What is Business Analysis (BA)? What is business analysis (BA) Business analysis is a business process of assessing an organisation structure, processes, technology and capabilities to identify and define solutions to roadblocks that impede the achievement of organizational goals. Business analysis encompasses all activities necessary to study the entire organization or a specific unit thereof, to identify specific problems and define suitable solutions often involving ICT or IT component It helps organization to adapt to the ever changing business and regulatory environment to allow the organization to grow in a manner defined by the management. People entrusted with business analysis must have the appropriate skills and techniques to do it well. th 4 Business analysis and Industrial revolution Artificial Intelligence and machine learning Robotic algorithms Are humans being replaced by robots? Climate change and renewable energy Self driving cars How will it influence the way we conduct businesses Electric cars The surge in online businesses Business ecosystem Business Analysis The Strategy and Competitive Intelligence Process Learning Objectives At the end of this lesson, you should be able to: Understand why strategies are formulated. Understand strategic planning, strategic management and the strategic decision making process. Understand the various options for management in formulating internal and external growth strategies for an organisation. Understand how competitive intelligence as phenomenon, encompasses knowledge about threats and opportunities created by external business elements which impacts on present and future organisation’s competitiveness. Strategic Planning & Business Analysis This process helps an organisation to attain a competitive advantage. A competitive advantage is the distinct way the organization is positioned in the market for it to obtain an advantage over its competitors. Generic Strategic Planning Process Assess External Environment Strategic Direction (Vision & Mission) Internal Organisational Assessment Define and Select Base Strategy and Contingency Plans (Goals & Objectives) Evaluate Performance Implement Policy/Strategy Program Strategic Decisions The matching of an organization's activities to its environment The matching of the activities of an organization to its resource capability Determine implications for change throughout the organization The allocation and reallocation of significant resources of an organization The values, expectations, and goals of those influencing the strategy The direction the organization will move in the long run Generic Strategic Management Framework Organisation (internal view) Environment (external view) Competitors Goals and Values Communities Resources and Capabilities Customers Structure and Systems Strategy Government Industry Institutions Interest groups Media Public Strategic Thinking According to Fleisher and Bensoussan (2003:5) strategic thinking is a; combination of intuition and creativity, marriage of information and insight (intelligence); Offers an integrated perspective of the organisation; and concentrates on interrelationships. Competitive Intelligence Michael Porter in his book Competitive Strategy, states that modern organizations need some sort of competitive intelligence. He stated that business needs some sort of mechanism - some sort of competitor intelligence system (1980:72). Competitive Intelligence Fleisher and Bensoussan (2003:2) state that strategies are needed because times change, technology changes, markets changes, and rules of competition and competitors changes. A company can only out perform its rivals if it can establish a difference of value to customers that can be preserved over time. This advantage is evidenced by the organization's ability to generate and maintain sustained levels of profitability above the industry average. Competitive Intelligence Cycle Competitive Intelligence The Intelligence Cycle is a systematic process or cycle for collecting and analysing information about competitor’s activities, one’s business environment and business trends to further one’s organisational goals Fleisher and Bensoussan (2003:6). Competitive Intelligence Cycle Planning and Direction Evaluate & Control Decision Makers Disseminate Intelligence (distributed) Other Users Analysis and Reporting Collect & Process Data Competitive Intelligence Process (CIP) Why is this process used? Competitive Intelligence Process (CIP) is used to assess the capabilities and behaviour of its current and potential competitors. The process of determining value could either be qualitative or quantitative, depending on a particular attribute of the analysis. A relative degree of 'correctness' of data must be confirmed by data from a reliable source as well as the reliability of the original source of data. CIP Extracting results from competitive analysis has become an important facet in recent years because of the following; Increased level of competition Global economy is knowledge economy Globalization vs. barriers Rules of the game have changed Capability to act Increased imitation Increased complexity & speed Where does analysis fit into CIP Herring (1996, pp. 70-73) suggests five basic types of intelligence analysis: Preventing surprises to the organization by providing early warning. Supporting the decision-making process. Competitor assessment and monitoring. Intelligence assessment for planning and strategy development. Comprising a key part of collection and reporting. Note : Good competitive and strategy intelligence requires effective analysis. Additional material https://www.youtube.com/watch?v=lHC Ttgg05Hk