Learning and Knowledge Management

IIBA Online Boot Camp Series

BABOK 3.0
Strategy Analysis

Accenture CSI Confidential Material. Do not duplicate or distribute

Module Objectives
At the end of this module, you will learn:

• Purpose of Strategy Analysis knowledge area

• Analyze current state for the reasons why an enterprise needs to change some aspect of how it operates

• Determine the set of necessary conditions for the change to meet the business need of future state.

• Details about identifying the external/internal risks for an enterprise during transition to future state.

• Process to develop and assess alternative approaches to the change, and then select the highest value

approach.

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Agenda

• Introduction to Strategy Analysis

• Business Analysis Value Spectrum

• BACCM in Strategy Analysis

• Analyze Current State

• Define Future State

• Assess Risks

• Define Change Strategy

• Summary

• Glossary

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 What is Strategy Analysis?

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Introduction to Strategy Analysis
• Strategy defines the most effective way to apply the capabilities of an enterprise in order to reach a desired
set of goals and objectives.
• Strategy Analysis:
• Focuses on defining the future and transition states needed to address the business need
• Provides context to requirements analysis and design definition for a given change
• Should be performed as a business need is identified
• Is an ongoing activity that assesses any changes in the need
• A strategy may be captured in a strategic plan, product vision, business case, product roadmap, or other
artifacts.
Business Analysis
Planning and
Monitoring

Requirements
Strategy Analysis Analysis and Design
Definition

Elicitation and Requirements Life

Collaboration Cycle Management
Solution Evaluation

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 Business Analysis Value
Spectrum

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Business Analysis Value Spectrum

Requirements
Strategy Analysis Solution Evaluation
Analysis & Design
Potential Definition Actual

Need Solution Scope Requirements Design PoC/Prototype Pilot/Beta Operating

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 The Business Analysis Core
Concept Model

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The Core Concept Model in SA

• The Business Analysis Core Concept Model (BACCM) describes the relationships among the six core
concepts.
Core Concept During Strategy Analysis, business analysts...

Change: The act of transformation in response to a need. Define the future state and develop a change strategy to
achieve the future state.

Need: A problem or opportunity to be addressed. Identify needs within the current state and prioritize needs to
determine the desired future state.

Solution: A specific way of satisfying one or more needs Define the scope of a solution as part of developing a
in a context. change strategy.

Stakeholder: A group or individual with a relationship to Collaborate with stakeholders to understand the business
the change, the need, or the solution. need and to develop a change strategy and future state that
will meet those needs.

Value: The worth, importance, or usefulness of something

Examine the potential value of the solution to determine if a
to a stakeholder within a context.
change is justified.

Context: The circumstances that influence, are influenced

Consider the context of the enterprise in developing a
by, and provide understanding of the change.
change strategy.

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 Analyze Current State

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Analyze Current State (1/7)
Purpose/Description
• The purpose of Analyze Current State task is to understand the reasons for:

• Why an enterprise needs to change some aspect of how it operates?

• What would be directly or indirectly affected by the change?

• The starting point for any change is an understanding of why the change is needed.

• Business analysts work to help stakeholders enable change by exploring and articulating the business needs
that drive the desire to change.

• Business analysts examine the current state in the context of the business need to understand what may
influence proposed changes, and what will be affected by them.

• The current state of an enterprise is rarely static while a change is being developed and implemented.

Input:

• Elicitation Results: used to define and understand the current state.

• Needs: the problem or opportunity faced by an enterprise or organization often launches business analysis
work to better understand
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Analyze Current State (2/7)
Input - Task – Guidelines and Tools - Output Diagram

Guidelines and Tools

Input
Business Analysis 4.3
Approach
Needs Elicitation Results
(confirmed)
Enterprise Limitations

Organizational
Strategy

Task
Solution Limitation 6.1 Analyze Current State

Solution Performance
Goals

Solution Performance Output

Measures
6.1
6.1 Business
Current State
Stakeholder Analysis Requirements
Results Description

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Analyze Current State (3/7)
Elements
• Business Needs:

• Business needs are the problems and opportunities of strategic importance faced by the enterprise.
• A business need may be identified at many different levels of the enterprise: From the top-down, From
the bottom-up, From middle management or From external drivers.

• Organizational Structure and Culture:

• Organizational structure defines the formal relationships between people working in the enterprise.

• Organizational culture is the beliefs, values, and norms shared by the members of an organization.

• Capabilities and Processes

• Capabilities and processes describe the activities an enterprise performs. They also include the
knowledge the enterprise has, the products and services it provides, the functions it supports, and the
methods it uses to make decisions.
• Business analysts may use:
• A capability-centric view of the enterprise when looking for innovative solutions that combine
existing capabilities to produce a new outcome.
• A process-centric view of the enterprise when looking for ways to improve the performance of
current activities.

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Analyze Current State (4/7)
Elements Contd.
• Technology and Infrastructure:
• Information systems used by the enterprise support people in executing processes, making decisions,
and in interactions with suppliers and customers. The infrastructure describes the enterprise’s
environment with respect to physical components and capabilities.

• Policies:
• Policies define the scope of decision making at different levels of an enterprise. They generally
address routine operations rather than strategic change

• Business Architecture:
• Business analysts must understand how all the elements of the current state fit together and support
one another in order to recommend changes that will be effective.

• Internal Assets:
• Business analysts identify enterprise assets used in the current state. Resources can be tangible or
intangible, such as financial resources, patents, reputation, and brand names.

• External Influencers:
• Sources of external influence include: Industry Structure, Competitors, Customers, Suppliers, Political
and Regulatory Environment, Technology, Macroeconomic Factors

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Analyze Current State (5/7)
Guidelines and Tools
• Business Analysis Approach: Guides how the business analyst undertakes an analysis of the current
state.

• Enterprise Limitation: Used to understand the challenges that exist within the enterprise.

• Organizational Strategy: An organization will have a set of goals and objectives which guides operations,
establishes direction, and provides a vision for the future state. This can be implicitly or explicitly stated.

• Solution Limitation: Used to understand the current state and the challenges of existing solutions.

• Solution Performance Goals: Measure the current performance of an enterprise or solution, and serve as a
baseline for setting future state goals and measuring improvement.

• Solution Performance Measures: Describe the actual performance of existing solutions.

• Stakeholder Analysis Results: Stakeholders from across the organization will contribute to an
understanding and analysis of the current state.

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Analyze Current State (6/7)
Techniques
• Benchmarking and Market Analysis • Metrics and Key Performance Indicators (KPIs)
• Business Capability Analysis • Mind Mapping
• Business Model Canvas • Observation
• Business Cases • Organizational Modelling
• Concept Modelling • Process Analysis
• Data Mining • Process Modelling
• Document Analysis • Risk Analysis and Management:
• Financial Analysis • Root Cause Analysis
• Focus Groups • Scope Modelling
• Functional Decomposition • Survey or Questionnaire
• Interviews • SWOT Analysis
• Item Tracking • Vendor Assessment
• Lessons Learned • Workshops

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Analyze Current State (7/7)
Stakeholders
• Customer
• Domain Subject Matter Expert
• End User
• Implementation Subject Matter Expert
• Operational Support
• Project Manager
• Regulator
• Sponsor
• Supplier
• Tester

Output:

• Current State Description

• Business Requirements

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 Define Future State

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Define Future State (1/9)
Purpose/Description
• To determine the set of necessary conditions to meet the business need.

• Business analysts work to ensure that the future state of the enterprise is well defined, that it is achievable
with the resources available, and that key stakeholders have a shared consensus vision of the outcome

• The future state will be defined at a level of detail that:

• Allows for competing strategies to achieve the future state to be identified and assessed,

• Provides a clear definition of the outcomes that will satisfy the business needs,

• Details the scope of the solution space,

• Allows for value associated with the future state to be assessed, and

• Enables consensus to be achieved among key stakeholders

Inputs

• Business Requirements: The problems, opportunities or constraints that the future state will address.

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Define Future State (2/9)
Input - Task – Guidelines and Tools - Output Diagram

Guidelines and Tools Input

Constraints Business
Requirements

Current State Description

Metrics and Key Performance

Indicators (KPIs)

Organizational Strategy
Task
6.2 Define Future State

Output

Business Future State

Potential Value
Objectives Description

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Define Future State (3/9)
Elements
• Business Goals and Objectives

• Business goals and objectives describe the ends that the organization is seeking to achieve.

• Goals are longer term, ongoing, and qualitative statements of a state or condition that the organization
is seeking to establish and maintain.

• As goals are analyzed they are converted into more descriptive, granular and specific objectives, and
linked to measures that make it possible to objectively assess if the objective has been achieved.

• Scope of Solution

• The scope of the solution space defines which kinds of options will be considered when investigating
possible solutions

• Constraints

• Constraints describe aspects of the current state, aspects of the planned future state that may not be
changed by the solution, or mandatory elements of the design. They may be budgetary restrictions,
time restrictions, technology, policies, etc.

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Define Future State (4/9)
Elements Contd.
• Organizational Structure and Culture

• The formal and informal working relationships that exist within the enterprise may need to change to
facilitate the desired future state.

• Capabilities and Processes

• Identify new kinds of activities or changes in the way activities will be performed to realize the future
state.

• Technology and Infrastructure

• The existing technology may impose technical constraints on the design of the solution. These may
include development languages, hardware and software platforms, and application software that must
be used.

• Technical constraints include any IT architecture standards that must be followed. Business goals and
objectives describe the ends that the organization is seeking to achieve.

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Define Future State (5/9)
Elements Contd.
• Policies

• Policies are a common source of constraints on a solution or on the solution space.

• Business policies may mandate what solutions can be implemented given certain levels of approval,
the process for obtaining approval, and the necessary criteria a proposed solution must meet in order
to receive funding.

• Business Architecture

• The elements of any future state must effectively support one another and all contribute to meeting the
business goals and objectives.

• Internal Assets

• The analysis of resources might indicate that existing resources need to be increased or require
increased capabilities, or that new resources need to be developed.

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Define Future State (6/9)
Elements Contd.
• Identify Assumptions

• Most strategies are predicated on a set of assumptions that will determine whether or not the strategy
can succeed.

• These assumptions must be identified and clearly understood, so that appropriate decisions can be
made if the assumption later proves invalid.

• Potential Value

• Meeting the business objectives alone does not justify the transition to a future state; the potential
value must be evaluated to see if it is sufficient to justify a change.

• The potential value of the future state is the net benefit of the solution after operating costs are
accounted for.

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Define Future State (7/9)
Guidelines and Tools
• Current State Description: Provides the context within which the work needs to be completed. It is often
used as a starting point for the future state.

• Metrics and Key Performance Indicators (KPIs): The key performance indicators and metrics which will
be used to determine whether the desired future state has been achieved.

• Organizational Strategy: Describes the path, method, or approach an enterprise or organization will take to
achieve its desired future state. This can be implicitly or explicitly stated.

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Define Future State (8/9)
Techniques
• Acceptance and Evaluation Criteria: • Lessons Learned
• Balanced Scorecard • Metrics and Key Performance Indicators (KPIs)
• Benchmarking and Market Analysis • Mind Mapping
• Business Capability Analysis • Organizational Modelling
• Business Cases • Process Modelling
• Business Model Canvas • Prototyping
• Decision Analysis • Scope Modelling
• Decision Modelling • Survey or Questionnaire
• Financial Analysis • SWOT Analysis
• Functional Decomposition • Vendor Assessment
• Interviews • Workshops

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Define Future State (9/9)
Stakeholders
• Customer
• Domain Subject Matter Expert
• End User
• Implementation Subject Matter Expert
• Operational Support
• Project Manager
• Regulator
• Sponsor
• Supplier
• Tester

Output:

• Business Objectives

• Future State Description

• Potential Value

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 Assess Risks

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Assess Risks (1/6)
Purpose/Description
• Understand the undesirable consequences of internal and external forces on the enterprise during a
transition to, or once in, the future state
• Analyzing and Managing Risk
• Risks are analyzed for the possible consequences if the risk occurs, impact of those consequences,
likelihood of the risk, and potential time frame when the risk might occur.
• Risk assessment can include
• Choosing to accept a risk and risks can be managed to minimize their overall impact to value.

Input
• Business Objectives: Can be used to identify and discuss potential risks.
• Elicitation Results (confirmed): An understanding of what the various stakeholders perceive as risks.
• Influences: Factors internal & external which will impact the realization of the desired future state.
• Potential Value: Provides a benchmark against which risks can be assessed.
• Requirements (prioritized): Depending on their priority, requirements will influence the risks to be defined
and understood as part of solution realization.

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Assess Risks (2/6)
Input - Task – Guidelines and Tools - Output Diagram

Guidelines and Tools

Influences 4.3 5.3
Business Analysis (Internal and Elicitation Results Designs
Approach external) (Confirmed) (Prioritized)

5.3 6.2
Requirements Business 6.2
Business Policies Potential Value
(Prioritized) Objectives

Change Strategy

Task
Current State
Description 6.3 Assess Risks

Future State
Description

Output
Identified Risks
6.3
Stakeholder Risk Analysis Results
Engagement
Approach

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Assess Risks (3/6)
Elements
• Unknowns:

• For Risk there will be uncertainty in the likelihood of it occurring, and the impact if it does occur.

• Constraints, Assumptions, and Dependencies

• Can be analyzed for risks and sometimes should be managed as risks themselves.

• Negative Impact to Value

• Risks are expressed as conditions that increase likelihood or severity of a negative impact to value.

• Risk Tolerance

• Risks are expressed as conditions that increase the likelihood or severity of a negative impact to
value.

• Three broad ways of describing attitude toward risk: Risk-aversion, Neutrality, Risk-seeking

• Recommendation

• Based on the analysis of risks, business analysts recommend a course of action on basis of Risk
Level and Risk Tolerance.

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Assess Risks (4/6)
Guidelines and Tools
• Business Analysis Approach: Guides how the BA analyzes risks.

• Business Policies: Define the limits within which decisions must be made.

• Change Strategy: This approach must be assessed to understand risks associated with the change.

• Current State Description: It can be used to determine risks associated with the current state.

• Future State Description: Determines risks associated with the future state.

• Identified Risks: Can be used as a starting point for more thorough risk assessment.

• Stakeholder Engagement Approach: Understanding stakeholders and stakeholder groups helps identify
and assess the potential impact of internal and external forces.

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Assess Risks (5/6)
Techniques
• Brainstorming • Lessons Learned

• Business Cases • Mind Mapping

• Decision Analysis • Risk Analysis and Management

• Document Analysis • Root Cause Analysis

• Financial Analysis • Survey or Questionnaire

• Interviews • Workshops

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Assess Risks (6/6)
Stakeholders
• Domain Subject Matter Expert

• Implementation Subject Matter Expert

• Operational Support

• Project Manager

• Regulator

• Sponsor

• Supplier

• Tester

Outputs

• Risk Analysis Results

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 Define Change Strategy

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Define Change Strategy (1/7)
Purpose/Description
• To develop and assess alternative approaches to the change, and then select the recommended approach
• Change strategy clearly describes the nature of the change in terms of:
• Context of the change,
• Identified alternative change strategies,
• Justification for why a particular change strategy is the best approach
• Investment and resources required to work toward the future state,
• How the enterprise will realize value after the solution is delivered,
• Key stakeholders in the change, and
• Transition states along the way.
• The change strategy might be presented as part of a business case, Statement of Work (SOW), an
enterprise’s strategic plan, or in other formats.

Input
• Current State Description: Provides context about the current state, and includes assessments of internal
and external influences
• Future State Description : Provides context about the desired future state.
• Risk Analysis Results: Describe identified risks and exposure of each risk.
• Stakeholder Engagement Approach: Understanding stakeholders‘ communication and collaboration
needs can help identify change-related activities that need to be included as part of the change strategy.

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Define Change Strategy (2/7)
Input - Task – Guidelines and Tools - Output Diagram

3.2 6.1
Stakeholder Engagement Current State
Approach Description

Input
6.2
6.3
Future State
Risk Analysis Results
Description
Guidelines and Tools

Business Analysis
Approach
6.4
Design Options Define Change Strategy

Solution
Recommendations

Output

6.4 6.4
Change Strategy Solution Scope

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Define Change Strategy (3/7)
Elements
• Solution Scope

• The solution is the outcome of a change that allows an enterprise to satisfy a need. The best solution
approach is justified and selected.

• The solution scope defines the boundaries of the solution, and is described in enough detail to enable
stakeholders to understand which new capabilities the change will deliver. It also describes how the
proposed solution enables the future state's goals.

• Gap Analysis

• A gap analysis identifies the difference between current state and future state capabilities.

• Gap analysis can help identify the gaps that prevent the enterprise from meeting needs and achieving
goals.

• Enterprise Readiness Assessment

• Analyze the enterprise to assess its capacity to make the change and to sustain the change in the
future state.

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Define Change Strategy (4/7)
Elements Contd.
• Change Strategy

• It is a high-level plan of key activities and events that will be used to transform the enterprise from the
current state to the future state.

• Transition States and Release Planning

• In many cases, enterprise will have to operate in one or more transition states.

• Business analysts help facilitate release planning discussions to help stakeholders reach decisions.

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Define Change Strategy (5/7)
Guidelines and Tools
• Business Analysis Approach: Guides how the BA defines a change strategy.

• Design Options: Describe various ways to satisfy the business needs.

• Solution Recommendations: Identifying the possible solutions which can be pursued in order to achieve
the future state and helps the BA determine the types of changes to the organization.

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Define Change Strategy (6/7)
Techniques
• Financial Analysis • Organizational Modelling

• Focus Groups • Process Modelling

• Functional Decomposition • Scope Modelling

• Interviews • SWOT Analysis

• Lessons Learned • Vendor Assessment

• Mind Mapping • Workshops

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Define Change Strategy (7/7)
Stakeholders
• Customer
• Domain Subject Matter Expert
• End User
• Implementation Subject Matter Expert
• Operational Support
• Project Manager
• Regulator
• Sponsor
• Supplier
• Tester

Outputs

• Change Strategy

• Solution Scope

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 Summary

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Summary
Strategy Analysis Summary
• The Strategy Analysis knowledge area describes the business analysis work that must be performed to
collaborate with stakeholders in order to identify a need of strategic or tactical importance (the business
need), enable the enterprise to address that need, and align the resulting strategy for the change with
higher- and lower-level strategies.

• The Strategy Analysis knowledge area includes the following tasks:

• Analyze Current State: understands the business need and how it relates to the way the enterprise
functions today. Sets a baseline and context for change.
• Define Future State: defines goals and objectives that will demonstrate that the business need has
been satisfied and defines what parts of the enterprise need to change in order to meet those goals
and objectives.
• Assess Risks: understands the uncertainties around the change, considers the effect those
uncertainties may have on the ability to deliver value through a change, and recommends actions to
address risks where appropriate.
• Define Change Strategy: performs a gap analysis between current and future state, assesses
options for achieving the future state, and recommends the highest value approach for reaching the
future state including any transition states that may be required along the way.

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 Glossary

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Glossary (1/5)
Acceptance criteria Criteria associated with requirements, products, or the delivery cycle that must be met in
order to achieve stakeholder acceptance.

Benchmarking A comparison of a decision, process, service, or system's cost, time, quality, or other
metrics to those of leading peers to identify opportunities for improvement.

Brainstorming A team activity that seeks to produce a broad or diverse set of options through the rapid
and uncritical generation of ideas.

Business Architecture The design, structure, and behavior of the current and future states of an enterprise to
provide a common understanding of the organization. It is used to align the enterprise’s
strategic objectives and tactical demands
Business Case A justification for a course of action based on the benefits to be realized by using the
proposed solution, as compared to the cost, effort, and other considerations to acquire and
live with that solution.
Business Goal A state or condition that an organization is seeking to establish and maintain, usually
expressed qualitatively rather than quantitatively.

Business need A problem or opportunity of strategic or tactical importance to be addressed.

Business Objective An objective, measurable result to indicate that a business goal has been achieved.

Business Policy A non-practicable directive that controls and influences the actions of an enterprise

Business Requirement A representation of goals, objectives and outcomes that describe why a change has been
initiated and how success will be assessed.

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Glossary (2/5)
Business Rule A specific, practicable, testable directive that is under the control of the business and that
serves as a criterion for guiding behavior, shaping judgments, or making decisions.

Change Control Controlling changes to requirements and designs so that the impact of requested changes
is understood and agreed-to before the changes are made.

Change Management Planned activities, tools, and techniques to address the human side of change during a
change initiative, primarily addressing the needs of the people who will be most affected by
the change.
Change Strategy A plan to move from the current state to the future state to achieve the desired business
objectives

Competitive Analysis A structured assessment which captures the key characteristics of an industry to predict
the long-term profitability prospects and to determine the practices of the most significant
competitors.
Component A uniquely identifiable element of a larger whole that fulfills a clear function.

Constraint (business analysis) An influencing factor that cannot be changed, and that places a limit or restriction on a
possible solution or solution option.

Context The circumstances that influence, are influenced by, and provide understanding of the
change.

Cost-Benefit Analysis An analysis which compares and quantifies the financial and non-financial costs of making
a change or implementing a solution compared to the benefits gained.

Decision Analysis An approach to decision making that examines and models the possible consequences of
different decisions, and assists in making an optimal decision under conditions of
uncertainty.
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Glossary (3/5)
Decomposition A technique that subdivides a problem into its component parts in order to facilitate
analysis and understanding of those components.

Design A usable representation of a solution.

Document Analysis (business An examination of the documentation of an existing system in order to elicit requirements.
analysis):

Enterprise Readiness Assessment An assessment that describes the enterprise is prepared to accept the change associated
with a solution and is able to use it effectively.

External interface An interaction that is outside the proposed solution. It can be another hardware system,
software system, or a human interaction with which the proposed solution will interact.

Focus Group A group formed to elicit ideas and attitudes about a specific product, service, or opportunity
in an interactive group environment. The participants share their impressions, preferences,
and needs, guided by a moderator.
Gap Analysis A comparison of the current state and desired future state of an enterprise in order to
identify differences that need to be addressed.

Impact Analysis An assessment of the effects a proposed change will have on a stakeholder or stakeholder
group, project, or system.

Implementation Subject Matter A stakeholder who has specialized knowledge regarding the implementation of one or
Expert more solution components.
Interview Eliciting information from a person or group of people in an informal or formal setting by
asking relevant questions and recording the responses.

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Glossary (4/5)
Matrix A textual form of modelling used to represent information that can be categorized, cross-
referenced, and represented in a table format.

Need A problem or opportunity to be addressed.

Observation (business analysis) Studying and analyzing one or more stakeholders in their work environment in order to
elicit requirements.

Operational Support A stakeholder who is responsible for the day-to-day management and maintenance of a
system or product.

Organizational Capability A function inside the enterprise, made up of components such as processes, technologies,
and information and used by organizations to achieve their goals.

Residual Risk The risk remaining after action has been taken or plans have been put in place to deal with
the original risk.

Scope The boundaries of control, change, a solution, or a need.

Solution A specific way of satisfying one or more needs in a context.

Solution Component A sub-part of a solution that can be people, infrastructure, hardware, software, equipment,
facilities, and process assets or any combination of these sub-parts.

Solution Option One possible way to satisfy one or more needs in a context.

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Glossary (5/5)
Solution Scope The set of capabilities a solution must deliver in order to meet the business need.

Stakeholder A group or individual with a relationship to the change, the need, or the solution.

Stakeholder Analysis Identifying and analyzing the stakeholders who may be impacted by the change and
assess their impact, participation, and needs throughout the business analysis activities.

Strategy A description of the chosen approach to apply the capabilities of an enterprise in order to
reach a desired set of goals or objectives.

Supplier A stakeholder outside the boundary of a given organization or organizational unit who
provides products or services to the organization and may have contractual or moral rights
and obligations that must be considered.
Survey Collecting and measuring the opinions or experiences of a group of people through a
series of questions.

Strengths, weaknesses, An analysis model used to understand influencing factors and how they may affect an
opportunities, and threats analysis initiative. Also known as SWOT analysis.
(SWOT)
Transition Requirement A requirement that describes the capabilities the solution must have and the conditions the
solution must meet to facilitate transition from the current state to the future state, but
which are not needed once the change is complete.
Value (business analysis) The worth, importance, or usefulness of something to a stakeholder in a context

Workshop A facilitated and focused event attended by key stakeholders for the purpose of achieving
a defined goal.

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Questions

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 Thank You

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