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The Role of the Business Analyst in Benefits


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Talk by Jayesh Patel, British Gas on the role of the business analyst in benefits. Thames Valley IIBA branch - 24th July 2012

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The Role of the Business Analyst in Benefits

  1. 1. The Business AnalystRole in Project Benefits Thames Valley IIBA Event Jayesh Patel Date : 24 July 2012© British Gas Trading Limited 2011
  2. 2. Agenda • Introduction into Benefits • The Project • BA Role during Project Lifecycle • Project Challenge • BA Approach & Tools • BA in Release Planning • Q&A • Take Aways© British Gas Trading Limited 2011Slide 2
  3. 3. Introduction into BenefitsDefinition of a Benefit: ... The measurable improvement resulting for an outcome that is perceived as an advantage by one of more stakeholders and which contributes towards one or more organisational objective(s) (PRINCE2).© British Gas Trading Limited 2011Slide 3
  4. 4. Benefits – The Challenge• Some statistics…..• Studies show that over 70% of business improvement projects fail to deliver their expected benefits, and even when they are achieved in part, often they are far from fully realised (InfoWorld report)• Fewer than 12% of companies can accurately measure the business impact of their IT investments (InformationWeek summary of survey and interview research)• 41% of projects failed to deliver the expected business value and ROI (Tata Consultancy Study)• When the true costs are added up, as many as 80% of technology projects actually cost more than they return. It is not done intentionally but the costs are always underestimated and the benefits are always overestimated (Mercer study)• 50% of CEOs and CFOs agreed with the statement “I do not feel my organisation is getting the most for its information systems investment” (Computerworld survey quoted in The Information Paradox)© British Gas Trading Limited 2011Slide 4
  5. 5. Type of BenefitsTangible Intangible© British Gas Trading Limited 2011Slide 5
  6. 6. Why do we do projects? “The role of IS is to deliver a capability to the business – the solution MUST enable the benefits to be delivered” (British Gas Head of IS Change Finance)© British Gas Trading Limited 2011Slide 6
  7. 7. Typical Benefits Categories in Business Cases• Cost Reduction in Operating Costs• COGS (Cost of Goods Sold)• Revenue Growth• Margin Enhancement• Cost Avoidance in Operating Costs© British Gas Trading Limited 2011Slide 7
  8. 8. Benefits and the Project Life CycleSlide 8
  9. 9. How BAs can add value in relation to Benefits• The level of sophistication across the business in relation to benefits varies greatly• There needs to be increased emphasis to ensure that it is possible to measure what has changed between As Is and To Be >translate this into quantifiable financial benefit• Project costs are visible – benefits are more difficult to isolate and measure – this is a challenge for everyone• MI should not always be an afterthought – it is often required to be able to measure benefits• Business Analysts can play a key role in relation to business stakeholders and other IS stakeholders such as project managers© British Gas Trading Limited 2011Slide 9
  10. 10. The Project Replacing current paper + manual entry quoting process with automated solution From… To… Quote captured by engineer in field and sent via email to customer and British Gas Office Paper based Quoting •Business Case Benefits: £6m over 4 years for British Gas Services businesses Field Back Office  An increase in quotes generated by engineers  System stability  More consistency in quoting (increase in Revenue)  Ease of telesales  Real time Pricing update (ability to run campaigns)  Facilitating new markets e.g. Solar, Electric Vehicles  Paperless quoting  Improved controls on margins © British Gas Trading Limited 2011Slide 10
  11. 11. The Project (2)• Agile (SCRUM) software development• 42 Functional Requirements in High Level Requirements Specification at end of Shaping phase• Produced 5 Epics and 105 user stories – Create Quote – Progress Quote – Manage Packs – Housekeeping – Performance Tracking• End of Mobilisation phase ~166 user stories• During Build phase ~maximum 196 user stories© British Gas Trading Limited 2011Slide 11
  12. 12. Agile (Scrum) Overview© British Gas Trading Limited 2011
  13. 13. Allocating User Stories to Sprints Product Backlog Sprint Backlog 1 User Stories further refined and prioritised 2 User Stories are selected during the current from the Product Backlog by Sprint to be ready 3 the Product Owner at the for the next Sprint Planning meeting Sprint(s) 4 5 6© British Gas Trading Limited 2011
  14. 14. Prioritising Refinement of the Product Backlog Next Sprint Fine grained and Product Backlog detailed User Stories, ready to be used in a Sprint (Estimated at lessProduct Backlog Schedule than the Sprint duration) Medium sized There is limited requirements, value expending typically large User effort on stories Stories. (Could be a Release) scheduled for Sprint 9 when in Sprint 2 Course grained requirements, Epics. (Could be future releases) Last Sprint © British Gas Trading Limited 2011
  15. 15. Agile - Iterative Process Product Backlog Benefits Business Prioritisation £££ Analyst Business Value© British Gas Trading Limited 2011Slide 15
  16. 16. Project User StoriesCategorised User Stories into 8 Minimum Marketable Feature (MMF) sets to aid Release Planning: 1. Fast Quote 2. Complicated Quote 3. Create Quote in Office 4. Progress Accepted Quote 5. Progress Deferred Quote 6. Product Management 7. MI Reporting 8. System Configuration© British Gas Trading Limited 2011Slide 16
  17. 17. BA Role during Project Lifecycle Idea Shaping Mobilise Build Implement• Define Options • Gather • Communicate • Clarify • Support Training• Define business requirements requirements requirements • Support needs & • Analyse • Elaborate • Prioritisation Implementation objectives requirements requirements of the Product of measures• Identify • Prioritise • Create Product Backlog • Support benefits Requirements Backlog • Manage Business • Define Measures • Ensure & Product Backlog Readiness • Mapping/tracing manage the • Assessment benefits to quality of Stories of business requirements and • Identification & value & impact objectives tracking of gaps, on project • Communicate synergies & • Requirements requirements dependencies Specification &Solution Design & Product Backlog Traceability • Support Change Requests • Support TestingKeyRed Text = activities directly linked to benefits © British Gas Trading Limited 2011 Slide 17
  18. 18. Project Challenge Cost Time Quality© British Gas Trading Limited 2011Slide 18
  19. 19. BA Approach & Tools • Utilised Product Owners to proportion benefits from Business Case into Minimum Marketable Feature (MMF) Set • Extracted Product Backlog from Mingle into MS Excel spreadsheet • Filtered User Stories by status, priority, business value and story points • Joint working with Solution Architect and Scrum Master to assess which MMF could be delivered in a Release taking into account technical constraints • Selected high business value User Stories that should be implemented for an MMF • Prioritisation of MMF into a Release and graphical representation (see subsequent slides)© British Gas Trading Limited 2011Slide 19
  20. 20. Benefit Driven Requirements Minimum Marketable Feature Field (nn% of Office (nn% of Set business case) business case) £n.nn Million £n.nn Million Fast Quote 80% 0% Complicated Quote 20% 0% Create Quote in Office 0% 30% Progress Quote & Print Partner 0% 35% Product Management 0% 20% Operational Reporting 0% 10% Performance Tracking (MI) 0% 2% Housekeeping 0% 3% 100% 100%© British Gas Trading Limited 2011Slide 20
  21. 21. Multiple Releases£3,500,000£3,000,000£2,500,000£2,000,000£1,500,000 Benefit£1,000,000 Cost Net Benefit £500,000 £0 -£500,000-£1,000,000-£1,500,000 Release 1 Release 2 Release 3 Time Slide 21
  22. 22. Single Release£6,000,000£5,000,000£4,000,000£3,000,000 Benefit£2,000,000 Cost Net Benefit£1,000,000 £0 Release 1 Release 2 Release 3-£1,000,000-£2,000,000 Time Slide 22
  23. 23. Benefit delivered by ReleasesSlide 23
  24. 24. BA in Release Planning Earlier ReleaseChallenge Prioritisation Benefits Management Realisation BA Enabler to help make decisions © British Gas Trading Limited 2011 Slide 24
  25. 25. Questions© British Gas Trading Limited 2011Slide 25
  26. 26. Summary Introduction into Benefits The Project BA Role during Project Lifecycle Project Challenge BA Approach & Tools BA in Release Planning© British Gas Trading Limited 2011Slide 26
  27. 27. Take Aways – As a BA you can do this!Business Analysts can become involved and add value at every stage of the life cycle by using their skills in• Identifying, defining and shaping benefits• Prioritising benefits• Mapping/tracing benefits to requirements and objectives• Prioritising and challenging of requirements• Defining measures and the information to support them• Gathering information• Championing benefit realisation• Influencing implementation• Documenting and reporting benefits realisation• Challenging and facilitating© British Gas Trading Limited 2011Slide 27
  28. 28. Thank you Jayesh Patel Business Analyst British Gas© British Gas Trading Limited 2011