Business Processes
A collection of related activities or
tasks that produce a specific
service or product.
Process – as a flowchart
www.wikipedia.org
Business Processes
• Operational Processes
– Ex: Sales, purchasing, manufacturing
• Supporting Processes
– Ex: Accounting, H/R, customer support
• Management Processes
– Ex: Management, leadership, planning
Characteristics of A Business Process
• It can be defined
• It has a series of steps
• The end result is something that affects
the customer
• The process adds value
• The process is part of the larger firm
• Somebody is in charge of it (or should be)
How is a Process Improved?
• Effectiveness – does it do what it should?
• Efficiency – how long / how costly is the
process?
• Internal Control – internal safeguards
• Compliance – is the policy facilitating
compliance with company goals and
external regulations (ex: tax law)
Business Model
• Offering – what’s the value proposition
– Revenue Streams
– Cost structures related to fulfillment
• Customers – who are they and what are their
characteristics
– Channels – how a product or service is delivered
– Customer relationship management
• Infrastructure – how the offering gets to the
customer
– Management
– H/R
– Treasury
-- Production -- Sales
-- Purchasing -- Accounting
Business Process Owners
• PDCA
• Plan
– Establish performance metrics and specs
– Key Performance indicators
– Design steps
• Do it
• Check it
– What is the data saying?
• Act
– Create improvement actions
The Management Process
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Define Goals
Formulate Strategies
Devise a Plan
Communicate and sell the plan to the
company
• Implement the Plan
• Monitor the results
• Adjust the Plan / Strategies
What is Business Analysis?
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Reduce Waste
Create Solutions
Improve Efficiency
Improve Profitability
Business Analysis Techniques
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PESTLE
MOST
SWOT
CATWOE
MoSCoW
5 Whys
Business Analysis Techniques
• PESTLE
• Analyze the environment – the external factors
affecting the organization
• Political
• Economic (the national & local business cycle)
• Sociological (changes in society, customers)
• Technological
• Legal (legislation/ regulation)
• Environmental
Business Analysis Techniques
• PESTLE
• MOST
– Internal environmental analysis
– Mission (mission statement)
– Objectives (Key goals)
– Strategies
– Tactics
Business Analysis Techniques
• PESTLE
• MOST
• SWOT
– Analysis of
• Strengths
• Weaknesses
• Opportunities
• Threats
Business Analysis Techniques
• PESTLE
• MOST
• SWOT
• CATWOE
– What is the business trying to do?
• Customers
• Actors – who is involved
• Transformation -- what are the processes
• World View – what is the big picture
• Owner – who is responsible for the process
Business Analysis Techniques
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PESTLE
MOST
SWOT
CATWOE
• MoSCoW
– Looks at a requirements or goals
– Must have
– Should have
– Could have
– Would like to have, maybe later
Business Analysis Techniques
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PESTLE
MOST
SWOT
CATWOE
MoSCoW
• 5 Whys
– The question is asked 5 times, drilled down
– Think of a 4 year-old
Business Analysis Techniques
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PESTLE
MOST
SWOT
CATWOE
MoSCoW
5 Whys