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3. Why are business skills important in the Analysis phase?

The goal of requirements analysis is to identify the necessary features and functions of the To-Be system. Business skills are important in focusing on what the new system needs to be capable of doing for the business users, regardless of the technology that will be used in the system implementation. Technology itself cannot make the business successful; it must be used to address real business needs.

5. Compare and contrast the business goals of BPA, BPI, and BPR.

These three business goals vary in the degree to which the basic business processes in the As-Is system are altered. With "Business Process Automation" the As-Is business processes are not substantially modified; computers are used to take over some of the tasks without significantly changing the way things are done. "Business Process Improvement" involves some evaluation and modification of the basic business processes, with a goal of making moderate changes to those processes within the new system design. "Business Process Reengineering" involves major revisions to the basic business processes, potentially making complete changes to the way the work is performed in the business area.

9. Compare and contrast root cause analysis, breaking assumptions, and outcome analysis.

The "Root Cause Analysis' technique is a part of the Business Process Automation strategy, while "Breaking Assumptions" and "Outcome Analysis" are Business Process Reengineering techniques. Root Cause Analysis is most likely to be applied when automating a system, while Breaking Assumptions and Outcome Analysis is used when reengineering a system (i.e., small to moderate change in business processes versus radical change in business processes). Root Cause Analysis seeks to define the new system requirements by identifying solutions to the true underlying problems found in the current business processes. Root Cause Analysis is generally an internally-oriented technique. Outcome Analysis, on the other hand, evaluates the fundamental value of the business process from the perspective of the customers of that process. Breaking Assumptions involves identifying the fundamental business rules that are assumed to apply to the business area under study. Each rule is then broken and the team identifies how the business would benefit from the change. The team may identify radical new ways to redesign the business in this way. Outcome Analysis seeks to define the customer's view of the real goal of the business function, and is an externally-oriented technique. Outcome Analysis may help give the analysts a fresh perspective on how the business operates.

11. Under what conditions would formal benchmarking be important?

Benchmarking is an analysis strategy that uses ideas learned from other businesses and industries to form the basis of the new system requirements. Formal benchmarking would be useful when external ideas and reference points would be valuable to a business, but informal or proxy benchmarks are unavailable or inappropriate.

13. What are the key factors in selecting an appropriate analysis strategy?

One factor is the potential value to the business. BPA and BPI both will add low to moderate value to the business because they strive to make incremental changes to the as-is system. BPS, on the other had, has the potential to add significant value to the business because it will make sweeping changes to the business's processes.

The strategies also differ in terms of cost. BPR will probably have significant costs associated with it, while costs of BPA and BPI will be much more modest.

The breadth of the analysis will also vary between the strategies. BPR

will tackle a much broader piece of the organization, while BPA and BPI are more narrow in scope.

Finally, risk as a factor that distinguishes the strategies. BPR, because it attempts more broad, significant changes, is far more risky than the narrower, more limited BPA or BPI strategies.

To select an appropriate strategy, the project sponsor needs to evaluate his/her goals for the project. If the problems being experiences suggest that radical redesign of business processes is necessary and the organization has the funding and can tolerate the risk, then a BPR project may be called for. If more moderate changes are required, or funding is limited, or high risks cannot be tolerated, then BPI is recommended. When only minor changes are needed because the existing business processes are acceptable, then BPA is the strategy of choice