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The Key Role of Business
Analysis in Project Success
and Achieving Business
Value


Alan McSweeney
Objectives

•   To define the importance of effective business analysis in
    ensuring project success and delivery of business value




    June 25, 2010                                                2
IT Challenge to Deliver Business Value
                                                    Provides Alignment
•   IT is viewed as a provider and                Between Business and IT
    enabler of business value
                                                                 Managing IT for
•   IT faces pressure to deliver         Managing IT Like
                                                                   Business
                                           a Business
    value                                                           Value
      −    Additional revenue
      −    Reduced or avoided costs
      −    Greater productivity
      −    Reduced risk
      −    Respond quickly to changing
           business environment and
                                         Managing the IT         Managing the IT
           business needs                   Budget                 Capability
•   IT needs to structure itself to
    deliver business value                        Provides Metrics to Close
                                                     the Loop on Value

    June 25, 2010                                                                  3
Familiar View of Project and Project Portfolio
Management
                                                                                        Project
     Demand                                                                           Management
    Management                                                                        Methodology
                                                 Project
                                                Approvals
                                                                   Programme and         People
      Strategic          Project Portfolio
                                                                       Project        Management
     Alignment            Management
                                                                    Management        and Education
                                                    Project
                                                   Requests
      Supply                                                                           Organisation
    Management              Prioritising                          Managing Projects      Enablers
                             Projects                               Successfully

•    Contains the implicit assumption that the solutions being delivered by the projects are
     designed properly, are implementable and operable and meet business requirements
•    Is this correct? Is this the complete picture?
•    More is need than just the right project managed the right way
      − The solution being delivered by the project must meet business needs
    June 25, 2010                                                                                     4
Aligning the Solutions Being Delivered to Business
Needs and Delivery of Business Value
•   Need more than project management
      − Not the complete picture
      − Cannot treat project management in isolation
•   Need to ensure that the solution being managed meets business
    requirements
•   Need to ensure business requirements are captured
•   Need to ensure that solutions are designed to deliver business
    requirements and comply with organisation’s enterprise architecture
•   Fundamentally the project exists to manage the delivery
    of the solution that has been designed to meet agreed
    business requirements that assist with delivery of the
    business plan to achieve business value
    June 25, 2010                                                         5
Business Analysis and Design Builds Bridge From
Business to Solution
                      Problem
                    Requirement                           Business Analysis:

                                                          Elicit Requirements
                Current State                                     Analyse
                                                              Communicate
                                           Business               Validate
                                         Analysis and
                                        Solution Design
                     Solution Design:

                        Translate
                    Requirements into                            Solution
                        Solution
                                                              Desired Future
                                                                   State
• Business analysis is a key driver of business value
• Solution delivery start with business analysis
    June 25, 2010                                                               6
Weaknesses in Business Analysis Capabilities and
  Competencies at the Root of Many Project Failures
                    Poor              Size/Capacity/              Poor Strategic
                Requirements            Complexity                 Alignment
   Poor Analysis              Large Project,          Inadequate Business
     Practices              Complex, Difficult          Case, Undefined
                          Changes and Processes          Problem/Need

Business Requirements       Large Project Team and          Business Benefits      Business Needs
     Not Captured            Multiple Stakeholders           Not Measured             Not Met

                                                                                   Opportunities
                                                                                       Lost

                                                                                    Investment
 Inadequate Resource        Unproven Technology           Inadequately Explored       Wasted
    Allocation and                                           Solution Options
     Prioritisation

Inadequate Business        Dynamic, Changing         Solution Design Not
    Involvement              Environment          Aligned to Business Needs

                Poor Focus on          Uncertainly/               Poor Solution
               Business Needs           Ambiguity                    Design
    June 25, 2010                                                                                  7
Analysis-Related Causes of Failures

                    Poor              Size/Capacity/              Poor Strategic
                Requirements            Complexity                 Alignment
   Poor Analysis              Large Project,          Inadequate Business
     Practices              Complex, Difficult          Case, Undefined
                          Changes and Processes          Problem/Need

Business Requirements       Large Project Team and          Business Benefits      Business Needs
     Not Captured            Multiple Stakeholders           Not Measured             Not Met

                                                                                   Opportunities
                                                                                       Lost

                                                                                    Investment
 Inadequate Resource        Unproven Technology           Inadequately Explored       Wasted
    Allocation and                                           Solution Options
     Prioritisation

Inadequate Business        Dynamic, Changing         Solution Design Not
    Involvement              Environment          Aligned to Business Needs

                Poor Focus on          Uncertainly/               Poor Solution
               Business Needs           Ambiguity                    Design
    June 25, 2010                                                                                  8
Consistent Approach to Business Analysis

•   Adopt a consistent and robust framework in business analysis
      − Enables effective benefits realisation through a solution which meets the
        business need
•   Key elements
      − Establish enterprise standards, procedures and governance
      − Standardise on infrastructure, analysis methods and operational procedures
      − Develop competence and skills
•   Key benefits
      −    Implement solutions that meet business needs
      −    Increase the ability of the business to adapt quickly to changes
      −    Reduce risk, complexity, redundancy and support complexity
      −    Align business and IT
      −    Enable re-use and faster time-to-market
      −    Present one face to the business (customer)
      −    Increase business value

    June 25, 2010                                                                    9
Business Analysis Role Key Skills and Abilities


                      Business Analysis
                       Role Skills and
                          Abilities




 Business Analysis
                     Personal Underlying   Techniques and
   Role-Specific
                      Competencies and     Tools Experience
   Performance
                       Characteristics        and Skills
  Competencies

 June 25, 2010                                                10
What Makes a Good Business Analyst and Business
 Analysis Function?
                                               Business Analysis Role
                                                 Skills and Abilities


                   Business Analysis Role-      Personal Underlying
                                                                        Techniques and Tools
                    Specific Performance         Competencies and
                                                                        Experience and Skills
                       Competencies                Characteristics

  Business Analysis
                                     Requirements and
    Planning and
                                   Information Elicitation
     Monitoring

                                      Requirements
Requirements Analysis                Management and
                                     Communication


                                    Solution Assessment
 Enterprise Analysis
                                       and Validation

   June 25, 2010                                                                                11
Business Analysis Key Skills

                                    Business Analysis Role Skills
                                           and Abilities


Business Analysis Role-                Personal Underlying
                                                                         Techniques and Tools
 Specific Performance                   Competencies and
                                                                         Experience and Skills
    Competencies                          Characteristics


                   Analytical Thinking and
                                                           Organisation and Trust
                      Problem Solving


                   Business, Industry and
                                                           Communication Skills
                  Organisation Knowledge


                  Facilitation, Negotiation,
                 Leadership, Influencing and                   Analysis Tools
                          Teamwork
 June 25, 2010                                                                                   12
Business Analysis Key Skills
                          Business Analysis Role Skills
                                 and Abilities


Business Analysis Role-      Personal Underlying
                                                               Techniques and Tools
 Specific Performance         Competencies and
                                                               Experience and Skills
    Competencies               Characteristics


                                        Data and Process Modelling                     Interviewing


                                            Functional and Non-
                                          functional Requirements              Requirements Workshops
                                                  Analysis


                                            Vendor and Software                    Metrics and Key
                                                Assessment                      Performance Indicators


                                                                              Acceptance and Evaluation
                                                 Prototyping
                                                                                  Criteria Definition

  June 25, 2010                                                                                          13
Business Analysis Challenges

•   Lack of advance planning for projects and initiatives
•   Lack of formal training for business analysts
•   Inconsistent approach to business analysis
•   Outsourcing and relying on external contractors to
    perform major roles in system development
•   Impatience with the analysis/design/planning process
•   Gap between what business analysts are assigned to do
    and what they should be assigned to do



    June 25, 2010                                           14
What is a Project Failure?

•   Over schedule
•   Over budget
•   Project cancelled
•   Solution ultimately not used and withdrawn
•   Does not deliver on business case
•   Does not deliver on business benefits
•   Does not deliver business value
•   Poor system usability and/or high error rates requiring
    rework
    June 25, 2010                                             15
Business Analysis Contribution to Project Failure

•   Root cause analysis of many project failures
      − Poor focus on business needs that means the project is not what
        the business needs and will therefore use
      − Poor requirements capture and definition
      − Poor strategic alignment that means the business case is not well
        constructed
      − Poor solution design that means the solution does not deliver on
        the specified requirements
•   Business analysis failures are at the root of these failures
•   Well-executed business analysis fully integrated into the
    project management process ensures projects deliver on
    the expected benefits
    June 25, 2010                                                           16
Maximising Solution Value Throughout Lifecycle

                                  Good Solution
                                    Delivery


                                                  Good Analysis and
                                  Poor Solution   Design Followed by
                                    Delivery         Poor Solution
                                                   Delivery is Better
Good Analysis                                        Than Poor or
 and Design        Achievement                         Inadequate
                    of Business   Good Solution   Analysis and Design
                       Value        Delivery       Followed by Good
                                                   Solution Delivery

  Poor or
Inadequate                        Poor Solution
Analysis and                        Delivery
  Design
   June 25, 2010                                                    17
Maximising Solution Value Throughout Lifecycle
                   Solution     Solution           Solution                  Solution
                    Design    Development         Transition                Operation

                                                               Improved Delivery of
                                                                 Business Needs
                                             Improved
                                            Management
                                            of Transition
Achievement
 of Business                  Improved
    Value                      Solution
                                Design

                  Improved
                   Business
                   Analysis




  June 25, 2010                                                                         18
Maximising Solution Value Throughout Lifecycle

•   Good solution and project definition delivers superior
    business value
•   Poor solution and project definition results in lower
    business value, even if it is followed by good project
    management
•   Good project management does not make a bad solution
    good




    June 25, 2010                                            19
Solution Life Cycle Cost Composition
                                                                                           LIFE CYCLE COST

                                                                   SYSTEM ACQUISITION
                                                                              COST      •Operations
                                              PROCUREMENT COST                          •Internal Support
                                                                   •Planning, Research, •Disposal
                        TOTAL SYSTEM COST    •External Support and Analysis and Design
                                             Maintenance           •Ongoing Test
   BASIC SYSTEM COST   •Training             •Subscription         Facilities
                       •Documentation
 •Hardware             •Support Facilities
 •Software             •Parallel Running
 •Development and      •Warranty
 Implementation
 •Management
 •Installation
 •Transition and
 Cutover
 •Conversion




 June 25, 2010                                                                                               20
Solution Life Cycle Costs
                                              Total Cost of Ownership


                    System Acquisition Cost                   Operating and Support Cost



             COST




                                                YEARS

•   Depending on the life of the solution being implemented, the
    operating costs can be 1-3 times the cost of acquisition
•   Getting the solution design right at the start delivers very significant
    increased benefits throughout the solution’s life
    June 25, 2010                                                                          21
IT Investment Management and Project and
Solution Lifecycle
                                                                                Structured Capture
                                                                               and Management of
    Cost Effective                                                              Requirements and
    Operation of                                   Business Analysis           Cost Benefit Analysis
  Delivered Solution                                                             of Solution Costs
    and Effective              Solution
     Retirement/              Operation
    Replacement/
  Upgrade Decisions
                                           Key Phase
                                          in Solution
                                          Delivery to                                       Design/Selection of
                                                                                               Cost Effective
                                             Drive                  Solution                 Solutions to Meet
                                            Business            Architecture and               Requirements
                                                                                                 Including
 Cost Effective                                                      Design
  Delivery of          Programme and         Value                                            Evaluation of All
 Projects and                                                                                     Options
                           Project
Management of           Management
     Costs



                                          Project Portfolio             Prioritisation of
                                           Management                    Projects and
                                                                          Investment
                                                                           Decisions
  June 25, 2010                                                                                             22
Ensuring Strategic Project Alignment to Projects
                                                        Programmes and projects
Business Vision and
                                                     cascade from business vision to
       Goal                                          ultimate operation and service
                                                                delivery
                      Strategy

                                                                        Business Analysis identifies
                                                                          the business needs and
                                     Business Plan                      document the requirements
                                                                              of the solution
 Programmes and projects need
                                                  Programmes for
      to be aligned to the
                                                Strategic Objectives
   overarching business vision
            and goal
                                                                       Projects
                                 Business Analysis we
                                 ensures that the right
                                  solution is designed                            Operation of Solution

 June 25, 2010                                                                                            23
Hierarchy of Requirements – from Enterprise to
Project/Initiative
                                                                   Solutions delivered by
  Business Vision and        Re                                  programmes and projects
                               qu
         Goal                     ire                           cascade from business vision
                                      me
                                        nts                      to ultimate operation and
                                            Hie                        service delivery
                      Strategy                 rar
                                                  ch
                                                     y   –f
                                                              rom
                                                          Bu
                                   Business Plan              s in
                                                                  ess
                                                                      to
                       De                                                Sp
                         liv                                                eci
                            ery                  Programmes for                 fic
                                an                                          Ini
                                  dO
                                             Strategic Objectives              tia
                                                                                  tiv
                                    pe                                               es
  Solutions delivered by              rat
programmes and projects                  ion                    Systems and
need to be aligned to the                                              Solutions
  overarching business
    vision and goal
                                                                                Operation of Solution

  June 25, 2010                                                                                         24
From Strategy to Business Value to Business Benefits
Business Vision and
       Goal


                      Strategy              Defines Organisational
                                            Targets

                                                         Defines Business Value Gains to
                                   Business Plan         the Organisation - Accumulated
                                                         Net Business Benefits
                      Calculates                                         Defines Business Benefits
                                               Programmes for            Delivered and Contribute
                                             Strategic Objectives        to the Delivery of
                                                                         Business Value
                                      Calculates                  Systems and
                                                                   Solutions

                                                     Calculates                 Operation of
                                                                                 Solution
  June 25, 2010                                                                                  25
From Strategy to Business Value to Business Benefits
                                                                      Ag
                                                                        ree
                                                                       Va and
                                                                         lue D
                                                                            to efin
                                                                              be e N
                       Strategy              Defines Organisational             De ee
                                                                                   liv d a
                                             Targets                                  ere nd
                                                                                         d
                                                          Defines Business Value Gains to
                                    Business Plan         the Organisation - Accumulated
                                                          Net Business Benefits
                       Calculates                                       Defines Business Benefits
                 En                        Programmes for               Delivered and Contribute
                   sur                   Strategic Objectives           to the Delivery of
                      eN
                    Va ee                                               Business Value
                       lue ds
                          Ge are                           Systems and
                            ne Me Calculates
                              rat t a                        Solutions
                                 ed nd
                                                      Calculates

 June 25, 2010                                                                                  26
Complete Picture of Project Selection and Delivery

•   Need to consider all aspects of project selection and
    delivery:
      − What the business wants (requirements)
      − What the business gets (solution that delivers on requirements)
      − Delivered according to business priority (project portfolio
        management)
      − Implemented properly (project management)
•   Cannot take an individual view without risking problems
•   Need to emphasise the importance of the solution whole
    lifecycle and the interdependence of the roles


    June 25, 2010                                                         27
Business Analysis Through the Solution Lifecycle

•   Need to do more than capture requirements initially
•   Requirements management needs to take place
    throughout the delivery lifecycle to confirm business needs
    and being met and business value will result
•   Requirements changes must be managed throughout the
    solution lifecycle




    June 25, 2010                                                 28
Business Analysis Approach to Business Requirements
Collection and Management During Solution Delivery
Lifecycle

                                                                               e
                                                                            tur
                                                                         Cap




                                                                                          As s e
        Gather                Analyse               Review




                                                                                                ss
                                                                             Cha
                                                                                nge


                       Requirements Definition                       Requirements Management
           •     Gather – Collecting requirements            •   Capture – Ensure that the new
                                                                 requirements or change requests are
           • Analyse – Analysing, categorising and
                                                                 captured
            specifying requirements
                                                             • Assess – Evaluate whether the changes
           • Review – Review and agree exactly
                                                              will be actioned and approve or reject
            what the requirements are
                                                             • Change – Undertake the changes

 June 25, 2010                                                                                         29
Relative Cost of Fixing Errors During Project Lifecycle
                                                      1000

•   Errors/gaps/omissions
    become significantly




                               (Logarithmic Scale)
                                                       100
    more expensive to fix at
    later stages of project
    lifecycle                                            10



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                                                                       pm
                                                                     lo
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                                                                De




                                                                            Low Cost Estimate           High Cost Estimate

    June 25, 2010                                                                                                              30
Business Analysis is a Key IT Competency

•   Business analysis function manages the entire solution
    requirements lifecycle from understanding the business need to
    ensuring that the delivered solution meets business needs and adds
    business value
•   Projects all too frequently experience difficulties not from lack of
    technical expertise but from an a failure to gather, understand,
    analyse and manage business requirements, and convert them into
    realistic achievable solution specifications
•   Projects are all too frequently initiated and solution design and
    implementation started before there is a clear understanding of the
    business need
•   High tolerance and acceptance of inadequate and ever-changing
    requirements leading to requirements and scope creep

    June 25, 2010                                                          31
Business Analysis is a Key IT Competency

•   Business analysis focuses on adding value to the business
      − Business analysis provides
      − Detailed project objectives
      − Business needs analysis
      − Well defined and structured requirements
      − Requirements trade-off analysis and requirements feasibility and
        risk analysis; and cost-benefit analysis
• Without business analysis poor requirements definition
  happens, resulting in a disconnect between what the
  business needs and what solution is delivered
• Effective business analysis is a combination of technical,
  analytical, business and leadership skills

    June 25, 2010                                                          32
Business Analysis Skills

•   Identify and understand the business problem and the impact of the
    proposed solution on operations of the organisation
•   Document project scope, objectives, added value and benefit
    expectations
•   Translate business needs and objectives into system requirements
•   Design and develop high quality business solutions
•   Liaise with customers/stakeholders/users during installation and
    testing of new systems and services
•   Evaluate business needs and contribute to strategic planning of
    information systems and technology directions
•   Assist in determining the strategic direction of the organisation

    June 25, 2010                                                        33
More Information

          Alan McSweeney
          alan@alanmcsweeney.com




 June 25, 2010                     34

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The Key Role of Business Analysis in Project Success and Achieving Business Value

  • 1. The Key Role of Business Analysis in Project Success and Achieving Business Value Alan McSweeney
  • 2. Objectives • To define the importance of effective business analysis in ensuring project success and delivery of business value June 25, 2010 2
  • 3. IT Challenge to Deliver Business Value Provides Alignment • IT is viewed as a provider and Between Business and IT enabler of business value Managing IT for • IT faces pressure to deliver Managing IT Like Business a Business value Value − Additional revenue − Reduced or avoided costs − Greater productivity − Reduced risk − Respond quickly to changing business environment and Managing the IT Managing the IT business needs Budget Capability • IT needs to structure itself to deliver business value Provides Metrics to Close the Loop on Value June 25, 2010 3
  • 4. Familiar View of Project and Project Portfolio Management Project Demand Management Management Methodology Project Approvals Programme and People Strategic Project Portfolio Project Management Alignment Management Management and Education Project Requests Supply Organisation Management Prioritising Managing Projects Enablers Projects Successfully • Contains the implicit assumption that the solutions being delivered by the projects are designed properly, are implementable and operable and meet business requirements • Is this correct? Is this the complete picture? • More is need than just the right project managed the right way − The solution being delivered by the project must meet business needs June 25, 2010 4
  • 5. Aligning the Solutions Being Delivered to Business Needs and Delivery of Business Value • Need more than project management − Not the complete picture − Cannot treat project management in isolation • Need to ensure that the solution being managed meets business requirements • Need to ensure business requirements are captured • Need to ensure that solutions are designed to deliver business requirements and comply with organisation’s enterprise architecture • Fundamentally the project exists to manage the delivery of the solution that has been designed to meet agreed business requirements that assist with delivery of the business plan to achieve business value June 25, 2010 5
  • 6. Business Analysis and Design Builds Bridge From Business to Solution Problem Requirement Business Analysis: Elicit Requirements Current State Analyse Communicate Business Validate Analysis and Solution Design Solution Design: Translate Requirements into Solution Solution Desired Future State • Business analysis is a key driver of business value • Solution delivery start with business analysis June 25, 2010 6
  • 7. Weaknesses in Business Analysis Capabilities and Competencies at the Root of Many Project Failures Poor Size/Capacity/ Poor Strategic Requirements Complexity Alignment Poor Analysis Large Project, Inadequate Business Practices Complex, Difficult Case, Undefined Changes and Processes Problem/Need Business Requirements Large Project Team and Business Benefits Business Needs Not Captured Multiple Stakeholders Not Measured Not Met Opportunities Lost Investment Inadequate Resource Unproven Technology Inadequately Explored Wasted Allocation and Solution Options Prioritisation Inadequate Business Dynamic, Changing Solution Design Not Involvement Environment Aligned to Business Needs Poor Focus on Uncertainly/ Poor Solution Business Needs Ambiguity Design June 25, 2010 7
  • 8. Analysis-Related Causes of Failures Poor Size/Capacity/ Poor Strategic Requirements Complexity Alignment Poor Analysis Large Project, Inadequate Business Practices Complex, Difficult Case, Undefined Changes and Processes Problem/Need Business Requirements Large Project Team and Business Benefits Business Needs Not Captured Multiple Stakeholders Not Measured Not Met Opportunities Lost Investment Inadequate Resource Unproven Technology Inadequately Explored Wasted Allocation and Solution Options Prioritisation Inadequate Business Dynamic, Changing Solution Design Not Involvement Environment Aligned to Business Needs Poor Focus on Uncertainly/ Poor Solution Business Needs Ambiguity Design June 25, 2010 8
  • 9. Consistent Approach to Business Analysis • Adopt a consistent and robust framework in business analysis − Enables effective benefits realisation through a solution which meets the business need • Key elements − Establish enterprise standards, procedures and governance − Standardise on infrastructure, analysis methods and operational procedures − Develop competence and skills • Key benefits − Implement solutions that meet business needs − Increase the ability of the business to adapt quickly to changes − Reduce risk, complexity, redundancy and support complexity − Align business and IT − Enable re-use and faster time-to-market − Present one face to the business (customer) − Increase business value June 25, 2010 9
  • 10. Business Analysis Role Key Skills and Abilities Business Analysis Role Skills and Abilities Business Analysis Personal Underlying Techniques and Role-Specific Competencies and Tools Experience Performance Characteristics and Skills Competencies June 25, 2010 10
  • 11. What Makes a Good Business Analyst and Business Analysis Function? Business Analysis Role Skills and Abilities Business Analysis Role- Personal Underlying Techniques and Tools Specific Performance Competencies and Experience and Skills Competencies Characteristics Business Analysis Requirements and Planning and Information Elicitation Monitoring Requirements Requirements Analysis Management and Communication Solution Assessment Enterprise Analysis and Validation June 25, 2010 11
  • 12. Business Analysis Key Skills Business Analysis Role Skills and Abilities Business Analysis Role- Personal Underlying Techniques and Tools Specific Performance Competencies and Experience and Skills Competencies Characteristics Analytical Thinking and Organisation and Trust Problem Solving Business, Industry and Communication Skills Organisation Knowledge Facilitation, Negotiation, Leadership, Influencing and Analysis Tools Teamwork June 25, 2010 12
  • 13. Business Analysis Key Skills Business Analysis Role Skills and Abilities Business Analysis Role- Personal Underlying Techniques and Tools Specific Performance Competencies and Experience and Skills Competencies Characteristics Data and Process Modelling Interviewing Functional and Non- functional Requirements Requirements Workshops Analysis Vendor and Software Metrics and Key Assessment Performance Indicators Acceptance and Evaluation Prototyping Criteria Definition June 25, 2010 13
  • 14. Business Analysis Challenges • Lack of advance planning for projects and initiatives • Lack of formal training for business analysts • Inconsistent approach to business analysis • Outsourcing and relying on external contractors to perform major roles in system development • Impatience with the analysis/design/planning process • Gap between what business analysts are assigned to do and what they should be assigned to do June 25, 2010 14
  • 15. What is a Project Failure? • Over schedule • Over budget • Project cancelled • Solution ultimately not used and withdrawn • Does not deliver on business case • Does not deliver on business benefits • Does not deliver business value • Poor system usability and/or high error rates requiring rework June 25, 2010 15
  • 16. Business Analysis Contribution to Project Failure • Root cause analysis of many project failures − Poor focus on business needs that means the project is not what the business needs and will therefore use − Poor requirements capture and definition − Poor strategic alignment that means the business case is not well constructed − Poor solution design that means the solution does not deliver on the specified requirements • Business analysis failures are at the root of these failures • Well-executed business analysis fully integrated into the project management process ensures projects deliver on the expected benefits June 25, 2010 16
  • 17. Maximising Solution Value Throughout Lifecycle Good Solution Delivery Good Analysis and Poor Solution Design Followed by Delivery Poor Solution Delivery is Better Good Analysis Than Poor or and Design Achievement Inadequate of Business Good Solution Analysis and Design Value Delivery Followed by Good Solution Delivery Poor or Inadequate Poor Solution Analysis and Delivery Design June 25, 2010 17
  • 18. Maximising Solution Value Throughout Lifecycle Solution Solution Solution Solution Design Development Transition Operation Improved Delivery of Business Needs Improved Management of Transition Achievement of Business Improved Value Solution Design Improved Business Analysis June 25, 2010 18
  • 19. Maximising Solution Value Throughout Lifecycle • Good solution and project definition delivers superior business value • Poor solution and project definition results in lower business value, even if it is followed by good project management • Good project management does not make a bad solution good June 25, 2010 19
  • 20. Solution Life Cycle Cost Composition LIFE CYCLE COST SYSTEM ACQUISITION COST •Operations PROCUREMENT COST •Internal Support •Planning, Research, •Disposal TOTAL SYSTEM COST •External Support and Analysis and Design Maintenance •Ongoing Test BASIC SYSTEM COST •Training •Subscription Facilities •Documentation •Hardware •Support Facilities •Software •Parallel Running •Development and •Warranty Implementation •Management •Installation •Transition and Cutover •Conversion June 25, 2010 20
  • 21. Solution Life Cycle Costs Total Cost of Ownership System Acquisition Cost Operating and Support Cost COST YEARS • Depending on the life of the solution being implemented, the operating costs can be 1-3 times the cost of acquisition • Getting the solution design right at the start delivers very significant increased benefits throughout the solution’s life June 25, 2010 21
  • 22. IT Investment Management and Project and Solution Lifecycle Structured Capture and Management of Cost Effective Requirements and Operation of Business Analysis Cost Benefit Analysis Delivered Solution of Solution Costs and Effective Solution Retirement/ Operation Replacement/ Upgrade Decisions Key Phase in Solution Delivery to Design/Selection of Cost Effective Drive Solution Solutions to Meet Business Architecture and Requirements Including Cost Effective Design Delivery of Programme and Value Evaluation of All Projects and Options Project Management of Management Costs Project Portfolio Prioritisation of Management Projects and Investment Decisions June 25, 2010 22
  • 23. Ensuring Strategic Project Alignment to Projects Programmes and projects Business Vision and cascade from business vision to Goal ultimate operation and service delivery Strategy Business Analysis identifies the business needs and Business Plan document the requirements of the solution Programmes and projects need Programmes for to be aligned to the Strategic Objectives overarching business vision and goal Projects Business Analysis we ensures that the right solution is designed Operation of Solution June 25, 2010 23
  • 24. Hierarchy of Requirements – from Enterprise to Project/Initiative Solutions delivered by Business Vision and Re programmes and projects qu Goal ire cascade from business vision me nts to ultimate operation and Hie service delivery Strategy rar ch y –f rom Bu Business Plan s in ess to De Sp liv eci ery Programmes for fic an Ini dO Strategic Objectives tia tiv pe es Solutions delivered by rat programmes and projects ion Systems and need to be aligned to the Solutions overarching business vision and goal Operation of Solution June 25, 2010 24
  • 25. From Strategy to Business Value to Business Benefits Business Vision and Goal Strategy Defines Organisational Targets Defines Business Value Gains to Business Plan the Organisation - Accumulated Net Business Benefits Calculates Defines Business Benefits Programmes for Delivered and Contribute Strategic Objectives to the Delivery of Business Value Calculates Systems and Solutions Calculates Operation of Solution June 25, 2010 25
  • 26. From Strategy to Business Value to Business Benefits Ag ree Va and lue D to efin be e N Strategy Defines Organisational De ee liv d a Targets ere nd d Defines Business Value Gains to Business Plan the Organisation - Accumulated Net Business Benefits Calculates Defines Business Benefits En Programmes for Delivered and Contribute sur Strategic Objectives to the Delivery of eN Va ee Business Value lue ds Ge are Systems and ne Me Calculates rat t a Solutions ed nd Calculates June 25, 2010 26
  • 27. Complete Picture of Project Selection and Delivery • Need to consider all aspects of project selection and delivery: − What the business wants (requirements) − What the business gets (solution that delivers on requirements) − Delivered according to business priority (project portfolio management) − Implemented properly (project management) • Cannot take an individual view without risking problems • Need to emphasise the importance of the solution whole lifecycle and the interdependence of the roles June 25, 2010 27
  • 28. Business Analysis Through the Solution Lifecycle • Need to do more than capture requirements initially • Requirements management needs to take place throughout the delivery lifecycle to confirm business needs and being met and business value will result • Requirements changes must be managed throughout the solution lifecycle June 25, 2010 28
  • 29. Business Analysis Approach to Business Requirements Collection and Management During Solution Delivery Lifecycle e tur Cap As s e Gather Analyse Review ss Cha nge Requirements Definition Requirements Management • Gather – Collecting requirements • Capture – Ensure that the new requirements or change requests are • Analyse – Analysing, categorising and captured specifying requirements • Assess – Evaluate whether the changes • Review – Review and agree exactly will be actioned and approve or reject what the requirements are • Change – Undertake the changes June 25, 2010 29
  • 30. Relative Cost of Fixing Errors During Project Lifecycle 1000 • Errors/gaps/omissions become significantly (Logarithmic Scale) 100 more expensive to fix at later stages of project lifecycle 10 1 t n n g g ts en tio sig tin in en st m es ta De m Te oy en rT ire pl em em e qu De Us st Re pl Sy Im t/ en pm lo ve De Low Cost Estimate High Cost Estimate June 25, 2010 30
  • 31. Business Analysis is a Key IT Competency • Business analysis function manages the entire solution requirements lifecycle from understanding the business need to ensuring that the delivered solution meets business needs and adds business value • Projects all too frequently experience difficulties not from lack of technical expertise but from an a failure to gather, understand, analyse and manage business requirements, and convert them into realistic achievable solution specifications • Projects are all too frequently initiated and solution design and implementation started before there is a clear understanding of the business need • High tolerance and acceptance of inadequate and ever-changing requirements leading to requirements and scope creep June 25, 2010 31
  • 32. Business Analysis is a Key IT Competency • Business analysis focuses on adding value to the business − Business analysis provides − Detailed project objectives − Business needs analysis − Well defined and structured requirements − Requirements trade-off analysis and requirements feasibility and risk analysis; and cost-benefit analysis • Without business analysis poor requirements definition happens, resulting in a disconnect between what the business needs and what solution is delivered • Effective business analysis is a combination of technical, analytical, business and leadership skills June 25, 2010 32
  • 33. Business Analysis Skills • Identify and understand the business problem and the impact of the proposed solution on operations of the organisation • Document project scope, objectives, added value and benefit expectations • Translate business needs and objectives into system requirements • Design and develop high quality business solutions • Liaise with customers/stakeholders/users during installation and testing of new systems and services • Evaluate business needs and contribute to strategic planning of information systems and technology directions • Assist in determining the strategic direction of the organisation June 25, 2010 33
  • 34. More Information Alan McSweeney alan@alanmcsweeney.com June 25, 2010 34