1. BABOK® v2.0 Chapter 5:
Enterprise Analysis
Outline:
5.1 Define Business Need
5.2 Assess Capability Gaps
Enterprise Analysis 5.3 Determine Solution Approach
5.4 Define Solution Scope
5.5 Define Business Case
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2. Enterprise Analysis
 Describes the business analysis activities that take
place for organizations to:
 Analyze
 Business situation
 Assess
 Capabilities of the enterprise
 Determine
 Most feasible business approach
 Define
 Solution scope
 (and document) business requirements
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3. Enterprise Analysis
 Provides context to requirements analysis
and solution identification
 Often the starting point for initiating a new
project
 Business requirements are identified and
documented through enterprise analysis
activities
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4. Enterprise Analysis
Activities are derived from Inputs, (information) relating to specific
Tasks (activities), that create specific Outputs (deliverables)
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5. 5.1 Define Business Need
 Purpose: Why define the business need?
 Identify why a change to the organizational systems is required
 Define why a change to the organizational systems is required
 Description
 Defines the problem that the business analyst is trying to find a
solution for.
 Critical Step in the business analyst effort!
 The way the business need is defined determines which alternative
solutions will be considered, which stakeholders will be consulted,
and which solution approaches will be evaluated.
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6. 5.1 Define Business Need
 Inputs
 Business Goals and
Objectives
 Requirements [Stated]
 Task
 Define Business Need
 Outputs
 A fully defined
business need is used
by many tasks
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7. 5.1.4 Elements
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8. 5.1.4 Elements
 .2 Business Problem or Opportunity
 Make sure that there is in fact an opportunity for
improvement if the issue is resolved
 .3 Desired outcome
 NOT a solution!
 Describes the business benefits that will result from
meeting the business need and the desired end state
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9. 5.1.5 Techniques
 General Techniques
 Benchmarking (9.2)
 Brainstorming (9.3)
 Business Rules Analysis (9.4)
 Focus Groups (9.11)
 Functional Decomposition (9.12)
 Root Cause Analysis (9.25)
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10. 5.1.6 Stakeholders
 Customer or Supplier
 Domain SME and End User
 Implementation SME
 Regulator
 Sponsor
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11. 5.1.7 Output
Business Need: A business need describes a
problem that the organization is or is likely to face,
or an opportunity that it has not taken, and the
desired outcome. The business need will guide the
identification and definition of possible solutions.
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12. 5.2 Assess Capability Gaps
 Purpose
 Identify new capabilities required by the enterprise to meet the
previously defined business need.
 Description
 Assess the current capabilities of the enterprise and find the gaps
that prevent the organization from doing what it wants to be doing.
 Is it even possible?
 How big will the change be?
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13. 5.2 Assess Capability Gaps
 Inputs
 Business Need
 Enterprise Architecture
 Solution Performance
Assessment
 Task
 Assess Capability Gaps
 Outputs
 Capability requirements
are used by many tasks
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14. 5.2.4 Elements
 .1 Current Capability Analysis
 Gather as much information as possible about the current state of
the areas of the enterprise affected by the business need.
 Goal: Understand the business and how the business and technology
architectures support it.
 .2 Assessment of New Capability Requirements
 Compare future and desired business states
 What, if anything, needs to be added?
 .3 Assumptions
 Must be identified and clearly understood
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15. 5.2.5 Techniques
 General Techniques
 Document Analysis (9.9)
 SWOT Analysis (9.32)
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16. 5.2.6 Stakeholders
 Customer and Supplier
 May be impacted
 May be able to support the new capabilities themselves
 Domain SME, End User, Implementation SME, and
Sponsor
 Will provide information on the strengths and weaknesses of
current capabilities.
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17. 5.2.7 Output
Required Capabilities: An understanding of the
current capabilities of the organization and the
new capabilities (processes, staff, features in an
application, etc.) that may be required to meet the
business need.
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18. 5.3 Determine Solution Approach
 Purpose
 To determine the most viable solution approach to meet the business
need in enough detail to allow for definition of solution scope and
prepare the business case
 Description
 Describes the general approach to create or acquire the new
capabilities to meet the business need
 Consider:
 Possible approaches
 Means of delivery
 Organizational capabilities to implement and use
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19. 5.3 Determine Solution Approach
 Inputs
 Business Need
 Organizational Process Assets
 Required Capabilities
 Task
 Determine Solution Approach
 Outputs
 The Solution Approach is used
in defining the Solution Scope
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20. 5.3 Elements
 .1 Alternative Generation
 Identify as many potential options as possible to meet the
business objectives and fill in the capability gaps
 .2 Assumptions and Constraints
 Should always be questioned to ensure they are valid
 .3 Ranking and Selection of Approaches
 Analyze the operational, economic, technical, schedule-
based, organizational, cultural, legal and marketing
feasibility.
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21. 5.3.5 Techniques
 General Techniques
 Benchmarking (9.2)
 Brainstorming (9.3)
 Decision Analysis (9.8)
 Estimation (9.10)
 SWOT Analysis (9.23)
 Feasibility Analysis
 Preliminary analysis of solution alternatives or options to determine
whether and how each option can provide an expected business
benefit to meet the business need.
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22. 5.3.6 Stakeholders
 Customer, Domain SME, End User, and Supplier
 May be able to provide suggested approaches
 May be able to identify assumptions and constraints
 Implementation SME
 Will be needed to assess the feasibility of possible approaches
 Sponsor
 May be the source of constraints!
 Most likely be required to approve the recommended approach
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23. 5.3.7 Output
Solution Approach: A description of the approach that
will be taken to implement a new set of capabilities.
Solution approaches describe the types of solution
components that will be delivered (new processes, a
new software application, etc.) and may also describe
the methodology that will be used to deliver those
components.
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24. 5.4 Define Solution Scope
 Purpose
 To define which capabilities a project or iteration will deliver
 Description
 Conceptualize the recommended solution in enough detail to so
stakeholders understand the business capabilities to be delivered
 Solution scope includes:
 The scope of analysis
 The capabilities supported
 The capabilities that will be supported by future iterations
 The enabling capabilities that are required in order for the
organization to develop the capabilities required to meet the
business need
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25. 5.4 Define Solution Scope
 Inputs
 Assumptions and Constraints
 Business Need
 Required Capabilities
 Solution Approach
 Task
 Define Solution Scope
 Outputs
 Many other task use the fully
defined Solution Scope
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26. 5.4.4 Elements
 .1 Solution Scope Definition
 Describes solution in terms of major features and functions
as well as interactions with outside people and systems
 .2 Implementation Approach
 Describes how the chose solution approach will deliver the
solution scope
 .3 Dependencies
 Define major business and technical dependencies that will
impose constraints on the effort to deploy the solution
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27. 5.4.5 Techniques
 General Techniques
 Functional Decomposition (9.12)
 Interface Analysis (9.13)
 Scope Modeling (9.27)
 User Stories (9.33)
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28. 5.4.5 Techniques
 Problem or Vision Statement
 States the business need, identifies key stakeholders, and
briefly describes the positive impact that meeting the
business need will have on those stakeholders
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29. 5.4.6 Stakeholders
 Domain SME
 Will participate in identifying the affected organizational units,
modeling the scope of possible solutions, and determining the
relative priorities of the required capabilities
 Implementation SME
 Will participate in the allocation of capabilities to solution
components and in determining the time and effort required to
deliver new capabilities
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30. 5.4.6 Stakeholders
 Project Manager
 May assist with the development of the overall solution
scope, which will be used as an input to the project charter
 Responsible for the definition of the project scope
 Play a major role in allocating capabilities to components
and primarily responsible for determining the time and effort
required to deliver a capability
 Sponsor
 Will participate in setting priorities and approving the
solution scope
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31. 5.4.7 Output
 Solution Scope: Defines what must be delivered
in order to meet the business need, and the effect
of the proposed change initiative on the business
and technology operations and infrastructure.
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32. 5.5 Define Business Case
 Purpose
 To determine if an organization can justify the
investment required to deliver a proposed solution
 Description
 Describes the justification for the project in terms of the
value to be added to the business as a result of the
deployed solution, as compared to the cost to develop
and operate the solution
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33. 5.5 Define Business Case
 Inputs
 Assumptions and Constraints
 Business Need
 Solution Scope
 Stakeholder Concerns
 Task
 Define Business Case
 Output
 Many tasks use the business
case
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34. 5.5.4 Elements
 .1 Benefits
 Qualitative and quantitative gains
 .2 Costs
 Estimate the total net cost of the solution
 Total cost of ownership
 Opportunity costs
 .3 Risk Assessment
 Determine if the proposed initiative carries more risk than
the organization is willing to bear
 .4 Results Measurement
 How the costs and benefits will be assessed and evaluated
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35. 5.5.5 Techniques
 General Techniques
 Decision Analysis (9.8)
 Estimation (9.10)
 Metrics and Key Performance Indicators (9.16)
 Risk Analysis (9.24)
 SWOT Analysis (9.32)
 Vendor Assessment (9.34)
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36. 5.5.6 Stakeholders
 Sponsor
 Approves the business case and authorizes funding
 Domain SME
 Assists in estimating business benefits expected from
the new initiative
 Implementation SME
 Assists in estimating cost projections for the
technology needed to support the new solution
 Project Manager
 Participates in developing time and cost estimates
 May develop preliminary project plan and WBS
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37. 5.5.7 Output
 Business Case: Presents the information necessary to
support a go/no go decision to invest and move
forward with a proposed project.
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