Business analysis1.9 - business side

© Digital Bananas Technology
Business Analysis – Business Case
By Keji Giwa

The Business Analyst
Justify Translate Communicate

Feasibility
• Feasibility
Study
• PEST Analysis
• SWOT
Analysis
• Porters 5
Forces
• GAP Analysis
• MOSCOW
Analysis
• Stakeholder
Analysis
• Requirement
Gathering
• Focus Group
• End User
Requirements
• Non Functional
Requirements
• User Stories
• Use Cases
• Process Flow
UX
• Wireframes
• Key screens
• User Journeys
• Product
Backlog
Prioritisation
Development
• Development
Plan
• Sprint Planning
Process
QA
• Test Plan
• Test Cases
• Functional &
Non Functional
Testing
• UAT
Deploy
• Dev to Staging
• Staging to Live
Your role As a Business Analyst

Justifying the Business Case
Idea Great idea
Business
idea
Profitable Scalable Sustainable
Justifiable
Business
Case

What is a Business Case?
• Justification for the project you are working on.
• Deciding factor in going ahead with the project or not.
• Helps to access the risks , viability and lucrative nature of a venture.

Contents of a Business Case
 Target audience
 § Business value
 § strategy

 Target Audience
 o Demographics
 o Behavioural patterns
 o Establish business needs, wants, don’t mind and don’t
want

 Business Strategy
 o External Business Strategy
 o Porter 5 forces
 o PESTLE
 o Competitor profiling
 o SWOT
 o Internal Business Strategy
 o MOST
 o Resource Audit
 o SWOT Analysis
 o Competitive advantage
 o USP

 Executive summary
 o What
 o How
 o When
 o Where
 o Why
 o If

 Feasibility study
 - Existing system
 o Drawbacks of existing system
 o Benefits of the existing system
 - Related System or options
 o Drawbacks of Related system
 o Benefits of the Related system
 - Proposed system
 o Drawbacks of proposed system
 o Benefits of the proposed system
 - Recommendations and evaluation

 Industry research
 o Credible research based companies
 o What happening now
 o What happened yesterday
 o What will happen tomorrow Technology
 § Industry
 § Competitors
Deliverables
o MOSCOW (must, should, could, won’t)
o IBV
o MBV
o LBV
o Define Scope of Work (Requirement specification >
translated into tech spec and communicated between dev,
design and business team from concept to execution)
Options Analysis
o Option 1
o Option 2
o Option 3
o Option 4
Resources, Infrastructure
Marketing Strategy
Operations Strategy
Cost Benefit Analysis
Evaluation

Executive Summary
Why
What
Product
Service
How
Technology
Expertise
Process
Where
Resource
Target
Market
When
Timeframe
Who
Supplier
User
If

Feasibility Study
 Is there currently an existing system?
 If there is, what is the current existing system?
 Draw back of the existing system?
 Benefits of the existing system?
 Other Options & Related Systems?
 What are the benefits and drawbacks of the other options and related
systems?
 What’s your proposed system?
 What are the draw backs & benefits of your proposed system?
 Evaluation
 Recommendations

5- “WHY” Analysis
 Using the root course
analysis to find out
causative factors and
proffer solutions with
Strategic Formulation
Model

Why?
 Asking “Why?” may be a favourite technique of your
three year old child in driving you crazy, but it could
teach you a valuable Quality Tools and lessons.
 Most of the time when it problems occur we look for
someone to blame or attempt to resolve it on the
surface not minding to find out the genesis from
where it emanates.

Why the root cause?
 In all activities in life, within one’s home, office,
religious bodies etc; problems will never stop
occurring but when it does how we handle it is very
important.
 Probing into where the problem(s) started from is
known as the ROOT CAUSE.
 To further get down to the bottom of the root cause,
a simple word – WHY- becomes imperative to use in
probing into the problems.

CEO statements
 “It is absolutely certain that you will have problems during the course
of discharging your assigned responsibilities in your position, do you
know you what; I am not interested in your problems but very keen in
how you resolve it and prevent it happening again because I have a
target.” – James Gray
 “If you don’t ask the right questions, you don’t get the right answers.
A question asked in the right way often points to its own answer.
Asking questions is the ABC of diagnosis. Only the inquiring mind
solves problems.” – Edward Hodnett

Fighting the devil
Devil [problems] is very elusive
and will never wait for anyone to
caught up with him, hence it is
always on the run to hide.
It hides away to resurface after all
seems clear and start all over
again, the new problem may be
worse than the initial occurrence.

Root cause analysis using Why
 By repeatedly asking the question WHY? – using five as
rule of thumb, one can peel away the layers of an issue just
as one peels the layers of onion which can lead to the root
cause of a problem.
 The reason for a problem can often lead into another
question; you may need to ask the question fewer or more
than five times before you get to the origin of a problem.
 The real key is to avoid assumptions and logic traps and
encourage the team to keep drilling down to the real root
cause.

When does WHY work best?
 By quickly identifying the source of an issue or
problem, you can focus resources in the correct
areas and ensure that you are tackling the true
cause of the issue, not just its symptoms.

How to use the why?
 Write down the specific problem.
 Writing it down helps you formalise the problem and describe it
accurately.
 It also helps a team focus on the same problem
 Use brainstorming to ask why the problem occurs then write the answer
down below.
 If this answer doesn't identify the source of the problem, ask ‘why?' again
and write that answer down.
 Loop back to step three until the team agrees that they have identified the
problem's root cause. Again, this may take fewer or more than five ‘whys?'

Why use the five whys?
 It helps you to identify the root causes of a problem
 It helps you to determine the relationship between different root
causes of a problem
 It is one of the simplest analysis tools as it's easy to complete without
statistical analysis
 It is easy to learn and apply

Basic Elements of a Comprehensive Root
cause Analysis Investigation
There are three steps and three tools that can be used to organize and
improve problem solving capability.
The terms failure analysis, incident investigation,
and root cause analysis are used by organizations
when referring to their problem solving approach.
Regardless of what it’s called there are three basic questions to every
investigation:
 What’s the problem(s)?
 Why did it happen (the causes)?
 What specifically should be done to prevent it

Contd.
 These questions provide the framework for all information
collection. There are also three additional tools that help organize all
the pieces of information.
 They are a timeline, diagrams/photos and the process maps. A
comprehensive investigation requires the collection of all relevant
information documented in a clear and coherent format.
 This paper provides a basic explanation of each steps and each
tool. The objective is to simplify and improve the way individuals and
groups investigate and solve problems.
 First, we’ll cover two important points that apply to every aspect of
an investigation: the importance of focusing on principles and being
specific in the communication.

Principles
 Principles of all problems are constants no matter
how small or big.
 They do not change from problem to problem.
 Likewise, the cause-and-effect principle is
fundamental to all problems.
 The cause and effect doesn’t change from one
problem to the next.
 The cause-and-effect principle can be universally
applied to equipment failures, supply chain
problems, production outages, customer service
issues and people problems.


Principle cond.
 By focusing on the principle of cause-and-effect an
organization can develop a consistent approach to
investigate and solve all problems using any of the
Quality Management Tools.
 The equipment downtime was because a part failed. We
find that the part failed because of fatigue. The next
question is “Why did it fatigue?” and the why questions
can keep going.
 Most organizations mistakenly believe that an
investigation is about finding the one cause - or “root
cause.” An effect doesn’t have one cause, an effect has
causes. The causes reveal different ways that the
problem can be solved.

Be Specific
 The word analysis means to break down into parts. Failure analysis,
problem analysis and root cause analysis all start with a problem
which is then broken down into its parts.
 The parts of a problem are the causes. The more severe the
incident the more detail that is added to the investigation.
A common mistake that organizations make in investigations is the
tendency to categorize an entire incident into one cause. As an
incident is broken down into detail, more and more causes are
revealed.

Be specific cond.
 Understanding these detailed causes reveals additional
ways that the problem could possibly be solved. As the
causes get more specific the solutions also get more
specific. Problems are not solved in general.
 Problems are solved when specific action is taken. “The
devil is in the details.”
 Organizations may try to group an entire investigation
into one category. This makes the incident more general,
not more specific.

Be specific cond.
 incident more general, not more specific.
 The five favourite generalizations organizations mistakenly
use are:
 human error – normal to all organization
 procedure not followed – SOP may not be in place or non-
conforming
 equipment failure – fake spare parts inadequacy of skills
 training inadequate – depending on organization
 design – right from the on set of the factory inception
 Many groups believe that the end of an investigation has
been reached if they can get to one of these five
categories. Don’t stop too early – ask two or three more why
questions to get more specific information.

The fish-bone problem solving template

Cause and effect of Root Cause Analysis
 Most operational problems are always and better solved
in group or in a team setup. When utilizing a team
approach to problem solving, there are often many
opinions that would be suggested by team members as
to the problem’s root cause.
 One way to capture these different ideas from team
members and stimulate the team’s brainstorming on root
causes is the cause and effect diagram, commonly
called a fishbone. The fishbone will help to visually
display the many potential causes for a specific
problem or effect.

Cause and effect diagram template
 The fishbone has an ancillary benefit as well. Because people by
nature often like to get right to determining what to do about a
problem, this can help bring out a more thorough exploration of the
issues behind the problem – which will lead to a more robust
solution.
 To construct a fishbone start with stating the problem in the form of a
question; such as “Why is the filling machine always malfunctioning
during the filling of powder food product?”

C&E contd.
 Framing it as a “why” question will help in brainstorming,
as each root cause idea should answer the question. The
team should agree on the statement of the problem and
then place this question in a box at the “head” of the
fishbone. Fishbone chart is a key tool for root cause
analysis in solving operations problems.
 The rest of the fishbone then consists of one line drawn
across the page, attached to the problem statement, and
several lines, or “bones,” coming out vertically from the
main line. These branches are labelled with different
categories. The categories you use are up to you to
decide. There are a few standard choices:

Table 1: Fishbone Suggested Categories
Service Industries
(The 4 Ps)
Manufacturing Industries
(The 6 Ms)
Process Steps
(for example)
 Policies
 Procedures
 People
 Plant/Technology
 Machines
 Methods
 Materials
 Measurements
 Mother Nature
(Environment)
 Manpower
(People)
 Determine Customers
 Advertise Product
 Invent Purchase
 Sell Product
 Ship Product
 Provide Upgrade

Fishbone template
 Draw the head of the fish with a chevron diagram -
Head of the fish represents the core issue or the ‘event’.
Let us say, the issue is ‘Defects in production’.
 Then draw the vertebral column of the fishbone on which
all other problems will be hanging on.
 The big bones are the possible causes for the event. For
example, the general causes could be categorized under
People, Methods, Machines, Materials, Measurement and
Environment. We represent these causes by drawing a
chevron for each cause
Filling defects

Contd.
 This forces us to consider the issue from all relevant
angles. Note the use of arrows to represent the
direction of flow of information.
 We draw a horizontal arrow for the spine (usually
thicker than the other arrows) and an arrow each
originating from the main causes.
 It is good practice to draw one arrow and make
multiple copies, rather than drawing separate arrows
each time.
 This ensures that the diagram has a consistent look
and feel

Contd.
 The next step is to note down details under each of the
causes. Focus on one cause at a time. This way, you will
not be distracted by unconnected issues. It is not
uncommon to see multiple layers of underlying causes for
each of the big cause categories.

People
 You should feel free to modify the categories for your project and subject matter.
 Once you have the branches labelled, begin brainstorming possible causes and
attach them to the appropriate branches. For each cause identified, continue to
ask “why does that happen?” and attach that information as another bone of the
category branch. This will help get you to the true drivers of a problem.
 The diagram format is used in…
 Project presentations to showcase root cause analysis
 Brainstorming session for developing new product design
 Review sessions for Quality defect prevention etc.
 The main benefit of the tool is – it helps you explore all the potential causes for
an event, without biases. It is a diagram you must have at your disposal if you
make strategic or leadership related presentations.

Gap Analysis
1. Develop
Requirement
s
2.
Comparison
(As is / To
be)
3.
Implication
Analysis
4.
Recommend
ations
5. Review
System

Gap Analysis

Target Audience
 Who is your target audience
 Focus groups
 Surveys
 Purchase industry, consumer and market research and intelligent data
 Defining Demographics
 Age
 Location
 Gender
 Income level
 Education level
 Marital or family status
 Occupation
 Ethnic background
 Geographic Targeting
 Psychographic profiling
 Personality
 Attitudes
 Values
 Interests/hobbies
 Lifestyles
 Behavior
 Behavior pattern

Industry Research, Trends & Predictions
 Reliable & independent source
 Research based companies (Mintel, Neilson etc)
 What’s happening Now
 What happened yesterday
 What will happen in the future
 Market share
 Technology & Innovation
 Strategy
 Funding
 People

Business Strategy Analysis
 External Environment
 PESTLE
 Porter 5 Forces

PEST Analysis

Factor Likely to include
Political
What are the key political drivers of
relevance?
Worldwide, European and Government directives, funding council
policies, national and local organisations' requirements,
institutional policy
Economic
What are the important economic
factors?
Funding mechanisms and streams, business and enterprise
directives, internal funding models, budgetary restrictions, income
generation targets
Social
What are the main societal and
cultural aspects?
Societal attitudes to education, particularly in relation to
government directives and employment opportunities. Also general
lifestyle changes, changes in populations, distributions and
demographics and the impact of different mixes of cultures
Technological
What are current technology
imperatives, changes and
innovations?
Major current and emerging technologies of relevance for teaching,
research or administration
Legal
Current and impending legislation
affecting the role
European and national proposed and passed legislation
Environmental
What are the environmental
considerations, locally and further
afield?
Local, national and international environmental impacts, outcomes
of political and social factors

political
•ecological/environmental issues
•current legislation home market
•future legislation
•international legislation
•regulatory bodies and processes
•government policies
•government term and change
•trading policies
•funding, grants and initiatives
•home market lobbying/pressure groups
•international pressure groups
•wars and conflicts
economic
•home economy situation
•home economy trends
•overseas economies and trends
•general taxation issues
•taxation specific to product/services
•seasonality/weather issues
•market and trade cycles
•specific industry factors
•market routes and distribution trends
•customer/end-user drivers
•interest and exchange rates
•international trade/monetary issues
social
•lifestyle trends
•demographics
•consumer attitudes and opinions
•media views
•law changes affecting social factors
•brand, company, technology image
•consumer buying patterns
•fashion and role models
•major events and influences
•buying access and trends
•ethnic/religious factors
•advertising and publicity
•ethical issues
technological
•competing technology development
•research funding
•associated/dependent technologies
•replacement technology/solutions
•maturity of technology
•manufacturing maturity and capacity
•information and communications
•consumer buying mechanisms/technology
•technology legislation
•innovation potential
•technology access, licencing, patents
•intellectual property issues
•global communications

Business Strategy Analysis
 Internal Capabilities
 VMOST / MOST Analysis
 Resource Audit
 Boston Box
 SWOT Analysis
 Ansoff’s Matrix

Resource Audit
Digital Bananas
Technology
Finance
Physical
Human
Know howreputation

Most Analysis
 V – Vision:
 M – Mission
 O – Objectives
 S – Strategy
 T – Techniques

Boston Box
Market growth
Market share
Wild cat /
problem
child
Star
Dog
Cash
cow
High
Low
Low High

Ansoff’s Box
Markets
Products
Market
Penetration
Product
Development
Market
Development
Diversification
Existing
New
Existing New

Strategy Definition
 Competitor profiling
 SWOT Analysis
 Competitor - PESTLE
 Business - PESTLE
 Competitive advantage
 Unique Selling Point
 Define Deliverables

Competitive Analysis
 Competitor analysis in marketing and
strategic management is an assessment of the
strengths and weaknesses of current and
potential competitors. This analysis provides both an
offensive and defensive strategic context to identify
opportunities and threats relating to the business.
Profiling all of the relevant sources of competitor
analysis into one framework in the support of
efficient and effective strategy formulation,
implementation, monitoring and adjustment.

Competitor Array
 One common and useful technique is constructing
a competitor array. The steps include:
 Define your industry - scope and nature of the industry
 Determine who your competitors are
 Determine who your customers are and what benefits
they expect
 Determine what the key success factors are in your
industry
 Rank the key success factors by giving each one a
weighting - The sum of all the weightings must add up to
one.
 Rate each competitor on each of the key success factors
 Multiply each cell in the matrix by the factor weighting.

Competitor Profiling
 Background
 Financials
 Products
 Marketing
 Facilities
 Personnel
 Corporate and marketing strategies

Program
 Event Horizon (community of enquirers and a library of
business cards based on recommendations available on
smartphones) (JBC)
 Android (JBC)
 iPhone (JBC)
 Web Portal (JBC)
 Emerging Market Based Program
 Job board
 Ecommerce for ordering flowers
 Property search
 Prometheus - GMW
 1,2,3
 TAMF
 Project Insights – Career Insights
External Internal

SWOT Analysis
Strengths Weaknesses
Opportunities Threats
SWOT

SWOT Analysis

Risk Management

Risk Analysis – What Risk? What If? What Now?

Risk Identification

Risk Estimation

Risk Calculation

Risk Evaluation

SMART
Specific Measurable Achievable Realistic
Time
Bound

Deliverables
• User requirements (use cases)
o Prioritise – MOSCOW
 Must
 Should
 Could
 Won’t
• Modules / Functionality
o Prioritise – MIN
 Must have
 Important but not urgent
 Nice to have

Must / BV
End User
Needs
Should /
BV
End User
Wants
Could /
BV
End User
Don’t Mind
Won’t /
BV
End User
Don’t Want
End user requirements based on business
value

Prioritising Requirements
Input
Bottom
Line
Bigger
Picture
Business Value
Business Needs
/ Success
Criteria
Opinions
Facts
End User Led
User
Requirements
Need
Want
Don’t Mind
Don’t Want

Needs Based Analysis using MOSCOW
Must Have
Important & Urgent
Should Have
Not Urgent But Important
Urgent But Not Important
Could Have
Not Urgent / Not Important
(Nice to Have)
Won’t Have
Not in Scope
Business Critical
Requirements
Time, Budget, Resources /
Benefits

Defining the Scope of the Project
Scope
Acceptance
Criteria
Must
Must be implemented
within the allocated
time, budget and
resources
Quality Expectations
Should
Only to be implemented
if there is spare time,
budget or resources
from allocation
Could
Only to be implemented
if allocated time, budget
or resources can be
extended
Not In
Scope
Won’t
Will not be
implemented within
the scope of work

Strategy Implementation
 McKinsey 7-S

Performance Measurement
 CSF - Critical Success Factor
 Industry specific CSF: Requirements for effective
performance within industry sector
 Organisation specific CSF: Competitive advantage over
competitors
 KPIs – Key Performance Indicators
 Areas to be monitored in order to determine whether the
required levels of performance has been achieved.

Cost Benefit Analysis
• Benefits (ROI)
o Revenue model
o Time
o Quality
o Customer satisfaction
Measure against
• Cost of
o Resources
o Technology
o Time
o Quality
o Risk

Revenue Model
1. Marketing
Strategy
2. Sales
Strategy
3. Operational
Strategy

Revenue Model: Creating Value for Customers

Revenue Model: Competitive & Sustainable Business Model

Revenue Model: Options Analysis
 Option 1
 Option 2
 Option 3

Cost: Resources & Budget
 Fixed
 R & D
 Initial development cost
 Fixed technology cost
 Consultancy
 Legal
 Variable
 Operating cost: On going development cost
 Maintenance
 PR
 Marketing
 Admin

Options Analysis
 Option 1- Revenue Model & CBA
 Cost
 Revenue Model
 Benefit Analysis
 Cost
 Revenue Model
 Cost
 Revenue Model

Evaluation & Investment Appraisal
 Review cost benefit analysis and make
recommendation.

Business analysis1.9 - business side

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