Chapter 3: Know Your Project Seven Steps to Mastering Business Analysis (Barbara Carkenord, 2008)

Business Case Development BAs need to build a case – justification for the project or endeavor BAs need to build a case – justification for the project or endeavor Include tangible / intangible costs & benefits Include tangible / intangible costs & benefits Activities Activities –Feasibility Analysis –Cost Benefit Anaysis (CBA) –SWOT (Strengths, Weaknesses, Opportunities, Threats) Analysis

Feasibility Analysis Determine the project’s viability Determine the project’s viability –Financial viability –Environmental integrity –Cultural acceptability / political practicality What-if analysis What-if analysis Sensitivity analysis Sensitivity analysis

Funding a project Financial reasons – cut costs, increase revenue Financial reasons – cut costs, increase revenue Strategic reasons - opportunity, aligning business processes Strategic reasons - opportunity, aligning business processes –COTS (Customized off the shelf software) – request for proposal sent to vendors asking for details Regulatory reasons – national, international Regulatory reasons – national, international

Strategic Reasons for Project BA needs to understand where the project stands in the portfolio of projects BA needs to understand where the project stands in the portfolio of projects Portfolio consists of many projects and programs Portfolio consists of many projects and programs A program can encompass many projects A program can encompass many projects

Components in Project Initiation Project Name Project Name Approach / Methodology Approach / Methodology Statement of Purpose Statement of Purpose Objectives, Problems, Opportunities Objectives, Problems, Opportunities Stakeholders Stakeholders Business Risks Business Risks Scope of business area Scope of business area

Understanding the Scope of Project – Context Diagram BA uses a Context Diagram (Level zero DFD) to understand the scope of the project BA uses a Context Diagram (Level zero DFD) to understand the scope of the project Same as in systems analysis – except think of the central area of study rather than the central system Same as in systems analysis – except think of the central area of study rather than the central system Include the activities or areas that impact the central area (similar to entities that interact with the system in systems analysis) Include the activities or areas that impact the central area (similar to entities that interact with the system in systems analysis) Level 1 DFD and up – decomposition of level 0 diagrams to study the scope in detail Level 1 DFD and up – decomposition of level 0 diagrams to study the scope in detail

Understanding the Scope of Project – Use Cases Used to understand the scope of the project Used to understand the scope of the project Use cases are major areas of study or activities shown as bubbles Use cases are major areas of study or activities shown as bubbles Actors or external entities that impact the activities are shown as stick people Actors or external entities that impact the activities are shown as stick people Work out examples in class (used in the in-class exercise) Work out examples in class (used in the in-class exercise)