BUSINESS ANALYSIS BCS, THE CHARTERED INSTITUTE FOR IT BCS, The Chartered Institute for IT champions the global IT profession and the interests of individuals engaged in that profession for the benefit of all. We promote wider social and economic progress through the advancement of information technology science and practice. We bring together industry, academics, practitioners and government to share knowledge, promote new thinking, inform the design of new curricula, shape public policy and inform the public. Our vision is to be a world-class organisation for IT. Our 70,000 strong membership includes practitioners, businesses, academics and students in the UK and internationally. We deliver a range of professional development tools for practitioners and employees. A leading IT qualification body, we offer a range of widely recognised qualifications. 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All trade marks, registered names etc. acknowledged in this publication are the property of their respective owners. BCS and the BCS logo are the registered trade marks of the British Computer Society, charity number 292786 (BCS). Published by BCS Learning & Development Ltd, a wholly owned subsidiary of BCS, The Chartered Institute for IT, First Floor, Block D, North Star House, North Star Avenue, Swindon, SN2 1FA, UK. www.bcs.org Paperback ISBN: 978-1-78017-277-4 PDF ISBN: 978-1-78017- 278-1 ePUB ISBN: 978-1-78017-279-8 Kindle ISBN: 978-1-78017- 280-4 British Cataloguing in Publication Data. A CIP catalogue record for this book is available at the British Library. Disclaimer: The views expressed in this book are of the author(s) and do not necessarily reflect the views of the Institute or BCS Learning & Development Ltd except where explicitly stated as such. Although every care has been taken by the authors & BCS Learning & Development Ltd in the preparation of the publication, no warranty is given by the authors or BCS Learning & Development Ltd as publisher as to the accuracy or completeness of the information contained within it and neither the authors nor BCS Learning & Development Ltd shall be responsible or liable for any loss or damage whatsoever arising by virtue of such information or any instructions or advice contained within this publication or by any of the aforementioned. BCS books are available at special quantity discounts to use as premiums and sale promotions, or for use in corporate training programs. Please visit our Contact us page at www.bcs.org/contact. Typeset by Lapiz Digital Services, Chennai, India. iv CONTENTS List of figures and tables ix Contributors xii Foreword xiv Abbreviations xv Glossary xvii Preface xxvii 1. WHAT IS BUSINESS ANALYSIS? 1 Introduction 1 The origins of business analysis 2 The development of business analysis 3 The scope of business analysis work 6 The role and responsibilities of a business analyst 12 The business analysis maturity model 13 Professionalism and business analysis 16 The future of business analysis 17 2. THE COMPETENCIES OF A BUSINESS ANALYST 19 Introduction 19 Personal qualities 20 Business knowledge 24 Professional techniques 27 The right skills for the right situation 29 How can I develop my skills? 31 Industry skills frameworks 32 Industry qualifications 33 Summary 34 3. STRATEGY ANALYSIS 38 Introduction 38 The context for strategy 38 What is strategy? 39 Strategy development 41 External environment analysis 42 Internal environment analysis 47 SWOT analysis 49 Executing strategy 51 Summary 54 v BUSINESS ANALYSIS 4. THE BUSINESS ANALYSIS PROCESS MODEL 56 Introduction 56 An approach to problem solving 56 The business analysis process model 58 Investigate situation 59 Consider perspectives 61 Analyse needs 63 Evaluate options 65 Define requirements 67 Deliver changes 69 Summary 71 5. INVESTIGATION TECHNIQUES 72 Introduction 72 Prior research 72 Investigation techniques 74 Interviews 74 Observation 80 Workshops 82 Scenarios 87 User analysis 90 Prototyping 91 Quantitative approaches 92 Suitability of techniques 96 Documenting the current situation 96 Summary 102 6. STAKEHOLDER ANALYSIS AND MANAGEMENT 103 Introduction 103 Stakeholder categories and identification 103 Analysing stakeholders 106 Stakeholder management strategies 107 Summary of stakeholder management strategies 110 Managing stakeholders 111 Defining stakeholder involvement – RACI and RASCI charts 112 Using social media in stakeholder management 114 Understanding stakeholder perspectives 115 Summary 121 7. MODELLING BUSINESS PROCESSES 123 Introduction 123 Organisational context 123 An alternative view of an organisation 125 The organisational view of business processes 126 Value propositions 129 Business process models 131 Analysing the ‘as is’ process 138 Improving business processes 141 Process measurement 144 Business Process Model and Notation 147 vi CONTENTS Six Sigma 148 Summary 149 8. DEFINING THE SOLUTION 151 Introduction 151 Gap analysis 151 Formulating options 156 Defining business requirements 156 Introduction to business architecture 156 Definition of business architecture 157 Structure of a business architecture 158 Business architecture techniques 159 Summary 162 9. MAKING A BUSINESS AND FINANCIAL CASE 163 Introduction 163 The business case in the project lifecycle 163 Identifying options 164 Assessing project feasibility 166 Structure of a business case 168 Investment appraisal 176 Presentation of a business case 178 RAID and CARDI logs 179 Summary 180 10. ESTABLISHING THE REQUIREMENTS 181 Introduction 181 The problems with requirements 182 A framework for requirements engineering 185 Actors 186 Requirements elicitation 189 Requirements elicitation techniques 193 Building the requirements list 193 Requirements analysis 195 Requirements validation 200 Agile approach to requirements 202 Summary 204 11. DOCUMENTING AND MANAGING REQUIREMENTS 205 Introduction 205 The importance of documentation 205 The requirements document 205 The requirements catalogue 207 Managing requirements 218 Summary 222 12. MODELLING REQUIREMENTS 224 Introduction 224 Modelling business use cases 224 Modelling system use cases 225 Modelling system data 228 vii BUSINESS ANALYSIS Entity relationship diagrams 229 Class models 237 Modelling in Agile approaches 244 The use of models in system maintenance 245 Summary 245 13. DELIVERING THE REQUIREMENTS 246 Introduction 246 Delivering the solution 246 Context 247 Delivery lifecycle 248 Development and delivery approach 256 Roles 260 Deliverables 261 Techniques 262 Summary 262 14. DELIVERING THE BUSINESS SOLUTION 264 Introduction 264 Stages of the business change lifecycle 264 BA role in the business change lifecycle 265 Summary 273 Index 275 viii