cbap module 05 v1

8/17/2019 Cbap Module 05 v1

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© Simplilearn Solutions 1

Module 5 – CBAP ®

Enterprise Analysis

Enterprise Analysis

CBAP® is a registered certification mark owned by International Institute of Business Analysis.


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Topics to be covered are:

Business Needs

Company Capabilities Analysis

Solution Scope

Risk Analysis

SWOT Analysis Economic Feasibility Analysis

• Future Value

• Present Value

Determining Solutions Approach

Defining the Business Case

Agenda

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What is a business need?

A business need is a perceived weakness or improvement

the client sees as vital to achieving the client’s goals and

objectives.

Business goals and objectives

A business goal is the benefit from achieving a specific

objective.

Business Needs

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“Smart”

It is an acronym used to define the parameters of a solution.

Techniques for defining the business need.

Elicitation of consensus from SMEs and domain

stakeholders.

Stakeholders

There are many types of stakeholders and the stakeholder

analysis helps to identify roles and responsibilities.

Business Needs (contd.)

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Company Capabilities Analysis

Enterprise Analysis

Current capabilities analysis

Does the company have the human and material assets to

meet the need requirements?

Capabilities gap analysis

The technique used to determine company capabilities Requirements management

Whenever requirements are changed, they need to be

updated in the requirements list and requirements package,

for validation by stakeholders.

SWOT analysis

The primary tool for analyzing an existing or proposed

scenario, or solution.


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Business need

Requirements list

Solution assessment

Enterprise architecture

Company capability (GAP)

analysis

Determine solution approach

Define solution scope

Prioritize requirements

Verify requirements

Requirements managementand communication

Company Capabilities Analysis Diagram

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Pre-elicitation solution scope

The starting point for building the solution scope.

Solution Scope

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Assumptions and constraints

Validation of assumptions and constraints is a priority

before building solutions and requirements.

Techniques for determining the solution approach

Objective measurements are not always the best way to

define a solution approach.

Solution Scope (contd.)

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Risk tolerance

The best solution may carry excessive risk for the company.

Risk assessment techniques

There are many ways to assess risk but stakeholder and

SME input is essential to understand the subtleties of risk

and risk tolerance of the sponsor.

Risk Analysis

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Fishbone Diagram for Risk Analysis

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Advantages

SWOT is a very popular analysis tool.

Disadvantages

There are some disadvantages of the SWOT technique.

StrengthsWhat are the company’s competitive advantages?

Weaknesses

What are the areas of greatest concern?

Opportunities

What needs to be done to take advantage of the opportunities? Threats

What are the greatest threats for the company’s survival?

SWOT Analysis

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Constantly morphing

As the analysis process progresses, the need-requirement-

solution chain can change.

Focus on methodology

A disciplined approach to how changes to the solution scope

must be followed. Stakeholder impact

There are different levels of impact that solutions have on

stakeholders.

Solutions must be clearly defined and validated

Clear consistent communications about solution design andimplementation are important for success.

Solution Scope Approach

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Business need

Organizational process

assets (OPAs)

Required capabilities

Determining

solution

approach

Brainstorming

Benchmarking

SWOT

Economic feasibility

Solution

approach

Define

solution

scope

Validate

solution

scope

Solution Scope Approach Diagram

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Estimated future value of a solution investment

What will today’s investment be worth in the future?

• FV = PV * (1+i)ᴺ

• $250,000* (1+.06)³

• $297,754

Economic Feasibility Analysis – Future Value

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Estimated present value of an estimated future value of a

solution investment

What amount of investment today will be needed to yield

a future amount?

• PV=FV/(1+i)ᴺ

• PV=$500,000/ (1+.06)³·⁵

•PV=$407,755

Economic Feasibility Analysis – Present Value

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Return on investment

What will be the annual percentage return on the investment?

• Return-Investment/Investment x100

$92,245/$407,755= 22.6%/3yrs= 7.5% average per year

ROI.

Return on Investment (ROI)

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Investment breakeven (payback)

Given a certain annual rate of return, how long will it take to payback

the total investment amount?

• $92,245 return in 3 years (excluding the 6 months for installation)

• $92.245/ 3 years= $30,748 return per year.

• $407,755 investment/$30,748= 14 years to payback the investment.

No real financial benefits for 14 years. Moreover, there is theopportunity costs of not using the investment funds for other

higher yielding investments.

Investment Breakeven

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The business case provides the justification for the project. Thenarrative needs to cover the following points:

Identify assumptions

• Are the assumptions credible and developed through

consensus?

Define measurable evaluation criteria• What are the benchmarks for success?

Business value

• What are the net benefits of solution for the company?

Benefit dependencies

•

What are the risks and other variables that can affect thedesired outcome?

Compare the business case to the opportunity costs

• What might be a better use of resources other than the project?

Business Case

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In this module we learned: A business need is a perceived weakness or improvement, the client sees

as vital for achieving the client’s goals and objectives.

Company capabilities analysis is the technique used to determine company

capabilities.

The solution scope is a documented and detailed strategy of how the

solutions to the needs will be designed, measured, and implemented. Risk analysis is made up of validating the assumptions and constraints on

the solution scope as well as the consensus risks from stakeholders and

SMEs.

SWOT analysis is one of the most versatile and useful tools in helping to

define risks and problems. Economic feasibility analysis is done to ensure the cost-benefits, the ROI,

and the promised deliverables are within the project constraints.

Then the solution approach is determined.

The business case provides the justification for the project.

Summary

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Quiz – 1

In what ways are costs important during defining business case?

a) Estimates are needed to be made of capital expenditures for the

new investment

b) Estimates are needed to be made of costs of developing and

implementing the change.c) Estimates are needed to be made of the opportunity costs of not

investing in other options

d) Estimates are needed to be made of costs of non-financial nature

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Quiz – 1

In what ways are costs important during defining business case?

a) Estimates are needed to be made of capital expenditures for the

new investment

b) Estimates are needed to be made of costs of developing and

implementing the change.

c) Estimates are needed to be made of the opportunity costs of notinvesting in other options

d) Estimates are needed to be made of costs of non-financial nature

Answer: d. Estimates are needed to be made of costs of non-financial

nature.Explanation: This one is an element of assessing the benefits during

business case creation. it is important to ensure that non-financial costs

(including opportunity cost) and benefits during business case creation.

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Quiz – 2

Which of the following terms is defined as set of changes to the current

state of an organization that are made in order to enable that

organization to meet a business need, solve a problem, or take

advantage of an opportunity?a) Solution

b) Domain

c) Requirement

d) Project

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Quiz – 2

Which of the following terms is defined as set of changes to the current

state of an organization that are made in order to enable that

organization to meet a business need, solve a problem, or take

advantage of an opportunity?a) Solution

b) Domain

c) Requirement

d) Project

Answer: a. Solution.

Explanation: BABOK definition of solution.

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Quiz – 3

Who among the following is likely to be responsible or participate

during preparing of the business architecture, feasibility studies, and

business cases?

a) Security administrator

b) Business Analyst

c) Project leaderd) Developer

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Quiz – 3

Who among the following is likely to be responsible or participate

during preparing of the business architecture, feasibility studies, and

business cases?

a) Security administrator

b) Business Analyst

c) Project leaderd) Developer

Answer: b. Business Analyst.

Explanation: The business analyst is responsible for or likely to

participate actively during preparing the business architecture,

feasibility studies, and the business case.

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Quiz – 4

Which one of the following diagrams visualizes the result of the root

cause analysis study?

a) State diagrams

b) Tornado diagrams

c) Cause and effect diagrams

d) Activity diagrams

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Quiz – 4

Which one of the following diagrams visualizes the result of the root

cause analysis study?

a) State diagrams

b) Tornado diagrams

c) Cause and effect diagrams

d) Activity diagrams

Answer: c. Cause and effect diagrams.

Explanation: Developing diagrams help to visualize and communicate

the cause and effect of solution and its results.

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Quiz – 5

Which of the following can be used in the root cause analysis?

a) Gantt chart

b) Pareto chart

c) Fishbone diagram

d) Data-flow diagram

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Quiz – 5

Which of the following can be used in the root cause analysis?

a) Gantt chart

b) Pareto chart

c) Fishbone diagram

d) Data-flow diagram

Answer: c. Fishbone diagram.

Explanation: The diagram is used to trace all possible factors related to a

problem or risk. It is used as a brainstorming tool as well as part of the

Risk analysis.

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Quiz – 6

What is meant by a quantifiable level of an indicator that an organization

uses to measure progress?

a) Goal

b) Evaluation criteria

c) Indicator

d) Metric

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Quiz – 6

What is meant by a quantifiable level of an indicator that an organization

uses to measure progress?

a) Goal

b) Evaluation criteria

c) Indicator

d) Metric

Answer: d. Metric.

Explanation: Metric is a quantifiable level of an indicator that an

organization uses to measure progress.

Enterprise Analysis

E t i A l i


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Quiz – 7

Which of the following is the process of defining and analyzing the

dangers to individuals, businesses, and government agencies posed by

potential natural and human-caused adverse events?

a) Risk management

b) Risk elicitation

c) Risk analysis

d) Risk communication

Enterprise Analysis

E t i A l i


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Quiz – 7

Which of the following is the process of defining and analyzing thedangers to individuals, businesses, and government agencies posed by

potential natural and human-caused adverse events?

a) Risk management

b) Risk elicitation

c) Risk analysisd) Risk communication

Answer: c. Risk analysis.

Explanation: The risk analysis process uses brainstorming, statistical

analysis, and other tools in an attempt to define the most probable risks

and related action plans.

Enterprise Analysis

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Quiz – 8

Which of the following techniques is used to validate whether the solution

meets original business needs and objectives of the customer?

a) Technology assessment

b) Verification process

c) Root cause analysisd) Acceptance and Evaluation criteria definition

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Quiz – 8

Which of the following techniques is used to validate whether the solution

meets original business needs and objectives of the customer?

a) Technology assessment

b) Verification process

c) Root cause analysis

d) Acceptance and Evaluation criteria definition

Answer: d. Acceptance and Evaluation criteria definition.

Explanation: Acceptance and evaluation criteria is used to validate

whether the solution meets business needs or not.

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Quiz – 9

Which of the following compares two or more systems, states, services,

products, or things to determine the best viable choice?

a) Risk identification

b) Cost-benefit analysis

c) Risk analysis

d) Benchmarking

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Quiz – 9

Which of the following compares two or more systems, states, services,

products, or things to determine the best viable choice?

a) Risk identification

b) Cost-benefit analysis

c) Risk analysis

d) Benchmarking

Answer: d. Benchmarking.

Explanation: Benchmarking establishes a measureable state, and compares

the like variables over time to see how exogenous events affect thecomparative benchmarking.

Enterprise Analysis

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Thank You

Enterprise Analysis

cbap module 05 v1

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