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The value of BA for the Business Value. Business Analysis Capabilities for Business Transformation. Business Analysis Center Of Eccellence is a key factor in order to accelerate the organization transformation. BACOE Models and BA Maturity Model PM&BA The Dynamic Duo
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The Value of Business Analysis in the
organizations: BACOE and Maturity
ModelIIBA Italy Chapter President
Enterprise Hotel, Corso Sempione, 91-93, Milano
© International Institute of Business Analysis
2
Why Business Analyst Professionals?
“Employment of management analysts is projected to grow 19% from 2012 to 2022, faster than the average for all occupations”
• Demand for the services of these workers will grow as organizations continue to seek ways to improve efficiency and control costs . (IIBA®)
“Many enlightened CIOs are placing their bets on implementation of a world class Business Analysis Practice ”
• to finally predict, produce, deliver, and measure expected business benefits .” (Gartner Group, Northwestern University, and Diamond Cluster International survey )
© International Institute of Business Analysis
3
Why Business Analysis?
Why does a CIO care about Business Analysis ? (Insight from the Gartner Group, Northwestern University, and Diamond Cluster International survey of 130 senior IT executives)
• 51% Percentage of CIOs with no process to evaluate IT investment against business strategy
• 68% Percentage of CIOs who don’t compare actual IT project benefits to original targets
• 74% Percentage of CIOs who don’t track financial metrics after making an investment
• 80% Percentage of CIOs who say lack of financial skills makes quantifying IT benefits difficult
This revealing study, together with the fact that only 37% of IT projects are successful, costing the economy billions of dollars, make for a very challenging situation for CIOs – FOCUS should be on Business Value and not on Technology.
© International Institute of Business Analysis
4
Why Business Analysis &
BA Professionals?
More and more organizations are recognizing the value of the Business Analyst in the success of their projects.
• 60% to 80% of failed software projects are traced to poor requirements . (CIO Magazine)
• Only 10% to 30% of companies successfully implement their strategic plans . (Wharton School, University of Pennsylvania)
• Data indicate that 60% to 80% of the cost of software development is in rework . (Carnegie Mellon Software Engineering Institute)
The Business Analyst, working on the business value , helps organizations avoid such costly issues .
© International Institute of Business Analysis
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Business Analysts and Project Managers
The BA collaborates with the PM to conduct trade-off analysis and make the tough project decisions.
• “It has been estimated that the probability of project success increases 400% with an exceptional BA on the projec t.” (BA Benchmark Study, AG Consulting 2008)
“Dynamic Duo – Project Managers & Business Analysts allows to achieve the business value, reducing efforts, costs, increasing quality and stakeholders satisfaction.” (PM& BA IIBA® – PMI®-NIC – February 2014 & Michele Maritato, Prassede Colombo Seminaries – 2008 - today – The Dynamic Duo® - PMProgetti®)
© International Institute of Business Analysis
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Business Analysts - Implementation SME
- Business Managers
Assuming that the Business Analysts liaison with the Business Managers , they will be invaluable in leading technologists in allocating requirements to maximize the business value.
• “An experienced BA assigned throughout the project will ensure organizations develop an innovative solution, and predict, produce, deliver, and measure expected business benefits .”
© International Institute of Business Analysis
(Ante, During, Post, Project of The Dynamic Duo® Approach - PMProgetti®)
Innovation, Value and Portfolio Focus
© International Institute of Business Analysis
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Organizations need mechanism to drastically change their core business and project performance focus from exclusively time/scope/budget to innovation and value .
To do so Business Analysts will ensure the project portfolio’s are contributing to the competitive position in the marketplace for the company. To do so Organizations need new capabilities .
Business Analysis changes the operations and projects focus from Technology, Products to the Business Value . It’s about the business value brought about new R&D, IT, Marketing, .. Solutions, not about the Technology.
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Decision Velocity
There is a need to improve the organization’s decision velocity .
• Determining the most valuable candidate projects, requires some degree of analysis and planning. These analysis and planning activities occur within the enterprise analysis phase of the business solution life cycle , culminating in a decision to invest in the new initiative, defer investment, or reject the proposed initiative altogether.
It means that organizations need the capabilities – Enterprise Analysis -for building brilliant Business Cases focused on the real business needs and the right solutions and for evaluating the needed changes (Ante, During, Post Projects Model of The The Dynamic Duo® Approach - PMProgetti®)
© International Institute of Business Analysis
9
BA Capabilities and Results
Higher BA maturity levels are directly correlated to more effective business alignment of operations and projects , higher qualitybusiness solutions, increased customer satisfaction , increased creativity and innovation , and an increase in the business benefitsthat result from implementation of new business solutions.
© International Institute of Business Analysis
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Opportunities for Organizations & BA
• Enterprise Business Analyst• Business Process Analyst• Big Data / Decision Analyst
• Define Strategy• Align to Strategy• Inform Strategy
ENTERPRISE
FUNCTION
• Enterprise Business Analyst• Business Process Analyst• Business Analyst• Decision Support Analyst• Agile Analyst• Systems / Functional Analyst
• Define Change• Deliver Change• Support Change
PRJ/OPS• Support
Project/Operations
• Business Analyst• Service Analyst
© International Institute of Business Analysis
Source: BAWI2013 The future of the Business Analyst: from Competencies to Value for the organization - Michele Maritato, IIBA®
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BACOE
Organizations face many challenges in filling their business analysis positions
• finding the right people• getting them on the right projects/tasks• ensuring that they do the work as effectively as possible• and that it adds value to the organization
Business Analysis Center of Excellence (BACOE) is the emerging best practice in order to assess BA capabilities, identify the GAP and identify the right model for the organization.
© International Institute of Business Analysis
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What is a BACOE?
It’s a new type of Center which serves as the single point of contact for business analysis practices
The type of Center that is most appropriate for your organization depends heavily on the culture, power and politics that exist within your organization
• Mission - Understanding the business drivers behind establishing the BACOE• Sizing of the organization and the level of change - gradual approach• Functions involved and BA team• The competitive pressure of the industry - the higher the pressure to innovate both
products, services, and business processes and practices, the greater the need for the COE)
© International Institute of Business Analysis
One Size Does Not Fit ALL
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BACOE Models
There are several models of BACOEs that are in existence today. Each structure has unique composition, goals and outcomes.
• In that role, the BACOE defines the business rules, processes, knowledge, skills and competencies, and tools used by the organization to perform business analysis activities throughout the solutio n and project life cycle , from strategic planning to project initiation to solution delivery and benefits realization on field.
Business Analysis Center of Excellence (BACOE) is the emerging best practice in order to assess BA capabilities, identify the GAP and address them in order to move the organizations towards innovation and competition
© International Institute of Business Analysis
Common BACOE Structures
© International Institute of Business Analysis
14
BACOE Models
BA Community of Practice (Senior BA)
- Club
Informal BACOE (BA Team Lead) –
Senior BAsFormal BACOE
(BA Practice Director/VP) - All
BasProject/Program
Management COE (PMO Director/VP) -
BAs; PMs, QA/Tester
One Size Does Not Fit ALL
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BA Practice and BACOE Program
To implement and institutionalize an enterprise-wide BA Practice , the business value that is promised from a mature BA Practice needs to be fully understood across the organization , and BA benefits need to be continually demonstrated through measurement and communication programs
• Leadership and sponsorship of the effort should emanate from the top of the organization, and flow down to all levels
Gradual Change Program Approach supported by BA tools as BACOE Maturity Model, BA Competence Model
© International Institute of Business Analysis
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BACOE Maturity Model (1)
Level 1BA Awareness
Level 2BA Framework
Level 3 Business Alignment
Level 4 Business/ Technology Innovation
Project Focus Enterprise Focus Competitive Focus
� The BA Practice and the BACOE Maturity is moving from a project-focused structure with limited influence to an enterprise level, and finally to a focus on innovation and the competitive positioning of the organization
© International Institute of Business Analysis
BACOE Maturity Model (2)
BA Awareness
BAFramework
Project Focus
Business Alignment
Enterprise Focus
Business/Technology Innovation
Competitive Focus
© International Institute of Business Analysis
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1
2
34
BA ValueAcknowledged
Business Requirements Managed
Business Needs/Strategy Executed
Technology used as a Competitive Advantage
4
Continuous Improvement of BA Practices
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BACOE Program Approach
Readiness
• Business Case (Maturity model selection; Assessment, and Gap Analysis, Select Solution Approach (What BACOE), Solution Scope
• Executive Sponsorship (Engagement)• Steering Committee (Engagement and Approval)
Implementation
• BACOE Model ( Organization, role and responsibilities, Functions – BACOE Models)• Capable Team (BA Competencies development - BA Workforce Capability Model)• BA Practice Standard (Methods, Techniques - BA Practice Maturity Model)• BA Tools
Sustainability
• Maturity and Capability Assessments and Continuous Improvements• Next Phases – Assessment – Business Case – New Cycle• Measurement and Communication Programs
“Is your organization ready?”
“How do you institutionalize and continue to improv e BA practices?”
“How do you build the BA Practice?”
(BACOE Implementation - Framework- The Dynamic Duo® - PMProgetti®)
Project Focus Enterprise Focus Innovation Focus
R
I
S
• IT PMO
• BACOE
• Requirement
Management
• Portfolio
Management –
Enterprise Analysis
• BA Practices
• BA Training, CBAP,
CCBA
• BA Roles
Case 1 – From Informal to Formal (Energy)
Level 1BA Awareness
Level 2BA Framework
Level 3 Business Alignment
Level 4 Business/ Technology Innovation
Project Focus Enterprise Focus Innovation Focus
TrainingBA for
Business&
IT
2013•Follow up•Framework•BA Community
2014
BACOEBA roles
ExtentionBusiness
2015
Position
(BACOE Implementation - Framework- The Dynamic Duo® - PMProgetti ®)
19
© International Institute of Business Analysis
CASE 2 – EPMBA-COE - IT PMO versus
High Performance (Tourism)
Portfolio Management – Enterprise Analysis� Demand Management, Business CaseResource Allocation, Reporting
Enterprise PM and BA Capabilities� Project Management and
Business Analysis Processes� Project Managers and Business Analyst Professionals� Tools
Change Management� Organization (Macro and micro)(Enterprise, Innovation, Competitive Focus
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PMO Competency Continuum”- G. M. Hill
PM&BA Capabilities for Business Value
PM&BA Capabilities for
Level 4-5 requires PM, BA Practices Competencies and Tools those more mature and focused on adaptive change and innovation.
Scenario 3 IT PMO Manager (*)
PMO Analyst
Enterprise PM
Enterprise BA
IT Finance & Budget Analyst
PMBA-COE
Model2014
Standard PMOEnterprise Focus
Business Alignment
2015 • Advanced/COE
2016
(*) BAs(*) PMs
© International Institute of Business Analysis
(BACOE Implementation - Framework- The Dynamic Duo ® - PMProgetti ®)
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CASE 3 - Formal BACoE (Banking)
• Centralize Business
Analysis – Competence
Center for BA
• 150 Business Analysts
• Project Team composition
Always required
- PM
- Architect
- BA
• Business Line Banking
Knowledge
© International Institute of Business Analysis
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CASE 4 - PMO – BA Competence Center
(Telecom)
First PBM (Project
Business Manager)
High Potential Resources
Certification PMP ®
Resources not yet certified
CB
AP
®ce
rtifi
catio
n
The evolutionary roadmap expresses the evolution of the Project Manager in Telecom Italia with a view to acquire the entire lifecycle responsibility
(E2E) project
Standard PMO Advanced PMO
PMP®
1
2
3
4
5
2 3 4 5
DEBOLI TECNICAMENTE
DEBOLISSIMI
“NEL RUOLO”
ECCELLENTI
INSICURI, PREVALENTEMENTE
CON VOGLIA DI MIGLIORARE
CAMPIONI
COMPETENTI,
MOLTO POCO
CAPACI E MOLTO DEMOTIVATI
COMPETENTI, POCO CAPACI E DEMOTIVATI
COMPETENTI, MOTIVATI E POCO CAPACI
COMPETENTI CAPACI E DEMOTIVATI
1
2
3
4
5
2 3 4 5
DEBOLI TECNICAMENTE
DEBOLISSIMI
“NEL RUOLO”
ECCELLENTI
INSICURI, PREVALENTEMENTE
CON VOGLIA DI MIGLIORARE
CAMPIONI
COMPETENTI,
MOLTO POCO
CAPACI E MOLTO DEMOTIVATI
COMPETENTI, POCO CAPACI E DEMOTIVATI
COMPETENTI, MOTIVATI E POCO CAPACI
COMPETENTI CAPACI E DEMOTIVATI
DEBOLI TECNICAMENTE
DEBOLISSIMI
“NEL RUOLO”
ECCELLENTI
INSICURI, PREVALENTEMENTE
CON VOGLIA DI MIGLIORARE
CAMPIONI
COMPETENTI,
MOLTO POCO
CAPACI E MOLTO DEMOTIVATI
COMPETENTI, POCO CAPACI E DEMOTIVATI
COMPETENTI, MOTIVATI E POCO CAPACI
COMPETENTI CAPACI E DEMOTIVATI
Assessment by third party
Level 3 ?Level 4 ?Business/TechnologyInnovation
R
I
S
http://goo.gl/q5sYt
www.slideshare.net/IIBA-IT
https://twitter.com/iiba_italy
http://www.facebook.com/ItalyIIBA
Stay in touch with us!Prassede Colombo, PMP®
IIBA® Italy Chapter PresidentPartner PMProgetti
President@italy.iiba.orginfo@italy.iiba.org+39 380 3181546
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