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Enterprise Business Analysis

Capability - Strategic Asset


for Business Alignment and
Driving Innovation

Alan McSweeney
http://ie.linkedin.com/in/alanmcsweeney

Enterprise Business Analysis

Introducing the concept of Enterprise Business Analysis as


a strategic resource to achieve business and IT alignment

May 11, 2015

Business Solution Delivery In Context


Business
Processes
And
Analysis

Business
Strategy

Business
Objectives

Business
Operational
Model

Required
Operational
Business
Systems

Business IT
Strategy

Enterprise
Architecture

IT Function
Strategy

Business
Systems
Design/
Selection

Solution
Implementation
and
Delivery

Solution
Portfolio

Management
And
Operations

IT/Support
Systems
Design/
Selection
Solution
Portfolio

IT Function
Structure
And
Processes

Required
Infrastructure
Business
Systems

Required
Operational
Processes
May 11, 2015

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

Business IT Requirements And IT Alignment


Business Needs
Market Changes
Competitive Pressures
Business
Strategy

Business
Objectives

Business
Operational
Model

New Products/ Services


Regulatory Changes
Customer Requirements
Organisational Changes

Business
Processes
And
Analysis

Required
Operational
Business
Systems

Business Solution Design


And Delivery

Business IT
Strategy

Enterprise
Architecture

Business
Systems
Design/
Selection

Solution
Portfolio

Solution
Implementation
and
Delivery

Management
And
Operations

IT Function Underlying
Solution Delivery And
Operation Enablement
Structure

IT Function
Strategy

IT/Support
Systems
Design/
Selection

Solution
Portfolio

IT Function
Structure
And
Processes

Required
Infrastructure
Business
Systems

Required
Operational
Processes
May 11, 2015

Business IT Requirements And IT Alignment


Business Needs
Market Changes
Competitive Pressures

Business Solution Design


And Delivery

Alignment
New Products/ Services
Regulatory Changes
Customer Requirements
Organisational Changes

May 11, 2015

IT Function Underlying
Solution Delivery And
Operation Enablement
Structure

Business Solution Delivery In Context


Business
Processes
And
Analysis

Business
Strategy

Business
Objectives

Business
Operational
Model

Business IT
Strategy

Alignment Means Being


Able To Draw A Straight Line
From Business Strategy
Through To Delivered And
Operational Solutions
Implemented To Respond To
Business Needs
May 11, 2015

Required
Operational
Business
Systems

Enterprise
Architecture

IT Function
Strategy

Business
Systems
Design/
Selection

Solution
Implementation
and
Delivery

Solution
Portfolio

Management
And
Operations

IT/Support
Systems
Design/
Selection
Solution
Portfolio

IT Function
Structure
And
Processes

Required
Infrastructure
Business
Systems

Required
Operational
Processes
7

Dimensions Of Changes
Market
Changes
Customer New
Requirements
Products/
Services
New
Products/
Competitive
Regulatory Pressures Services
Changes

Market
Changes

Customer
Business Requirements
Needs
Organisational
Changes

Market
Changes Regulatory
Changes
Business
Needs Organisational
Changes

New
Products/
Services

Customer
Requirements

Regulatory
Changes
Organisational
Changes

Competitive
Pressures

Pace And Impact of


Business Changes
Increasing
May 11, 2015

Competitive
Pressures Business
Needs

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

Business Analysis And Business Operating


Environment
Merger/
Acquisition/
Divestment

Customer
Requirements

Regulatory
Changes

Changes In
Products/
Services

Business
Strategy

Changes in
Organisation

Business
Objectives

Changes In IT
Solutions To
Enable Business
Change

Process Changes

Market
Changes
May 11, 2015

New
Products/
Services

Competitive
Pressure
10

Business Analysis Across Business Operating


Environment
Enterprise
Business
Analysis

Functional
Business
Analysis

IT Business
Analysis

Business And IT Alignment


Business
Strategy
Business
Objectives

Changes In
Products/
Services
Changes in
Organisation

Changes In IT
Solutions To
Enable Business
Change

Process Changes

May 11, 2015

11

Levels Of Business Analysis And Business Analyst


Enterprise Business Analyst
Assist with translation of
business strategy to business
objectives

Functional Business Analyst


Understand business objectives
and solution functional
requirements

IT Business Analyst
Gather and analyse business
requirements
Map and document the business
processes

Assist with the creation of


solution functional specifications

May 11, 2015

Analyse, define and optimise


business processes

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
Understand products and
organisation structure
services provided and associated
processes and solution
Assist with the optimisation of
the solution portfolio

Participate in optimisation of
organisation structure of
business function
12

Business Analysis Across Business Operating


Environment
Enterprise
Business
Analysis

Business
Strategy
Business
Objectives

Functional
Business
Analysis

Changes In
Products/
Services
Changes in
Organisation

IT Business
Analysis

Changes In IT
Solutions To
Enable Business
Change

Process Changes

Strategic
May 11, 2015

Tactical
13

Effective Business Analysis Prevents Discontinuity


And Fragmentation

Local Fragmentation and


Discontinuity

Organisation Wide Fragmentation and Discontinuity


May 11, 2015

14

Levels Of Business Analysis And Business Analyst


Enterprise Business Analyst

Functional Business Analyst

IT Business Analyst

May 11, 2015

Greater
Business
Analysis
Capability
Delivers
Greater
Effectiveness
15

Preventing The Bumpy And Uncomfortable Journey From


Business Strategy To Execution And IT Solution Delivery

Business
Strategy

Business
Objectives

Changes In
Products/
Services
Changes in
Organisation

Changes In IT
Solutions To
Enable Business
Change

Process Changes
May 11, 2015

16

What IT All Too Frequently Delivers


Business Needs
Market Changes
New Products/ Services

Regulatory Changes

The IT Funnel of
Fragmentation
and
Discontinuity

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

Customer Requirements

Siloed applications with lack of


integration

Organisational Changes

Poor return on investment

Competitive Pressures
May 11, 2015

Too little, too late, not


what was wanted or
needed

17

Integrated Approach To Business Analysis Optimises


Delivery, Removes Friction And Creates Effective Linkages

From

To

May 11, 2015

18

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

Preventing The Balkanisation Of IT Solution


Landscape
Business
Processes
And
Analysis

Required
Operational
Business
Systems

If This Is Not In
Place

Business
Strategy

Business
Objectives

Business
Operational
Model

Business IT
Strategy

Then The
Business Functions
Will Look To Bypass
The IT Function
External
Suppliers

Enterprise
Architecture

IT Function
Strategy

Business
Systems
Design/
Selection

Solution
Implementation
and
Delivery

Solution
Portfolio

Management
And
Operations

IT/Support
Systems
Design/
Selection
Solution
Portfolio

IT Function
Structure
And
Processes

External
Suppliers

Required
Infrastructure
Business
Systems

External
Suppliers
External
Suppliers

May 11, 2015

Required
Operational
Processes
20

Preventing The Balkanisation Of IT Solution


Landscape
Business
Processes
And
Analysis

Business
Strategy

Business
Objectives

Business
Operational
Model

Business IT
Strategy

Leading To A
Disconnected And
Disintegrated
Solution Portfolio
External
Suppliers

Required
Operational
Business
Systems

Enterprise
Architecture

IT Function
Strategy

Business
Systems
Design/
Selection

Solution
Implementation
and
Delivery

Solution
Portfolio

Management
And
Operations

IT/Support
Systems
Design/
Selection
Solution
Portfolio

IT Function
Structure
And
Processes

External
Suppliers

Required
Infrastructure
Business
Systems

External
Suppliers
External
Suppliers

May 11, 2015

Required
Operational
Processes
21

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

Business Analysis Across Business Operating


Environment
Organisation-Wide
Analysis Capability
With Consistent,
Repeatable
Processes
Enterprise Business
Analysis
Business
Strategy

Business
Objectives

Collaboration And
Sharing Across
Organisation
Functions
Functional
Business Analysis
Changes In
Products/
Services
Changes in
Organisation

Siloed Business
Analysis

IT Business Analysis

Changes In IT
Solutions To
Enable Business
Change

Process Changes
May 11, 2015

23

Business xNovation
Innovation

Business
Strategy
Business
Objectives

Changes In
Products/
Services
Changes in
Organisation

Changes In IT
Solutions To
Enable Business
Change

Process Changes

Renovation
May 11, 2015

24

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

Business And IT Alignment Runs Both Ways


Business
Processes
And
Analysis

Business
Strategy

Business
Objectives

Required
Operational
Business
Systems

Business
Systems
Design/
Selection

Business and IT alignment


means managing expectations
between both parties
Business
Operational
Model

Business IT
Strategy

Enterprise
Architecture

IT Function
Strategy

Solution
Implementation
and
Delivery

Solution
Portfolio

Management
And
Operations

IT/Support
Systems
Design/
Selection
Solution
Portfolio

IT Function
Structure
And
Processes

Required
Infrastructure
Business
Systems

Required
Operational
Processes
May 11, 2015

26

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

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

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

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

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

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

Solution May Not Just A Single Application

End To End View Of Solution


External
Manual
Interaction

Extended Application(s)
External
Component

Core
Application
System
Component

External
Manual
Interaction

External
Component

System
Component

System
Component

External
Manual
Interaction
May 11, 2015

External
Component

External
Manual
Interaction
33

Solution May Not Just A Single Application


External
Manual
Interaction

Limited View All


Too Often
Taken
Extended
Application(s)
External
Component

Core
Application
System
Component

External
Manual
Interaction

External
Component

System
Component

System
Component

External
Manual
Interaction
May 11, 2015

External
Component

External
Manual
Interaction
34

Solution May Not Just A Single Application


External
Manual
Interaction

Manual
Process

Extended Application(s)
Core
External
External
Component
Component
Application
System
Component

Manual
Process

External
Manual
Interaction
May 11, 2015

Automated
Process

External
Manual
Interaction

Manual
Process

System
Component

System
Component

External
Component

Automated
Process

Manual
Process

External
Manual
Interaction
35

Hierarchy Of Requirements From Enterprise To


Solution
Solutions delivered by
programmes and projects
cascade from business vision
to ultimate operation and
service delivery

Business Vision and


Goals

Business Strategy

Business Objectives
and Plan

Programmes for
Strategic Objectives

Solutions delivered by
programmes and projects
need to be aligned to the
overarching business vision
and goal

May 11, 2015

Solutions

Operation of
Solutions
36

Solution Delivery Boundaries


Enterprise Architecture Defines the
Solution Technical Boundary
Technical

Business

Enterprise
Business
Analysis
Defines the
Solution

Solution

Data

Functional

May 11, 2015

Implementation

Management
and Operation

37

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

Extended Dimensions Of Overall Solution


Solution
Operational
Characteristics

Solution
Core
Application
Functionality

May 11, 2015

39

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

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

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

Enterprise Business Analysis Capability Key


Elements
Governance and Management
Management commitment, funding and support
Measurement and reporting

Demand and resource management

Approach

Framework

Teamwork

Information
Management

Tools and
Techniques

Consistent and
repeatable
approach to
business analysis

End-to-end
business
definitions

Collaboration
across and
between teams

Complete set of
templates,
artefacts, tools

Cross-functional
process view

Management
commitment

Information
sharing and
collaboration
tools

Business process
inventory

Mentoring and
training

Quick and
predictable
results

Top-down
approach

Information
management
processes

Consistent
implementation
and use

Forum
Quality assurance
and control

May 11, 2015

43

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

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-toend view of solution delivery maximising success and
return on investment
May 11, 2015

45

More Information
Alan McSweeney
http://ie.linkedin.com/in/alanmcsweeney

May 11, 2015

46

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