“Business Value: Is There
Something Missing from
the BA Toolkit?”
Laurence Lock Lee
June 2012
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“Most business leaders have no faith in IT”
- Computerworld 18th June 2012
Market research firm Vanson Bourne questioned 650
business and IT leaders
72 percent of the business leaders had no faith in IT
helping them to hit their business targets
two-thirds of the IT leaders acknowledged the lack of
faith, with 67 percent saying they do not believe "that the
business considers IT systems a help"
Most business decision-makers (65 percent) do not feel
that IT is helping them make the changes they require
The vast majority of IT leaders recognised that their systems
are not good enough, with 80 percent reporting that their IT is
not performing well
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Business Value?
Customer
Intimacy
Operational
Efficiency
Specialist
Expertise
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Chains, Shops, and Networks
Value
Chain Efficiency
Specialist
Value Expertise
Shop
Customer
Intimacy Value
Network
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Trends in Governance
Hierarchical Matrix Business
Business Trend Control Management Network
Technology Trend In-house data Distributed Pervasive
centres Computing Computing
Governance Trend Simple Complicated Complex
CynefinSensemaking Framework
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Relationship Thinking
Newtonian Thinking
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Hierarchies
• Separating the application into smaller parts produces
a hierarchy
• Hierarchies are a fundamental concept in modelling
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Regnal, Andersson&Bergstrand
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Customer Intimacy?
Specialist Expertise?
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The Problem: Decomposition Fatigue!
…and the devil is in the detail!
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Why not try some “bottom up”
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Value Network Analysis
Business Process Modeling
• BPR, Six Sigma, Lean Manufacturing
• Remove process variation, Implement
standard processes
• Drive efficiency.
Value Network Modeling
• Maximising the value achieved from
business relationship networks
• Drive effectiveness
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VNA Mapping Rules
• Ovals are Roles
• Arrow identify a value flow
• Solid lines are tangible value
• Dotted lines are intangible value
Source: Verna Allee
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Lets try it! – Analysing the Work of the BA….
Select •Identify stakeholder and those who have relationships with these.
Mapping
•Determine perceived current strength of the relationship.
Stakeholders
•Determine the stakeholder’s level of influence.
Influence Map •Determine the stakeholder’s perceived level of advocacy.
Value Flow •How does value flow between people/roles?
•What is important for these people?
Analysis
Management
•What are their goals and do they conflict?
•Segment value flows into prioritisation matrix
Action Planning •Identify specific actions (SMART) which will generate maximum
value.
•Execute Stakeholder Management Action Plan
Implementation •Monitor relationship health over time
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Who Are Our (BA) Stakeholders?
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Let’s Map Our Stakeholders….
High 5
4
Influence
3
2
Low 1
1 2 3 4
5
Low Advocacy High
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Two Types of Value
Intangible
Non-
contracted
“Extras”
E.g.
tips, feedback, references,
recommendations, predicti
ons
Tangible
Contracted
Expected
E.g. Products, Services,
Reports, Money
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Two Roles
Business IT Developer
Analyst
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Business Analyst ??
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?? Business Analyst
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Model Transformations
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Benefits Gained?
• “Intangibles” are made explicit and accountable (new value)
• “Value Flows” become “deliverables” for which roles are accountable for,
independent of if a system is being built or not (new value)
• Can move directly to “should-be” case
• Can equally well for all value scenarios (chains, shops and networks)
• Can be transformed for inclusion in ‘top down’ systems specification
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References
• Paper supporting this presentation:
http://www.optimice.com.au/documents/BusinessValueAnalysis.pdf
• Stakeholder Engagement:
http://www.optimice.com.au/stakeholderengagement.php
• General: www.optimice.com.au
• Value Networks: http://www.valuenetworks.com/
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