business value: is there something missing from the ba toolkit?
DESCRIPTION
Presented at BAWorld Sydney June 26th 2012.The presentation highlights why IT is not seen as delivering enough business value. Being efficiency focussed IT does little for customer intimacy and capability building. A bottom up method of stakeholder engagement, based on Value network Analysis is presented.TRANSCRIPT
www.optimice.com.au Commercial in Confidence 1
“Business Value: Is There
Something Missing from the BA
Toolkit?”Laurence Lock Lee
June 2012
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“Most business leaders have no faith in IT” - Computerworld 18th June 2012
Market research firm Vanson Bourne questioned 650 business and IT leaders
72 percent of the business leaders had no faith in IT helping them to hit their business targets
two-thirds of the IT leaders acknowledged the lack of faith, with 67 percent saying they do not believe "that the business considers IT systems a help"
Most business decision-makers (65 percent) do not feel that IT is helping them make the changes they require
The vast majority of IT leaders recognised that their systems are not good enough, with 80 percent reporting that their IT is not performing well
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Business Value? Customer
Intimacy
Operational Efficiency
Specialist Expertise
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Chains, Shops, and Networks
Value Chain
Value Shop
Value Network
Efficiency
Specialist Expertise
Customer Intimacy
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Trends in Governance
Technology Trend
Business Trend
Governance Trend Simple Complicated Complex
In-house data centres
Distributed Computing
Pervasive Computing
Hierarchical Control
Matrix Management
Business Network
Cynefin Sensemaking Framework
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The odd one out is?
Newtonian Thinking
Relationship Thinking
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• Separating the application into smaller parts produces a hierarchy
• Hierarchies are a fundamental concept in modelling
Hierarchies
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Regnal, Andersson & Bergstrand
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Initiate order
Process orders
Assemble ordersReceive order
Submit orderAdd item
Order complete
Yes
No
Processedorders
Customerneeds
+
+
Supp
lier
Age
ntC
usto
mer
Customer Intimacy?
Specialist Expertise?
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The Problem: Decomposition Fatigue!
…and the devil is in the detail!
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Why not try some “bottom up”
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Value Network Analysis
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VNA Mapping Rules
• Ovals are Roles• Arrow identify a value flow• Solid lines are tangible
value• Dotted lines are intangible
value
Source: Verna Allee
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Lets try it! – Analysing the Work of the BA….
•Identify stakeholder and those who have relationships with these.•Determine perceived current strength of the relationship.
Select Stakeholders
•Determine the stakeholder’s level of influence.•Determine the stakeholder’s perceived level of advocacy.Influence Map
•How does value flow between people/roles?•What is important for these people?
•What are their goals and do they conflict?
Value Flow Analysis
•Segment value flows into prioritisation matrix•Identify specific actions (SMART) which will generate maximum
value.Action Planning
•Execute Stakeholder Management Action Plan•Monitor relationship health over timeImplementation
Map
pin
gM
anag
emen
t
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Who Are Our (BA) Stakeholders?
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Let’s Map Our Stakeholders….
Advocacy
Infl
uen
ce
1 2 3 4 5
Low
Low
High
High 5
3
1
2
4
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Two Types of Value
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Two Roles
Business Analyst
IT Developer
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Business Analyst ??
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Business Analyst??
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Model Transformations
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Benefits Gained?
• “Intangibles” are made explicit and accountable (new value)
• “Value Flows” become “deliverables” for which roles are accountable for, independent of if a system is being built or not (new value)
• Can move directly to “should-be” case• Can equally well for all value scenarios (chains, shops and
networks)• Can be transformed for inclusion in ‘top down’ systems
specification
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References
• Paper supporting this presentation: http://www.optimice.com.au/documents/BusinessValueAnalysis.pdf
• Stakeholder Engagement: http://www.optimice.com.au/stakeholderengagement.php
• General: www.optimice.com.au• Value Networks: http://www.valuenetworks.com/