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Business Analysis Key Concepts

1. Business Analysis Key Concepts

The business analyst's key concepts provide a foundation and understanding for all concepts and ideas within the guide. In this session, you will learn about the IIb Business Analyse Concept Model key terms used in the BABOK Guide: requirements, classification, schema, stakeholders, and requirements and designs. By the end of this session, you would be ready to learn the underlying competencies, knowledge areas, and respective business tasks of the BABOK guide. Let's try to understand. IIBA's business analysis core concept model The business analysis core concept model is a conceptual framework for business analysis. It is composed of six terms, and each of these terms is considered to be a core concept. The six core concepts are change, need, solution, stakeholder, value, and context. Each core concept is defined by the other five core concepts and cannot be fully understood until all the concepts are understood. The Business and Core Concept Model can be used to describe and communicate about business analysis. Using our common terminology for each knowledge area, we can evaluate the relationships among the six core concepts and effectively perform various business analyst tasks. The first concept is "change," and it signifies the act of transformation in response to a need. Changes occur within context. Changes can lead to an enhancement or degradation of the solutions. Changes can also cause needs. The second concept is needed, and it signifies a problem or opportunity to be addressed. Needs are due to changes in a given context. needs can cause changes. Needs can also motivate stakeholders to act. The third concept is "solutions," and it signifies a specific way of satisfying one or more needs in a given context. solution is applicable in a given context. solution also resolves problems faced by stakeholders. The fourth concept is "stakeholders," which signifies a group or individual affected by the change and needs. The solution's stakeholders have an interest in change and can influence or impact the change. The fifth concept is value, and it signifies the work's importance, usefulness, or something else to a stakeholder. Within a context Value can be potential gains, improvements, or realised returns. Value can be tangible, that is, financially measurable or quantifiable. Value can also be intangible or qualitative—that is, it cannot be quantified. Value is delivered by addressing the underlying needs of the stakeholders. The 6th concept is context, which signifies the circumstances that influence the change. Context is also influenced by change and provides understanding of the change. In Berk's Guide, the meaning of and relationship between concepts are further refined as they apply to each knowledge area. Please pause and understand the core concepts of the business analysis model. Now let's understand the meaning of various terms used in the Baabok Guide. The BABOK Guide defines business analysis as the practise of enabling change in an enterprise by defining needs and recommending solutions that deliver value to stakeholders. Business Analysis Information refers to the broad and diverse set of information at various levels of detail that a business analyst analyses, transforms, and reports, such as requirements, design, solution options, solution scope, et cetera. A design is a usable representation of a solution. A design is a solution blueprint that shows solution components and the relationships between them. An enterprise is a system of one or more organisations and the solutions they use. Enterprise boundaries are defined relative to the change and are not constrained by the boundaries of an organisation or organisation unit. So an enterprise may logically include any number of organizations, such as a business or government organization. An organisation consists of a group of people that work towards a common goal and objectives. Organizations have a clearly defined boundary and operate on a continuous basis. A plan is a proposal for doing or achieving something. A plan describes events, dependencies, expected sequence, schedule, outcomes, resources needed, and the stakeholders involved. A requirement is a usable representation of a need. Requirements focus on understanding the potential value that could be delivered if a requirement is fulfilled. Risk is the effect of uncertain events on the value delivered by change, initiative, or solution for the enterprise. Business analysts collaborate with other stakeholders to identify, assess, and prioritise risk and recommend appropriate actions. Now let's try to understand the requirement classification schema. As for the Baby Guide IABA BabockGuide classifies requirements as "business requirements," "stakeholder requirements," and "solution requirements." Requirements and Transition Requirements Business requirements define an enterprise's needs in terms of a problem or opportunity, as well as their statement of goals, objectives, and outcomes that explain why a change has been identified and apply to the entire enterprise. Stakeholder requirements describe the needs of stakeholders that must be met in order to achieve business requirements. They serve as a bridge between business and solution requirements. Solution requirements describe the capabilities and qualities of a solution that meet stakeholder Stakeholder Requirements.They provide an appropriate level of detail to allow for development and implementation of the solution. Solution requirements are divided into functional requirements and non-functional Functional Requirements.Functional requirements describe the capabilities that a solution must have in terms of behaviour and information that it will manage. Functional requirements specify what a system should do. Non-functional requirements are also known as quality of service requirements. They describe the environmental conditions under which a solution must remain effective or qualities that a solution must have in order to ensure stakeholder satisfaction. Non-functional requirements specify what a solution should be. They typically specify usability, reliability, performance, and supportability requirements. Transition requirements describe the capabilities needed to facilitate the transition from the current state to the future. State. Transition requirements are temporary and are not needed once the change is complete. This has specific requirements for data conversion, training, business continuity, et cetera. Please pause to understand the requirement classification schema. Now let's try to understand what we mean by a stakeholder. A stakeholder is an individual or a group that business is likely to interact with directly or indirectly. Each business owner's staff includes a list of stakeholders who are likely to participate in the execution of that task or get affected by it. IAB's above guide provides a unique list of stakeholders with the following roles The Business Analyst is a stakeholder in all business activities and is responsible and accountable for the execution of these activities. A customer uses products or services produced by the enterprise. A domain subject matter expert is any individual with in-depth business domain or process knowledge relevant to the business needs or solution scope, and users are the individuals who directly interact with or use a solution or participate in a business process. An implementation subject matter expert is any individual who has specialised knowledge regarding the implementation of one or more solution components. The most common roles in this are solution architect, developer, database administrator, usability analyst, trainer, et cetera. Operational support is responsible for the day-to-day management and maintenance of a system or product. A project manager is responsible for managing the work required to deliver a solution while balancing the project scope, budget, schedule, resources, quality, and risk. Regulators are the government and regulatory bodies and auditors responsible for the definition and enforcement of standards using legislation, corporate governance standards, audit standards, etc. Sponsors are responsible for initiating and authorising the business analysis work, controlling the budget, solution scope, and development of a solution. Supplies are from external vendors and consultants that provide products or services to the organization. Testers verify that the solution meets the requirement defined by the business analyst and also ensure that the solution meets applicable quality standards. We have understood various types of requirements as per the guide. Now let's understand what we mean by design in the context of business analysis. Stakeholders may present a need. A business analyst describes a need as a requirement or design. The distinction between requirements and design is not always clear. The same techniques are used to elicit, model, and analyse both requirements and designs. Requirements are focused on the need, while designs are focused on the solution. For example, stakeholders may need to resolve customer queries, and one of the requirements may be to record and assess a customer transaction history. And its design can be a screen, mockup, or prototype showing specific data fields. So a requirement leads to a design, which in turn may drive the discovery and analysis of more requirements, which again are used to define more detailed designs. The business analyst may handle requirements and design for other stakeholders who may further elaborate on the design. It is a business analyst who must review the final design to ensure that it aligns with the requirements to recap.The IAPS Business Analyst Model can be used to describe and communicate business analysis using common terminology. It is composed of six terms, and each of these terms is considered to be a core concept. The six core concepts are change,need, solution, stakeholder, Value and context. We have learned the meaning of various terms used in the bubble guide, such as designs, enterprise, organization, plan, requirement, risk, etc. We also learned from the IAB bubble guide that requirements are classified as business requirements, stakeholder requirements, solution requirements, and transition requirements. We have also understood the rules of various stakeholders, such as sponsor domain, subject matter expert, implementation, project manager, tester, etc. E.With whom business interacts toelicit requirements, assumptions or constraints. Finally, we have understood the distinction between requirements and design and learned that requirements are focused on the need while designs are focused on the solution. In the next session, we learn about the underlying competencies.

Underlying Competencies

1. Introduction to Underlying Competencies

Underlying competencies. Describe the knowledge, skills, behaviour characteristics, and personal qualities that would have a business analyst perform the business analysis work. In this section, you will get an overview of the underlying competencies tested in the Ibabok guide. By the end of this section, you would have understood the fundamental skills and knowledge required to become an accomplished and adaptable business analyst. Underlying competencies are grouped into six categories Analytical thinking and problem-solving skills are required to analyse problems and opportunities to identify changes that deliver value and also to work with stakeholders to understand the impact of those changes. Behavioral characteristics in business analysts are required to increase personal effectiveness and gain the trust and respect of stakeholders. Business knowledge is required in order to have a complete understanding of business, industry, organization, and solutions to perform effective business analysis and deliver value. Communication skills are required to understand recipients and adapt communication styles to deepen understanding and trust with stakeholders. Interaction skills are required to facilitate stakeholder communication, provide leadership, convey the value of solutions, and ensure stakeholder support. Knowledge of business analyst communication tools and technology is required to support requirements, documentation requirements, management, stakeholder communication, and collaboration to recap underlying competencies. Describe the knowledge, skills, behaviour characteristics, and personal qualities that would help the business analyst in performing the business analysis work. In this session, we have just got an overview ofthe underlying competencies described in the IIb web guide. In the next session, we will learn in detail about the analytical thinking and problem-solving skills required by the business analyst.

2. Analytical Thinking and Problem Solving

Underlying competencies. Describe the knowledge, skills, behavior, characteristics, and personal qualities that would help the business analyst in performing the business analysis work. In this session, you will get an overview of the underlying competencies, which are grouped into categories of analytical thinking and problem solving. By the end of this session, you will have understood the analytical thinking and problem-solving skills required by business analysts. Analytical thinking and problem-solving skills are required to analyse problems and opportunities, to identify changes that deliver value, and to work with stakeholders to understand the impact of those changes. We can also use it to identify relevant business analysis information, to understand situations, and to identify the best ways to present information. Analytical thinking and problem solving include creative thinking, decision making, learning, problem solving, system thinking, conceptual thinking, and visual thinking. Creative thinking involves judging as well as encouraging new ideas and concepts to solve problems and take on opportunities. This involves challenging assumptions, questioning conventional approaches, and identifying and proposing alternatives. Decision-making involves understanding the various criteria involved in making a decision and assisting stakeholders to make better decisions. This involves gathering information about available alternatives, analysing that information, making comparisons and tradeoffs between options, and identifying the most desirable option. Learning involves quickly absorbing knowledge, skills, or information about a business domain and solutions to work in a rapidly changing and evolving business environment. This involves learning raw facts, understanding their meaning, applying them on a daily basis, and analysing and synthesising information to evaluate solutions. We can learn faster if we use a combination of visual means, such as diagrams or videos, verbal, audio, and written text, as well as doing things. Problem solving involves understanding the underlying causes of a problem and devising solutions to address that root cause. This involves understanding and defining problems, identifying issues and handling conflicts, identifying and validating assumptions, identifying alternative solutions, evaluating solutions against defined objectives, performing tradeoffs, and selecting the best solution. System thinking involves understanding enterprise from a holistic point of view by understanding the interaction of people, process, and technology. This requires understanding that whole system isgreater than some of its parts. This means that the whole system not only includes the various components but also includes the interaction of the various components and their responses to external forces. Conceptual thinking involves using information such as the business environment, stakeholder needs, solution requirements, potential value, etc. to formulate a big picture by identifying concepts and understanding the relationship between them. Using this, we can fit details into the larger context. This would help in generating ideas, options, and alternatives. Visual thinking involves visually representing concepts such as changes, needs, solutions, etc. Inform with models, graphics, diagrams, etc. This would help stakeholders understand these concepts more easily, as well as ensure engagement and additional inputs to recap. In this session, we have learned analytical thinking and problem-solving skills. Analytical thinking and problem solving skills arerequired by business analysts to analyse problemsand opportunities to identify changes that delivervalue and also to work with stakeholdersto understand the impact of those changes. Analytical thinking and problem solving include creative thinking, decision making, learning, problem solving, systems thinking, conceptual thinking, and visual thinking. In the next session, we'll learn about behavioural characteristics required by business analysts.

3. Behavioural Characteristics

Underlying competency describes the knowledge, skills, behavior characteristics, and personal qualities that would help business analysts perform their work. In this session, you will get an overview of the underlying competencies grouped into behavioural characteristics. By the end of this session, you would have understood the behavioural characteristics required by the business analyst. Behavioral characteristics help us increase our personal effectiveness and allow us to gain trust and respect from stakeholders. We can do this by constantly acting in an ethical manner, completing tasks on time and to expectations, efficiently delivering quality results, and demonstrating adaptability to changing needs and circumstances. Behavioral characteristics include ethics, personal accountability, trustworthiness, organisation and time management, and adaptability. Many times, a proposed solution or requirement that is found to be beneficial to a stakeholder group may not be beneficial to other stakeholder groups. Such a situation would present ethical difficulties, and as business analysts we need to exhibit fairness and moral behaviour by communicating the reasons for such a decision to the affected stakeholders. Behaving ethically and considering the effects on others would not only help organisations reduce risk but also earn the respect of stakeholders. Personal accountability involves achieving targets and goals within an agreed timeframe and as per stakeholder expectations. This includes effectively planning the business analysis work, managing risk, satisfying the stakeholder needs, and delivering value. Earning the trust of stakeholders helps elicit business analysis information about sensitive issues and ensures that recommendations are accepted. To earn trustworthiness, we need to complete tasks and deliverables on time within budget and achieve expected results. Apart from this, we need to be confident in our approach and be honest and straightforward to address conflicts and concerns. Organization and time management involve the ability to prioritise tasks, perform them efficiently, and manage time effectively. Apart from this, we also need the ability to efficiently organize, store, and differentiate important information. Adaptability involves understanding stakeholder preferences and changing our approach, style, methods, and techniques accordingly. For example, stakeholders may prefer interviews over a workshop for conducting illicitation, or visual models over a long textual requirement specification. We also need to adapt when business or stakeholder needs or contexts change to recap.In this session, we learned about behavioural characteristics. Behavioral characteristics in business analysts are required to increase personal effectiveness and gain the trust and respect of stakeholders. Behavioral characteristics include ethics, personal accountability, trustworthiness, organisation and time management, and adaptability. In the next session, we will learn the business knowledge required by the business analysis.

4. Business Knowledge

Underlying competencies. Describe the knowledge, skills, behaviors, characteristics, and personal qualities that would help the business analyst in performing the business analysis work. In this session, you will get an overview of the underlying competencies grouped into business knowledge. By the end of this session, you would have understood the business knowledge required by the business analysis. Business knowledge is required in order to have a complete understanding of business, industry, organization, and solutions. Business knowledge helps to perform effective business analysis and deliver value. Business knowledge includes business acumen, industry knowledge, organisation knowledge, solution knowledge, and methodology knowledge. Business acumen is the ability to understand business needs using our experience and knowledge obtained from other situations. This requires understanding of fundamental business principles and best practises that are common across different areas such as legal, finance, logistics, sales, marketing, supply chain management, human resources, and technology. Knowledge regarding how other organisations have solved challenges may be useful when identifying possible solutions. Industry knowledge is an understanding of the current trends and practices, key processes, products, services, customer segments, suppliers, regulations, etc. within an industry and also across similar processes in related industries. Organization knowledge includes an understanding of the business architecture and the management structure. Business architecture involves understanding how the enterprise generates profits and accomplishes its goals. Management structure involves understanding the organisational structure, organizations, formal and informal communication channels, and awareness of the internal politics that influence decisionmaking. Solution knowledge in terms of experience from previous work on a specific solution would help a business analyst efficiently improve or make changes to an existing solution of the same type or similar solution.Similarly, familiarity with a supplier or a commercially available solution in specific functional areas can assist business analysts in identifying potential solution alternatives, methodologies, prescribed tasks and activities, their timing, stakeholder roles, tools, and techniques for managing a change initiative. Organizations typically adopt or create their own methodologies. To recap, knowledge regarding various methodologies can help business analysts quickly adapt to changes and perform in new environments to recap.In this session, we have learned about business knowledge. Business knowledge is required to have a complete understanding of business, industry, organization, and solutions. Business knowledge can help to perform effective business analysis and deliver value. Business knowledge includes business acumen, industry knowledge, organisation knowledge, solution knowledge, and methodology knowledge. In the next session, we will learn about communication skills required by the business analyst.

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