Enterprise Analysis

Business Analysis
Training
Enterprise Analysis

Classification: Restricted
Agenda
• Enterprise Analysis
• What is Enterprise Analysis
• Why Enterprise Analysis
• Different Architectures
• Enterprise Analysis Activities
• Techniques Used to Define a Business Need
• Techniques Used to assess Capability Gaps
• Techniques Used to Determine Solution Approach
• Techniques Used to Define Solution Scope
• Techniques Used to Define a Business Case
• SWOT Analysis
• GAP Analysis
• Feasibility Study
• Root Cause Analysis

The BABOK describes Business Analysis areas of knowledge, their associated
activities and tasks and the skills necessary to be effective in their execution.

What is Enterprise Analysis?
Describes the Business Analysis activities necessary to identify a business
need, problem, or opportunity, define the nature of a solution that satisfies
the identified need and justify the investment necessary to deliver the
solution. Enterprise Analysis Outputs create context to requirements analysis.

Provides context to requirements analysis
and solution identification
Often serves as the starting point for
initiating a new project
Business requirements are identified and
documented through enterprise analysis
activities
Why Enterprise Analysis?

Different Architectures
The Enterprise Architecture consists of five architectures which in total
comprise
• Business Architecture
• Information Architecture
• Application Architecture
• Technology Architecture
• Security Architecture

7

Enterprise Analysis

Techniques Used to Define a Business Need

Techniques Used to assess Capability Gaps

Techniques Used to Determine Solution Approach

Techniques Used to Define Solution Scope

Techniques Used to Define a Business Case

SWOT Analysis
Strengths: characteristics of the business, or project team that give it
an advantage over others
Weaknesses (or Limitations): are characteristics that place the team at
a disadvantage relative to others
Opportunities: external chances to improve performance (e.g. make
greater profits) in the environment
Threats: external elements in the environment that could cause
trouble for the business or project.

SWOT Analysis

17

How to Conduct SWOT Analysis
Analyze the Internal & External Environment

GAP ANALYSIS

Gap analysis is a technique to identify the area of improvement in any process
ranging from Business to technology. The areas of improvement doesn’t
necessarily mean any new enhancement, it is either about finding a gap
between what is expected and what is really done.
What is Gap Analysis?

Feasibility Study

What is Feasibility Study?
An analysis and evaluation of a proposed project to determine if it (1) is
technically feasible, (2) is feasible within the estimated cost, and (3) will be
profitable.
• Feasibility study is used to determine the viability of an idea
• The objective of such a study is to ensure a project is legally and
technically feasible and economically justifiable
• It tells us whether a project is worth the investment
• It is also called as Feasibility Analysis

Why do a feasibility study
• IT IS ALL ABOUT MAKING AN INFORMED CHOICE
• It is an analysis of the viability of an idea through a disciplined and
documented process.
• A feasibility study is a management-oriented activity & should tell
management:
• Whether the project can be done
• What are alternative solutions?
• What are the criteria for choosing among them?
• Is there a preferred alternative?
• After a feasibility study, management makes a go/no-go decision.
• A feasibility study:
• Gives focus to the project and outline alternatives
• Enhances the probability of success by addressing and mitigating factors
early on that could affect the project
• Provides quality information for decision making
• Helps to increase investment in the company
• Helps in securing funding from lending institutions and other monetary
sources

What to Study What to Conclude
• Things to be studied during the feasibility study phase:
• The present organizational system (users, policies, functions,
objectives,...)
• Problems with the present system (inconsistencies, inadequacies in
functionality, performance,...)
• Objectives and other requirements for the new system (what needs to
change?)
• Constraints, including nonfunctional requirements on the system
(preliminary pass)
• Possible alternatives (the current system [status quo] is always one of
those)
• Advantages and disadvantages of the alternatives
• Things to conclude:
• Feasibility of the project and the preferred alternative

What defines a feasibility study
➢ A feasible business venture is one where
the business will generate adequate cash flow and profits,
the business will withstand the risks it will encounter,
the business will remain viable in the long-term, and
the business will meet the goals of the founders.

Types of Feasibility - TRELOS
➢T - Technology and System Feasibility
“Can it be built?”
• Technological feasibility is carried out to determine whether the
company has the capability, in terms of required technology, software,
hardware, personnel and expertise, to handle the completion of the
project
➢R - Risk Feasibility
➢E - Economic Feasibility
“Will it make economic sense if it works and is built?”
“ Will it generate PROFITS?”
• Cost-based study: It is important to identify cost and benefit factors eg.
Development costs and Operational costs. This is an analysis of the
costs to be incurred in the system and the benefits derivable out of the
system.
• Time-based study: This is an analysis of the time required to achieve a
return on investments. The future value of a project is also a factor.

Types of Feasibility - TRELOS Cont’d…
➢ L – Legal Feasibility
• It includes study concerning contracts, liability, violations, and legal other
traps frequently unknown to the technical staff.
• Determines whether the proposed system conflicts with legal
requirements, e.g. a data processing system must comply with the local
Data Protection Acts.
➢ O – Operational Feasibility
“Will it work?”
• Operational feasibility is mainly concerned with issues like whether the
system will be used if it is developed and implemented.
➢ S – Schedule Feasibility
• A project will fail if it takes too long to be completed before it is useful.
• Schedule feasibility is a measure of how reasonable the project timetable
is.

Economic Feasibility
• The bottom line in many projects is economic feasibility.
• As soon as specific requirements and solutions have been identified, the analyst
can weigh the costs and benefits of each alternative. This is called a cost-benefit
analysis
• The purpose of a cost/benefit analysis is to answer questions such as:
• Is the project justified (because benefits outweigh costs)?
• Can the project be done, within given cost constraints?
• What is the minimal cost to attain a certain system?
• What is the preferred alternative, among candidate solutions?
• Examples of things to consider:
• Hardware/software selection
• How to convince management to develop the new system
• Selection among alternative financing arrangements (rent/lease/purchase)
• Difficulties -- discovering and assessing benefits and costs; they can both be
intangible, hidden and/or hard to estimate, it's also hard to rank multi-criteria
alternative
BENEFIT COST

Types of Benefits
• Benefits may be classified into one of the following categories:
• Monetary -- when $-values can be calculated
• Tangible (Quantified) -- when benefits can be quantified, but $-values can't be
calculated
• Intangible -- when neither of the above applies
• Examples of particular benefits:
• Cost reductions
• Error reductions
• Increased throughput
• Improved time management
▪ How to identify benefits?
• By organizational level (operational, lower/middle/upper management)
• By department (production, purchasing, sales,...)

Types of Costs
• Project-related costs
• Development and purchasing costs:
• who builds the system (internally or contracted out)?
• software used (buy or build)?
• hardware (what to buy, buy/lease)?
• facilities (site, communications, power,...)
• Installation and conversion costs:
• installing the system, training of personnel, file conversion,....
• Operational costs (on-going)
• Maintenance: hardware (maintenance, lease, materials,...), software
(maintenance fees and contracts), facilities
• Personnel: operation, maintenance

Return on Investment (ROI)
• ROI is a percentage that shows what return you make by investing in
something.
ROI = (Benefit – Cost) ÷ Cost
• Example: A company invests in a project that costs $200,000. The benefit of
doing the project saves the company $230,000 in the first year alone. In this
case, the ROI = (230,000-200,000)/200,000 = 15%.
• So for ROI, Bigger is better.

Operational Feasibility
The PIECES framework can help in identifying problems to be solved, and their
urgency:
Performance -- Does current mode of operation provide adequate
throughput and response time?
Information -- Does current mode provide end users and managers with timely,
pertinent, accurate and usefully formatted information?
Economy -- Does current mode of operation provide cost-effective
information services to the business? Could there be a reduction in costs and/or
an increase in benefits?
Control -- Does current mode of operation offer effective controls to
protect against fraud and to guarantee accuracy and security of data and
information?
Efficiency -- Does current mode of operation make maximum use of
available resources, including people, time, flow of forms,...?
Services – Does current mode of operation provide reliable service? Is it flexible
and expandable?

Schedule Feasibility
• We may have the technology, but that doesn't mean we have the skills required
to properly apply that technology - The learning curve of the team members will
impact the schedule.
• Given our technical expertise, are the project deadlines reasonable? Determine
whether the deadlines are mandatory or desirable? If the deadlines are
desirable rather than mandatory, the analyst can propose alternative
schedules.
• It is preferable (unless the deadline is absolutely mandatory) to deliver a
properly functioning information system two months late than to deliver an
error-prone, useless information system on time! Missed schedules are bad, but
inadequate systems are worse

Feasibility Analysis Matrix
• How do we compare alternatives when there are multiple selection criteria
and none of the alternatives is superior across the board? - Use a Feasibility
Analysis Matrix!
• In a feasibility analysis matrix:
• The columns correspond to the candidate solutions
• Some rows correspond to the feasibility criteria
• The cells contain the feasibility assessment notes for each candidate.
• Each row can be assigned a rank or score for each criterion (e.g., for
operational feasibility, candidates can be ranked 1, 2, 3, etc.).
• After ranking or scoring all candidates on each criterion, a final ranking or
score is recorded in the last row

Example of a Feasibility Matrix
Feasibility Criteria Wt. Candidate 1 Candidate 2 Candidate 3
Operational Feasibility
Functionality. A description of to what degree the
candidate would benefit the organization and how well
the system would work.
Political. A description of how well received this solution
would be from both user management, user, and
organization perspective.
30%
Score: Score: Score:
Technical Feasibility
Technology. An assessment of the maturity, availability
(or ability to acquire), and desirability of the computer
technology needed to support this candidate.
Expertise. An assessment to the technical expertise
needed to develop, operate, and maintain the candidate
system.
30%
Economic Feasibility
Cost to develop:
Payback period (discounted):
Net present value:
Detailed calculations:
30%
Schedule Feasibility
An assessment of how long the solution will take to
design and implement.
10%
Ranking: 100%

Root Cause Analysis

• Root cause analysis (RCA) is a method of problem solving used for
identifying the root causes of faults or problems.
• The Root Cause Analysis process is also known as the “Ishikawa
Diagram” or “Fishbone Diagram.”

Topic to be covered in next session
• Requirements Engineering
• Project Scope
• Landscape of Requirements
• Properties of Requirements
• Types of Requirements
• Stakeholder
• Requirements Elicitation
• Techniques

Thank you

Enterprise Analysis

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