organizational process assets (OPAs) Required capabilities
What will todays investment be worth in the future? FV = PV * (1+i)
$250,000* (1+.06) $297,754
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Enterprise Analysis
Economic Feasibility Analysis Present Value
Estimated present value of an estimated future value of a
solution investment What amount of investment today will be needed to yield
a future amount? PV=FV/(1+i) PV=$500,000/ (1+.06)
PV=$407,755
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Enterprise Analysis
Return on Investment (ROI)
Return on investment What will be the annual percentage return on the investment? Return-Investment/Investment x100
$92,245/$407,755= 22.6%/3yrs= 7.5% average per year
ROI.
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Enterprise Analysis
Investment Breakeven
Investment breakeven (payback)
Given a certain annual rate of return, how long will it take to payback the total investment amount?
$92,245 return in 3 years (excluding the 6 months for installation)
$92.245/ 3 years= $30,748 return per year. $407,755 investment/$30,748= 14 years to payback the investment.
No real financial benefits for 14 years. Moreover, there is the
opportunity costs of not using the investment funds for other higher yielding investments.
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Enterprise Analysis
Business Case The business case provides the justification for the project. The narrative needs to cover the following points: Identify assumptions Are the assumptions credible and developed through consensus? Define measurable evaluation criteria What are the benchmarks for success? Business value What are the net benefits of solution for the company? Benefit dependencies What are the risks and other variables that can affect the desired outcome? Compare the business case to the opportunity costs What might be a better use of resources other than the project?
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Enterprise Analysis
Summary In this module we learned: A business need is a perceived weakness or improvement, the client sees as vital for achieving the clients goals and objectives. Company capabilities analysis is the technique used to determine company capabilities. The solution scope is a documented and detailed strategy of how the solutions to the needs will be designed, measured, and implemented. Risk analysis is made up of validating the assumptions and constraints on the solution scope as well as the consensus risks from stakeholders and SMEs. SWOT analysis is one of the most versatile and useful tools in helping to define risks and problems. Economic feasibility analysis is done to ensure the cost-benefits, the ROI, and the promised deliverables are within the project constraints. Then the solution approach is determined. The business case provides the justification for the project. Simplilearn Solutions
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Enterprise Analysis
Quiz 1
In what ways are costs important during defining business case?
a) Estimates are needed to be made of capital expenditures for the new investment b) Estimates are needed to be made of costs of developing and implementing the change. c) Estimates are needed to be made of the opportunity costs of not investing in other options d) Estimates are needed to be made of costs of non-financial nature
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Enterprise Analysis
Quiz 1 In what ways are costs important during defining business case? a) Estimates are needed to be made of capital expenditures for the new investment b) Estimates are needed to be made of costs of developing and implementing the change. c) Estimates are needed to be made of the opportunity costs of not investing in other options d) Estimates are needed to be made of costs of non-financial nature Answer: d. Estimates are needed to be made of costs of non-financial nature. Explanation: This one is an element of assessing the benefits during business case creation. it is important to ensure that non-financial costs (including opportunity cost) and benefits during business case creation.
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Enterprise Analysis
Quiz 2
Which of the following terms is defined as set of changes to the current
state of an organization that are made in order to enable that organization to meet a business need, solve a problem, or take
advantage of an opportunity? a) Solution b) Domain c) Requirement d) Project
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Enterprise Analysis
Quiz 2
Which of the following terms is defined as set of changes to the current
state of an organization that are made in order to enable that organization to meet a business need, solve a problem, or take
advantage of an opportunity? a) Solution b) Domain c) Requirement d) Project Answer: a. Solution. Explanation: BABOK definition of solution.
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Enterprise Analysis
Quiz 3 Who among the following is likely to be responsible or participate during preparing of the business architecture, feasibility studies, and business cases? a) Security administrator b) Business Analyst c) Project leader d) Developer
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Enterprise Analysis
Quiz 3 Who among the following is likely to be responsible or participate during preparing of the business architecture, feasibility studies, and business cases? a) Security administrator b) Business Analyst c) Project leader d) Developer Answer: b. Business Analyst. Explanation: The business analyst is responsible for or likely to participate actively during preparing the business architecture, feasibility studies, and the business case.
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Enterprise Analysis
Quiz 4
Which one of the following diagrams visualizes the result of the root cause analysis study? a)
State diagrams
b) Tornado diagrams c)
Cause and effect diagrams
d) Activity diagrams
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Enterprise Analysis
Quiz 4 Which one of the following diagrams visualizes the result of the root cause analysis study? a) State diagrams b) Tornado diagrams c) Cause and effect diagrams d) Activity diagrams
Answer: c. Cause and effect diagrams.
Explanation: Developing diagrams help to visualize and communicate the cause and effect of solution and its results.
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Enterprise Analysis
Quiz 5
Which of the following can be used in the root cause analysis?
a)
Gantt chart
b) Pareto chart
c)
Fishbone diagram
d) Data-flow diagram
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Enterprise Analysis
Quiz 5 Which of the following can be used in the root cause analysis? a) Gantt chart b) Pareto chart c) Fishbone diagram d) Data-flow diagram
Answer: c. Fishbone diagram.
Explanation: The diagram is used to trace all possible factors related to a problem or risk. It is used as a brainstorming tool as well as part of the Risk analysis.
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Enterprise Analysis
Quiz 6 What is meant by a quantifiable level of an indicator that an organization uses to measure progress? a) Goal b) Evaluation criteria c) Indicator d) Metric
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Enterprise Analysis
Quiz 6 What is meant by a quantifiable level of an indicator that an organization uses to measure progress? a) Goal b) Evaluation criteria c) Indicator d) Metric
Answer: d. Metric. Explanation: Metric is a quantifiable level of an indicator that an organization uses to measure progress.
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Enterprise Analysis
Quiz 7
Which of the following is the process of defining and analyzing the
dangers to individuals, businesses, and government agencies posed by potential natural and human-caused adverse events?
a)
Risk management
b) Risk elicitation c)
Risk analysis
d) Risk communication
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Enterprise Analysis
Quiz 7 Which of the following is the process of defining and analyzing the dangers to individuals, businesses, and government agencies posed by potential natural and human-caused adverse events? a) Risk management b) Risk elicitation c) Risk analysis d) Risk communication
Answer: c. Risk analysis.
Explanation: The risk analysis process uses brainstorming, statistical analysis, and other tools in an attempt to define the most probable risks and related action plans.
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Enterprise Analysis
Quiz 8
Which of the following techniques is used to validate whether the solution
meets original business needs and objectives of the customer? a) Technology assessment b) Verification process c) Root cause analysis d) Acceptance and Evaluation criteria definition
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Enterprise Analysis
Quiz 8 Which of the following techniques is used to validate whether the solution meets original business needs and objectives of the customer? a) Technology assessment b) Verification process c) Root cause analysis d) Acceptance and Evaluation criteria definition Answer: d. Acceptance and Evaluation criteria definition. Explanation: Acceptance and evaluation criteria is used to validate whether the solution meets business needs or not.
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Enterprise Analysis
Quiz 9
Which of the following compares two or more systems, states, services,
products, or things to determine the best viable choice?
a)
Risk identification
b) Cost-benefit analysis c)
Risk analysis
d) Benchmarking
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Enterprise Analysis
Quiz 9 Which of the following compares two or more systems, states, services, products, or things to determine the best viable choice? a) Risk identification b) Cost-benefit analysis c) Risk analysis d) Benchmarking
Answer: d. Benchmarking. Explanation: Benchmarking establishes a measureable state, and compares the like variables over time to see how exogenous events affect the comparative benchmarking.
