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The case study of a software company. A quick survey of the job advertisements for business analysts also reflects a range of possibilities. Even though the role of the business analyst emerged almost 20 years ago, a formal definition of the role is still debated hotly whenever there is a group of business analysts. Consultants, both internal and external, who specialise in strategic analysis often have to get involved in business process redesign to make a reality of their strategies, and good systems analysts have always needed to understand the overall business context of the systems they are developing.
However, it is useful to examine them separately in order to consider their relevance to the business analyst role. Some business analysts, albeit a minority, may be required to undertake strategic analysis and identify business transformation actions, but most will probably have a role to play in supporting this activity.
In the main, we believe that strategic analysis is mostly outside the remit of business analysis. Given that business analysts often have to recommend process and IT system solutions, it could be argued that they define the tactics that will deliver the business objectives and strategy. Hence, it is vital that they are able to work within the strategic business context. It may also be the case that some business analyst roles will require strategic-level thinking.
The use of IT to enable business improve- ments and the opportunities presented by technology will need to be considered during any strategy analysis. The business analysts are the specialist team within organisations that should be able to advise on the use of technology to drive business change. Given these issues, we feel that although strategic analysis work is not core to business analysis, business analysts will need a good understanding of strategy development processes.
Chapter 3 explores a range of strategic analysis techniques and provides an overview of the strategic planning process. IT systems analysis At the other end of our model, there is the IT discipline called systems analysis.
Systems analysts are responsible for analysing and specifying the IT system requirements in sufficient detail to provide a basis for the evalua- tion of software packages or the development of a bespoke IT system. Typically, systems analysis work involves the use of techniques such as data modelling and process or function modelling.
This work is very specific to describing the computer system requirements, and so the products of systems analysis define exactly what data the computer system will record, what processing will be applied to that data and how the user interface will operate. Some organisations consider this work to be of such a technical nature that they perceive it to be completely outside the province of the business analyst.
They have decided that modelling process and data requirements for the IT system is not part of the role of the business analyst, and have separated the business analysis and IT teams into different departments.
The expectation here is that the IT department will carry out the detailed IT systems modelling and specifica- tion. The essential difference here is that a business analyst is responsible for considering a range of business options to address a particular problem or oppor- tunity; on the other hand an IT business analyst, or systems analyst, works within a defined scope and considers options for the IT solution.
In some organisations there is little divide between the business analysts and the IT team. In these cases the business analysts work closely with the IT developers and include the specification of IT system requirements as a key part of their role. In order to do this, the business analysts need a more detailed understanding of IT systems and how they operate, and need to be apply to use the approaches and modelling techniques that fell historically within the remit of the system analyst job role.
Business analysis If the two analysis disciplines described above define the limits of analysis work, the gap in the middle is straddled by business analysis. Hence Figure 1. Business analysts will usually be required to investigate a business system where improvements are required, but the range and focus of those improvements can vary considerably.
It may be that the analysts are asked to resolve a localised business issue. They would need to recommend actions that would overcome a problem or achieve busi- ness benefits. However, it is more likely that the study is broader than this and requires investigation into several issues, or perhaps ideas, regarding increased efficiency or effectiveness.
This work would necessitate extensive and detailed analysis. The analysts would need to make recommendations for business changes and these would need to be supported by a rigorous business case.
Another possibility is that the business analyst is asked to focus specifically on enhancing or replacing an existing IT system in line with business requirements.
Whichever situation applies, the study usually begins with the analyst gaining an understanding of the business situation in hand. A problem may have been defined in very specific terms, and a possible solution identified, but in practice it is rare that this turns out to be the entire problem and it is even rarer that any proposed solution addresses all of the issues. More commonly, there may be a more general set of problems that require a broad focus to the study. For any changes to succeed, the business analyst needs to consider all aspects, for example the processes, IT systems and resources that will be needed in order to improve the situation successfully.
In such cases, techniques such as stakeholder analysis, business process modelling and requirements engineering may all be required in order to identify the actions necessary to improve the business system. These three topics are the subjects of later chapters in this book. Realising business benefits Analysing business situations and identifying areas for business improvement is only one part of the process. The analyst may also be required to develop a business case in order to justify the required level of investment and ensure any risks are considered.
One of the key elements of the business case will be the identification and, where relevant, the quantification of the business benefits. Organisations are placing increased emphasis upon ensuring that there is a rigorous business case to justify the expenditure on business improvement proj- ects.
This is largely because there has been a long history of failure to assess whether or not the business benefits have been realised. The business analyst will not be the only person involved in this work, but supporting the organisation in assessing whether predicted business benefits have been delivered is a key element of the role.
Taking a holistic approach There appears to be universal agreement that business analysis requires the application of an holistic approach.
Although the business analyst performs a key role in supporting management to exploit IT in order to obtain business benefit, this has to be within the context of the entire business system.
Hence, all aspects of the operational business system need to be analysed if all of the opportunities for business improvement are to be uncovered. This model shows us that business analysts need to consider these four aspects when analysing a business system.
For each area, we might consider the following: The processes: are they well defined and communicated? Does the process require documents to be passed around the organisation unnecessarily?
The people: do they have the required skills for the job? How motivated are they? Do they understand the business objectives that they need to support? The organisational context: is there a supportive management approach? Are jobs and responsibilities well defined? Is there effective cross-functional working? The technology: do the systems support the business as required? Do they provide the information needed to run the organisation?
It is often the case that the focus of a business analysis or business change study is on the processes and the IT support. However, even if we have the most efficient processes with high standards of IT support, the system will have problems if the staff members do not have the right skills to carry out their work or the organisation structure is unclear. It is vital that the business analyst is aware of the broader aspects relating to business situations such as the culture of the organisation and its impact on the people and the working practices.
The adoption of an holistic approach will help ensure that these aspects are included in the analysis of the situation. Business analysis places an emphasis on improving the operation of the entire business system. This means that, although technology is viewed as a factor that could enable improvements to the business operations, there are other possibili- ties.
The focus on business improvement rather than on the use of automation per se results in recommendations that typically, but not necessarily, include the use of IT. There may be situations where a short-term non-IT solution is both helpful and cost-effective. For example, a problem may be overcome by developing internal standards or training members of staff. These solutions may be superseded later by longer-term, possibly more costly, solutions but the focus on the business has ensured that the immediate needs have been met.
Once urgent issues have been handled, the longer-term solutions can be considered more thoroughly. It is important that our focus as business analysts is on identifying opportunities for improvement with regard to the needs of the particular situation.
If we do this, we can recommend changes that will help deliver real business improvements. The business analyst may be required to support the implementation of the business changes, and Figure 1. One aspect may be the business acceptance testing — a vital element if business changes are to be implemented smoothly.
The implementation of business change may require extensive support from business analysts, including tasks such as: writing procedure manuals and user guides; training business staff in the use of new processes and IT systems; defining job roles and writing job role descriptions; providing ongoing support as the business staff begin to adopt the new, unfamiliar approaches.
Chapter 14 explores further the implementation of business change and the key elements to be considered. Although there are different role definitions, depending upon the organisation, there does seem to be an area of common ground where most business analysts work.
The responsibilities appear to be: To investigate business systems, taking an holistic view of the situation. This may include examining elements of the organisation structures and staff development issues as well as current processes and IT systems. To evaluate actions to improve the operation of a business system. Again, this may require an examination of organisational structure and staff development needs, to ensure that they are in line with any proposed process redesign and IT system development.
To document the business requirements for the IT system support using appropriate documentation standards. In line with this, we believe the core business analyst role should be defined as: An internal consultancy role that has the responsibility for investigating business situations, identifying and evaluating options for improving business systems, defining requirements and ensuring the effective use of information systems in meeting the needs of the business.
However, this definition is expanded by considering the guiding principles that underpin business analysis. The guiding principles for business analysis are: Root causes, not symptoms: to distinguish between the symptoms of business problems and their root causes, and to investigate and address the root causes. Business improvement, not IT change: to recognise that IT systems should enable business opportunity, to analyse opportunities for business improvement and to enable business agility.
Options, not solutions: to challenge predetermined solutions, and identify and evaluate options for meeting business needs. Feasible, contributing requirements, not all requests: to be aware of financial and timescale constraints, to identify requirements that are not feasible and do not contribute to business objectives, and to evaluate stated requirements against business needs and constraints. The entire business change lifecycle, not just requirements definition: to analyse business situations and support the effective development, testing, deployment and post- implementation review of solutions.
Negotiation, not avoidance: to recognise conflicting stakeholder views and requirements, and negotiate conflicts between stakeholders.
Business agility, not business perfection: to enable organisations to be responsive to external pressures and to recognise the importance of timely, relevant solutions. Further to the definition and guiding principles, in some organisations there are business analysis roles that apply to the strategic analysis or systems analysis activities described above. This is typically where business analysts are in a more senior role or choose to specialise.
These aspects are: Strategy implementation: here, the business analysts work closely with senior management to help define the most effective business system to implement elements of the business strategy.
Business case production: more senior business analysts usually do this, typically with assistance from finance specialists. Benefits realisation: the business analysts carry out post-implementation reviews, examine the benefits defined in the business case and evaluate whether or not the benefits have been achieved. Actions to achieve the business benefits are also identified and sometimes carried out by the business analysts.
Specification of IT requirements, typically using standard modelling techniques such as data modelling or use case modelling. These BAs have come from different backgrounds — some from IT, and many from business areas — and have brought different skills and knowledge to their business analysis teams. The scope may be very specific, where an initial study has identified the required course of action and the analyst now needs to explore and define the solution in greater detail.
Alternatively, the scope may only have been defined at an overview level, with the BA having to carry out detailed investigation to uncover the issues before the options can be explored. The authority of the BA can also vary consider- ably, ranging from a very limited level to the ability to influence and guide at senior management level. The business analysis maturity model shows three levels of maturity found when business analysis is developing. The first of these is where the business analysis work is concerned with defining the requirements for an IT system improvement.
At this level, the scope is likely to be well defined and the level of authority to be limited to the project on which the business analyst works. The next level is where the business analysis work has moved beyond a specific area or project, so that the analysts work cross functionally on the busi- ness processes that give rise to the requirements.
The third level is where the scope and authority of the analysts are at their greatest. These levels of maturity apply to three perspectives on business analysis: the individual analysts, the business analysis teams within an organisation, and the business analysis profession as a whole.
At each level, the application of tech- niques and skills, the use of standards and the evaluation of the work through measures can vary considerably.
In doing this, the BAs may initially have to develop their own process and standards. By contrast, an organisation that has employed business analysts for some time may have analysts that can work at all three levels of the BAMM.
The analysts working at the Business Improvement level may have a defined process, standards and measures that are managed for each assignment. A panel discussion at the Business Analysis Conference, organised by the International Institute of Business Analysis, considered whether or not Business Analysis should be deemed to be a profession.
The factors identified were: Qualifications: that determine the standard of skills and abilities of the individual professional and that are recognised by employing organisations. Standards: techniques and documentation standards that are applied in order to carry out the work of the profession.
Continuing professional development: a requirement for the continuing development of skills and knowledge in order to retain the professional status. Code of conduct: a definition of the personal behaviours and standards required from a member of the profession.
Professional body: a body with responsibility for defining technical standards and the code of conduct, promoting the profession and carrying out disciplinary action where necessary. This might require the removal of members where they do not reach the standard required by the code of conduct. The conference considered the issue of professionalism, and the consensus was that, while business analysis had certainly increased in professionalism, there was still some way to go before it could be called a profession.
While the Information Systems Examinations Board ISEB Diploma in Business Analysis has become a widely accepted qualification, it is still possible to practise as a business analyst without qualifications, although this is increasingly rare. There are some recog- nised business analysis standards and techniques, and some benchmarks, such as this book, have appeared in the last few years. Continuing professional development is not a requirement for the majority of business analysts.
Many business analysts are members of BCS — the Chartered Institute for IT — and this professional body has a defined code of conduct for its members and provides standards and promotion for the profession.
Gradually the picture is becoming clear, and a business analysis profession is developing. The place of business analysis within the business change lifecycle is critical if organisations are to benefit from those changes.
Business analysis offers an opportunity for organisations to ensure that technology is deployed effectively to support their work, and also to identify relevant options for business change that take account of budgetary and timescale pressures. Business analysts can also offer objective views that can challenge the received wisdom and identify where real business benefits can accrue. Over the last few years, business analysts have continued to develop their skills such that the breadth of work they can engage in has become extensive.
The challenge for the analysts is to ensure that they develop the extensive toolkit of skills, both behavioural and technical, that will enable them to engage with the problems and issues facing their organisations, and assist in their resolution.
The challenge for organisations is to support the analysts in their personal development, ensure they have the authority to carry out business analysis to the extent required by the situations they face, and listen to their advice. Sloan Management Review, 39, 9— BCS, Swindon.
Harmon, P. Morgan Kaufmann, Boston, MA. Johnson, G. FT Prentice Hall, Harlow. Porter, M. Senge, P. Broadway Business, New York. Skidmore, S. Business Analytics. All rights reserved. Please sign in to WorldCat Don't have an account? Remember me on this computer.
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