Business Analysis D P Goyal

Business Analysis-An Introduction Why Business Analysis? Can’t we do without Business Analysis? What is Business Analysis? What is Business? What is Analysis?

Business Analysis – Why? To identify business needs and determine solutions to business problems. (Solutions often include a system development component, but may also consist of process improvement, or organizational change (strategies, goals, policies) Majority of the IS projects fail because of the communication gap between the business managers and the technical experts.

Contingencies and their Contribution to Uncertainty

Business Analyst – Who? The business analyst, acting as an intermediary between the business and technical communities, analyzes competing business needs and develops plans to implement the projects that support stakeholder objectives. A Business Analyst is a Strategist Architect Systems Analyst

…… thus the course on Business Analysis ……. ……….intends to sensitize the Managers to the skills they will soon need to practice for developing effective and efficient systems…………..

Course Objectives: To get broad understanding of : Techniques and methods for gathering Information requirements from users and other stakeholders; Approaches to Analyzing and prioritizing competing business needs; Creating dynamic business models and writing detailed specifications that provide a blueprint for the proposed system; Quantifying business case benefits and costs ; and Communicating the requirements package to stakeholders.

Business Analysis - What? Business analysis is the discovering, modeling and specification of the logical requirements of a business.

MANAGEMENT of Business To get the work done through and with the help of people By performing basic functions of management

……basic functions of management PLANNING ORGANISING STAFFING DIRECTING CONTROLLING

Essence of Management Whatever a manager does, he/she does it through DECISION-MAKING “DECISION-MAKING IS AN ESSENCE OF MANAGEMENT” -Peter Drucker

Management Hierarchy Levels of Management Strategic Planning Level Management Control Level Operational Control Level

Management Level Functions

INPUT IN DECISION MAKING For Decision Making INFORMATION is the necessary and vital input

Data A stream of raw facts about anything Examples:. –Record of all the players in one day cricket matches. –Detailed Marks of all students in a class. –Business data as obtained from various business houses.

Information processed data, which is useful to the recipient. Examples: –Profit of the company in the current year –The highest ever score in one day cricket –First ten toppers in a class –The top 50 business houses of India.

Then Information is…… WHICH Tells something the receiver did not know Reduces uncertainty Has a surprise value Has a real / perceived value in current / prospective decision.

Data and Information

Information Needs of Different Level Managers Strategic Planning Level Operational Control Level Structured Programmed Historical Exact Internal Unstructured Non-programmed Futuristic Inexact External

SYSTEM ? “The word ‘System’ is the most loosely held word in Management Literature” WE TALK ABOUT DIGESTIVE SYSTEM CIRCULATORY SYSTEM ECONOMIC SYSTEM SOLAR SYSTEM EDUCATION SYSTEM COMPUTER SYSTEM …………………and so on

……THEN WHAT IS A System? InputOutputProcess A set of inter-related elements working towards a common objective(s).

System and Environment

A system is a set of interrelated elements that collectively work together to achieve some common goal or objective. All systems function within some kind of environment.

Types of Systems Closed Systems Open Systems / Cybernetic Systems

Cybernetic System InputOutputProcess Involves a feed back control Loop Feed Back /Control Loop

Systems Approach to management WHOLISTIC APPROACH CONTRARY TO PIECEMEAL APPROACH The Whole is greater than the sum of its parts 2+2=5

....Systems Approach Every system is held together by way of Information Exchange. Classical Systems

SOCIOLOGY POLITICAL SCIENCE PSYCHOLOGY COMPUTERSCIENCE OPERATIONSRESEARCH MANAGEMENTSCIENCE TECHNICAL APPROACHES MIS BEHAVIORAL APPROACHES

The Interdependence Between Organizations and Information Systems

Flattening organizations Separating work from location Reorganizing work-flows Increasing flexibility Redefining organizational boundaries New Options for Organizational Design

Flattening Organizations Information Systems

Categories Of ISs TPS MIS DSS ESS CRM SCM ERP ………………..

Types of Information Systems Transaction Processing Systems Decision Support Systems Management Information Systems Executive Support Systems Expert Systems Decision Support Systems Office Automation Systems Level-I Level- II Level- III

Transaction Processing System Book Keeping Issuance Data Gathering Data Editing Data Manipulation Data Storage Information Documents Error Reports Control Reports

Payroll TPS

Types of TPS Systems

Management Information Systems PROVIDES INFORMATION On continuous basis and reports like Scheduled Reports Exception Reports Demand Reports

Management Information System (MIS)

Decision Support Systems PROVIDES SUPPORT IN THE DECISION MAKING OF MANAGERS

Decision Support System (DSS)

Executive Information Systems Business Content Strategic planning support External environment focus Broad based computing facility Presentation Features Drill down Reporting Exceptional reporting Graphic Summary Office automation capabilities Ease of learning and use Customization

Executive Support System (ESS): Strategic level Inputs: Aggregate data Processing: Interactive Outputs: Projections Users: Senior managers Example: 5-year operating plan

Executive Support System (ESS)

Office Automation Systems Office Work Data Manipulation Document Handling Communication Storage

Functional Areas of Management Marketing Finance Production and Operations Human Resource Development

Marketing Information System Inputs Transaction Data Marketing Research Data Marketing Intelligence Data Strategic Plans Outputs Product Plan Place Plan Price Plan Promotion Plan Budget & Sales Forecast

Financial Information System Inputs Transactional Data Forecasting Data Financial Intelligence Data Strategic Plans Outputs Forecast Funds Management Audit and Controls

Production and Operations System Inputs Production data Inventory Data Vendor Data Marketing data Labor/Union/Engg. Data Environment Data Outputs Product Design Job Scheduling Production QC/QA

Human Resource Information Systems Inputs Transaction Data Functional Plans External data Outputs Organizational Resource Planning Organizational Management Payroll and Administration

Group Exercise - 1 Consider any organization Identify various activities involved in the organization –Identify the ways in which activities are grouped in the organization –Identify the information exchanged across various levels. –Discuss possible benefits the organization might/has accrue(d) by deploying IS/IT.