IBD Business Intelligence Masterclass Presentation

1. THE INSTITUTE OF BUSINESS DEVELOPMENT BUSINESS INTELLIGENCE MASTER CLASS BUSINESS ANALYSIS TOOLS AND TASKS Paul Ikele M.Sc MBA FBDI

6. TASK WORK DIVISION AMONGST A BUSINESS ANALYST TEAM Purpose Dividing the work among the Business Analysts in a team removes obstacles of confusion and uncertainty that can be placed among the Business Analysts and their goals. It defines responsibilities and sets expectations. It clarifies both where the team wants to be and how to get there. Description The team or the lead will decide and implement the most suitable method to achieve their specific goal(s). The task of deciding which Business Analyst in the team is assigned to the requirement activity. . Predecessors The Requirements Activities or Requirements Work Plan Process and Elements The Business Analyst and/or Lead and/or the team review the activities and the duration of the work effort. The Business Analyst and/or Lead and/or the team decide on which strategy or strategies to apply and document the rationale. Based on the decided work division strategy or strategies, the activity is assigned to a Business Analyst, either by another Business Analyst or by team consensus. The task is completed when all the requirement activities are assigned to the Business Analysts. Stakeholders The Stakeholders are the Business Analyst and the Stakeholders associated with the requirement activity. Deliverables The resources (Business Analysts) assigned in the Requirements Work Plan.

8. Requirements Traceability

14. Cycle time analysis Slide of 18 Customers Sales Clerks Sales Managers Financial Managers Financial staff Warehouse Call to place an order Accept order terms Negotiate order changes Input order details Confirm availability and accept terms Approve order Call customer to change order Approve order Inventory report Process credit card information Order sent to warehouse Average elapsed time for order:3 hours Full time equivalent employees: 42 First time approvals (no errors) 85% Order promises kept 92%

15. Types of Problems Desired (Expectation/ Standard) Current Deviation End State Design Repair Improve

18. Tool Name Utilization Affinity Diagram Used to Organize abstract thinking about a problem. Relations Diagram Used for determining causalities among parts of a problem. Systematic Diagram Planning tool. Matrix Diagram (many types) Used to organize knowledge in a matrix format; sometimes includes intercell relationships. Matrix Data Analysis Method Principal components technique is performed on matrix data. Process Decision Program Chart (PDPC) Determining which processes to use by evaluating events and prospective outcomes. Arrow Diagram Used to do 'what-iffing' on flow of process.

20. Using the Affinity Diagram as a Team It is relatively simple to try out using affinity diagrams yourself using the post-it note method mentioned above. Use the steps shown below. Gather a team; make sure the right people are on the team - that is that the team has common goals and interests. Discuss and select a specific problem area. For example, lack of productivity. Have each member jot down as many contributing factors to the selected problem as possible on a post-it note. Post the note on a board and begin as a team to logically group the notes. Name the logically selected groups. Have a period of quiet reflection and permitting any team member to move any note to any other desired group. Discuss the changes. Iterate these last two steps until a steady state is reached. Next, analyze the different groupings and decide which things to focus on in the remaining tools.

22. Relations Diagrams Relations diagrams specify the relationships among things. More specifically, these diagrams are used to map and analyze problems where causes of the problem have complex interrelationships. In contrast to the Ishikawa diagram in which all causes of a problem are assumed to be hierarchically decomposable, the relations diagram promotes discovery of relationship among causes. In plain terms, this means that a single thing might influence two or more other things, a situation that cannot be easily shown in a fishbone diagram. Consider the figure below in which multiple relationships among causes of a specific problem are shown. When teams work in a group to create relation diagrams, the 'card' or 'post-it note' technique can be used in which causes are specified by team members and arranged on a table or board and arrows drawn between cards or notes as needed to show the relationships.

24. The figure below shows how relations diagrams and Ishikawa diagrams are related. Ishikawa diagrams are arranged hierarchically, that is, there is a main node, subnodes, and subnodes of the subnodes, and so forth. The arrangement in which no branches are permitted to crossover is called a strict hierarchy; those cases in which crossover is permitted is termed a tangled hierarchy. The relations diagram is most like a tangled hierarchy. Crossover is permitted, in fact, encouraged. The relations diagram and the Ishikawa diagram are identical if the structure of either graph does not permit crossovers between the hierarchically organized structures. The top diagram shows a simple Ishikawa diagram with 6 causes shown (Cn). Shown below the Ishikawa diagram is the identical relations diagram with one additional link, shown to the left. Note that the primary difference between the two diagrams is simply the arrangement of the drawing - and the ability to have additional interconnectivity between causes. In truth, there is no reason that such interconnectivity cannot be shown on the fishbone.

26. Systematic Diagram Systematic diagrams help teams or individuals think systematically about how to achieve a goal. Affinity diagrams assist in identifying a problem, relations diagrams help to figure out what is related to a problem, and systematic diagrams organize the aspects of the solution of the problem. The Figure shows a general form of a systematic diagram, in this case a structure for assisting in breaking a goal down into subgoals. Subgoals in this case can become sets of methods and plans which assist in achieving the subsequent goal. Another way to use the systematic diagram is to decompose components or physical processes into their subparts. This type of hierarchy is sometimes known as a whole-part hierarchy, in reference to breaking the whole into it's constituent parts. The term systematic diagram is also referred to, by some, as the tree diagram due to the way that the diagram appears. Once the systematic diagram is organized and completed, the tip nodes (those to the right in the figure) represent the specific methods and actions that are to be taken. In this configuration, one can use a matrix diagram to prioritize and organize the work to be done. When a matrix diagram is used in this fashion it is sometimes termed a prioritization matrix.

27. Matrix-Related Tools Matrix diagrams permit organization of knowledge so that relationships between factors, causes, objectives, (or any thing that one wants to show) can be shown. Matrices, of course, provide rows and columns with intersecting cells that can be filled with information that describes the relation between the items located in the rows and columns. Several basic forms of matrix- related tools have been developed including, an L-type matrix, a T-type matrix, Y-type matrices, and X-type matrices. The L-type matrix is just a two dimensional table that places contrasting elements in the rows and columns of the matrix. The L term is used to describe the upside-down shape of the labels of the row and columns. The T-type matrix forms the labels in the form of a T adding an additional matrix above the top of the matrix. X and Y-type matrices are simply composed of multiple L and T matrices. As shown in the diagram below, the L is discernable in the column and row labeled Cn and Rn; for the T the additional set of Cns gives the appearance of a T.

28. The next figure shows another matrix style display technique with a 'rooftop' on the top of the matrix. This addition makes the diagram into what is sometimes called the "House of Quality." The additional diagram provides the capability of making additional relationships between factors that are listed in the columns. The typical means for showing relationship in a matrix diagram is to place a symbol in a cell in the matrix, for example: - strong relationship - relationship - possible relationship Naturally, it is plausible to use any type of symbol that has meaning to the user. Different types of symbols are used by different authors and software manufacturers of matrix toolsets. One popular methodology based on matrix-style representations is known as Quality Function Deployment (QFD). QFD designates the columns as hows and the rows as whats, that is, how to accomplish something and what to accomplish. The whats are customer requirements or objectives; the hows are the different things that can be done to achieve the objectives. The roof of the hows show any interrelationship among the hows. In one software package by Qualisoft (1991), the whats are segmented into different types of requirements and the hows into different categories of things to be accomplished. To use this system, the user places in cells various symbols indicating the relationships between the whats and hows. Weights indicating the relative importance of the whats permit assessment of which of the columns (hows) provide the most benefit.

30. Process Decision Program Chart (PDPC) Process decision program charts are charts that help the user select the best processes to be used to accomplish a desired task. While the method has many variations, the most simple explanation of the method is that one shows the possible tasks in a process and the task sequences of all the relevant alternatives. For example, this figure shows starting at some beginning point and proceeding toward a goal. Each circle (node) is a separate task. In this figure, four different pathways are possible from start to goal. The fundamental idea is that the goal can be reached in various ways; however, only one of the sequence of tasks will be optimal. The PDPC assists in visualizing the alternatives when planning a sequence of tasks in a process. Two major alternatives for analyzing PDPCs are used - forward planning and backward planning. The first type is illustrated in the figure to the right and the latter in figure below. The method in forward planning is to begin at the start node and work toward the goal node, attempting to select the best path as one moves forward. In contrast, backward planning starts at the end node and moves toward the start.

32. Arrow Diagrams Arrow diagrams display information about the operation of a process by using arrows and nodes. Arrow diagrams can be thought of as a way to understand the operation of a process using time, cost, or other metrics. As a simple example, consider the figure below which displays a simplified process of creating a new product. In this very simple diagram, two paths are shown, the top path for creating the hardware component of the product and the bottom path, the software component. Each link (i.e., arrow) has a numerical label on it which designates the time required to proceed from one node to the next. In this example, the values used for the arrows are in weeks. Hence, the time required for completing the initial software for this product is much longer than the time required for the hardware. The arrow diagram, as in all the other tools, simply permits an explicit visualization of the bottleneck problem that will occur in this process!

33. Gantt charts have been used for many years to permit visualization and scheduling of parallel activities. The figure below shows a typical Gantt chart. Tasks are listed on the right side of the diagram. The times during which the tasks are scheduled are shown by the extent of the arrow in the diagram. The abscissa in this example might be weeks or months. In contrast, the arrow diagram attaches the name of each task to a node and shows the times between the tasks. Parallelism is easily seen and, moreover, disconnects in time are easily observed so that delays can be identified and plans can be altered to achieve the minimum time from start to completion of the process. Note that the same type of analysis could be accomplished using cost or any other metric that is appropriate to the process.

38. Source: Adapted from M. E. Porter, Competitive Strategy, Free Press, 1980, p. 4. Threat of substitutes Potential entrants Threat of entrants Suppliers Bargaining power Substitutes Buyers Bargaining power COMPETITIVE RIVALRY Five forces analysis

45. Use Cases Case user Tyner Blain: Use Cases

46. Swim lanes Actor 1 Actor 2 Actor 3 Actor 4 Verb/noun Binary decisions Activity level participants Boundaries Hand-over Begin and end in same lane

47. Context diagrams Information flow External Internal Drilling down Context Boundary

48. … and UML Diagram from Wikipedia

64. The table below provides an example of relative and absolute rating, where the higher the number the more important the requirement is. Business Requirement (Functional Requirement) Importance Rating Absolute (1-16) Relative (5-10) The system must display products on screen. 16 10 Requirements 15 - 2 n The system must enable customers to check delivery and production status. 1 5

69. An example of applying capability to business requirements Business Requirement (Functional Requirement) Importance Rating Ease of Realisation Final Rating Absolute 1-16 Relative 5-10 Relative 5-10 The system must display products on screen 16 10 8 80 Requirements 15 - 2 n n n x n The system must enable customers to check delivery and production status 1 5 5.5 27.5

77. Compile Action Plan Critical Thinking Methodology – Compile Action Plan Action Plan & Measures ‘ What is required for…’  Determine action steps for implementation Selected Solution(s) Deadline Responsibility Confirmation Action Post-Value Pre-Value KPIs

78. Critical Thinking Methodology Develop Alternative Solutions Assess Implications Compile Action Plan Find Root Cause(s) Select Problem Identify Issues Define Purpose

79. Critical Thinking Methodology – Define Purpose Define Purpose Solved State/ New State Defined New Requirement ‘ What is the purpose of…’  Determine structure of purposes

80. Critical Thinking Methodology Develop Alternative Solutions Assess Implications Compile Action Plan Find Root Cause(s) Select Problem Identify Issues Define Purpose State Position/ Claim Assess Reasons/ Objections

83. Software Tools Develop Alternative Solutions Assess Implications Compile Action Plan Find Root Cause(s) Select Problem Identify Issues Define Purpose State Position/ Claim Assess Reasons/ Objections

85. Paul Ikele MBA FBDI Registrar/ Chief Executive The Institute of Business Development [email_address] THANK YOU