INTRODUCTION TO IIBA AND

BABOK
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 Business Analysis


 Business Analysis is the set of tasks, knowledge and techniques required to identify
business needs and determine solutions to business problems.

 Solutions often include a systems development component, but may also consist of
process improvement or organizational change.

International Institute of Business Analysis –Body of Knowledge (BABOK)

 Business analysis is the set of tasks and techniques used to work as a liaison among
stakeholders in order to understand the structure, policies, and operations of an
organization, and to recommend solutions that enable the organization to achieve
its goals.

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 Business Analysis

 Business analysis involves understanding how organizations function to

accomplish their purposes, and defining the capabilities an organization
requires to provide products and services to external stakeholders. It includes the
definition of organizational goals, how those goals connect to specific objectives,
determining the courses of action that an organization has to undertake to achieve
those goals and objectives, and defining how the various organizational units and
stakeholders within and outside of that organization interact.

 Business analysis may be performed to understand the current state of an

organization or to serve as a basis for the later identification of business needs. In
most cases, however, business analysis is performed to define and validate solutions
that meet business needs, goals, or objectives.

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 Solution


 A solution is a 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. The scope of the solution is usually narrower
than the scope of the domain within which it is implemented, and will serve as the
basis for the scope of a project to implement that solution or its components.

 Most solutions are a system of interacting solution components, each of which are
potentially solutions in their own right. Examples of solutions and solution
components include software applications, web services, business processes, the
business rules that govern that process, an information technology application, a
revised organizational structure, outsourcing, in sourcing, redefining job roles, or
any other method of creating a capability needed by an organization.

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 Solution

 Business analysis helps organizations define the optimal solution for their needs,
given the set of constraints (including time, budget, regulations, and others) under
which that organization operates.

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 Domain

 A domain is the area undergoing analysis. It may correspond to the boundaries of

an organization or organizational unit, as well as key stakeholders outside those
boundaries and interactions with those stakeholders.
 Business analyst are going to working on different Domains of projects.
 Banking/Finance domain
 Insurance domain
 Telecom domain
 Health care domain
 HRM domain
 It domain/ERP

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 What is the Business Analysis Body of Knowledge?

 A Guide to the Business Analysis Body of Knowledge® (BABOK® Guide) is a globally
recognized standard for the practice of business analysis. The BABOK® Guide
describes business analysis areas of knowledge, their associated activities and tasks,
and the skills necessary to be effective in their execution.

 The primary purpose of the BABOK® Guide is to define the profession of business
analysis. It serves as a baseline that practitioners can agree upon in order to discuss
the work they do and to ensure that they have the skills they need to effectively
perform the role, and defines the skills and knowledge that people who work with
and employ business analysts should expect a skilled practitioner to demonstrate. It
is a framework that describes the business analysis tasks that must be performed in
order to understand how a solution will deliver value to the sponsoring
organization. The form those tasks take, the order they are performed in, the

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 What is the Business Analysis Body of Knowledge?

relative importance of the tasks, and other things may vary, but each task
contributes in some fashion, directly or indirectly, to that overall goal.

 This chapter provides an introduction to key concepts in the field of business

analysis and describes the structure of the remainder of the BABOK® Guide.
Chapters 2 through 7 define the tasks that a business analyst must be capable of
performing. Chapter 8 describes the competencies that support the effective
performance of business analysis, and Chapter 9 describes a number of generally
accepted techniques that support the practice of business analysis.

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 Business Analysis Body of Knowledge

 The BABOK is the collection of knowledge within the profession of Business

Analysis and reflects generally accepted practice

 Describes business analysis areas of knowledge, their associated activities and tasks
and the skills necessary to be effective in their execution

 Provides the basis for the CBAP certification

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 Business Analysis Body of Knowledge

 Business analysts must analyze and synthesize information provided by a large

number of people who interact with the business, such as customers, staff, IT
professionals, and executives. The business analyst is responsible for eliciting the
actual needs of stakeholders, not simply their expressed desires. In many cases, the
business analyst will also work to facilitate communication between organizational
units. In particular, business analysts often play a central role in aligning the needs
of business units with the capabilities delivered by information technology, and
may serve as a “translator” between those groups.

 A business analyst is any person who performs business analysis activities, no

matter what their job title or organizational role may be. Business analysis
practitioners include not only people with the job title of business analyst, but may
also include business systems analysts, systems analysts, requirements engineers,
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 Business Analysis Body of Knowledge
process analysts, product managers, product owners, enterprise analysts, business
architects, management consultants, or any other person who performs the tasks
described in the BABOK® Guide, including those who also perform related
disciplines such as project management, software development, quality assurance,
and interaction design.

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 Requirements

 A condition or capability needed by a stakeholder to solve a problem or achieve an
1. Objective. A condition or capability that must be met or possessed by a
solution or solution
2. Component to satisfy a contract, standard, specification, or other formally
imposed documents.

 As implied by this definition, a requirement may be unstated, implied by or derived

from other requirements, or directly stated and managed. One of the key objectives
of business analysis is to ensure that requirements are visible to and understood by
all stakeholders.

 The term “requirement” is one that generates a lot of discussion within the business
analysis community. Many of these debates focus on what should or should not be
considered a requirement, and what are the necessary characteristics of a
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 Requirements
requirement. When reading the BABOK® Guide, however, it is vital that
“requirement” be understood in the broadest possible sense. Requirements include,
but are not limited to, past, present, and future conditions or capabilities in an
enterprise and descriptions of organizational structures, roles, processes, policies,
rules, and information systems. A requirement may describe the current or the
future state of any aspect of the enterprise.

 Much of the existing literature on business analysis is written with the assumption
that requirements only describe an information technology system that is being
considered for implementation. Other definitions may include future state business
functions as well, or restrict the meaning of the term to define the ends
stakeholders are seeking to achieve and not the means by which those ends are
achieved. While all of these different uses of the term are reasonable and

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 Requirements
defensible, and the BABOK® Guide’s usage of the term includes those meanings,
they are significantly narrower than the way the term is used here.

 Similarly, we do not assume that requirements are analyzed at any particular level
of detail, other than to say that they should be assessed to whatever level of depth is
necessary for understanding and action. In the context of a Business Process
Management initiative, the requirements may be a description of the business
processes currently in use in an organization. On other projects, the business
analyst may choose to develop requirements to describe the current state of the
enterprise (which is in itself a solution to existing or past business needs) before
investigating changes to that solution needed to meet changing business
conditions.

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 Requirements Classification
For the purposes of the BABOK® Guide, the following classification scheme is used to
describe requirements:

 Business Requirements▶▶are higher-level statements of the goals, objectives, or

needs of the enterprise. They describe the reasons why a project has been initiated,
the objectives that the project will achieve, and the metrics that will be used to
measure its success. Business requirements describe needs of the organization as a
whole, and not groups or stakeholders within it. They are developed and defined
through enterprise analysis.
 Stakeholder Requirements▶▶are statements of the needs of a particular stakeholder
or class of stakeholders. They describe the needs that a given stakeholder has and
how that stakeholder will interact with a solution. Stakeholder requirements serve
as a bridge between business requirements and the various classes of solution
requirements. They are developed and defined through requirements analysis
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 Requirements Classification
 Solution Requirements▶▶describe the characteristics of a solution that meet
business requirements and stakeholder requirements. They are developed and
defined through requirements analysis. They are frequently divided into sub-
categories, particularly when the requirements describe a software solution:

 Functional Requirements▷▷describe the behavior and information that the solution

will manage. They describe capabilities the system will be able to perform in terms
of behaviors or operations—specific information technology application actions or
responses.

 Non-functional Requirements▷▷capture conditions that do not directly relate to the

behavior or functionality of the solution, but rather describe environmental
conditions under which the solution must remain effective or qualities that the
systems must have. They are also known as quality or supplementary requirements.
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 Requirements Classification
These can include requirements related to capacity, speed, security, availability and
the information architecture and presentation of the user interface.

 Transition Requirements▶▶describe capabilities that the solution must have in

order to facilitate transition from the current state of the enterprise to a desired
future state, but that will not be needed once that transition is complete. They are
differentiated from other requirements types because they are always temporary in
nature and because they cannot be developed until both an existing and new
solution are defined. They typically cover data conversion from existing systems,
skill gaps that must be addressed, and other related changes to reach the desired
future state. They are developed and defined through solution assessment and
validation.

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 Enterprise Analysis
Enterprise Analysis describes how business analysts identify a business need, refine and
clarify the definition of that need, and define a solution scope that can feasibly be
implemented by the business. This knowledge area describes problem definition and
analysis, business case development, feasibility studies, and the definition of solution
scope.
o Define Business Need

o Assess Capability Gaps

o Determine Solution Approach

o Define Solution Scope

o Define Business Case

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 Enterprise Analysis

The Enterprise Analysis Knowledge Area describes the business analysis activities
necessary to identify a business need, problem, or opportunity, define the nature of a
solution that meets that need, and justify the investment necessary to deliver that
solution. Enterprise analysis outputs provide context to requirements analysis and to
solution identification for a given initiative or for long-term planning. Enterprise
analysis is often the starting point for initiating a new project and is continued as
changes occur and more information becomes available. It is through enterprise
analysis activities that business requirements are identified and documented.

It describes the business analysis activities that take place for organizations to:
 Analyze the business situation in order to fully understand business problems and
▶▶opportunities.

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 Enterprise Analysis
 Assess the capabilities of the enterprise in order to understand the change needed
to ▶▶meet business needs and achieve strategic goals.

 Determine the most feasible business solution approach.▶▶

 Define the solution scope and develop the business case for a proposed solution.▶▶

 Define and document business requirements (including the business need,

required ▶▶capabilities, solution scope, and business case).

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 Enterprise Analysis

1. Business Goals and Objectives.
 Business goals and objectives describe the ends that the organization is seeking to
achieve. Goals and objectives can relate to changes that the organization wants to
accomplish, or current conditions that it wants to maintain.

 Goals are longer-term, ongoing, and qualitative statements of a state or condition

that the organization is seeking to establish and maintain. High-level goals can be
decomposed to break down the general strategy into distinct focus areas that may
lead to desired results, such as increased customer satisfaction, operational
excellence and/or business growth. Focus areas are usually described in brief
statements. For example, a goal may be to “increase high-revenue customers” and
then further refined into a goal to “increase high-revenue customers through
mergers and acquisitions”.

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 Enterprise Analysis
 As goals are analyzed they are converted into more descriptive, granular and
specific objectives, and linked to measures that make it possible to objectively
assess if the objective has been achieved. A common test for assessing objectives is
to ensure that they are SMART:

 S▶▶pecific–describing something that has an observable outcome

 M▶▶easurable–tracking and measuring the outcome
 A▶▶chievable–testing the feasibility of the effort
 R▶▶elevant–in alignment with the organization’s key vision, mission,
goals
 T▶▶ime-bounded –the objective has a defined timeframe that is
consistent with the business need

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 Customer

 A customer is a stakeholder outside the boundary of a given organization or

organizational unit. Customers make use of products or services produced by the
organization and may have contractual or moral rights that the organization is
obliged to meet.

Domain Subject Matter Expert (SME)

 A domain subject matter expert is any individual with in-depth knowledge of a

topic relevant to the business need or solution scope. This role is often filled by
people who will also be end users or people who will be indirect users of the
solution, such as managers, process owners, legal staff (who may act as proxies for
Regulators), consultants, and others.

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 Customer
End User

 End users are stakeholders who will directly interact with the solution. The term is
most frequently used in a software development context, where end users are those
who will actually use the software application that is being developed, but in the
broader context of a solution they can include all participants in a business
process.

Implementation Subject Matter Expert (SME)

 Implementation subject matter experts are responsible for designing and

implementing potential solutions. The implementation subject matter experts will
provide specialist expertise on the design and construction of the solution

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 Customer
components that fall outside the scope of business analysis. While it is not possible
to define a listing of implementation subject matter expert roles that is appropriate
for all initiatives, some of the most common roles are:

Developers/Software Engineers
 Developers are responsible for the construction of software applications. Areas of
expertise among developers or software engineers include particular languages or
application components. Good software development practices will significantly
reduce the cost to build an application, the predictability of the development
process, and the ability to implement changes in the functionality supported by an
application.

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 Customer
2. Organizational Change Management Professionals

Organizational change management professionals are responsible for facilitating

acceptance and adoption of new solutions and overcoming resistance to change. Areas
of expertise among change management professionals include industry and cultural
expertise. Good change management can help to create advocates for change within an
organization.
3. System Architects
System architects are responsible for dividing a software application into components
and defining the interactions between them. Areas of expertise among system architects
include understanding of methodologies and of solutions offered by specific vendors.
Good system architecture will facilitate rapid development of solutions and reuse of
components in other solutions.
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 Customer

4. Trainers
Trainers are responsible for ensuring that the end users of a solution understand how it
is supposed to work and are able to use it effectively. Areas of expertise among trainers
may include classroom-based or online education. Effective training will facilitate
acceptance and adoption of a solution.
5. Usability Professionals
Usability professionals are responsible for the external interaction design of technology
solutions and for making those solutions as simple to use as is feasible. Areas of
expertise among usability professionals include user interface designers and
information architects. Good usability will increase productivity, customer satisfaction,
and reduce cost in solution maintenance and training.

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 Customer

6. Project Manager.
Project managers are responsible for managing the work required to deliver a solution
that meets a business need, and for ensuring that the project’s objectives are met while
balancing the project constraints, including scope, budget, schedule, resources, quality,
risk, and others.
7. Tester.
Testers are responsible for determining how to verify that the solution meets the
solution requirements defined by the business analyst, as well as conducting the
verification process. Testers also seek to ensure that the solution meets applicable
quality standards and that the risk of defects of failures is understood and minimized.

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 Customer

8. Regulator.
Regulators are responsible for the definition and enforcement of standards. Standards
may be those that the team developing the solution is required to follow, standards the
solution must meet, or both. Regulators may enforce legislation, corporate governance
standards, audit standards, or standards defined by organizational centers of
competency.

9. Sponsor.
Sponsors are responsible for initiating the effort to define a business need and develop a
solution that meets that need. They authorize work to be performed and control the
budget for the initiative.

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 Customer

10. Supplier.
A supplier is a stakeholder outside the boundary of a given organization or
organizational unit. Suppliers provide products or services to the organization and may
have contractual or moral rights and obligations that must be considered.

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