IFS231

Unit 2
Business
Welcome to IFS231 – 2021

Analysis as a
project
Orientation for online teaching and learning programme
 Learning objectives

At the end of this week’s slides, you should be able to:

• understand the generic systems development life cycle
• understand the various SDLC methodologies
• understand the function that the BA plays in any SDLC cycle
• understand the need for change management
• create a BCD
• understand all sections pertinent to a BCD
• understand what a project is
• understand why project management is important
• start planning an IT project
 Unit 2 lecture topics
1. BA Terminology (covered in unit 1)
2. Business Processes
3. System Development Lifecycles (SDLC)
4. Function of BA in SDLC
5. Reason for change
6. The Business Case Document (BCD)
7. Starting an IT project
 Why Systems Analysis & Design?

• Information technology (IT) based information systems (IS) are

essential to all types of organisations.
• In order for these systems to be of benefit they must be based on
well-defined requirements and designed and built using systems
analysis and design (SAD) processes.
• There are a number of methodologies, criteria, tools and
techniques that need to be identified in order for the systems
analysis and design processes to be done successfully.
 What is an information system?
From 1st year, do you remember what an information system is?

An information system can be defined as a set of

interrelated components that function to provide
required information for a specified purpose.

5
 What is an information system?

From 1st year, you remember what an information system is:

An information system can be defined as a set of
interrelated components that function to provide
required information for a specified purpose.

6
 Unit 2 lecture topics
1. BA Terminology (covered in unit 1)
2. Business Processes
3. System Development Lifecycles (SDLC)
4. Function of BA in SDLC
5. Reason for change
6. The Business Case Document (BCD)
7. Starting an IT project
 Case questions (1)

• What is a process?
• What is a business process?
• What are the characteristics of business processes identified in the
case?
• Discuss why it is necessary to manage business processes
effectively.
 Case questions (2)

• What is a cross-functional process?

• What are the challenges of managing cross-functional processes?
 Case questions (3)

• What are the characteristics of mismanaged processes?

• Discuss the benefits of process improvement identified in the
case.
 Case questions (4)

Identify some key cross-functional processes for an insurance or

banking firm.
Discuss the challenges that firm would face in:
a) Defining/identifying the cross-functional processes
b) Managing the cross-functional processes
c) Improving the cross-functional processes
 Key Terminologies

1. (Business) process
2. Process activities
3. Critical activities
4. Process modelling
5. Process interactions
6. (Business) process management
7. Functional Areas of a business
 Business process

• a business process is an organized group of related activities that work together to

create a result of value to customers.
• consists of a set of activities that are performed in coordination in an organizational
and technical environment.
• collection of activities and operations involved in transforming inputs (physical
facilities, materials, capital, equipment, people, energy) into outputs (goods, services)
• Processes jointly realize a business goal.
Business process
 Business process

More elaborate defining terms:

1. A repeatable set of coherent activities
2. Triggered by a business event and
3. Performed by people and/or machines
4. Within or among organisations
5. For jointly realising business goals and
6. In favour of internal and/or external customers
 Characteristics of business processes

-Recurrence (and repeatability)

-Sub-processes
-May be performed in more than one ways
-Always triggered by an invent (trigger condition)
-Must have a customer (internal, external)
-Owned by a person with sufficient authority
-Measurable
-Has structural independence
 Process attributes

• Attributes describe properties, behaviour, purpose and other elements of a process

• Are captured in a tool to organise, analyse and manage an organisation’s portfolio
of processes.

Inputs/Outputs Rules (entry, exit, join, branching)

Events/Results Probabilities
Value Add (and non value add) Time (Transmission, waiting,
Roles/Organisations work/handling)
Data/Information Batching
Arrival Patterns/Distributions/Queuing Servers
Costs (indirect and direct)
 Example
Lead
Marketing Opportunity
contact

Customer Quote
service

Invoice Order

Shipment
Sub-process example
 Process activity

• A logical step or description of a piece of work that contributes towards

the accomplishment of a process.
• A logical representation of a piece of work contributing toward the
accomplishment of a process.
• The specification of a process activity is mapped to the invocation of an
operation on a business object during the execution of the containing
work node.
 Critical Activity

• Work elements which must be carefully documented, monitored, and

managed to ensure the success of an organization, program, or project.
• They primarily affect the main output of the organization.
• A delay in any critical path activity will delay completion of the whole
processes.
• In parallel activities, the activities with the longest paths area critical
Critical activity
 Process Hierarchy

• Core business processes can be

divided into manageable sub-
processes and activities in a
hierarchy.
• An activity is the smallest
component of a process that cannot
be further divided into sub-
processes.

May, 203:151
 Example: process hierarchy
New Product Development

Introduce the product to the market

Start market sales

 Process Modelling

• Set of activities for creating representations (as is or would be) of end-

to-end business perspective with primary, supporting and management
processes (not an end, but a means to an end)
 Process diagrams, maps and models

Diagrams
Depicts simple notation of the basic workflow of a process
Depicts major elements of a process flow (without minute details)
Maps
More precise than diagrams
More detailed showing relationships
Comprehensive view
 Process diagrams, maps and models

Models
Performance representation
Greater precision on data, and factors affecting it
Simulated for understanding and analysis
 Characteristics of a model

Is rarely full, complete and actual representation

– Focus on representing those attributes of the process that support continued
analysis from one or more perspectives
Its objective is to represent it as fully, complete or actual as possible
– Understanding the business process through the model
– Visible representation and establishing a commonly shared perspective
– Analysing process performance and defining and validating changes
 Why perform process modelling

1. Document
2. Provide training aid
3. Assessment against standards and compliance
4. Create “what-if” scenarios of processes
5. Identifying room for improvement
6. Designing new processes or approaches
7. Describe new opportunities
 Modelling tools

Focus should be on the analysis/design and not on the tool

– White boards, flip charts
– Paper and post-its
– Electronic tools
 Modelling standard and notations

• BPMN
• UML (For IS requirements)
• Flow charts (diagramming with connectors)
• Swim lanes (charts with lanes for roles)
• Value chain (Continuous flow with value addition)
• Event Process Chain (graphs of events and functions)
• Value Stream Mapping (lean manufacturing, six sigma)
• SIPOC (supplier, input, processes, output, customer, {requirements})
 Process interactions
Are defined using flowcharts.
Basic symbols used (BPMN 2.0 reference)
OMG, 2005
 Cross-functional process maps

• On large processes, more than one persons, units or departments are

responsible for some of the activities.
• In modelling, this can be represented in cross functional bands for each
responsible unit/person.
• Cross functional maps make it easy to see when the responsibility for a
step in a process moves from one department to another handoffs
Example: Cross functional process with handoffs
 functional areas and Business functions

• Functional area is a person, area or department

which carries out a particular business function
– Marketing and Sales (M/S)
– Supply Chain Management (SCM)
– Accounting and Finance (A/F)
– Human Resources (HR)
• Business functions: Activities specific to a
functional area of operation
 Process vs function

• Process
–Work activities across time and place, with a beginning, an end, and
clearly identified inputs and outputs (Davenport, 1993) e.g. order
fulfilment process
–Has sequence, purpose, interaction
–focus on end-to-end transactions that deliver value
• Function
–Group of activities related by a particular skill or goal e.g. Human
resources, finance sale
–focus on these individual tasks
 Processes vs. functions

Functions Processes
Focus on “What” Focus on “How”
Vertical Horizontal
Static Dynamic
Task-centered Customer-oriented
Individual/Specialist Team/Generalist
Parochial Holistic
 Processes vs functions
Functional organization Process organization
Work unit Department Team
Key Figure Functional executive Process owner
Benefits Functional excellence Responsive to market requirements
Easier work balancing because workers Improved communication and collaboration
have similar skills between different functional tasks
Clear management direction on how work Performance measurement aligned with process
should be performed goals

Weaknesses Barrier to communication between Duplication of functional expertise

different functions Inconsistency of functional performance between
Poor handover between functions that processes
affects customer services Increased operational complexity
Lack of end-to-end focus to optimize
organizational performance

Strategic Support cost leadership strategy Supports differentiation strategy

value
 Unit 2 lecture topics
1. BA Terminology (covered in unit 1)
2. Business Processes
3. System Development Lifecycles (SDLC)
4. Function of BA in SDLC
5. Reason for change
6. The Business Case Document (BCD)
7. Starting an IT project
 Systems Development Lifecycle (SDLC)

• There is no universal standardised version of SDLC

• SDLC is a general conceptual model that describes all the
stages involved in the development or acquisition of an
information system
• An SDLC can also be a very structured and formalised design
and development process
• Outlines all activities from an initial feasibility study through to
maintenance of the completed application.

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 Systems Development Lifecycle (SDLC)

Operations
and
Implementation maintenance

Integration
and test
Development

Design

Requirements
analysis
Planning BA
System
Concept
Development
SA
Initiation

Business Case Functional Spec System Requirement Spec

 Some SDLC Models

Waterfall
V Model
Prototyping Lifecycle
Incremental Model
Rapid Application Development (RAD)
Joint Application Development (JAD)
Rational Unified Process (RUP)
Spiral
Agile- Scrum
43
 Waterfall model

Requirements
analysis

System Design

Implementation

Testing
(verification)

Maintenance
 V model

Read more about V-model: https://www.geeksforgeeks.org/software-engineering-sdlc-v-model/

 Joint Application Development (JAD)

The Business Analyst (BA) frequently stands front and center as the facilitator of a JAD and as
the presenter of what the business needs, objectives, and requirements are. The BA may also
further elicit requirements as needed. As facilitator, the BA's job is to ensure the meeting keeps
running smoothly. That requires setting the agenda, making sure the agenda items are being
met, help brainstorm when discussions become snagged, and bring order when discussion gets
heated or defensive. https://www.modernanalyst.com/Careers/InterviewQuestions/tabid/128/ID/3602/What-is-a-JAD-
meeting-and-what-is-the-Business-Analysts-role-in-one.aspx
Rapid Application Development (RAD)

Requirements
Planning

User Design Construction

Cutover
Rapid Application Development (RAD)

https://roadmunk.com/guides/types-of-software-development-methodologies/
Agile - Scrum Framework

http://www.etechpulse.com/2015/02/agile-scrum-process-sdlc.html
Short meetings (15 min) held daily, led by Scrum New functionality is demonstrated at the end of each
Master, asking some questions, such as: Sprint cycle, with a shippable product feature for the
Agile - Scrum Framework
*“What have you done since our last meeting?”;
*“Do you have any obstacles?”;
client. May not contain all functionalities. So
customers can evaluate and give feedbacks.
*“What will you do before our next meeting?”

Once a Sprint is complete the dev team

provides Client with a demo of completed
functionality to verify that it is working as
expected. Avoids unforeseen issues at the
end of the project.

A prioritized list of
project requirement or Consist of work units that are Used to review what went well in the Sprint
features that provide required to achieve a requirement and what could be improved. The Retrospective
business value for the defined in the backlog that must also allows the development team to make
client, in the form of be a predefined time-box (e.g. 30 adjustments for the upcoming Sprint in order to
User Stories weeks). make it more efficient and productive.
days/2http://www.etechpulse.com/2015/02/agile-scrum-process-sdlc.html
 Unit 2 lecture topics
1. BA Terminology (covered in unit 1)
2. Business Processes
3. System Development Lifecycles (SDLC)
4. Function of BA in SDLC
5. Reason for change
6. The Business Case Document (BCD)
7. Starting an IT project
 Typical function of BA during the SDLC

⇢ Interacts with Business and Technical

⇢ Investigate and Analyse
⇢ Gather Requirements and Document
⇢ Find Solutions
⇢ Produce Specs (URS, BRS or FS)
⇢ User Acceptance Testing (UAT)
⇢ Assist with Implementation
⇢ To keep track of changes use a
traceability matrix

52
 Without the BA

• The focus tends to be on

technology instead of the
business
• There is a rush to code/build
• There is insufficient client
involvement
• Deficient requirements,
processes, practices and
tools
• No measurement of
business benefits

Business Analysis 53
 The ultimate goal

It’s about the business of your client

Knowledge of the future state of
the business according to the
business strategy
Identify gaps in capabilities need
to achieve the future state
Conduct feasibility analysis for
the best solution to fill gaps
Build and continually validate the
business case
Elicit, analyse, evolve, iterate,
validate requirements/solution
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 How does BA add value

• Realisation of the benefits

• Avoidance of unnecessary
costs
• Identification of new
opportunities
• Understanding the required
capability
• Modeling this for the
organisation

Business Analysis 55
 Unit 2 lecture topics
1. BA Terminology (covered in unit 1)
2. Business Processes
3. System Development Lifecycles (SDLC)
4. Function of BA in SDLC
5. Reason for change
6. The Business Case Document (BCD)
7. Starting an IT project
 The role of the BA in Change Management

• Change Management (CM) is a different discipline than

business analysis, but the two are very complementary.
• BAs are often involved in projects or initiatives that cause a
great deal of change within an organisation
• BAs will often be involved in the preparation and
implementation of CM plans given their front-line
involvement with stakeholders throughout the project.
• When there are no dedicated CM resources or defined CM
duties, the BA has an opportunity to help the project
successfully meet its objectives by understanding the basics
of CM and applying them in their activities.
 Understanding change

• Every person will react to the same change in a different way

based on their culture, worldview, understanding of the
change, relevance of the change to their work, what is
currently going on in their lives.
• Work with primary stakeholders on an individual level to drive
the necessary changes.
• Meet them where they are at!
 Why Change Management is important
• Permanently changing
technological, judicial and
customer requirements
• Strong competitors
• Organizational changes (Fusions,
take overs, change in
management, new employees,
outsourcing, diversification,
growth etc.),
• Process alteration
(implementation of new tools,
methods, adjustment of
information and production
technologies etc.)
 Factors influencing the need for change

Demographics
• e.g. an ageing workforce puts a focus on pensions

Competition
• e.g. cheap labour elsewhere forces a rethink on pay scales

Technology
• e.g. calls for fast turnarounds in some product lines

Legal/Political
• e.g. change may be a legal requirement

Economics
• e.g. increases in indirect taxation change consumer spending levels
 Unit 2 lecture topics
1. BA Terminology (covered in unit 1)
2. Business Processes
3. System Development Lifecycles (SDLC)
4. Function of BA in SDLC
5. Reason for change
6. The Business Case Document (BCD)
7. Starting an IT project
What is a project?

62
 What is a project?

❆ Frequently, a business is faced with making a change

(ref slide 33). Examples:
⮚Improving existing work process,
⮚Constructing a building,
⮚Installing a new computer,
⮚Merging with another company,
⮚Moving to a new location,
⮚Developing a new product,
⮚Entering a new market, and so on.
These changes are best planned and managed as
projects.
63
 What is a project?
⌑ A project is “a temporary endeavor undertaken to create a
unique product, service, or result”* brings beneficial change or
value e.g. a wedding; creating prototype of a car
▪ A project is a task, assignment or job that needs to be undertaken and
completed within a particular identified period
▪ It is a once-off occurrence wherein work to be done should be identified
and quantified in order to determine the resources needed.
▪ Projects have specific objectives and cut-off points
▪ Projects can be large or small and take a short or long time to complete
⌑ Operations: “is work done in organizations to sustain the
business”*e.g. publishing the next edition of monthly magazine;
use the prototype for the car mass production
✔repetitive in nature and are ongoing,
✔they have dedicated resources, and
✔have a longer lifespan than projects.
*Project Management Institute, Inc., A Guide to the Project Management Body of Knowledge (PMBOK® Guide, Fifth Edition) 64
(2013), p. 1.
 Unit 2 lecture topics
1. BA Terminology (covered in unit 1)
2. Business Processes
3. System Development Lifecycles (SDLC)
4. Function of BA in SDLC
5. Reason for change
6. The Business Case Document (BCD)
7. Starting an IT project
 What Is a Business Case?

• Is a document providing reasons for initiating a given project.

– Provides a comparison of value provided by the project compared
to available alternatives based on the desired goals or objectives of
the project.
• Operational feasibility
• Technical feasibility
• Economic feasibility
• Schedule feasibility
– Provides key performance indicators, how to measure and realise
them, and the changes required by the business.

66
 Business Case Approach

• Step 1: Understand the Problem or Opportunity

• Step 2: Define the Project Scope and Constraints
• Step 3: Perform Fact-Finding
• Step 4: Analyze Project Usability, Cost, Benefit and Schedule Data
• Step 5: Evaluate Feasibility
• Step 6: Present Results and Recommendations to Management

67
 The Business Case Document (BCD)

Cost
Key
elements The
of a Risk Business
Appraisal
business Case
case
Benefits
 The BCD

• The business case is a document that presents a

comprehensive view & justification for undertaking a project
• Provides the financial justification & ROI for implementation.
• More than just financial estimates
– Why should the organisation undergo a change/why
should the project be undertaken
– Assesses an investment in terms of potential benefits,
resources required to set/sustain it, etc.
• Rationale for undertaking a project
• The business case can be used to:
– communicate the project to others
– establish a method for measuring success
– receive funding approval for the project.
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 The BCD answers:

✔Why are we doing this project?

✔What is the project about?
✔What is our solution to the business problem?
✔How does this solution address the key business issues?
✔How much will it cost?
✔How much time will it take?
✔Will we suffer a productivity loss during the transition?
✔How will the business benefit?
✔What is the return on investment and pay back period?
✔What are the risks of doing or not doing the project?
✔How will we measure success?
✔What alternatives do we have? 70
 Structure of the BCD

A. Executive summary
B. Business case analysis team
C. Problem definition • Project Description
• Goals & Objectives
D. Project overview • Project Benefits
• Project Constraints
E. Strategic alignment • Risk Management

F. Cost benefit analysis

G. Alternatives analysis
H. Approvals
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 A. Executive Summary

• Summary or synopsis
• Written at the end
• What is the issue / problem?
• Anticipated outcomes
• Recommendation – how will
the project address the
business problem?
• Justification – why this
solution?

Business Analysis 72
 B. Business Case Analysis Team

• Roles of members in Business Case Doc and Project

• For Example:
– Executive Sponsor
– Technology Support
– Process Improvement
– Project Manager
– Software Support

Business Analysis 73
 C. Problem Definition

• Problem Statement
• Organizational Impact
• Technology Migration
– Hardware + Software Procurement
– Systems
– Development
– Migration / Roll-out
– Training

Business Analysis 74
 D. Project Overview

• Project specific information

• Description
• Goals and Objectives (SMART)
• Project Performance Metrics
• Assumptions
• Constraints
• Risks
• Major Milestones

Business Analysis 75
 E. Strategic Alignment

• Proposed project must be aligned to corporate strategy

• Misalignment – a major cause of concern/failure
• To establish whether a process/IT investment is aligned with
corporate strategy: Identify the benefits of proposed system
– Tangible vs. Intangible
– Enhance productivity, savings, reduction in staff
– Better quality of work, better customer/supplier
relationships/reduce cycle time/costs
– Better decision making/empower individuals
• Does the process/practice help the organisation achieve its
strategy
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 F. Cost Benefit Analysis
• Is the investment worthwhile?
• Is the technology viable?
• Cost of implementation?
• Different components which needs to
be purchased
– IT infrastructure, software,
hardware
• Does the project budget look
reasonable?
• Does the organisation have the
competency to deliver?
• Purchase software or build in house
• Is training needed? 77
 G. Alternatives Analysis

• Brief summary of considered

alternatives + reasons for not
selecting
• E.g. keep existing
• Outsource
• Buy alternative

79
 H. Approvals

• Needs signatures by owners/ management to go

ahead

80