Course Description | Outline | Business Analysis Home

Course Outline

Introduction

• Understanding the users request for services
• Definition of the business case
  • IIBA
• Purpose of business case
• Overview of activities

Defining the Problem

• Identifying the real problem
• Finding true causes
• Formatting the problem

Defining the Objective

• Mapping to the problem statement
• SMART Characteristics
  • Measurable:  using an explicit format
  • Relevant:  showing the right content
• Alignment with organizational objectives

Deriving the benefits of the System from the Objectives

• Types
  • Increased profits
  • Avoid losses
  • Reduce expenses
• Special considerations for government agencies and non-profit organizations

Project Scoping

• How the project scope provides the basis for the business case
• Using simple models to portray project scope
• Context Diagrams
• Use of the Current State  model
• Demonstrating the solution with the future state model
• Supporting documentation
• How much detail to provide

Assessing Feasibility

• Using creativity to create alternate solutions
• Conducting a SWOT analysis
• Evaluating alternatives to determine feasibility
• The six factors:  TRELOS
  • Technical:  is it possible?
  • Risk
    • Weighing risks vs. benefits
    • Using the portfolio approach
  • Economic
    • Developing cost estimates
    • Calculating the return on investment
  • Legal: is it against the law?
  • Operational: will it work for us?
  • Schedule: can we deliver it in time?

Cost/Benefit Analysis Overview

• Definitions
  • Cost/Benefit analysis
  • Discounted Cash Flow (DCF)
  • Profitability Index
  • Return on investment (ROI)
  • Payback Period
  • Internal Rate of Return
  • Net Present Value (NPV)
• What does it consist of

How to Do a Cost/Benefit Analysis

• Calculating benefits by using objectives
• Calculating operational costs
  • Present costs
  • Future costs
• Spreading the costs over the estimated life of a project
• Calculating return-on-investment
  • Simple formula
  • Net present value formulation

Packaging the Cost/Benefit Analysis

• Weighing the results against other economic factors
  • Total development costs
  • Budget impact
  • Intangible costs and benefits

Putting it all together: Using a Decision Model to Evaluate Alternatives

• Stating the ideal in terms of requirements and desirable traits (“wants”)
• Classifying the wants
• Specifying the alternatives
• Evaluating the alternatives (use of Delphi and Nominal Group Techniques)
• Assess adverse consequences
  • Probability
  • Seriousness

Creating and Presenting the Business Package

• Preparation:  general
  • Understanding the nature of all management decisions
    • Types:  technical, tactical, strategic
    • How they are made: art vs. science
    • What kinds of information are used?
  • Gearing the presentation accordingly
  • Choosing the correct media
• Preparation:  specific
  • Establishing the objective
    • Stop
    • Go
    • Modify
    • More work
    • Wait
  • Doing audience analysis
  • Choosing the correct approach

The Final Product

• A typical approach that works
  • Analysis of strengths and weaknesses
  • Statement of system objectives
  • Key output formulas
  • Information flow
  • Recommendation and evaluation of alternatives
  • Risk and cost/benefit analysis
  • Schedule for delivery

Summary

• Evaluating alternate formats based on objective of presentation