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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 2
Business Objectives
Business Operational
Model
Enterprise Architecture
Solution Implementation
and Delivery
Management And
Operations
Business Processes
And Analysis
Required Operational
Business Systems
Business Strategy
Business Systems Design/
Selection
Business IT Strategy
IT Function Strategy
Required Operational Processes
Required Infrastructure
Business Systems
IT/Support Systems Design/
Selection
Business Solution Delivery In Context
May 11, 2015 3
Solution Portfolio
Solution Portfolio
IT Function Structure
And Processes
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 4
Business Objectives
Business Operational
Model
Enterprise Architecture
Solution Implementation
and Delivery
Management And
Operations
Business Processes
And Analysis
Required Operational
Business Systems
Business Strategy
Business Systems Design/
Selection
Business IT Strategy
IT Function Strategy
Required Operational Processes
Required Infrastructure
Business Systems
IT/Support Systems Design/
Selection
Business IT Requirements And IT Alignment
May 11, 2015 5
Solution Portfolio
Solution Portfolio
IT Function Structure
And Processes
Business Solution Design And Delivery
IT Function Underlying Solution Delivery And Operation Enablement
Structure
Business Needs
Market Changes
Regulatory Changes
Customer Requirements
Organisational Changes
New Products/ Services
Competitive Pressures
Business IT Requirements And IT Alignment
May 11, 2015 6
Business Needs
Market Changes
Regulatory Changes
Customer Requirements
Organisational Changes
IT Function Underlying Solution Delivery And Operation Enablement
Structure
Business Solution Design And Delivery
Alignment
New Products/ Services
Competitive Pressures
Business Objectives
Business Operational
Model
Enterprise Architecture
Solution Implementation
and Delivery
Management And
Operations
Business Processes
And Analysis
Required Operational
Business Systems
Business Strategy
Business Systems Design/
Selection
Business IT Strategy
IT Function Strategy
Required Operational Processes
Required Infrastructure
Business Systems
IT/Support Systems Design/
Selection
Business Solution Delivery In Context
May 11, 2015 7
Solution Portfolio
Solution Portfolio
IT Function Structure
And Processes
Alignment Means Being Able To Draw A Straight Line
From Business Strategy Through To Delivered And
Operational Solutions Implemented To Respond To
Business Needs
Dimensions Of Changes
May 11, 2015 8
Business Needs
Market Changes
Competitive Pressures
Organisational Changes
New Products/ Services
Regulatory Changes
Customer Requirements
Business Needs
Market Changes
Competitive Pressures
Organisational Changes
New Products/ Services
Regulatory Changes
Customer Requirements
Business Needs
Market Changes
Competitive Pressures
Organisational Changes
New Products/ Services Regulatory
Changes
Customer Requirements
Pace And Impact of Business Changes
Increasing
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 9
Business Analysis And Business Operating Environment
May 11, 2015 10
Business Strategy
Business
Objectives
Changes In Products/ Services
Changes in
Organisation
Process Changes
Merger/ Acquisition/ Divestment
Regulatory Changes
Market Changes
Competitive Pressure
Changes In IT Solutions To
Enable Business Change
New Products/ Services
Customer Requirements
Business Strategy
Business
Objectives
Changes In Products/ Services
Changes in
Organisation
Process Changes
Changes In IT Solutions To
Enable Business Change
Business Analysis Across Business Operating Environment
May 11, 2015 11
Enterprise Business Analysis
Functional Business Analysis
IT Business Analysis
Business And IT Alignment
Levels Of Business Analysis And Business Analyst
May 11, 2015 12
Functional Business Analyst Understand business objectives and solution functional requirements Analyse, define and optimise business processes Understand products and services provided and associated processes and solution Assist with the optimisation of the solution portfolio Participate in optimisation of organisation structure of business function
Enterprise Business Analyst Assist with translation of business strategy to business objectives 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 organisation structure
IT Business Analyst
Gather and analyse business requirements Map and document the business processes Assist with the creation of solution functional specifications
Business Strategy
Business
Objectives
Changes In Products/ Services
Changes in
Organisation
Process Changes
Changes In IT Solutions To
Enable Business Change
Business Analysis Across Business Operating Environment
May 11, 2015 13
Enterprise Business Analysis
Functional Business Analysis
IT Business Analysis
Strategic Tactical
Effective Business Analysis Prevents Discontinuity And Fragmentation
May 11, 2015 14
Local Fragmentation and Discontinuity
Organisation Wide Fragmentation and Discontinuity
Levels Of Business Analysis And Business Analyst
May 11, 2015 15
Functional Business Analyst
Enterprise Business Analyst
IT Business Analyst
Greater Business Analysis
Capability Delivers Greater
Effectiveness
Preventing The Bumpy And Uncomfortable Journey From Business Strategy To Execution And IT Solution Delivery
May 11, 2015 16
Business Strategy
Business
Objectives
Changes In Products/ Services
Changes in
Organisation
Process Changes
Changes In IT Solutions To
Enable Business Change
What IT All Too Frequently Delivers
May 11, 2015 17
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
Siloed applications with lack of integration
Poor return on investment
Too little, too late, not what was wanted or
needed
Business Needs
Market Changes
New Products/ Services
Regulatory Changes
Customer Requirements
Organisational Changes
Competitive Pressures
The IT Funnel of Fragmentation
and Discontinuity
Integrated Approach To Business Analysis Optimises Delivery, Removes Friction And Creates Effective Linkages
May 11, 2015 18
From …
To …
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
Business Objectives
Business Operational
Model
Enterprise Architecture
Solution Implementation
and Delivery
Management And
Operations
Business Processes
And Analysis
Required Operational
Business Systems
Business Strategy
Business Systems Design/
Selection
Business IT Strategy
IT Function Strategy
Required Operational Processes
Required Infrastructure
Business Systems
IT/Support Systems Design/
Selection
Preventing The Balkanisation Of IT Solution Landscape
May 11, 2015 20
Solution Portfolio
Solution Portfolio
IT Function Structure
And Processes
If This Is Not In Place …
External Suppliers
External Suppliers
External Suppliers
… Then The Business Functions Will Look To Bypass
The IT Function
External Suppliers
Business Objectives
Business Operational
Model
Enterprise Architecture
Solution Implementation
and Delivery
Management And
Operations
Business Processes
And Analysis
Required Operational
Business Systems
Business Strategy
Business Systems Design/
Selection
Business IT Strategy
IT Function Strategy
Required Operational Processes
Required Infrastructure
Business Systems
IT/Support Systems Design/
Selection
Preventing The Balkanisation Of IT Solution Landscape
May 11, 2015 21
Solution Portfolio
Solution Portfolio
IT Function Structure
And Processes
External Suppliers
External Suppliers
External Suppliers
… Leading To A Disconnected And
Disintegrated Solution Portfolio
External Suppliers
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 Strategy
Business
Objectives
Changes In Products/ Services
Changes in
Organisation
Process Changes
Changes In IT Solutions To
Enable Business Change
Business Analysis Across Business Operating Environment
May 11, 2015 23
Enterprise Business Analysis
Functional Business Analysis IT Business Analysis
Siloed Business Analysis
Collaboration And Sharing Across Organisation
Functions
Organisation-Wide Analysis Capability With Consistent,
Repeatable Processes
Business xNovation
May 11, 2015 24
Business Strategy
Business
Objectives
Changes In Products/ Services
Changes in
Organisation
Process Changes
Changes In IT Solutions To
Enable Business Change
Innovation
Renovation
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 Objectives
Business Operational
Model
Enterprise Architecture
Solution Implementation
and Delivery
Management And
Operations
Business Processes
And Analysis
Required Operational
Business Systems
Business Strategy
Business Systems Design/
Selection
Business IT Strategy
IT Function Strategy
Required Operational Processes
Required Infrastructure
Business Systems
IT/Support Systems Design/
Selection
Business And IT Alignment Runs Both Ways
May 11, 2015 26
Solution Portfolio
Solution Portfolio
IT Function Structure
And Processes
Business and IT alignment means managing expectations
between both parties
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
May 11, 2015 33
External Manual
Interaction
External Manual
Interaction
External Manual
Interaction
External Manual
Interaction
Extended Application(s)
System Component
System Component
System Component
External Component
External Component
External Component
Core Application
End To End View Of Solution
Solution May Not Just A Single Application
May 11, 2015 34
External Manual
Interaction
External Manual
Interaction
External Manual
Interaction
External Manual
Interaction
Extended Application(s)
System Component
System Component
System Component
External Component
External Component
External Component
Core Application
Limited View All Too Often Taken
Solution May Not Just A Single Application
May 11, 2015 35
System Component
System Component
System Component
External Component
External Component
External Component
Automated Process
Automated Process
External Manual
Interaction
External Manual
Interaction
Manual Process
Manual Process
External Manual
Interaction
External Manual
Interaction
Manual Process
Manual Process
Extended Application(s)
Core Application
May 11, 2015 36
Hierarchy Of Requirements – From Enterprise To Solution
Business Vision and Goals
Business Strategy
Business Objectives and Plan
Programmes for Strategic Objectives
Solutions
Operation of Solutions
Solutions delivered by programmes and projects
cascade from business vision to ultimate operation and
service delivery
Solutions delivered by programmes and projects need to be aligned to the
overarching business vision and goal
Solution Delivery Boundaries
May 11, 2015 37
Enterprise Architecture Defines the Solution Technical Boundary
Business
Data
Technical
Functional
Implementation
Management and Operation
Solution
Enterprise Business Analysis
Defines the Solution
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
May 11, 2015 39
Solution Core
Application Functionality
Solution Operational
Characteristics
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
May 11, 2015 43
Approach
Consistent and repeatable
approach to business analysis
Quick and
predictable results
Top-down approach
Framework
End-to-end business
definitions
Cross-functional process view
Business process
inventory
Teamwork
Collaboration across and
between teams
Management commitment
Mentoring and
training
Forum
Quality assurance and control
Information Management
Tools and Techniques
Governance and Management
Information sharing and
collaboration tools
Information
management processes
Complete set of templates,
artefacts, tools
Consistent implementation
and use
Management commitment, funding and support
Measurement and reporting
Demand and resource management
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-to-end view of solution delivery maximising success and return on investment
May 11, 2015 45
May 11, 2015 46
More Information
Alan McSweeney
http://ie.linkedin.com/in/alanmcsweeney
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