Business Analysis - (1 WHAT IS BUSINESS ANALYSIS)
Business Analysis - (1 WHAT IS BUSINESS ANALYSIS)
Debra Paul
INTRODUCTION
This is a book about business analysis, a relatively new discipline that promises
to offer great benefit to organisations by ensuring that business needs are
aligned with implemented business change solutions. Many of those solutions
will involve new or enhanced information systems, but others may have a
broader scope incorporating changes to areas such as business processes and job
roles. The reason for producing this book is to provide guidance about business
analysis that reflects the breadth of the role and the range of techniques used.
While most organisations use the term ‘business analysis’ and employ business
analysts, there continues to be a lack of clarity about what this really means
and this often creates more questions than answers. What do business analysts
do? What skills do they require? How do they add value to organisations? Also,
in the absence of a standard definition of business analysis and a standard
business analysis process model, problems have arisen:
This chapter examines the business analysis discipline and considers how we
might define the business analyst role. In Chapter 4 we describe a process
model for business analysis, where we provide an overview of two aspects:
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BUSINESS ANALYSIS
how business analysis is undertaken and the key techniques to be used at each
stage. Much of this book provides guidance on how the various stages in this
process model may be carried out. Business analysis work is well defined where
there are standard techniques that have been used in projects for many years.
In fact, many of these techniques have been in use for far longer than the
business analyst role has been in existence. In this book we describe numerous
techniques that we feel should be within any business analyst’s toolkit, and
place them within the overall process model. Our aim is to help business
analysts carry out their work, to improve the quality of business analysis
within organisations and, as a result, to help organisations to adopt business
improvements that will ensure their success.
organisation. This situation applies to all sectors, including the public sector.
In July 2003 the Parliamentary Office of Science and Technology (POST) (2003)
report on Government IT projects listed six UK government departments and
agencies where there had been recent high-profile IT difficulties. The chairman
of the Public Accounts Committee commented on ‘one of the worst IT projects
I have ever seen’. The perception that, all too frequently, information systems
do not deliver the predicted benefits continues to be well founded.
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WHAT IS BUSINESS ANALYSIS?
in the UK, will be able to deliver higher quality at lower cost. So, in organisations
that have outsourced their IT functions, the IT systems are designed and
constructed using staff employed by an external supplier. This undoubtedly has
advantages both for the organisation purchasing the services and for the specialist
supplier. The latter gains an additional customer and the opportunity to increase
turnover and make profit from the contractual arrangement; the customer organisa-
tion is no longer concerned with all staffing, infrastructure and support issues and
instead pays a specialist provider for delivery of the required service. In theory this
approach has much to recommend it, but, as is usually the case, the flaws begin to
emerge once the arrangement has been implemented, particularly in the areas of
supplier management and communication of requirements. The issues relating to
supplier management are not the subject of this book, and would require a book in
their own right. However, we are concerned with the issue of communication
between the business and the outsourced development team. The communication
and clarification of requirements is key to ensuring the success of any IT system
development, but an outsourcing arrangement often complicates the communication
process, particularly where there is geographical distance between the developers
and the business. We need to ask ourselves ‘How well do the business and technical
groups understand each other?’ and ‘Is the communication sufficiently frequent
and open?’ Communication failures will usually result in the delivered IT systems
failing to provide the required level of support for the business.
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BUSINESS ANALYSIS
Alignment
Realisation
Definition
Business
case
Implementation
Design
The early part of the business change lifecycle is concerned with the analysis of
the organisation and its business needs and requirements, in order to determine
new ways of working that will improve the organisation’s efficiency and effective-
ness. Later business change activities are concerned with change design and
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WHAT IS BUSINESS ANALYSIS?
business analyst role, we now need to recognise the potential this can offer,
particularly in a global economic environment where budgets are limited and
waste of financial resources is unacceptable. The importance of delivering the
business benefits predicted for business change initiatives has becoming
increasingly necessary to the survival of organisations.
A major issue for business analysts, based on feedback from a wide range of
organisations, is the definition of the business analyst role. Discussions with
several hundred business analysts across a range of business forums have
highlighted that business analysis job descriptions are unclear and do not
always describe their responsibilities accurately. A quick survey of the job
advertisements for business analysts also reflects a range of possibilities. For
example, in some cases the job description of a business analyst seems, on close
inspection, to be similar to that of an analyst/programmer, e.g. ‘Candidates
must have experience of SQL.’ In other organisations the business analysts are
required to work with senior stakeholders and need to have detailed business
domain knowledge. Even though the role of the business analyst emerged
almost 20 years ago, a formal definition of the role is still debated hotly
whenever there is a group of business analysts.
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BUSINESS ANALYSIS
Business analysis
IT systems analysis
it, as their work will need to support the achievement of this strategy. Given that
business analysts often have to recommend process and IT system solutions,
it could be argued that they define the tactics that will deliver the business
objectives and strategy. Hence, it is vital that they are able to work within the
strategic business context. It may also be the case that some business analyst roles
will require strategic-level thinking. The use of IT to enable business improve-
ments and the opportunities presented by technology will need to be considered
during any strategy analysis. The business analysts are the specialist team within
organisations that should be able to advise on the use of technology to drive
business change. Given these issues, we feel that although strategic analysis work
is not core to business analysis, business analysts will need a good understanding
of strategy development processes. Chapter 3 explores a range of strategic analysis
techniques and provides an overview of the strategic planning process.
IT systems analysis
At the other end of our model, there is the IT discipline called systems analysis.
The systems analyst role has been in existence for over 40 years and can be
6
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WHAT IS BUSINESS ANALYSIS?
defined clearly. Systems analysts are responsible for analysing and specifying
the IT system requirements in sufficient detail to provide a basis for the evalua-
tion of software packages or the development of a bespoke IT system. Typically,
systems analysis work involves the use of techniques such as data modelling and
process or function modelling. This work is very specific to describing the
computer system requirements, and so the products of systems analysis define
exactly what data the computer system will record, what processing will be
applied to that data and how the user interface will operate.
Some organisations consider this work to be of such a technical nature that they
perceive it to be completely outside the province of the business analyst. They
have decided that modelling process and data requirements for the IT system is
not part of the role of the business analyst, and have separated the business
analysis and IT teams into different departments. The expectation here is that
the IT department will carry out the detailed IT systems modelling and specifica-
tion. The job role ‘systems analyst’ tends to be used rarely these days, and the
detailed specification of the requirements is often undertaken by systems
designers or developers.
However, in some organisations the term ‘IT business analyst’ has been adopted
to identify a business analyst working in the area traditionally known as systems
analysis. The essential difference here is that a business analyst is responsible for
considering a range of business options to address a particular problem or oppor-
tunity; on the other hand an IT business analyst, or systems analyst, works
within a defined scope and considers options for the IT solution.
In some organisations there is little divide between the business analysts and the
IT team. In these cases the business analysts work closely with the IT developers
and include the specification of IT system requirements as a key part of their role.
In order to do this, the business analysts need a more detailed understanding of
IT systems and how they operate, and need to be apply to use the approaches and
modelling techniques that fell historically within the remit of the system analyst
job role.
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Business analysis
If the two analysis disciplines described above define the limits of analysis work,
the gap in the middle is straddled by business analysis. Hence Figure 1.2
highlights the possible extent of business analysis work. Business analysts will
usually be required to investigate a business system where improvements are
required, but the range and focus of those improvements can vary considerably.
It may be that the analysts are asked to resolve a localised business issue. They
would need to recommend actions that would overcome a problem or achieve busi-
ness benefits. However, it is more likely that the study is broader than this and
requires investigation into several issues, or perhaps ideas, regarding increased
efficiency or effectiveness. This work would necessitate extensive and detailed
analysis. The analysts would need to make recommendations for business changes
and these would need to be supported by a rigorous business case.
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BUSINESS ANALYSIS
In this case the analyst would deliver a requirements document defining what
the business requires the IT system to provide.
Whichever situation applies, the study usually begins with the analyst gaining
an understanding of the business situation in hand. A problem may have been
defined in very specific terms, and a possible solution identified, but in practice
it is rare that this turns out to be the entire problem and it is even rarer that any
proposed solution addresses all of the issues. More commonly, there may be a
more general set of problems that require a broad focus to the study. For any
changes to succeed, the business analyst needs to consider all aspects, for
example the processes, IT systems and resources that will be needed in order to
improve the situation successfully. In such cases, techniques such as stakeholder
analysis, business process modelling and requirements engineering may all be
required in order to identify the actions necessary to improve the business
system. These three topics are the subjects of later chapters in this book.
This model shows us that business analysts need to consider these four aspects
when analysing a business system. For each area, we might consider the following:
The processes: are they well defined and communicated? Is there good
IT support, or are several ‘workarounds’ in existence? Does the process
require documents to be passed around the organisation unnecessarily?
The people: do they have the required skills for the job? How motivated
are they? Do they understand the business objectives that they need to
support?
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WHAT IS BUSINESS ANALYSIS?
Organisation
Technology
People Processes
We need to examine and understand these four areas if the business system is to
be effective. It is often the case that the focus of a business analysis or business
change study is on the processes and the IT support. However, even if we have
the most efficient processes with high standards of IT support, the system will
have problems if the staff members do not have the right skills to carry out their
work or the organisation structure is unclear.
It is vital that the business analyst is aware of the broader aspects relating to
business situations such as the culture of the organisation and its impact on the
people and the working practices. The adoption of an holistic approach will help
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ensure that these aspects are included in the analysis of the situation.
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BUSINESS ANALYSIS
Chapter 14 explores further the implementation of business change and the key
elements to be considered.
So where does this leave us in defining the role and responsibilities of a business
analyst? Although there are different role definitions, depending upon the
organisation, there does seem to be an area of common ground where most
business analysts work. The responsibilities appear to be:
In line with this, we believe the core business analyst role should be defined as:
An internal consultancy role that has the responsibility for investigating business
situations, identifying and evaluating options for improving business systems,
defining requirements and ensuring the effective use of information systems in
meeting the needs of the business.
10
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WHAT IS BUSINESS ANALYSIS?
Further to the definition and guiding principles, in some organisations there are
business analysis roles that apply to the strategic analysis or systems analysis
activities described above. This is typically where business analysts are in a more
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BUSINESS ANALYSIS
BUSINESS
IMPROVEMENT
SCOPE
PROCESS
IMPROVEMENT
SYSTEM
IMPROVEMENT
AUTHORITY
and the analyst now needs to explore and define the solution in greater detail.
Alternatively, the scope may only have been defined at an overview level, with
the BA having to carry out detailed investigation to uncover the issues before
the options can be explored. The authority of the BA can also vary consider-
ably, ranging from a very limited level to the ability to influence and guide at
senior management level.
The business analysis maturity model shows three levels of maturity found
when business analysis is developing. The first of these is where the business
analysis work is concerned with defining the requirements for an IT system
improvement. At this level, the scope is likely to be well defined and the level
of authority to be limited to the project on which the business analyst works.
The next level is where the business analysis work has moved beyond a
specific area or project, so that the analysts work cross functionally on the busi-
ness processes that give rise to the requirements. The third level is where the
scope and authority of the analysts are at their greatest. Here, the business
12
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WHAT IS BUSINESS ANALYSIS?
analysis work is concerned with improving the business and working with
senior management to do this.
Continuously
Optimizing improving
process
Performance
Qualitatively
managed
Managed
process
Standard
Defined consistent
process
Planned
Managed
process
Ad hoc
Initial
process
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The business analysis profession could also be examined in the light of the
BAMM and the CMMI. A panel discussion at the 2009 Business Analysis
Conference, organised by the International Institute of Business Analysis,
considered whether or not Business Analysis should be deemed to be a profession.
13
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BUSINESS ANALYSIS
The discussion looked at various aspects of what makes a profession. The factors
identified were:
The conference considered the issue of professionalism, and the consensus was
that, while business analysis had certainly increased in professionalism, there was
still some way to go before it could be called a profession. While the Information
Systems Examinations Board (ISEB) Diploma in Business Analysis has become a
widely accepted qualification, it is still possible to practise as a business analyst
without qualifications, although this is increasingly rare. There are some recog-
nised business analysis standards and techniques, and some benchmarks, such
as this book, have appeared in the last few years. Continuing professional
development is not a requirement for the majority of business analysts. Many
business analysts are members of BCS – the Chartered Institute for IT – and this
professional body has a defined code of conduct for its members and provides
standards and promotion for the profession. Gradually the picture is becoming
clear, and a business analysis profession is developing.
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Business analysis has developed into a specialist discipline that can really offer
value to organisations. The place of business analysis within the business change
lifecycle is critical if organisations are to benefit from those changes. Business
analysis offers an opportunity for organisations to ensure that technology is
deployed effectively to support their work, and also to identify relevant options
for business change that take account of budgetary and timescale pressures.
Business analysts can also offer objective views that can challenge the received
wisdom and identify where real business benefits can accrue. Over the last
few years, business analysts have continued to develop their skills such that
the breadth of work they can engage in has become extensive. As internal
consultants, experienced business analysts are not just able to bridge IT and ‘the
business’; they can also improve areas where success has traditionally been a
struggle, such as the achievement of predicted business benefits. Further, where
outsourcing initiatives operate across departmental boundaries and sometimes
14
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WHAT IS BUSINESS ANALYSIS?
have impacts upon the entire organisation, the work carried out by business
analysts is vital if the new partly in-house, partly outsourced processes and
technology are going to deliver effectively. The challenge for the analysts is to
ensure that they develop the extensive toolkit of skills, both behavioural and
technical, that will enable them to engage with the problems and issues facing
their organisations, and assist in their resolution. The challenge for organisations
is to support the analysts in their personal development, ensure they have the
authority to carry out business analysis to the extent required by the situations
they face, and listen to their advice. This book has been developed primarily
for the business analysis community but also to help professionals face the
challenges of today’s business environment; we hope all business managers, staff
and analysts will find it useful.
REFERENCES
FURTHER READING
Cadle, J., Paul, D. and Turner, P. (2010) Business Analysis Techniques. BCS,
Swindon.
Senge, P.M. (2006) The Fifth Discipline: The Art and Practice of the Learning
Organization, revised edn. Broadway Business, New York.
USEFUL WEBSITES
15
Cadle, James, et al. Business Analysis, edited by Debra Paul, et al., British Informatics Society Limited, 2010. ProQuest Ebook Central,
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