MODULE I_Final.ppt

1
Business Analytics and
Intelligence
Module Number: I
Origin of Business Analysis

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Syllabus
Introduction to business analysis, the rationale for business analysis, the
development of business analysis, the scope of business analysis, Business strategy
analysis, The strategic context, Strategic analysis techniques, SWOT analysis,
Implementing strategy. The responsibilities of a business analyst, The Business
Analysis Maturity Model, The competencies of a business analyst.
Business Analytics and Intelligence

3
AIM:
To acquaint the students with fundamentals of business analytics and its importance in a business
through the application of various business analysis models.

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Objectives:
1. To learn the fundamentals and origin of business analysis.
2. To explain the different business strategy applicable for sustainable business.
3. To equip students with responsibilities and competencies of a business analyst.

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Learning Outcome :
At the end of the Chapter, Students are expected to:
1. Outline the rationale of business analysis and its development.
2. Develop a business strategy techniques and implement for betterment of the business.
3. Explain the key responsibilities of business analyst.
4. Recognize the competencies required for a business analyst.

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Table of Content:
• Introduction of Business Analysis
• The Rationale of Business Analysis
• Development of business analysis
• Scope of Business Analysis
• Business Strategy Analysis
• The strategic context
• Strategy analysis techniques
• SWOT analysis
• Implementing Strategy
• Responsibilities of Business Analyst
• The Business Analysis Maturity Model
• The Competencies of a Business Analyst
• Summary
• Self Assessment Questions
• Document Link
• Video Link
• E book Link

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Introduction of Business Analysis
Defined as a practice that is used to link diverse stakeholders in order to know a business’s
requirements, structure, policies, and operations to discover solutions which help the business to
achieve its preferred objectives.
Business analysis is considered to be a important role for any business. The solutions such as
identifying requirements of business, preparing appropriate documents, analyze the process and
change requirements of an organization for the development of the business.

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A business can achieve its goals and objectives by leveraging business analysis in identifying
changes and implementing the same. The change can be strategic or structural. In some cases the
policies and procedure framework can be changed to increase the competency of the business in
the market.
The business analysis helps the organization to understand the current market situation and
improve their technical and strategic skills based on market requirement. This process helps them
to identify their position in the market as compared to their competitors.

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Facets to
Business
Analysis
Feasibility
Study
Risk
Assessment
&
Mitigation
New Business
Opportunities
Preparation
of Business
Case

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Importance of Business Analysis
Require -
ments
• Start working with key stakeholders to articulate the vision of the business.
• Understands the psychology of all stakeholders of a business.
Define
Vision
• Conducting personal interviews and group discussions.
• Circulate questionnaires to collect opinion
• Document analysis and prototyping process to understand the existing system.
Role
• Bridging the gap between the development team and stakeholders to achieve the organization goal.
• Implementation and testing
• Foresee the change in the corporate strategy.

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Definition of Business Analysis
DELIVER
Value for stakeholders
Achieves organization goals and
objectives
ENABLES
Change in the organization
Implements change for
improvement
BUSINESS ANALYSIS
Identifying needs of the business
Determining solutions for the
problems

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1. Increases ROI
2. Decreases cost
3. Tool for decision making
4. Provide cost effective solutions
5. Understand business requirements
6. Adopts real value approach
7. Framework for stakeholders
Rationale of Business Analysis

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1. Business analysis helps to increase the return on investment for a business. The wealth and
image of any business depends on its efficiency to make higher return on investments. To
increase the ROI business needs to focus on All cost approach. The business analyst working
on increasing the ROI of an organization consider the Total cost of the business to calculate
the actual ROI. The analyst are expected to have the following efficiency to work on ROI.
Decision
Analytical
Technical
Communicatio
n
Problem
solving

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2. The business analysis develops different strategies to decrease the cost involved in any
project taken by a company. The team works to understand the actual requirements and right
design is created to avoid unnecessary and repetition cost. The basic principle of business
analysis is to save money by reducing cost in all the projects of the business. The same
strategy is adopted for upcoming projects also.
3. The quick and convenient decision is made by the bsui8ness analyst. The stakeholders
involved in discussion are controlled by the business analysis using logical topics for
discussion for fast and strategic decision making.

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4. Business analyst focus on developing cost effective methods to solve the problems and
challenges. The basic goal of business analyst is to decrease the cost and increase the ROI.
5. The growth and development of the business is the primary objective of any business
analyst. The requirements of the business are identified at all level and accordingly decisions
are made and implemented for successful completion. The business analysis leverages the
business with better environment and best decision.
6. The real value of the business is focused to achieve the requirements of the stakeholders.
The stakeholders invest money in business and expect growth of their investment in the
form of ROI. The real business value impacts the decision of the stakeholders.

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Importance of Business Analysis
ROI
Time
Management
Efficiency
Management
Converts
complex into
simple solutions
Why Business Analysis?
Business Continuity
& Market Analysis
Analysing
future changes
Solutions for
business
problems
Building
strategies
Future Goal
analysis

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Development of Business Analysis
Evolution
Till
1890’s
1900 to
1930’s
1940’s
1950’s
1960’s
1970’s
1980’s
1990’s
2000’s

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Pre-History to 1890’s
Calculation
Tools
Marked Sticks;
Concept of Zero;
Fraction
Abacus; Algebra;
calculus;
Logarithms
Mapping
Process &
Reengineering
Textile Looms;
Steam devices;
Mechanical water
Used for
accounting & taxes;
inventories;
navigation; clocks
1776 -
Identifying
steps in process
Invention of Punch
card used as
memory
1800 –
development of
concept of business
management

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1900 to 1930’s
• Development of physics, chemistry, mathematics and electronics invented radio, radar and
television.
• Binary computers were born during this period.
• 1906 Pareto principle was introduced. The principle is used in business analysis to find 20%
functionality which will provide 80% return.
• 1910 introduction of Harmonogram which we know them today as Gantt Charts.
• 1917 the principles of management was released by Henry Fayol.
• 1926 Henry Ford introduced the concept of Just in Time.
• 1937 the strategies for departmentalization was introduced.

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1940’s
• New computer were introduced with valves.
• The new computers were used in aerodynamics, cryptology, trajectories etc.
• Management standards were introduced during worlds war II.
• Late 1940’s Information theory and cybernetics were introduced.
• The computers and other devices introduced during 1940’s were used in various disciplines
and industries.
• Higher version of programming languages and storage memory were invented for better
performance.

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1950’s
• During 1950’s there were more than 100 computers in the world.
• 1951 first computer was put into use for business. This computer was used first time for
payroll processing.
• The delegation of authorities and spam of responsibilities were introduced during 1954.
• IBM introduced first matrix printer and Texas instruments during 1958.
• In 1958 the concept of Total Quality management came into existence.
• The PERT chart for supporting management was also invented during 1958.
• Software algorithms was released during 1958 which was in use for next 30 years.

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1960’s
• During 1960’s the Engineering was introduced as new discipline for software development.
• Computer language COBOL was introduced in 1961.
• In 1962 first computer game was released.
• In 1963 Mouse was invented. IN 1964 new generation computers were introduced.
• In 1968 full computer with graphics interface, word processing, full screen and mouse was
demonstrated.
• ARPANET was found in 1969 which is considered as forerunner of today’s internet.
• During this era lots of software crisis were found.

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1970’s
• In 1972 fourth generation computers were introduced in the market.
• The first 128 bytes RAM was introduced during 1970’s.
• Texas instruments released electronic calculators during 1971.
• 1=During 1972 Intel introduced microprocessor and released Ethernet in 1973.
• C programming language was launched during 1970’s.
• In mid 1970’s there emerged data warehouse and management information system.
• Quality management maturity grid was released during 1979 to measure the software
process maturity.

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1980’s
• Apple computers were available in the market during 1983 and Microsoft windows in 1985.
• WWW was introduced during 1979.
• During this period business analyst understood the method of extracting data and also the
value of such information.
• Six sigma got introduced in 1986.
• ISO standards were introduced during 1987.
• 1988 was the period when spiral model was published.
• From 1989 onwards the term business intelligence got popularized

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1990’s
• LINUX and Privacy encryption program was released in 1991.
• Explosive growth of internet during 1993.
• 1995 was the period when Microsoft released Windows 95. Yahoo and other search engines
were introduced during this period.
• Followed by introduction of Google in 1998.
• In 1997 Unified Modeling Language version 1.0 was released.
• XP widely known programming was introduced during 1999.

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2000’s
• This is the era were number of dot.com crisis were experienced.
• Emergence of business process management systems influenced the growth and prominence of
BPM (Business Process Management).
• In 2001 Capability Maturity Model Integration was released and during 2002 Sarbanes –
Oxley Act was introduced for Investor protection.
• Henceforth the team consists of Business analysts, developers, testers and other functional
members from all departments.
• The team is solely responsible for functional peace life cycle.

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Business Strategy Analysis
A strategy is an action plan followed by managers to achieve companies goal and objectives.
Moreover its considered as a roadmap which guides the company to articulate the path towards
their goal. Every business needs to understand what they are and where they want to reach. To
develop business strategy one must understand the vision, mission and value3s of an
organization.
The need for strategic analysis arises after gaining understanding of the following:
-Vision – Future goal
- Mission – who you are and how you want to reach your vision
- Values – the belief, ethics and values of your business.

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A strategy analysis is adopted to understand the business environment and devise a strategy to
overcome the challenges and problems. In short strategic analysis is environment scanning. The
internal and external environment is studied to understand the futuristic approach for the
business.
Strategic analysis process involves the analysis of current strategies, forecasting the future
changes and making the business ready to face such changes and keep the solutions ready to
handle the problems.

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External Environment
Current Strategies
Internal Environment
Goals and
Future Growth
Assess current strategies
Identify alternative
strategies and evaluation
Recommend the best
strategy

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1. Analysis of current Strategies: The company need to perform environmental analysis for
their current strategies. Environmental analysis include both internal analysis and external
analysis. Internal environment analysis includes operational inefficiencies, financial crisis,
employee constraints. External environment analysis included political, market, economical
and consumer taste.
2. Effectiveness of existing strategies: the efficiency of current strategy is analysed to in the
given business environment. The business strategy should be aligned with organization
vision, mission and values. The strategy should determine its success and failure.

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3. Prepare the Plan: The strategy need to be systematic or structured to be implemented in an
organization. The alternative strategies need to devised to meet the requirements of changing
environment. The strategies must be inexpensive and affordable. Potential strategy focus on
business process, logistics and supply chain, capital structure.
4. Implementation of strategy: Once the assessment of current strategies are done, the company
devises the alternative strategy to suit the changing environment. The best strategy is
recommended and implemented to achieve profitability and growth. The process of strategic
analysis is develop, implement, assess and reassess.

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Corporate Level Strategy
Business Level Strategy
Functional Level Strategy

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The Strategic Context
A strategy analysis is a continuous process and long term task which involves systematic
planning and investment of resources. Every business unit targets to achieve growth and
profitability for sustainable development. The focus of the business is to position themselves in
the market by leveraging their competitiveness.
The most important task in strategic analysis is to forecast and predict the upcoming events and
design a alternative strategies to face the future events.

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Features of Strategic Analysis:
• They are long term objectives of an organization amidst the business environment.
• They involve all the functional departments of an organization.
• They are control checklist for all the activities of an organization for current and future.
• They are limited to managerial decision making. All the decisions are based on the
organization goals, vision and mission.
• Thus strategic plan consist of current strategy, future requirement and basic role of the business
in the given environment.

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Levels of Strategic Analysis
Corporate -
Formulated
by top
management.
Business –
formulated
by senior
managers at
unit level.
Functional –
formulated at
department
and division
level.
Operational
– formulated
by operating
units of an
organization.

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The Strategic Analysis Techniques
1
2
3
4
5
6
7
8
Gap Analysis
VRIO Analysis
Four Corner Analysis
Value chain Analysis
SWOT Analysis
Strategy Evaluation
Porter’s 5 Forces
PESTEL Analysis

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1. Gap Analysis: This is an internal analysis tool helpful to identify the dilutions and
distractions from the original strategy towards achievement of objectives and goals. This
technique is used to compare the current strategy implementation with future state which
identifies the gap. The identified gap can be bridged with plan of actions.
2. VRIO Analysis: The tools internally used to analyse the resources of an organization. The
sustainable resources are identified and effectively used to achieve competitive advantage.
The resources are evaluated and efficiently used for growth prospectus.

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3. Four Corner Analysis: The core competencies of an organization is analysed using four
corner technique. The above tools evaluate the current state of the business. This technique
focuses on evaluating long term goal of an organization. The future strategies will leverage
the business to next level by understanding the motivation and strategies of the competitors.
Mostly this type of technique is said to be predictive action technique.
4. Value Chain Analysis: This technique is also used to evaluate competitive advantage like
VRIO. The value of the final product and service is evaluated to understand the business
activities and their contribution towards organization goals. Each and every activity of an
organization must add value to final product.

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5. SWOT Analysis: An effective tool to conduct strategic analysis. It analysis both external and
internal business environment. While performing SWOT analysis the company must use
specific and verifiable statements. Vague and incomplete statements will hinder the strategic
decision.
6. Strategy Evaluation: The companies always have explicit or implicit strategy. The existing
strategy should not be ignored or abandoned. The older strategy might not be right for
current environment but in due course such strategies will give right lead to proceed.
Strategic evaluation identifies the successful strategies and failure ones. The plan of action is
designed to improve the failed strategies.

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7. Porter’s 5 Forces: This technique helps the organization to identify the market position of
the company, the product differentiation, cost leadership, and competitive advantage. The
strategies are devised to make difference in your product and services. The strategies are
drafted to position your business in the market in a best and profitable way.
8. PESTEL Analysis: This is an external technique which hugely impacts your organization
operations. The elements of this analysis are political factors, economic factors, societal
factors, technological factors, environmental factors and legal factors. These elements are
analysed to understand the level of impact on the current state of the business.

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SWOT Analysis
The organization identifies its positive and negative points through this technique. The
resources are effectively and efficiently used to boost the image of the organization in the
market. The strength of the business depends on customer satisfaction and clients needs.
This is prominent internal technique of strategic analysis. This technique detects strengths,
weakness, opportunities and threats which your business may suffer.
SWOT analysis defines long term vision through effective strategic planning of an
organization. The problems and environmental impacts can be reduced through constant
SWOT analysis. Let’s understand the SWOT in detail.

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SWOT Analysis
1. Strengths of an organization: the positive attributes of a company can be wisely controlled
for better results and performance. Such positive attributes makes your business a standalone
and unique in the market. The resources resulting in profit year on year are considered as the
companies strength. The activities and resources of a business resulting in growth and
development need to identified and worked upon to achieve better results.
2. Weaknesses of an organization: The will always have two sides both strengths and
weaknesses. The resources which needs improvement and strategic planning should be
focused primarily to maintain competitive edge in the market. Such weaknesses need to
identified in advance and corrective action to be implemented to avoid future losses.

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SWOT Analysis
3. Threats to organization: Threats are nothing but risk factors. The company policies,
customer relationship, distributor relationship, brand image should not affect the growth of
the business adversely. Also depression, economy downturn, industry crisis, inflation,
multiple players for same product are important threats. These type of threats need to
handled carefully to avoid competition war.
4. Opportunity for the organization: The business must explore the opportunities and make use
of new technology, innovations, new products and step ahead towards success. The
organization should never miss the opportunity. Missed opportunity will give way to
competitors to beat your growth and success.

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Implementing Strategy
Set clear goals
and define key
variables
Determine
roles,
responsibilities
and
relationships
Delegate the
work
Execute;
Monitor;
Support
Take corrective
action
Closure of the
task
Conduct review
or retrospective

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Responsibilities of Business Analyst
Plan
Current
Scenario
Gap
analysis
Requirements
Multiple
solutions
Define the
scope
Stakeholder
sign off
Document
Preparation
Test case
Knowledge
transfer
Verificatio
n Implement
& support

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Responsibilities of Business Analyst
1. Business analyst should understand the business requirements.
2. Cop up with the system and understand the possibilities.
3. Presentation and stakeholder management
4. Discussion of reports and projects
5. Support for implementation
6. Coordinate with functional and non functional requirements
7. Acceptance testing
8. Decision making, problem solving and technical writing
9. Systems and operations maintenance
10. Team building

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Business Analysis Maturity Model
Business Analyst Maturity Model (BAMM) identifies different stages of improvements as
detailed below:
1. System Improvement: The authority is limited to the IT systems and to the level of the
project currently associated with.
2. Process Improvement: IT system solutions are considered to analyse the process
requirements.
3. Business Improvements: The senior level management and strategic planning is involved in
decision making.

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Business Analysis Maturity Model
Levels of Maturity Model:
Level 1 Initial - Uncontrolled processes and structures.
Level 2 Managed – Reactive processes are characterized for projects.
Level 3 Defined - processes are based on the standards of an organization’s
Level 4 Quantitatively Managed - Controlled and measured processes
Level 5 Optimizing - processes work smoothly and focus moves to improvement

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Business Analysis Model

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The Competencies of a Business Analyst
Communication
Skills
Critical
Analysis skills
Problem
Solving skills
Management
and Leadership
skills
Technical
Awareness of
the project
Tools and
Techniques

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Summary
•The business analysis helps the organization to understand the current market situation and
improve their technical and strategic skills based on market requirement.
•Business analysis helps to increase the return on investment for a business. The wealth and
image of any business depends on its efficiency to make higher return on investments.
•The real value of the business is focused to achieve the requirements of the stakeholders.
•1906 Pareto principle was introduced. The principle is used in business analysis to find 20%
functionality which will provide 80% return.
•ARPANET was found in 1969 which is considered as forerunner of today’s internet.
•Quality management maturity grid was released during 1979 to measure the software process
maturity.

52
Summary
•1995 was the period when Microsoft released Windows 95. Yahoo and other search engines
were introduced during this period.
•Strategic analysis process involves the analysis of current strategies, forecasting the future
changes and making the business ready to face such changes and keep the solutions ready to
handle the problems.
•The best strategy is recommended and implemented to achieve profitability and growth. The
process of strategic analysis is develop, implement, assess and reassess.
•The companies always have explicit or implicit strategy.
•SWOT analysis defines long term vision through effective strategic planning of an organization.

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 SWOT
 PEST
 DEPEST
 PESTLE

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Self Assessment Question
1. The dispatch department of a mail order book company have run out of small padded envelopes that
they use to send books to their customers. Unfortunately, there is a shortage of these envelopes at their
supplier and it will be 5 days before they will be available. As a result of this, there is a backlog of 3
days of picked orders that are temporarily stored in the dispatch department which cannot be sent to
customers until the envelopes arrive. Which of the following types of Lean waste are there in this
scenario?
A) Transport and Over-processing.
B ) Inventory and Waiting.
C ) Waiting and Defects.
D ) Over-production and Motion.
Answer: B

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2. The Director of the Information Systems department in a large organisation that traditionally uses a
waterfall approach to development is looking to trial Agile development on a small project. The
project is for a single, small team to develop the first mobile application for the organisation’s
employees and whilst the development team are fully competent with the development language, they
are not familiar with mobile application development. The Director has asked the management team to
consider which might be an appropriate Agile method to use for this project. Which of the following
would be best suited to this project?
A) DSDM.
B) XP.
C) Lean Software Development.
D) SAFe.
Answer: B

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3. Dominique is the Head of Recruitment within the Human Resources (HR) department. Following a
review of recruitment processes and systems in the organisation, a business transformation project has
been initiated. The director of HR, Sarah will be providing the project budget and managing the project
finances. Dominique will be the key HR representative on the Agile project and will be responsible for the
day to day decisions. Which of the following roles is Dominique playing on this project?
A) Product owner.
B) End user.
C) Project sponsor.
D) Subject matter expert.
Answer: A

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4. A project team is working on the development of a mobile phone-based expenses management system
for a national mental health charity. Volunteers currently submit their travel expenses by completing a
paper form and sending it with receipts via the post. One of the requirements is to use GPS tracking to
automatically and accurately determine mileage for visits which is considered useful but is not a
mandatory requirement for the project. The project is nearing completion and this is the final iteration
for the project. Which of the following MoSCoW priorities SHOULD be allocated to the automatic
GPS tracking requirement for the final iteration?
A) M.
B) S.
C) C.
D) W.
Answer: C

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5. A small independent photography company has a business goal of providing a scanning and
enhancement service to produce premium quality prints from customers old printed photographs, negatives
and slides. The business analyst has decomposed this goal into the following potential sub-goals. i. Buy
professional scanner. ii. Produce prints from customers’ old photographs. iii. Install scanner iv. Provide
photographic enhancement service. v. Produce prints from customers’ photographic negatives. Which of
these are valid sub-goals?
A) i and iii only.
B) ii, iii and v only.
C) ii and v only.
D) i, iii and iv only.
Answer: C

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6. The following user story is being discussed in the Agile team.
011: Customer fingerprint login
As a customer I want to be able to login using my fingerprint reader on my mobile
phone so that I can access my account without needing to type my password.
During the conversation it was determined that there is an associated non-functional requirement
that if there are 3 failed attempts to login using the fingerprint reader then the customer will need
to provide their username and password. This non-functional requirement is specific to this user
story. Requirements could be documented in the following areas.

60
i. User story acceptance criteria for “Customer fingerprint login”.
ii. Requirements catalogue.
iii. Use case description for “Customer fingerprint login”.
iv. A separate user story.
Where should the non-functional requirement be documented?
A) ii or iv.
B) iv only.
C) ii only.
D) i or iii.
Answer: D

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7. As part of a university assessment system project, the project team are reviewing the following user
story. 049: Show my exam results on social media As a student I want to be able to share my exam
certificate on social media so that my friends and potential employers can see my achievements. In the
review, it was discussed that there are multiple social media channels that could be used and that no
channels had been specified. Which of the INVEST rules for writing a quality user story are not being met?
A) Small and Estimate able.
B) Testable and Independent.
C) Estimate able and Valuable.
D) Valuable and Negotiable.
Answer: A

62
8. The project team are holding a meeting and during the meeting they discuss the following:
• What went well?
• What didn’t go so well?
• What could we do differently next time?
• Actions
Which Agile ceremony does this describe?
A) Show and Tell.
B) Iteration Planning Meeting.
C) Retrospective.
D) Daily stand-up
Answer: C

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9. What is the main purpose of mediation
a. Encourage the parties to ‘agree to disagree’
b. Encourage the parties to surrender control
c. Achieve a satisfactory dispute resolution at any cost
d. Enhance the parties dispute resolution skill
Answer: C

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Activity
• Choose any three types of Industry and select one
company from each, perform SWOT analysis and
comment on the competitive edge of each
company.
Offline/ Online
Activity
(30 min)

65
Reading Assignment & Interactive brainstorming
• Analyse critically and debate on the
objectives, goals, mission and vision
statement.
• Prepare a strategic report on the
business analysis models of the
company of your choice and explain its
applicability to different activity.
Online/Offline
Activity
(30 min)

66
Reading Assignment & Interactive brainstorming
• Prepare a Sketch Note on the roles and
responsibilities of business analyst and
competency skill matrix using the appropriate
Symbols, diagrams and sketches.
Online/Offline
Activity
(30 min)

67
Document Link
Topic URL Notes
Business Analysis
Techniques
https://nibmehub.com/opac-
service/pdf/read/Business%20Analysis%20Techniques%2
0_%2099%20essential%20tools%20for%20success.pdf
Essential tools for success –
Application of business analytics and
intelligence.
Business Analysis
Techniques
http://www.ascdegreecollege.ac.in/wp-
content/uploads/2020/12/Business-Analysis-
techniques.pdf
Essential tools for success –
Application of business analytics and
intelligence.
Best Practices for
Business Analyst
https://www.ogcio.gov.hk/en/our_work/infrastructure/meth
odology/system_development/doc/G60a_Best_Practices_f
or_Business_Analyst_Appendix_A_v1_0.pdf
The techniques and tools for business
analyst is discussed.

68
Video Link
Topic URL Notes
Origin of Business
Analysis
https://youtu.be/xqZEwhVQNQ0
Business analyst profession is growing
world wide. The video is about the
profession and practice.
Business Analysis
Process
https://youtu.be/HwPZ08BaEwg
To learn about the 8 step business
analysis framework
Evolving role of
Business Analyst
https://youtu.be/ous9XUNYZtc
Business Analysis training for
beginners.

69
EBook name Chapter Page No. Notes URL
Essentials of
Business Analytics
Chapter 10 to
30
305-889
The chapters cover the different methods of
business analytics and also explains its
application to various domains of the
business.
https://bdigital.uvhm.edu.
mx/wp-
content/uploads/2020/05/
Essentials-of-Business-
Analytics.pdf
Best Practices in
Business
Intelligence
Chapter 1 - 77 3-80
The case studies included in this book
demonstrate the power of business
intelligence technologies and solutions for
industries ranging from banking to
pharmaceuticals to online ticket sales.
http://download.101com.c
om/tdwi/ww24/whatwork
s24digitaledition.pdf
E- Book Link

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