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May 17, 2015 Proprietary and Confidential - 1 -

Business Analysis – Significance and Process Map

Name of the presenter: IGATE Date: 08.06.2015

Agenda

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What is Business Analysis?

Why do we need a BA?

Foreseen Benefits

How can we help you?

Real World Examples


Definition - BABOK


Business analysis is the set of tasks and techniques used to work as a liaison among stakeholders in order to understand the structure, policies, and operations of an organization, and to recommend solutions that enable the organization to achieve its goals.

Business analysis involves understanding how organizations function to accomplish their purposes, and defining the capabilities an organization requires to provide products and services to external stakeholders. It includes the definition of organizational goals, how those goals connect to specific objectives, determining the courses of action that an organization has to undertake to achieve those goals and objectives, and defining how the various organizational units and stakeholders within and outside of that organization interact.

Who is a Business Analyst?

Business analysts is a person who must analyze and synthesize information provided by a large number of people who interact with the business, such as customers, staff, IT professionals, and executives.

The business analyst is responsible for eliciting the actual needs of stakeholders, not simply their expressed desires. In many cases, the business analyst will also work to facilitate communication between organizational units. In particular, business analysts often play a central role in aligning the needs of business units with the capabilities delivered by information technology, and may serve as a “translator” between those groups.


Business Analysis is Important

• Failed or Challenged Projects• Lower Productivity – More

Rework• Developer Frustration• Higher Costs & Schedule

delays• Unused functionalities• Benefits not realized• Solution not aligned with

business needs• Low stakeholder satisfaction• Solutions do not solve the

business problem

Lack of Maturity in Requirement

Development and Management

Loss of Time,

Money & Effort

The following are some of the major issues which results due to lack of a Proper Requirement Management System in an Organization. This will mainly lead to loss of time, money & effort, apart from other consequences, which are usually ignored in large organizations.


Why do we need a BA?


The Big Picture

Compared to 20 years ago, we have made huge strides in managing projects successfully. Project teams and tools are improving. Failures are trending lower. The project success rate has doubled over in 2 decades!

Despite this headway, more than half of all software projects are failing or challenged. Why are there so many struggles? According to a recent Chaos Report, here are the related reasons for our problems.

Failed Project Factors:Incomplete Requirements - 13.1%Lack of User Involvement - 12.4%Lack of Resources - 10.6%Unrealistic Expectations - 9.9%

Challenged Project Factors:Lack of User Input - 12.8%Incomplete Requirements & Specifications - 12.3%Changing Requirements & Specifications - 11.8%


The Big Picture…A Study from a different Research

Why do Projects Fail?

50%

15%

17%

14%3%1%

Poor Requirement De-finationPoor Scope DefinationInadequate Risk managementCommunication ProblemLack of Qualified resourcesOthers

Source : ESI International Survey of Business Professionals


What Research Says…

“Studies show that over 70% of business improvement projects fail to deliver their expected benefits, and even when they are achieved in part, often they are

far from fully realised”Source: (InfoWorld report)

“Fewer than 12% of companies can accurately measure the business impact of their IT investments”

Source:(InformationWeek summary of survey and interview research)

“41% of projects failed to deliver the expected business value and ROI (Tata Consultancy Study)

When the true costs are added up, as many as 80% of technology projects actually cost more than they return. It is not done intentionally but the costs are

always underestimated and the benefits are always overestimated” Source:(Mercer study)

“Improving business analyst proficiency can improve application performance by as much as 30%.”

Source: Study conducted by the Corporate Executive Board, Application Executive Council

“60-80% failure rate attributed to one root cause”Source: Meta Group

“25-40% of spend is ‘re-work’”Source: Carnegie Mellon

“66% of project failure rate due to miscommunication between business and IT”Forrester Research

As per Mark Troncone from TransAct Technologies, a Company/Project would face the following issues due to lack of a Dedicated BA or a Proper BA Practice –

66% of Software Projects are not expected to finish on-time or on budget.

Completed Projects have only 52% of proposed functionality when delivered.

56% of Project Defects originate in the requirements phase of the project.

It is well documented that when a requirements error is left unchecked –

The cost to fix the oversight is multiplied by up to 20% in the design and development phase

By 40–60% in the testing phase

And beyond 100% in the implementation phase.

Statistics – Predictions based on Past Data

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Risks Involved

• A requirement that would take 1 hour to fix will take 900 hours to fix if it slips to system testing.

• But Investing 10% more in requirement Analysis, large and Medium Complexity projects have reduced cost over runs from 30 % - 80%


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Foreseen Benefits

Current Challenges faced by Global Organizations

The following are the Top 9 Challenges Identified in IT Projects, across different Domains. If you are facing the Top 3 Challenges mentioned below, it is highly recommended to start investing in Business Analysts/ BA Practice, to mitigate the Risks as well as Loss of Time, Money and Efforts experienced by different organizations highlighted in the Previous Slides.

Our Prediction


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•Proper delegation of tasks and responsibilities between Application Owner and BA will lead to effective Project Management

•BA’s can get directly involved with the End Users to study and understand the current process and suggest appropriate actions to automate with a Consultative Approach

Proper Requirement Gathering & Management

•Based on the Consultative Approach, it is apprehended that the number of CR’s will be reduced

•However, following the suggested framework, BA’s can reduce the overall impact of the change and effectively manage the deliverables using various tool suggested in the framework

Efficiently Manage Change Requests/Modifications &

Enhancements

•Use Cases•Context Diagrams – Root Cause Analysis, GAP Analysis

•Storyboards•Data Models•Business Process Models

Use of Proper Documentation and Tools

By investing 10% more on Requirement

Analysis, organization can reduce

cost over-runs by 30%*

A BA can help reduce 25 – 40%** on re-

work

60-80%*** failure

attributed to ONE Root

Cause. Usage of Proper

Tools can help find issues

Quickly

*WWMCCS **Carnegie Melon ***Meta Group


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How can we help you?

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We have done it before – Case Study 1

Business problem / Objective

s

Solution Approach

Project details

Results / Next Steps

The client wanted to improve process efficiencies for its banking operations by leveraging automation, technology up-gradation, outsourcing or a combination thereof to eliminate paper, reduce errors , cost and being competitive. Additionally it also wanted to explore new products for its business requirements

Business requirement gathering and High level BRD preparation Deposits, Loans, Treasury, Money Market and Trade Finance.

Preparation of To – Be process flows for all 5 tracks Product Evaluation for 4 Trade Finance products Operating Model and high level cost benefit analysis for off shoring in Trade Finance Non-Functional, Interface, Reports requirements gathering and documentation for

Deposits, Loans, Treasury and Money Market

Generated 400+ requirements in Trade Finance and deposits, 300+ in Treasury and 600+ in Loans much to the bank’s satisfaction and delight

Conducted 4 product evaluation against the promised 3 within the defined project time lines

Provided a high level cost benefit analysis and operating model for off shoring thus providing the bank a better perspective of outsourcing.

Process Flow methodology ensured maximum coverage during requirement gathering workshop

High level business requirements exhaustively covering the breadth of the business for 5 major business tracks

“To-be” process models depicting the ideal processes. Product evaluation of leading trade finance products to better understand the fitment of

each product to bank’s requirements High level cost benefit analysis for trade finance providing better perspective on off

shoring Operating model providing clarity on the offshore onsite working scenario

BRD Preparation, Product Evaluation and Operating Model – Leading Japanese Bank with US operations

We have done it before – Case Study 2

Business problem / Objectives

Solution Approach

Project details

Results / Next Steps

Documentation of To-Be Processes and Procedures to depict the To-Be Scenarios was a key requirement of the Bank during and post Core Banking implementation. These workflows and documents were required by various front office and back office users as ready reference for their day to day business.

The bank was in process of implementing Core Banking system and replacing their existing legacy systems.

“Integrated Banking Platform” Process Mapping and Procedure Documentation project involved the creation of To Be Process Maps and Procedure documents applicable in core banking environment.

Designed 545 process maps across various LOBs Prepared 1061 “To Be” procedures belonging to various tracks of retail and commercial

back office, payment services and commercial lending & trade services, Client Banking Services.

Study and understand “As-Is” Process Maps & prepare “To-Be” Process Maps in Savvion BPM tool.

Categorize Procedures High Impact, Medium Impact and Low Impact & document “To-Be” Procedure Documents

Review Detailed Requirements Gathering Notes, Core Banking Approach and Design documents

Identified STP opportunities post Core Banking implementation Analyzed, depicted and suggestions provided in the areas where out of box capability

were not leveraged by the bank. IGATE identified gaps in other areas like SOPs and training manuals which requires

changes post Finacle implementation

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To-Be Process Mapping & Procedure Documentation for a Core Banking Transformation at a Large US Bank


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Building a BA Practice

What is Required to build a BA Practice?

Strategic Alignment Governance Processes &

PracticesInformation Technology

Skills & Competenci

es

Successful BA Practice

Recommended BA Framework

Stage

Task

Output

Initiation Planning Execution Closing

Enterprise Analysis

Work Breakdown Structure Analysis

Requirement Definition &

AnalysisRetrospective

• Project Concept• Solution Options

Paper• Business Case• BRD• Traceability

Matrix• Working Papers

• Business Analysis Plan

• Requirements• Management

Plan• BRD• Stakeholder

Involvement Matrix

• Working Papers

• GAP Analysis• Business

Requirement Specification

• Functional & Non-Functional Requirement Specification

• Use Case Specification

• Managing Change Requests

• User Manuals

• Production Support Handover

• Troubleshoot issues

Gate 1

Gate 2

Gate 3

Decision PointsGate 1

Approval & Sign off

Gate 2Acceptance

Gate 3Acceptance &

Sign off

Process Flow

Project Management/Monitoring

Project Management/Governance

Detailed Requirements

Solution Design

Create Project

Charter & Project

plan

Assign Project

Manager/SPOC*

Identify risks*

Project Plan Sign

Off

Monitor Project

Status*

Gather detailed

requirements

Formal requirements

documents –

Functional, tech

requirements, process

maps

Share documents

and receive approval

from all stakeholders*

High level architecture design

Detailed design

Design- Requirements mapping*

Share documents and receive approval from all stakeholders*

Business Requirements

Definition

Stakeholders* Identification Analysis Management Plan

Gather Requirements

Analyze & Define

Business Requirements

RACI - Define role &

responsibility matrix*

Validate

business case

Identify stakeholders

Estimation

Budgeting

Prioritization

Scheduling

StakeholdersInvolvement

Defined roles and responsibility

Requirements Traceability Matrix

Change Management

Planning Phase

Proposed Operating Model

Forecasting & Planning

Provide all high level requirements

Provide stakeholder information

Review status reports

Approve project plans

Mind maps, Process mapping

Gather Requirements

Create formal documents

Share documents for review & sign off

Incorporate changes

Estimation

Prioritization

Project & Resource Planning

Team ramp up/down

Program Management

Task allocation

Status Tracking & Reporting

Define process & documentation standards

Define Review Checklists

JetstarStakeholders

IGATE - Program Management Office (For all Requirements)

IGATE/Jetstar Analysts

Variability cost & capacity management

Onsite recruitment engine for projected demand

Offshore leverage for ad hoc demand

Long term capacity gains from Onsite/Offshore Model

Forecasting Model

Requirements gathering tools

Standard Process/Documents

Requirements Management Framework

Recommended BA Framework – By Debarata

Elicit High Level Req

Start Req Process

Contact/List Stakeholders,Docs and Systems

Identify Root Cause, Problem Statement, Business Objective/Goals

Detail Req Finalized

Elicit High Level Req

Stakeholder Acceptance

Review/Modify/Add/Delete

Prioritize Req/ Plan Drops

Project Scope/Summary

Client Review

Revise Detailed Understanding

Review Priority/Drop

Continue Prioritizing.

Req scope/priority and Plan revision

Client Approves

Spec?

Freeze requirements

Launch Plan Implement Waterfall

,Agile,Spiral etc

Design,Develop, Test (Until part1 or Phased Implementation ends)

Proposed Changes

Changes In Scope?

Changes Approved

Evaluate Risk/Impact

Review Change Req

Add/Modify Track Req

No

No

No

No


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May 17, 2015

Real World Examples


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Successful Projects

Hyatt Hotels!While Marriott and Hilton Hotels were checking out of their failed reservationsystem, Hyatt was checking in. Today, you can dial from a cellular airplanetelephone at 35,000 feet, check into your Hyatt hotel room, schedule the courtesybus to pick you up, and have your keys waiting for you at the express desk. Thisnew reservation system was ahead of schedule, under budget, with extra features --for a mere $15 million of cold cash. They used modern, open systems software withan Informix database and the TUXEDO transaction monitor, on Unix-basedhardware.!

Hyatt had all the right ingredients for success: user involvement, executivemanagement support, a clear statement of requirements, proper planning, and smallproject milestones


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Successful Projects

Banco Itamarati!A year after a strategic redirection, Banco Itamarati, a privately-held Brazilian bank,produced an annual net profit growth of 51% and moved from 47th to 15th place inthe Brazilian banking industry. Three fundamental reasons account for BancoItamarati's success. First, they had a clear vision with documented specificobjectives.

Second, their top-down level of involvement allowed Banco Itamarati tostay on course. And finally, the bank produced incremental, measurable resultsthroughout the planning/implementation period.!


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Failed Projects

American Airlines!Early in 1994, American Airlines settled their lawsuit with Budget Rent-A-Car,Marriott Corp. and Hilton Hotels after the $165 million CONFIRM car rental andhotel reservation system project collapsed into chaos.!

This project failed because there were too many cooks and the soup spoiled.Executive management not only supported the project, they were active projectmanagers. Of course, for a project this size to fail, it must have had many flaws.Other major causes included an incomplete statement of requirements, lack ofuser involvement, and constant changing of requirements and specifications.!

Case Study

Example of the value of a business analyst - One of a client sought a solution to manage the approval processes and associated documentation for a number of major energy capital projects (projects up to $100 million in value).

The company conducted the business process automation analysis, mapped the future state processes, and elicited the business and functional requirements through a series of stakeholder workshops utilizing aspects of our method, and customized templates, which aligned with the Business Analysis Body of Knowledge (BABoK®). Based on these documented processes and requirements an automated workflow solution was developed.

This process automation solution delivered: • Increased consistency of approval processes• An automated audit trail for the approvals• A reduced incidence of approval related documentation being misplaced or lost• A reliable mechanism for staff to determine the status of payment requests and

payments• Reduced time and resource wastage on printing and manual approvals• Reduced physical file storage.

A key outcome of the project was the minimization of approval delays, which reduced the external contract resources required for approval processes. The savings due to the reduction of external contractors during the first 6 months after the automated workflow solution was implemented paid for the cost of developing the solution.

Core Banking – Business Requirements Elicitation- Use of Requirements Workbook and Traceability Matrix

Benefits to Client

High level business requirements exhaustively covering the breadthof the business for 5 major business tracks

“To-be” process models depicting the ideal processes. Product evaluation of leading trade finance

products to better understand the fitment of each product to bank’s requirements

High level cost benefit analysis for trade finance providing better perspective on off shoring

Operating model providing clarity on the offshore onsite working scenario

Objectives• The client wanted to improve process efficiencies for

its banking operations by leveraging automation, technology up-gradation, outsourcing or a combination thereof to eliminate paper, reduce errors , cost and being competitive. Additionally bank also wanted to explore new products for its business requirements


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May 17, 2015

Engagement Highlights

Generated 400+ requirements each in Trade Finance and deposits, 300+ in Treasury and 600+ in Loans

Conducted 4 product evaluation against the promised 3 within thedefined project time lines


Process Flow methodology ensured maximum coverage duringrequirement gathering workshop

IGATE‘s Solution


Preparation of To – Be process flows for all 5 tracks Product Evaluation for 4 Trade Finance products

Operating Model and high level cost benefit analysis for off shoring in Trade Finance

Non-Functional, Interface, Reports requirements gathering and documentation for Deposits, Loans, Treasury and Money Market

BRD Preparation, Product Evaluation and Operating Model – Leading Japanese Bank with US operations

Benefits to Client

High level business requirements exhaustively covering the

breadth of the business for 5 major business tracks

“To-be” process models depicting the ideal processes.

Product evaluation of leading trade finance products to better understand the fitment of each product to bank’s requirements

High level cost benefit analysis for trade finance providing better perspective on off shoring

Operating model providing clarity on the offshore onsite working scenario

Objectives The client wanted to improve process efficiencies for

its banking operations by leveraging automation, technology up-gradation, outsourcing or a combination thereof to eliminate paper, reduce errors , cost and being competitive. Additionally it also wanted to explore new products for its business requirements


-

May 17, 2015

Engagement Highlights

Generated 400+ requirements in Trade Finance and deposits, 300+ in Treasury and 600+ in Loans much to the bank’s satisfaction and delight

Conducted 4 product evaluation against the promised 3 within the defined project time lines


Process Flow methodology ensured maximum coverage during requirement gathering workshop

IGATE‘s Solution


Preparation of To – Be process flows for all 5 tracks Product Evaluation for 4 Trade Finance products Operating Model and high level cost benefit

analysis for off shoring in Trade Finance Non-Functional, Interface, Reports requirements

gathering and documentation for Deposits, Loans, Treasury and Money Market

Appendix

May 17, 2015 Proprietary and Confidential - 25 -

THANK

YOU