business-analysis-2e-artwork-ma_Layout 1 24/06/2010 14:53 Page 1 BUSINESS BUSINESS ANALYSIS P a u Second Edition l, Y e Debra Paul, Donald Yeates and James Cadle (Editors) at ANALYSIS e s , C a Business Analysisis a bestselling practical guide for anyone Business Analysis d l involved in business analysis, whether improving business e processes or defining requirements for IT solutions. The book is an excellent (E Second Edition explores the entire range of approaches and techniques needed introductory text for d it to conduct business analysis successfully, including investigating o business analysts r business issues, modelling processes, defining requirements and s ) producing rigorous business cases. seeking to apply the Some important enhancements to this new edition: the inclusion standards, knowledge Debra Paul, Donald Yeates and James Cadle (Editors) of additional techniques such as Ishikawa diagrams and spaghetti and competencies of maps; expanded treatment of requirements management and investigation of business needs; more detailed treatment of the discipline. It goes B benefits realisation including the use of benefits realisation maps. beyond most texts to US I (cid:129) New edition of bestselling book show how business N E (cid:129) Practical business analysis techniques analysts define S S (cid:129) Business process modelling (cid:129) Requirements analysis and management requirements not A N (cid:129) Managing change only to support IT A L Y ABOUT THE AUTHORS systems development, S Business Analysishas been written and now updated by a team but also to drive IS of experts who are practitioners and educators in the business S business change E analysis field. C and implement O N organizational D You might also be interested in: E strategy. D BUSINESS ANALYSIS TECHNIQUES I T 72 Essential Tools for Success Kathleen Barret, I O James Cadle, Debra Paul and Paul Turner President & CEO of the N International Institute of Business Analysis Business Business Analysis Second Edition_Layout 1 6/25/10 4:37 PM Page i Business Analysis Second Edition_Layout 1 6/25/10 4:37 PM Page i BUSINESS ANALYSIS Second Edition Business Analysis Second Edition_Layout 1 6/25/10 4:37 PM Page ii BCS The Chartered Institute for IT Our mission as BCS, The Chartered Institute for IT, is to enable the information society. 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. 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Published by British Informatics Society Limited (BISL), a wholly owned subsidiary of BCS The Chartered Institute for IT, First Floor, Block D, North Star House, North Star Avenue, Swindon, SN2 1FA, United Kingdom. www.bcs.org ISBN 978-1-906124-61-8 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 BISL or BCS except where explicitly stated as such. Although every care has been taken by the authors and BISL in the preparation of the publication, no warranty is given by the authors or BISL as publisher as to the accuracy or completeness of the information contained within it and neither the authors nor BISL 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. 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Printed at CPI Antony Rowe Ltd., Chippenham, UK. iv Business Analysis Second Edition_Layout 1 6/25/10 4:37 PM Page v CONTENTS List of figures and tables ix Contributors xii Foreword xiii Abbreviations xiv Glossary xvi Preface xxvii 1 WHAT IS BUSINESS ANALYSIS? 1 Introduction 1 The origins of business analysis 2 The development of business analysis 2 The scope of business analysis work 5 The role and responsibilities of a business analyst 10 The business analysis maturity model 12 The future of business analysis 14 References 15 Further reading 15 Useful websites 15 2 THE COMPETENCIES OF A BUSINESS ANALYST 16 Introduction 16 Behavioural skills and personal qualities 17 Business knowledge 20 Techniques 23 The right competencies for the right situation 25 How can I develop my competencies? 26 Industry skills frameworks 27 Industry qualifications 31 Summary 32 References 33 Further reading 33 Useful websites 34 3 STRATEGY ANALYSIS 35 Introduction 35 The context for strategy 35 What is strategy? 37 Strategy development 38 External environment analysis 41 Internal environment analysis 46 v Business Analysis Second Edition_Layout 1 6/25/10 4:37 PM Page vi CONTENTS SWOT analysis 48 Implementing strategy 50 Summary 53 References 53 Further reading 53 4 THE BUSINESS ANALYSIS PROCESS MODEL 55 Introduction 55 An approach to problem-solving 55 The process model 57 Investigating the situation 58 Considering perspectives 60 Analysing needs 62 Evaluating options 64 Defining requirements 65 Delivering changes 67 Summary 69 References 69 Further reading 70 5 INVESTIGATION TECHNIQUES 71 Introduction 71 Prior research 71 Investigation techniques 73 Quantitative approaches 88 Documenting the current business situation 91 Summary 97 References 97 Further reading 97 6 STAKEHOLDER ANALYSIS AND MANAGEMENT 99 Introduction 99 Stakeholder categories and identification 100 Analysing stakeholders 102 Stakeholder management strategies 103 Managing stakeholders 106 Stakeholder views 108 Defining stakeholder involvement – RACI and RASCI charts 108 Summary 111 Further reading 111 7 MODELLING BUSINESS SYSTEMS 112 Introduction 112 Soft systems methodology 113 Business perspectives 115 Business activity models 117 Business events and business rules 122 Critical success factors and key performance indicators 124 Validating a business activity model 124 Use of the business activity model in gap analysis 124 vi Business Analysis Second Edition_Layout 1 6/25/10 4:37 PM Page vii CONTENTS Summary 125 References 125 Further reading 125 8 MODELLING BUSINESS PROCESSES 127 Introduction 127 Organisational context 127 An alternative view of an organisation 129 The organisational view of business processes 130 Value propositions 133 Business process models 136 Analysing the business process model 140 Improving business processes 141 Process measurement 143 Six Sigma 146 Summary 147 References 147 Further reading 147 Useful websites 148 9 GATHERING THE REQUIREMENTS 149 Introduction 149 The problems with requirements 149 A process for requirements engineering 152 Actors 153 Requirements elicitation 156 Building the requirements list 161 Requirements analysis 162 Validating requirements 165 Summary 166 References 167 Further reading 167 10 DOCUMENTING AND MANAGING REQUIREMENTS 168 Introduction 168 The importance of documentation 168 The requirements document 168 The requirements catalogue 170 Managing requirements 179 Conclusion 185 Further reading 185 11 MODELLING REQUIREMENTS 186 Introduction 186 Modelling system functions 186 Modelling system data 190 Class models 199 Summary 204 References 205 Further reading 205 vii Business Analysis Second Edition_Layout 1 6/25/10 4:37 PM Page viii CONTENTS 12 DELIVERING THE REQUIREMENTS 206 Introduction 206 Delivering the solution 206 Context 207 Delivery lifecycles 208 Approach 215 Roles in delivering requirements 219 Deliverables 220 Techniques 220 Conclusion 221 References 221 Further reading 221 13 MAKING A BUSINESS AND FINANCIAL CASE 223 Introduction 223 The business case in the project lifecycle 223 Identifying options 224 Assessing project feasibility 226 Structure of a business case 229 Investment appraisal 237 Presentation of a business case 239 Benefits management and realisation 240 Summary 243 Further reading 243 14 IMPLEMENTING BUSINESS CHANGE 244 Introduction 244 Introducing a new business system 244 The nature of change 245 The environment for change 246 Alignment 252 Definition 256 Design 258 Implementation 259 Realisation 264 Conclusion 267 References 267 Further reading 268 Index 269 viii