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Strategic Business Analysis - the difference
between great, good and not so good
decision making
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Introduction
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Business Value
All organisations exist to deliver products and/or services to customers
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Business Growth
Corporate Business Strategy
•
•
Strategies to increase revenue
Strategies to decrease costs
Not for Profit Business Strategy
•
•
•
Strategies to increase revenue
Strategies to decrease costs
Increase products and/or service for a select group of
customers or members
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Business Value
Product leadership
Operational excellence
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Customer intimacy
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Business Stages
www.shirlawsgroup.com
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What is Strategic Business Analysis
•
No matter the industry, any organisation that knows they need to innovate
to grow can benefit from business analysis.
•
Business analysis assists organisations improve the delivery of products
and/or services to customers.
•
A Strategic Business Analyst performs an analysis of business processes
that are broken down into individual requirements that enable a
stakeholder (person) to deliver a product and/or service to a customer.
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Delivering Strategy
Unravel the processes
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It can be complex!
Operating processes
Develop and promote products and
services
Manage external relations
Supply water
Manage product and service portfolio
Water supply
planning
Operate water
treatment plants
Manage and
operate storage
Develop products and services
Build QCA and Treasury relationships
Corporate processes
Manage human resources
Develop & manage HR planning, policies, & strategies
Recruit, source, and select employees
Meter usage
Manage government relationships
Develop and counsel employees
Manage relations with the Board
Reward and retain employees
Manage employee relations
Operate pipeline
network
Re-deploy and retire employees
Manage legal and ethical issues
Negotiate tariffs for regulated
products
Manage employee information and analytics
Manage facilities and resources for the community
Develop, execute, and manage
marketing
Provide recreation
services
Provide flood
mitigation
Manage public relations program
Manage information technology
Plan and organise
Develop customer engagement strategy
Acquire and implement
Manage land
Deliver and support
Manage customer service operations
Develop, execute, and manage sales
Measure customer service operations
Monitor and evaluate
Manage finances
Perform planning and management accounting
Perform billing
Perform general accounting and reporting
Enabling processes
Manage fixed asset project accounting
Process payroll
Develop vision and strategy
Define the business concept and
long-term vision
Process accounts payable expense reimbursements
Develop business strategy
Develop regulatory strategy
Execute strategic portfolio
Manage treasury operations
Manage internal controls
Manage taxes
Manage assets (ISO55000)
Develop asset strategy
Design and acquire non
infrastructure facilities
Plan, design & construct
infrastructure assets
Maintain infrastructure
assets
Dispose of assets
Manage procurement and logistics
Plan for and align supply chain resources
Procure materials and services
Manage incidents, risk and compliance
Manage enterprise risk
Manage compliance
Manage incidents
Manage business
resiliency
Manage logistics and warehousing
Develop security
strategy
Manage security
programs
Manage business capabilities
Manage business processes
Manage portfolio, program, and project
Manage quality, environment and safety
Integrate management
systems
Manage enterprise quality
(ISO9001)
Manage environmental
performance (ISO14001)
Manage workplace health
and safety (AS4801)
Manage drinking water
quality (ISO22000)
Manage change
Develop and manage knowledge management
capability
Measure and benchmark
TITLE
Seqwater Process Architecture on a Page. V0.11
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Break it down
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Value Chain
Core Value Processes
Plan Vision
& Strategy
Develop &
Manage Product
& Services
Market & Sell
Products &
Services
Deliver
Birth
Products
Deliver
Death
Products
Deliver
Marriage
Products
Customer
Service
Supporting Processes
Develop and Manage Human Capital
Manage Information Technology
Manage Financial Resources
Acquire, Construct and Manage Assets
Manage Enterprise Risk, Compliance, Remediation and Resiliency
Manage External Relationships
Develop and Manage Business Capabilities
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Value Chain
Develop and Manage Human Capital
Develop and manage
human resources (HR)
planning, policies, and
strategies
Recruit, source,
and select
employees
Manage
employee
requisitions
Develop and counsel
employees
Recruit/Source
candidates
Manage employee
relations
Screen and
select
candidates
Reward and retain
employees
Manage new
hire/re-hire
Redeploy and retire
employees
Manage employee
information and
analytics
Manage
applicant
information
Process Detail
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Manage employee
communication
Process driven requirements
•
Organisations first need to understand the business process change
required and then ensure any new technology integrates seamlessly.
X

System
“A”
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System
“B”
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IDEA/STRATEGY
BUSINESS ANALYSIS
& PROCESSES
DELIVERY
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Industry Research
71% of failed software projects are traced to poor
requirements
Poorly defined applications largely contributes to a 66% project
failure rate, costing U.S. businesses at least $30B every year
$46 billion spent worldwide on fixing requirements problems
Communication challenges between business teams and
technologists are chronic - 60%-80% of project failures can be
attributed directly to poor requirements gathering, analysis, and
management.
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Industry Research
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Industry Research
Worldwide cost of IT failure (revisited): $3 trillion
And locally too
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Business Case Definition and Purpose
Definition:
• A decision support and planning tool that quantifies the expected
financial results and other business consequences and impacts based
on a particular action
The purpose of a business case is to:
• Inform the enterprise decision makers about a proposed project and
provide sufficient information to facilitate a decision on whether or not
invest
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Outcomes versus Benefits
•
An outcome is a result of introducing a reengineered business process
and/or an IT-enabled system or capability
•
The benefit is what the business subsequently derives when/if
managers exploit the new capability
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Innovation
Innovation - businessdictionary.com: The process
of translating an idea into a good or service that
creates value or for which customers will pay.
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Innovation not Invention
•
Invention is not innovation
•
Invention is coming up with a great idea
•
Innovation is executing a great idea and getting it to spread.
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Innovation Process
“as is”
business
value
lever the
idea
spread the
idea
opportunity
idea
prioritise
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Disruptive Innovation
Unfortunately, disruptive innovation can upend even the most wellconceived incremental strategies.
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Disruptive Innovation
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Disruptive Innovation
Kodak was founded in 1892 by George Eastman
Kodak was a leader in the full lifecycle - film, cameras, processing
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Disruptive Innovation
1981 Kodak turned over $10 billion & employed 120,000 people
1981 Sony released a camera with a floppy drive capability
1984 Fuji started a film price war with Kodak
1994 Kodak & Apple sold the QuickTake camera
2004 Kodak stopped marketing film cameras
2004 Digital cameras flooded the market and competitors such as Sony,
Canon, Nikon etc were better positioned for digital cameras
2005 mobile camera disrupted the camera industry
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Disruptive Innovation
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Innovation Case Study
“Jobs said he actually started work on a tablet first, long before the iPhone. He
said he had the idea in the early 2000's for typing on a glass display, and took
the idea to people on his team who invented things like inertial scrolling. But the
company was working on a phone at the time, so he applied that to the phone,
and put the tablet "on the shelf." Once the iPhone business was established,
they took the tablet project off the shelf, and that became the iPad.”
www.pcmag.com
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Innovations of the Future
What problem or opportunity in your life would you like to solve?
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Innovations of the Future
Cloud Computing
Driverless Car
Healthcare
Food
Air Travel
Transport Companies
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Innovations of the Future
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Innovations of the Future……2016
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Summary
• Strategic Analysis can lead better board
and senior management decisions;
• Strategy planning is a process and is
iterative with using business processes;
• Demand good analysis, metrics and
insight.
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