Carey Schwaber Rob Karel Senior Analyst Principal Analyst


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  • Cut down on text
  • Voiceover - we need to point out that there are likely multiple types of business analysts working on each "responsibility" described. For example, Business Analyst type 1 working on customer information service will likely work closely with information quality business analyst to support that effort.
  • Call out text: " Business oriented analysts will either partially or fully have a focus on business process " – animate during voiceover.
  • CS: Let’s break this into multiple slides
  • Highlight simulation tools and business process management tools as particular empowering and particularly challenging to learn
  • Isn’t this a trend, i.e. dynamic apps such as BPM suites and project-based solutions continue to mature to enable business process agility, thus enabling BAs but also challenging them to add to their took kit and sharpen their skills
  • Carey Schwaber Rob Karel Senior Analyst Principal Analyst

    1. 1. November 9, 2007. Call in at 12:55 p.m. Eastern Time Carey Schwaber Rob Karel Senior Analyst Principal Analyst Forrester Research Teleconference The New Business Analyst
    2. 2. Theme The business analyst role is increasingly important. Previously distinct types of business analysts are starting to converge as the lines between business and IT disappear.
    3. 3. Agenda <ul><li>Why do business analysts matter? </li></ul><ul><li>Who is a “business analyst”? </li></ul><ul><li>Where do business analysts come from? </li></ul><ul><li>Recommendation and WIM </li></ul>
    4. 4. Agenda <ul><li>Why do business analysts matter? </li></ul><ul><li>Who is a &quot;business analyst&quot;? </li></ul><ul><li>Where do business analysts come from? </li></ul><ul><li>Recommendation and WIM </li></ul>
    5. 5. Definition <ul><li>Business analysts are responsible for measuring and improving business process, information, and experience within a technology and/or policy context </li></ul>
    6. 6. Today’s business analysts are central to navigating a rapidly changing business environment <ul><li>Business analysts have always mattered . . . </li></ul><ul><li>. . . but the following trends put BAs in the eye of the storm: </li></ul><ul><ul><li>Enterprisewide IT initiatives </li></ul></ul><ul><ul><li>Complex IT sourcing strategies </li></ul></ul><ul><ul><li>Customer-facing business processes </li></ul></ul><ul><ul><li>Service-oriented architecture </li></ul></ul>
    7. 7. Trend No. 1: Enterprisewide IT initiatives <ul><li>IT organizational structure reflects business organizational structure, perpetuating stovepiping. </li></ul><ul><li>IT initiatives increasingly span business units, functions, and architectures. </li></ul><ul><ul><li>SOA, information-as-a-service </li></ul></ul><ul><ul><li>Master data management </li></ul></ul><ul><ul><li>Consolidation of ERP and CRM instances </li></ul></ul><ul><li>Gathering requirements for projects that span business units, functions, methods, and architectures is even more difficult. </li></ul>
    8. 8. Trend No. 2: Complex IT sourcing strategies <ul><li>IT shops source projects or parts of projects to get the best expertise at the lowest price. </li></ul><ul><ul><li>Acquisition of packaged applications </li></ul></ul><ul><ul><li>Outsourcing individual functions like testing </li></ul></ul><ul><ul><li>Establishment of captive offshore facilities </li></ul></ul><ul><li>Inability to communicate requirements leads to poor outcomes. </li></ul><ul><ul><li>“ They built what we asked for, but not what we needed.” </li></ul></ul><ul><li>Having more and better business analysts — and better use of existing ones — improves communication between customer and provider. </li></ul>
    9. 9. Trend No. 3: Customer-facing business processes <ul><li>Increased exposure of business processes directly to customers </li></ul><ul><ul><li>Airlines: flight reservations systems </li></ul></ul><ul><ul><li>Retailers: in-store kiosks </li></ul></ul><ul><ul><li>Educational organizations: registrar systems </li></ul></ul><ul><li>Building customer-facing business processes requires intimate knowledge of customer needs and behaviors. </li></ul><ul><li>Analysis of customer requirements is harder: </li></ul><ul><ul><li>Customers aren’t committed to your success </li></ul></ul><ul><ul><li>Customers don’t know what their requirements are </li></ul></ul>
    10. 10. Trend No 4: Service-oriented architecture <ul><li>Easier integration destabilizes requirements. </li></ul><ul><ul><li>Twenty apps use a service originally designed for a single app. </li></ul></ul><ul><ul><li>Partners use a service originally designed for internal use only. </li></ul></ul><ul><li>Business processes branch, with one process potentially invoking multiple and diverse services. </li></ul><ul><li>The credit check step in a loan application process might: </li></ul><ul><ul><li>Call a single service or fire off parallel and simultaneous credit checks from multiple agencies </li></ul></ul><ul><ul><li>Conduct a different number of credit checks for customers requesting different size loans </li></ul></ul>
    11. 11. Strong business analysts are necessary to survive in this new IT environment <ul><li>The business is asking IT to take on larger and more important initiatives. </li></ul><ul><li>IT is using more diverse delivery teams to assemble solutions out of more smaller components. </li></ul><ul><li>This creates: </li></ul><ul><ul><li>Greater risk </li></ul></ul><ul><ul><li>Greater complexity </li></ul></ul><ul><ul><li>Increased need for improved communication and collaboration </li></ul></ul>
    12. 12. Agenda <ul><li>Why do business analysts matter? </li></ul><ul><li>Who is a “business analyst”? </li></ul><ul><li>Where do business analysts come from? </li></ul><ul><li>Recommendation and WIM </li></ul>
    13. 13. Enterprises want to know what a “standard” business analyst does “ I am currently involved in defining role specifications, career ladders, and competences for IT business analysts and would appreciate some input from Forrester on the industry standards and expectations from a business analyst.” (Pharmaceutical company)
    14. 14. But “business analyst” is an overloaded term Six types of business analyst Business analyst Business-oriented business analyst IT-oriented business analyst Generalist business analyst Domain-oriented business analyst Information-oriented business analyst User-experience-oriented business analyst Process-oriented business analyst Cross-functional business analyst Function-oriented business analyst Financial business analyst Marketing business analyst Human resource business analyst …
    15. 15. Introducing two types of business-oriented business analysts <ul><li>1 Jim Stuart, business-oriented, cross-functional BA </li></ul><ul><li>Responsible for the implementation of a customer information service for all LOBs </li></ul><ul><li>Was previously the business sponsor for a CRM implementation </li></ul><ul><li>Now reporting into a process quality team </li></ul><ul><li>Is an active data steward and drives agreement on customer information quality standards </li></ul><ul><li>Is starting to apply Lean Six Sigma and other process improvement methodologies </li></ul><ul><li>2 Susan Hendrickson, business-oriented, function-oriented BA </li></ul><ul><li>Responsible for measuring and optimizing the leads process </li></ul><ul><li>Reports into the sales organization </li></ul><ul><li>Was previously in sales support </li></ul><ul><li>Uses business process analysis tools like Casewise </li></ul><ul><li>Occasionally works with IT to implement changes in Siebel </li></ul>
    16. 16. Introducing the IT generalist business analyst <ul><li>3 David Chui, IT-oriented generalist business analyst </li></ul><ul><li>Part of a team reporting into the PMO </li></ul><ul><li>Works with a wide range of business units served by a centralized applications organization </li></ul><ul><li>Documents business requirements as use cases </li></ul><ul><li>Works with architects to translate requirements into models and specifications </li></ul><ul><li>Works in Microsoft Word and Visio and stores requirements in a requirements management tool </li></ul><ul><li>Also works to define requirements for packaged application acquisitions </li></ul>
    17. 17. Introducing three types of domain-oriented IT business analysts <ul><li>IT-oriented, domain-oriented business analysts </li></ul><ul><li>4 Jon Timson, process </li></ul><ul><li>Defining business and IT requirements for changes to claims processing apps </li></ul><ul><li>Interested in business process management tools and business rules engines </li></ul><ul><li>5 Elaine Stuart, information </li></ul><ul><li>Data quality expert responsible for definition and implementation of data standardization, cleansing, enrichment, matching, and de-duplication rules </li></ul><ul><li>Reports into the enterprise architecture group </li></ul><ul><li>6 Janine Morrison, usability </li></ul><ul><li>Part of the usability/interaction design team </li></ul><ul><li>Creates prototypes and simulations for Web-based apps </li></ul><ul><li>Reports into the eBusiness group but works closely with app dev </li></ul>
    18. 18. Different BAs for different types of initiatives Business-oriented IT-oriented SAP implementation Employee onboarding process improvement B2C eCommerce site redesign Customer data quality initiative Legacy migration No involvement Some involvement Full involvement Cross- functional Function- specific Generalist Domain- oriented
    19. 19. Business analysts are only slightly more likely to report into IT Base: 230 current business analysts Most often into a LOB (42%), marketing (12%), operations (9%), or a process quality team (6%) Most often into applications, (50%), IT operations (8%), or architecture (8%) Business executive 43% IT executive 57%
    20. 20. Business analysts work most closely with the business, no matter where they report Base: 230 current business analysts “ With whom do you most often collaborate? Please select the top three.” 88% 29% 24% 52% 40% 21% 27% 39% 37% 25% 19% 11% 9% 5% 5% 5% 5% 70% 29% 21% 9% 7% 4% 10% 2% 7% Business customers and/or subject matter experts Project manager Internal end users IT developer Other business analysts Development lead IT architect External clients/customers Designers/usability engineers Change management practitioners Business architect QA/tester - Rank Other (please specify) Business analysts reporting into IT Business analysts reporting into the business
    21. 21. In practice, many business analysts are generalists Business IT The bulk of the business analyst population
    22. 22. Agenda <ul><li>Why do business analysts matter? </li></ul><ul><li>Who is a “business analyst”? </li></ul><ul><li>Where do business analysts come from? </li></ul><ul><li>Recommendation and WIM </li></ul>
    23. 23. As BA roles blur, BA skills cross <ul><li>While today we illustrated six different types of business analysts, these roles are converging. </li></ul><ul><ul><li>Those from the business are more involved in IT than before. </li></ul></ul><ul><ul><li>Those from IT are more involved in the business. </li></ul></ul><ul><li>The skill sets that different types of business analysts require are becoming less and less distinct. </li></ul>
    24. 24. The hunger for qualified business analysts “ We would like to speak to an analyst about companies who provide training, mentoring, and consulting regarding business analysis. I am trying to build a center of excellence for business analysis as part of the IT development life cycle, including best practices, processes, and tools.” (Manufacturing company)
    25. 25. It’s soft skills, not technical, that make a great business analyst “ How important is it for business analysts to possess the following skills? Please rank these skills from 1 to 5, where 5 is the most important and 1 is the least.” Base: 230 current business analysts
    26. 26. Business analysts come from all over the enterprise . . . Base: 338 current and former business analysts “ Which of the following roles have you held in the past?” Other prior roles include trainer, sales rep, customer service rep, development lead, statistician, and operations analyst.
    27. 27. . . . but generally want to work in the business, not IT “ What do you see as the next step in your career?” Base: 230 current business analysts Other responses include program manager, product manager, and strategy consultant. Plus, 5% of respondents want to remain business analysts. 41 35 32 27 56 14 10 6 7 14 1 1, 1, 40 37 34 30 7 23 22 12 9 6 5 1, 2, 34 37 30 24 8 27 19 17 17 20 6 4 3 Project manager Business SME Business function manager (finance, etc.) Line-of-business manager Other Relationship manager Lean Six Sigma Black Belt, etc. Change management practitioner Architect Designer/usability engineer Power user Tester/QA Developer Choice No.1 Choice No. 2 Choice No. 3
    28. 28. Business analysts are a seasoned bunch Base: 230 current business analysts “ How many years of experience do you have as a business analyst?” Less than one year 5% One year but less than three years 20% Three years but less than 5 years 22% Five years but less than 10 years 36% More than 10 years 17%
    29. 29. But business analysts are forced to learn as they go <ul><li>The most common source of training for business analysts is on-the-job training by their peers, managers, and mentors (78%). </li></ul><ul><li>Business analysts supplement this with various other sources, foremost amongst them Web sites, blogs, and wikis (63%). </li></ul><ul><li>Just over half (58%) of business analysts have received official training from their companies. </li></ul><ul><li>Less than a fifth (18%) have received training directly applicable to their business analyst role from institutions of higher learning. </li></ul><ul><li>And 27% are part of industry associations, with the International Institute Of Business Analysis (IIBA) and the Project Management Institute (PMI) most commonly cited. </li></ul>Base: 230 current business analysts
    30. 30. With the advent of new tools, this will have to change Base: 230 current business analysts &quot;Which of the following tools do you use in your job as a business analyst?&quot;
    31. 31. Agenda <ul><li>Why do business analysts matter? </li></ul><ul><li>Who is a “business analyst”? </li></ul><ul><li>Where do business analysts come from? </li></ul><ul><li>Recommendations and WIM </li></ul>
    32. 32. Recommendations <ul><li>Communicate the strategic nature of the business analyst role. </li></ul><ul><li>Assess current inventory of business analysts and fill in gaps through hiring or training. </li></ul><ul><li>Establish clear career paths for business analysts on both sides of the fence. </li></ul><ul><ul><li>The subject matter expert path, with specialization in a function or methodology </li></ul></ul><ul><ul><li>The generalist path, with graduation to a leadership role in the business or IT </li></ul></ul><ul><li>Evaluate technologies that will enable business analysts to: </li></ul><ul><ul><li>Better understand and represent business needs </li></ul></ul><ul><ul><li>Contribute directly to the fulfillment of these needs </li></ul></ul><ul><ul><li>Improve collaboration between business and IT stakeholders </li></ul></ul>
    33. 33. Dynamic applications will drive the evolution of the business analyst role <ul><li>Business analysts will have to understand and learn to operate in the context of new technologies and architectures. </li></ul><ul><li>This lets them leverage services and assemble them into new apps. </li></ul><ul><li>This new assembly development paradigm will transform business analysts from definers to implementers. </li></ul><ul><li>This is a critical enabler for Dynamic Apps and the transition from IT to BT. </li></ul>
    34. 34. Thank you Carey Schwaber +1 617.613.6260 [email_address] Rob Karel +1 650.581.3821 [email_address]
    35. 35. Selected bibliography <ul><li>September 24, 2007, “ The Dynamic Business Applications Imperative” report </li></ul><ul><li>September 10, 2007, “Data Governance: What Works And What Doesn’t” report </li></ul><ul><li>September 1, 2006, “The Root Of The Problem: Poor Requirements” report </li></ul><ul><li>January 12, 2007, “For Process Modeling, Business Analysts And Developers Are Better Together” report </li></ul><ul><li>January 12, 2007, “BPM Best Practices For Process Professionals” report </li></ul><ul><li>November 22, 2006, “Navigating The BxM Acronym Maze” report </li></ul>