Maturity Levels and Models in Business Analysis
In the coming years, the role of a business analysis will be one of the most important aspects of IT in business. Business analysis plays the pivotal function of looking into the future of the firm. Unfortunately business analysis has not gotten recognition as a career of its own in business. Business analysis is the link that bridges business ideas to the capabilities of the firm. According to White (2018), it is responsible for crafting changes and predicting optimizations for the business process. Business analysis is basically fuelled by the need to carry out an assessment of the firm’s capabilities – or what would be seen simply as feasibility studies.
The business analyst is the person that conduct appraisal for business performance. The significance of the said appraisal is to review the firm’s capabilities beginning from those that are visible to customers up to and including those that are deeply buried in the manufacturing process. Going forward, business will be driven by technology more than it is today which means a significant percentage of changes and optimizations will have to do with software systems. This brings us to the primary role of business analysis; the creation, organization and maintenance as well as delivery of IT systems (White 2018, p 3). Engaging the services of a business analyst increases the returns on investment for the firm. Conducting business analysis saves the firms from the tendency to concentrate on technology costs at the expense of the business related costs. In order to obtain accurate returns on investment, the total business costs have to be put into account. It is the trade of the business analyst to give attention to the returns on investment. Business analysts help to conceive strategies that aid in reducing the cost of projects. Once the business analyst has identified the requirements for saving money in the project process they can replicate the idea in other upcoming projects of the business.
The decision making process for the firm becomes easier if they engage the services of a business analyst. Sonteya, Seymour & Willoughby (2012) submits that while stakeholders will be locked up in meetings pondering over discussions, the business analyst will be crafting logical ideas that will help them arrive at the right business decision faster. Business analyst helps to communicate information that is written in complex or technical language in a manner that shareholders and management can understand. By way of example, upgrading the quality control system of a firm may impact on the data processing function. After conducting business analysis the analyst will explain the technical details to involved department in a language they can understand.
In project teams of well performing firms today, it is uncommon not to find a business analyst. Most of the time, they will be involved in drafting the project requirements for the team. After the business analyst identifies draft requirements for saving up on costs, the project team tends to replicate the same in subsequent projects. Business analysts face the challenge of drafting project requirements of projects whose teams they may only have joined somewhere in the course of implementation (Sonteya, Seymour & Willoughby 2012, p. 45).In some instances, the role of the business analyst is not well understood and their input in the project team from time to time stands at odds with that of the project manager. In such instances, it is easy for the project manager to override the view of the business analyst, which in many occasions affects the project negatively.
Need for Aligning IT Development and Business Strategy
The purpose of a maturity model in business analysis is to be able to make reasonable prediction of the practice and assess the progress made by the business analysis practice in achieving the objectives of the business. According to Van Looy, Poels & Snoeck (2017), maturity levels are necessary because they help the business analyst put their process to the test using a clearly stipulated criterion. It also enables the business analyst to have a benchmark against which to score their operating processes both internally and externally. This is also essential in enabling the business analyst to draft strategies that look into the future of the firm and improve on current and future business plans.
Van Looy, Poels & Snoeck (2017) propose 5 levels of maturity in business analysis. The five levels each designate a different probability of success. At level 1 (informal), the business analysis used by the organization lacks in consistency; tends to be adhoc and does not follow any specific framework. This level is also associated with a lower probability of success. At level 2 (repeatable), the business analysis process has some instances when the techniques employed are re-used while in some instance they are not. The third level of maturity in the business analysis is designated as ‘defined’. At this level, there is clear standardization of all the methods and techniques that are utilized in business analysis. At level 4 which is referred to as ‘measurable’, all techniques and methods used in the process of business analysis are measured. The highest level of maturity is called ‘optimizing’. At level 5, standardization is complete so in order to maintain optimization, metrics are used for continuous improvements. This level is definitely associated with high probabilities of success.
The Business Analysis Maturity Model aids in understanding how the role of the business analyst has evolved and it does so by the use of 2 dimensions; scope and authority. The scope is used to refer to the extent of the business analyst’s role in the firm. The business analysis scope varies from simple tasks focusing on improving individual systems to more complex approaches involving examining the business process with the object of making changes to an entire aspect in an organization (Van Looyet et al 2017, p. 468). The other dimension is authority; this refers to the amount of influence wielded by the business analyst and the extent to which their capacity to determine the changes effected by the firm’s management goes.
For any given firm it takes some time for the business analysis process to take root. At introduction, business analysis tends to be ad hoc; it is not premeditated or pre-designed and most of the time, the processes are not repeatable (Van Looyet al 2017, p. 470). This maturity level is generally associated with firms that have only recently begun engaging the services of a business analyst. With time, the business analysis processes become standardized; the process becomes better designed and there is some repeatability or pattern of doing things. It is fair to say standardization of the business analysis process is an indicator of higher maturity level. Maturity in the business analysis process is associated with a higher performance for the firm.
Role of a Business Analyst as a Change Agent
For a firm to succeed, it must seek to integrate business strategies with IT advancements which notably, comes with the benefit of reducing financial risks and also makes it easier for the firm to cut down on operation costs. According to Grant (2016), when the business makes a continuous and strategic loop between IT and business strategies, it realizes better returns on investments since the firm is able to meet its objectives a lot more easily. Aligning the business strategy is especially necessary for enhancing the efficiency of technology investments. If this is properly done, the firm is able to avoid a significant number of financial risks that are linked to technical changes.
The business environment today is characterized by fast business and technical changes which meansthat firms ought to be moving the alignment conversation further towards convergence and integration; i.e. their business strategies need to be integrated with IT or at least there needs to be convergence of the two. Business analysts should work on how IT and business strategies can be co-creators of true value where both are responsive to consumer needs(Grant 2016, p. 78).If the business strategy and IT are not aligned the firm may spend more than is necessary on IT without getting real operational value for money. In simple terms, aligning business strategies and IT places the technology preferred by the firm in line with the vision, mission and goal of the organization. One of the approaches to this could be translating the objectives of the firm into measurable IT services.
Grant (2016) identifies 4 essentials of integrating IT and business strategies as planning, modeling, managing and measuring. Planning enables the affective allocation of resources towards the realization of that objective so that returns on investment are maximized. This planning step demands a sustained communication between the strategists and the business analyst. Modeling; when IT and Business strategy are aligned, IT creates an infrastructure for optimization of operations which then increase business value. Manage-creating a convergence between business strategies and IT makes IT to become a single point of service request for the firm whereby it processes the requests as stipulated in a pre-set order of priorities. Lastly, the convergence of the two enhances cross-departmental visibility, improves the service level commitments, and provides a business context to the metrics and maintains a relationship between business goal and IT goals.
Information technology is quickly altering the way that companies organize their business operations. It is rapidly changing the way the business communicates with the customers and other stakeholders, and the delivery of goods and services. This calls for a restructuring of the business strategy in line with the advances in IT. As much as there is not any one single definite strategy for reorganization, Grant (2016), notes that most firms tend to go for decentralizing IT or moving it closer to the end user so that is easier to meld the knowledge base to the firm’s strategies. Aligning the firm’s strategies to information technology is a requirement for business success today
Using the Business Analysis Process Model
Given the kind of competition in the market place today where industries are becoming more saturated than ever, the survival of any firm will depend on its ability to differentiate itself. Business analysts therefore become strategic drivers of the change process as they keep up with the momentum of the ever evolving needs of the customers. Innovation in business is used to mean conceptualizing a new idea, fact or approach that improves a given key aspect of business drivers i.e. an idea that improves the position of the firm in relation to its competitors and enhances its responsiveness to customer needs (Boomer 2018, p. 1).
What does the business analyst have to do with implementation of innovative projects in the business? To sufficiently respond to the above query one must adequately understand the function of the business analyst in the firm. In the traditional sense, some would opine that the business analysts exist in the firm merely to document project requirements. Boomer (2018) argues that this understanding of the function of the business analyst is not only fundamentally flawed but is also equally insufficient regardless of the fact that the work of the business analyst more often than not ends up in a document. The reality today in any forward thinking enterprise is that the business analyst is the one who understands the problems of the firm, as well as the goals and objectives which place him or her in a position to be able to draft the requirements. In implementing innovative change they are primed to help assess the feasibility of the proposed innovative idea and validate or dispute it from an informed view and yet in a manner that accommodates the goals of the firm.
The business analyst provides the necessary link between business ideas and the capabilities of the business. He or she is a key professional in any project team for firms today. Business analysts are even more instrumental at helping to communicate innovative changes to other members of staff in a language that they can understand. Reese (2014) posits that in the process of change implementation, obstacles are always anticipated, but given that business analysts are skilled facilitators, obstacles in change implementation are nothing more than bumps along a road. They are able to come up with solutions to the challenges fast. The business analyst is able to literally midwife the change process by listening and responding to concerns raised by staff over the changes and helps harmonize inter-departmental conflict that may arise from shifting of new roles and duties.
Due to their unique training and skills business analysts are uniquely qualified to champion and integrate changes in the organization especially an organization-wide change. The logic behind it is business analysts are accustomed to using skills such as problem solving and critical thinking which primes them to better handle innovative change in the firm (White 2018, p. 5).They are suited to guide the integration of the innovative changes in an organization because day after day, they consider the current against future state of the firm. Business analysts are not scared of change unlike many professional in business; they anticipate innovation and help integrate change into the firm
To be placed in charge of a new project is an exciting moment for any business analyst, but the task can be mind-boggling. Especially if you are new into the firm-one might wonder even where to begin from. To give oneself a better chance at getting it right, it is necessary for the business analyst to take some time to get to learn the business context, acquaint themselves with the strategies and objectives of the firm (Reese 2014, p. 58).An understanding of the business context strategies and objectives primes the business analyst to guide the project team on project requirements.
Business analysts come up against a lot ambiguity in their work; especially when they are new to an assignment or a project team. In such situations it is not advisable for them to get into designing project requirements right away-they should internalize the business context first. Business context refers to the different factors that exert impacts on the firm’s activities from various dimensions; it encompasses how decision making is done in the firm which according to Boomer (2018), brings in the organizational structure into focus. Understanding the business context helps the business analysts to better understand where the organization is and where it intends to go before they get immersed into the project team’s work. After getting an understanding of the business context it is time for the business analyst to get to know the business strategies. In light of the business analysis process, business strategy implies the ‘big picture’. It is largely about crafting a plan for the firm with a clear view of the future of the organization.
In business strategy, the business analyst factors in issues like the products and solutions that could attract more value to the firm. It is in business strategy that the firm gets to determine who their competitors in the industry are and how they differentiate themselves from rival firms (Sonteya, Seymour & Willoughby 2012, p. 58).Business strategy in the view of a business analyst is about how the firm bridges the existing gaps in the aforementioned and gains a more competitive position in the market. In the business world today, forward thinking business analyst are a must have for the firm’s success. Business analysts are able to help design business strategies from a position of information. As more businesses continue to embrace IT in their strategies, the role of business analyst is becoming more prominent. They help in deciphering what the future holds for the firm and how to strategically align their activities towards the same.
Sonteya, Seymour & Willoughby (2012) posit that for the business analysts to be effective in delivering their mandate, they need to have a clear understanding of these three aspects: the business context, the business strategies as well as the business objectives. These are necessary in order to help the business analysts to know what the project they are getting into is objectified to achieve and hence be able to draw project requirements. One major challenge faced by business analysts today is the expectation on them to deliver soon after joining project teams. This pushes them to commence work before taking time to understand the business context and the objectives.
List of References
Boomer, LG 2018, ‘Business analytics … new skills, new services!’, Accounting Today, vol. 32, no. 7, p. 1, viewed 9 December 2018, <https://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=130463153&site=ehost-live>.
Grant, D 2016, ‘Business analysis techniques in business reengineering’, Business Process Management Journal, vol. 22, no. 1, pp. 75–88, viewed 9 December 2018, <https://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=112349463&site=ehost-live>.
Reese, S 2014, ‘Business Data Analyst’, Techniques: Connecting Education & Careers, vol. 89, no. 2, p. 58, viewed 9 December 2018, <https://search.ebscohost.com/login.aspx?direct=true&db=eft&AN=94330418&site=ehost-live>.
Sonteya, TTS ac. z., Seymour, L lisa. [email protected] co. z. & Willoughby, K 2012, ‘Towards an Understanding of the Business Process Analyst: An Analysis of Competencies’, Journal of Information Technology Education, vol. 11, pp. 43–63, viewed 9 December 2018, <https://search.ebscohost.com/login.aspx?direct=true&db=eft&AN=77050335&site=ehost-live>.
Van Looy, A, Poels, G & Snoeck, M 2017, ‘Evaluating Business Process Maturity Models’, Journal of the Association for Information Systems, vol. 18, no. 6, pp. 461–486, viewed 9 December 2018, <https://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=124079719&site=ehost-live>.
White, C 2018, ‘The Value OF Business Analysis’, PM Network, pp. 3–5, viewed 9 December 2018, <https://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=132741212&site=ehost-live>.
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