ENTERPRISE/STRATEGY ANALYSIS

OLADE CONSULTING
LEARNING OUTCOMES

1. Understand how to:

 Define Enterprise/Strategy Analysis
 Analyze Current State
 Define Future State
 Assess Risk
 Define Change Strategy
2. Understand the BA Techniques
associated with Enterprise/Strategy
Analysis

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 Strategy Current Future Asses Change
Analysis State State Risk Strategy

ENTERPRISE/STRATEGY ANALYSIS
Enterprise/Strategy Analysis defines the most effective way to apply the
capabilities of an enterprise in order to reach a desired set of goals and
objectives
• Identify the strategic/tactical business need
• Enable the enterprise to address that business need
• Align the change strategy with the business need
 BA plays a critical role working with key stakeholders and SME’s to
provide management with information they need to wisely prioritize
projects
                                                                       ®(BABOK®Guide)
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 Strategy Current Future Asses Change
Analysis State State Risk Strategy

ENTERPRISE/STRATEGY ANALYSIS

Why does it occur?

To capture the future view of the business

To give context to future requirements elicitation and solution design for initiatives

                                                                                             ®(BABOKGuideV3)

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 Strategy Current Future Asses Change
Analysis State State Risk Strategy

ANALYZE CURRENT STATE

The purpose of Analyze Current State is to understand the reasons why an

enterprise needs to change some aspect of how it operates and 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 
                                                                                                                                          ®(BABOKGuideV3.Pg.103)
 Strategy Current Future Asses Change
Analysis State State Risk Strategy

CURRENT STATE ANALYZES

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 Strategy Current Future Asses Change
Analysis State State Risk Strategy

CURRENT STATE ANALYZES: ELEMENTS

1. Business Needs
 What areas of the business needs to be provided with new capability to address
the change?
 Can be identified at many different levels of the enterprise
• Top- down: a strategic goal that needs to be achieved
• Bottom – up: a problem with the current state of the process, function or a
system
• Middle management: - Manager requires additional information or
function
• External drivers: Customer demands or Business competition
                                                           
 ®(BABOK®Guide)

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 Strategy Current Future Asses Change
Analysis State State Risk Strategy

CURRENT STATE ANALYZES: ELEMENTS

2. Organizational Structure and Culture
 What are the cultural changes required to better achieve the goals?
 Do the stakeholder understand the value of the current state and the need for the proposed change?

3. Capabilities and Processes

 What are the activities an enterprise performs?
• The knowledge it has
• The products and services it provides,
• The functions it supports and
• The methods it uses to make decisions
 What are the capability centric and/or process-centric views of the enterprise?
                                                                                                                                ®(BABOK®Guide)
ORGANIZATIONAL CHART
 Strategy Current Future Asses Change
Analysis State State Risk Strategy

CURRENT STATE ANALYZES: ELEMENTS

4. Technology and Infrastructure
 What are the systems used to support the enterprise capabilities and processes?
 Examples of Infrastructure- computer hardware, software, physical plants and
business operations

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

6. Business Architecture
 Business architecture reveals how an organization is structured and demonstrates
how elements such as capabilities, processes, organization and information fits
together
 Business architecture generally meets the business and stakeholder needs therefore,
the proposed future state must be aligned to the business need in order to add value 
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 Strategy Current Future Asses Change
Analysis State State Risk Strategy

CURRENT STATE ANALYZES

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 Strategy Current Future Asses Change
Analysis State State Risk Strategy

CURRENT STATE ANALYZES: ELEMENTS

7. Internal Assets
 Identifies the tangible and intangible assets the enterprise currently have
such as resources, patents, reputation, information and technology

8. External Influencers
 Various external factors can the impact the ability or drive the need for
change within the enterprise. These externals influence may include:
• Industry Structure
• Competitors
• Customers
• Suppliers
• Political and Regulatory Environment
• Technology
• Macroeconomic Factor      
12                                                                           ®(BABOK®Guide)          
                                                                                                                 
CURRENT STATE ANALYZES:
STAKEHOLDERS INVOLVED
Tasks
Analyze Current State
Stakeholders

Make use of the existing solution and might have

Client
input about issues with a current solution

Domain SME has expertise in some aspect of the current state

Directly uses a solution and might have inputs

End User
about issues with a current solution.

Directly involved in supporting the operation of

the organization and provides information on their
Operational Support
ability to support the operation of an existing
solution, as well as any known issues
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CURRENT STATE ANALYZES: TOOLS &
TECHNIQUES Stakeholders
Tasks Analyze Current State

Used to capture key terms and concepts in business domain

Concept modelling
and define the relationship between them.

Used to obtain information on the performance of the

Data Mining
enterprise.
Analyze any existing documentation about the current
Document Analysis
state
Solicits feedback from customers or end users about the
Focus Groups
current state.
Breakdown complex systems or relationships in the current
Functional decomposition
state.
Facilitate dialogue with stakeholders to understand the
Interviews current state and any needs evolving from the current
state.
May provide opportunities for insights into needs within
Observation the current state that have not been identified previously
by a stakeholder.
Describes the roles, responsibilities and reporting
Organizational Modelling
structures that exists within the current state organization.
Process Analysis Identifies opportunities to improve the current state.

Process modelling Describes how work occurs within the current solution.

provides an understanding of the underlying causes of any

Root Cause Analysis (RCA) problems in the current state in order to further clarify a
need.
Helps to gain an understanding of the current state from a
Survey or Questionnaire
large, varied, or disparate group of stakeholders.
Engage stakeholders to collaboratively describe the current
Workshops
14 state and their needs
 Strategy Current Future Asses Change
Analysis State State Risk Strategy

DEFINE FUTURE STATE

The purpose of Defining the Future State is to determine

the set of necessary conditions required to meet the
business need
A well defined Future State will ensure that there is a
shared consensus among key stakeholders and clear vision
of the outcome
                                                                             ®(BABOK®Guide)
 Strategy Current Future Asses Change
Analysis State State Risk Strategy

FUTURE STATE ANALYZES: ELEMENTS

Business Goals and Objectives

• Describes the goals that the organization is seeking to achieve
• Goals are analyzed and converted into more descriptive, granular and specific
Objectives
• Defining measurable objectives is often critical to justify completing the change and
a key component to a business case for the change
• Measurable objectives enable teams to know if needs were addressed and whether a
change was effective
                                                                                                ®(BABOK®Guide)
 Strategy Current Future Asses Change
Analysis State State Risk Strategy

FUTURE STATE ANALYZES: ELEMENTS

A common test for assessing objectives is to ensure that they are

SMART:
SMART Goals

Specific – what exactly do we want to achieve?

Measurable – How will we know we’ve achieved it?

Attainable – What is our realistic desire (x10) and the possibility (x10)

Relevant – Why are we doing this? Is it really what we want?

Time-bound – When will this be completed?

 Strategy Current Future Asses Change
Analysis State State Risk Strategy

FUTURE STATE ANALYZES: ELEMENTS

(CON’T)
Scope of Solution Space
• Defines the options that will be considered when investigating possible
solutions, including the following:
Changes to the organizational structure or culture,
Capabilities and processes,
Technology and infrastructure,
Policies,
Products and/or services,
• Solutions require specific expertise from both the business analysis and the
delivery team and may occur at different levels in the enterprise

                                                       ®(BABOK®Guide)
 Strategy Current Future Asses Change
Analysis State State Risk Strategy
FUTURE STATE ANALYZES: ELEMENTS
(CON’T)
Constraints
• Limitations and/or condition(s) the new solution must satisfy in order to meet the business goal or
objective. They may reflect any of the following below:
• Budgetary restrictions
• Infrastructure
• Policies
• Resources Limits
• Time restrictions
• Skill of the team and Stakeholder restrictions
• Technology
• Compliance with regulations
                                                      ®(BABOK®Guide)
 Strategy Current Future Asses Change

FUTURE STATE ANALYZES: ELEMENTS Analysis State State Risk Strategy

(CON’T)
Organizational Structure and Culture
• It is the formal and informal working relationships within the enterprise that may be required to
change into order to support and facilitate the desired future state and

Capabilities and Processes

• Identifies the activities or changes in the way activities will be performed to realize the future
state.
• New or changed capabilities and processes will be needed to deliver new products or services, to
comply with new regulations, and/or to improve the performance of the enterprise.
                                        

                                                                                                                 ®(BABOK®Guide)
 Strategy Current Future Asses Change
Analysis State State Risk Strategy

FUTURE STATE ANALYZES: ELEMENTS (CON’T)

Technology and Infrastructure
• Existing technology may impose technical constraints on the design of the
solution. To address these constraints, necessary upgrades might be required in the
following areas:
Development languages
Hardware and software platforms, and application software
Technical constraints such as resource utilization, message size and timing, software
size, maximum number of and size of files, records, and data elements.

Policies
• Policies are common source of constraints on a solution. The current policies may
be insufficient to meet the business need and necessary changes must be identified
for the desired future state
                                                                                                                ®(BABOK®Guide)
 Strategy Current Future Asses Change
Analysis State State Risk Strategy

FUTURE STATE ANALYZES: ELEMENTS (CON’T)

Business Architecture
• Future state elements must effectively support one another and should be aligned to meeting
the business goals and objectives.
• Elements should be integrated into the overall desired future state of the enterprise as a
whole and support that future state.

Internal Assets
• By analyzing and assessing the current resources it might indicate whether:
Existing resources need to be increased
Require increased capabilities
New resources need to be developed
• The assessment of existing and needed resources is considered when performing a feasibility
analysis on possible solution approaches for the change strategy.
                                                                                                    ®(BABOK®Guide)
 Strategy Current Future Asses Change
Analysis State State Risk Strategy

FUTURE STATE ANALYZES

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 Strategy Current Future Asses Change
Analysis State State Risk Strategy

FUTURE STATE ANALYZES: ELEMENTS

Identify Assumptions
• Assumptions must be identified and clearly understood, so that
appropriate decisions can be made if the assumption later proves invalid

Potential Value
• Potential value of the future state is the net benefit of the solution after
operating costs are accounted for and must be a greater value for the
business enterprise vs the value if no action was taken (Business Case)
• In addition to meeting the business objectives, the potential value must
also be evaluated to see if it is sufficient to justify the change for future
state

                                                                                   ®(BABOK®Guide)
FUTURE STATE : STAKEHOLDERS
INVOLVED
Tasks
Define Future State
Stakeholders

The target purchasers or consumers who will

Client
validate the future state recommendations

provides insight into current state and

Domain SME
potential future states

provides information regarding the

Implementation SME
feasibility of achieving the future state.

Directly involved in supporting the

operation of the enterprise and provides
Operational Support
information on their ability to support the
operation of a proposed future state.

Authorizes and ensures funding to support

Sponsor
moving towards the future state.

Might help defi ne the future state if they

are supporting delivery of the change or
Vendor
delivery any part of the future state
operation.
FUTURE STATE: TOOLS & TECHNIQUES
Tasks
Define Future State
Stakeholders

Used to make decisions about future state business

Benchmarking and Market Analysis
objectives

Used to collaboratively come up with idea for the future

Brainstorming
state.

used to breakdown complex systems within the future state

Functional decomposition
for better understanding.

Used to talk to stakeholders to understand their desired

Interviews future state, which needs they want to address, and what
desired business objective they want to meet.

Used to determine which opportunities for improvement

Lessons Learned will be addressed and how the current state can be improved
upon.

Used to determine when the organization has succeeded in

Metrics and Key performance indicators (KPIs)
achieving the business objectives.

Used to describes the roles, responsibilities and reporting

Organizational Modelling structures that would exists within the future state
organization.

Used to describes how work would occurs within the future

Process modelling
state.

Used to model future state options and could also help

Prototyping
determine potential value.

Used to define the boundaries of the enterprise in the future

Scope Modelling
state.
Used to understand stakeholders desired future state, which
Survey or Questionnaire needs they want to address and what desired business
objective they want to meet.
used to evaluate the strengths, weakness, opportunities and
SWOT Analysis threats that may be exploited or mitigated by the future
state.
Used to work with stakeholders to collaboratively describe
26 Workshops
the future state.
 Strategy Current Future Asses Change
Analysis State State Risk Strategy

ASSESS RISKS
Understand the undesirable consequences of internal and external forces on the enterprise
during a transition to, or once in, the future state
Risks might be related to the current state, a desired future state, a change itself, a change
strategy, or any tasks being performed by the enterprise.
The risks are analyzed for:
• Possible consequences if the risk occurs,
• Impact of those consequences,
• Likelihood of the risk,
• Potential time frame when the risk might occur.

The collection of risks are used as an input for selecting or coordinating a change strategy
                                                                                                    ®(BABOK®Guide)
 Strategy Current Future Asses Change
Analysis State State Risk Strategy

ASSESS RISKS: ELEMENTS

Unknowns
• Are the uncertainty, the likelihood of risk occurring, and the impact if it does occur
Constraints, Assumptions, and Dependencies
• Analyze to see if the identified Constrains, Assumptions and Dependencies are to be treated as Risk
themselves.

Negative Impact to Value

• Risks are expressed as conditions that increase the likelihood or severity of a negative impact to value.
The overall risk level can be quantified in financial terms, or in an amount of time, effort, or other
measures.
                                                                                                          ®(BABOK®Guide)
 Strategy Current Future Asses Change
Analysis State State Risk Strategy

ASSESS RISKS: ELEMENTS

Risk Tolerance
• Defines how much uncertainty a stakeholder or an enterprise is willing to take on in exchange
for potential value.
• It Can be broadly categorised into the below 3 types
Risk-aversion: An unwillingness to accept much uncertainty; there may be a preference to either
avoid a course of action which carries too high a level of risk, or to invest more (and therefore accept
a lower potential value) to reduce the risks.
Neutrality: some level of risk is acceptable, provided the course of action does not result in a loss
even if the risks occur.
Risk-seeking: A willingness to accept or even take on more risk in return for a higher potential value
                                                                                    
                                                                                       ®(BABOK®Guide)
 Strategy Current Future Asses Change
Analysis State State Risk Strategy

ASSESS RISKS: ELEMENTS

Recommendation
• Based on the analysis of risks, business analysts recommend a course of action. Business
analysts work with stakeholders to understand the overall risk level and their tolerance
for risk.
• The recommendation usually falls into one of the following categories:
 Pursue the benefits of a change regardless of the risk,
 Pursue the benefits of a change while investing in reducing risk (likelihood and/or impact),
 Seek out ways to increase the benefits of a change to outweigh the risk,
 Identify ways to manage and optimize opportunities, and
 Do not pursue the benefits of a change
                                                                                                 ®(BABOK®Guide)              
ASSESS RISKS: STAKEHOLDERS INVOLVED
Tasks
Asses Risk
Stakeholders

Supports the go no-go decision

Client
making process of identified risks

provides input to the risk assesment

based on their knowledge of
Domain SME
preperation required in their area of
expertise.
provides input to the risk assesment
based on their knowledge of
Implementation SME
preperation required in their area of
expertise.

Supports the operation of the

Operational Support enterprise and can identify likely risks
and their impact

Identifies any risk associated with

Regulator adherence to laws, regulations, or
rules.

There might be risk associated with

Vendor
using a vendor.
ASSESS RISKS: TOOLS & TECHNIQUES

Tasks
Asses Risk
Stakeholders
Used to capture risks associated with alternative
Business Case
change strategies.
Used as foundation of past issues that might be
Lessons Learned
risks.

Risk Analysis and Management used to identify and manage risks.

used to identify and address the underlying

Root Cause Analysis (RCA)
problem(s) creating the risk.
used to understand what stakeholders think might
Workshops
be risks and the various factors of those risks.
 Strategy Current Future Asses Change
Analysis State State Risk Strategy

DEFINE CHANGE STRATEGY

The purpose of Defining the Change Strategy is to develop and assess alternative
approaches to the change, and then selecting the best approach.
The 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.
                                                                                                    ®(BABOK®Guide)
 Strategy Current Future Asses Change
Analysis State State Risk Strategy

CHANGE STRATEGY: ELEMENTS

Solution Scope
• The solution is the outcome of a change that allows an enterprise to satisfy a need.
• The solution scope defines the boundaries of the solution (In-Scope & Out of Scope), and is described in
enough detail to enable stakeholders to understand which new capabilities the change will deliver.
• Multiple solution options might be evaluated and, as part of a change strategy, the best solution approach
is justified and selected.
• The solution scope might be described in different ways, including the use of:
 Capabilities,
 Business Rules or Decisions,
 Data,
 Workflow, Sequence or Events,
 Model and descriptions of Markets.
                                                                                                                   ®(BABOK®Guide)
 Strategy Current Future Asses Change
Analysis State State Risk Strategy

CHANGE STRATEGY: ELEMENTS

Gap Analysis
• Gap analysis helps identify the gaps that prevent the enterprise from meeting needs and
achieving goals.
• To perform gap analysis, both current state and future state should be defined.
Enterprise Readiness Assessment
• The readiness assessment considers the enterprise’s capacity not only to make the change, but
to use and sustain the solution, and realize value from the solution.
• The assessment also factors in the cultural readiness of the stakeholders and operational
readiness in making the change, the timeline from when the change is implemented to when
value can be realized, and the resources available to support the change effort.
                                                                                                         ®(BABOK®Guide)
 Strategy Current Future Asses Change
Analysis State State Risk Strategy

CHANGE STRATEGY: ELEMENTS

Change Strategy
• During the course of the development of a change strategy, through brainstorming and
consulting subject matter experts (SMEs), several options are identified, explored, and
described in enough detail to determine which options are feasible

Transition States and Release Planning

• In many cases, the future state will need to be achieved over time rather than through a single
change, meaning that the enterprise will have to operate in one or more transition states
• Release planning concerns determining which requirements to include in each release, phase,
or iteration of the change considering factors such as the overall budget, and time constraints
                                                                                                         ®(BABOK®Guide)
CHANGE STRATEGY: STAKEHOLDERS
INVOLVED
Tasks Define Change Strategy
Stakeholders
Might be purchasing or consuming the
Client
solution that results from the change.
Has expertise in some aspect of the
Domain SME
change
Provide input in regards to delivert
Implementation SME
approach
Directly involved in supporting the
Operational Support
operation of the enterprise
Responsible for managing change and
Project Manager planning the detailed activities to
complete for a change.
Ensure adherence to laws, regulations,
Regulator or rules during and the completion of
the change.
Authorize and ensures funding for
Sponsor solution delivery, and champions the
change.
Might help implement the change or be
Vendor part of the solution once the change is
completed.
CHANGE STRATEGY: TOOLS &
TECHNIQUES Tasks
Define Change Strategy
Stakeholders

Used to make decisions about which change

Benchmarking and Market Analysis
strategy is appropriate.
Used to collaboratively identify and come up with
Brainstorming
ideas for change strategy.
Used to capture information about the
recommended change strategy and other potential
Business Case
strategies that were assessed but not
recommended.
Used to compare diff erent change strategies and
Decision Analysis
choose which is more appropriate.
Used to bring customers or end users together to
Focus Groups solicit their input on the solution and change
strategy.
Used to define the boundaries on the solution
Scope Modelling
scope and change scope descriptions.
Used to make decisions about which change
SWOT Analysis
strategy is appropriate.
Used to determine whether any vendors are part of
Vendor Assessment the change strategy, either to implement the
change or to be part of the solution.
Used in work with Stakeholders to collaboratively
Workshops
develop change strategy.
KEY DRIVERS & GUIDING PRINCIPLES

39
 Project Project Project
Conception Definition and Execution and Project Close
and Initiation Planning Control
 Ideation /
Concept

Identify Business Identify & Prioritize

Opportunities/Problems Portfolio Investments

Portfolio
Management

Program A Program B

Business Case
Project A A

Business Case
Project B
B

Business Case
Project C
C
DELIVERABLES

• Using the instructions provided in the deliverable folder:

1. Create an Organizational Chart
2. Conduct a SWOT Analysis
3. Watch Business Case Video
 Questions?

43