1. 1 IIBA – November Breakfast “Out of the Box: Positioning Business Analysts for Success with Package Software” November 2 nd, 2012 1

2. 2 Agenda Introductions Why are we here? What is Package Software? What are the Benefits of a Package? Building an Example What are the challenges in implementing Packages? How do packages change the BA role? –Analysis Phase Changes –Relationship and Role Adjustments Tips and Tricks 2

3. 3 Introductions Kenneth Schumann Manager, Package Center of Excellence Mikayla Rettig Sr. Business Analyst, Merchandising for Canada Lori Salberg Business Consultant, Finance 3

4. 4 Why are we here? o Companies are making a shift and selecting more packaged software solutions to solve their business problems o The largest software companies in the world together generated software revenues of over $235 billion in 2010, an increase of 7% compared to 2009 ($220 billion)- Software Top 100 Edition 2011 o Package software has been available for 50 years o Originated in highly rules driven systems such as Payroll and Finance o Expanded in the 1990s to deliver in all aspects of a business o Packages are filling more niche or specific business problems 4

5. 5 What is Package Software Package software is software that is ready-made and available for sale, lease or license to the general public. Also referred to as Commercially off The Shelf (COTS) software Not unique to business processes – Commodity Brings industry best practice – Community Support Include features that can be expanded into in the future Continuous R & D Customize only for critical requirements 5

6. 6 What are the Benefits of Package o Best Practices Embedded in Software o Common Solution Across Business Operations o Regulatory Requirements Maintained by Vendor o Outsource accountability for support, lifecycle and operability o Speed to Market 6

7. 7 Building an Example 7 You want to build a house. You can chose between building from the foundation up or you can have a factory built home. One of your requirements might be it must have a bathroom. Example of Requirements Build a bathroom

8. 8 Building an Example 8 Example of Requirements Build a bathroom –Must have a linen closet You want to build a house. You can chose between building from the foundation up or you can have a factory built home. One of your requirements might be it must have a bathroom.

9. 9 Building an Example 9 Example of Requirements Build a bathroom –Must have a linen closet –Must be blue You want to build a house. You can chose between building from the foundation up or you can have a factory built home. One of your requirements might be it must have a bathroom.

10. 10 Building an Example 10 Example of Requirements Build a bathroom –Must have a linen closet –Must be blue –Must have a toilet You want to build a house. You can chose between building from the foundation up or you can have a factory built home. One of your requirements might be it must have a bathroom.

11. 11 Building an Example 11 Example of Requirements Build a bathroom –Must have a linen closet –Must be blue –Must have a toilet –Must have a sink You want to build a house. You can chose between building from the foundation up or you can have a factory built home. One of your requirements might be it must have a bathroom.

12. 12 Building an Example 12 Example of Requirements Build a bathroom –Must have a linen closet –Must be blue –Must have a toilet –Must have a sink –Must have a shower You want to build a house. You can chose between building from the foundation up or you can have a factory built home. One of your requirements might be it must have a bathroom.

13. 13 Building an Example 13 Example of Requirements Build a bathroom –Must have a linen closet –Must be blue –Must have a toilet Must face north –Must have a sink –Must have a shower You want to build a house. You can chose between building from the foundation up or you can have a factory built home. One of your requirements might be it must have a bathroom.

14. 14 Building an Example 14 Example of Requirements Build a bathroom –Must have a linen closet –Must be blue –Must have a toilet Must face north –Must have a sink Must have a double sink –Must have a shower You want to build a house. You can chose between building from the foundation up or you can have a factory built home. One of your requirements might be it must have a bathroom.

15. 15 Building an Example 15 Example of Requirements Build a bathroom –Must have a linen closet –Must be blue –Must have a toilet Must face north –Must have a sink Must have a double sink –Must have a shower Must have a tub You want to build a house. You can chose between building from the foundation up or you can have a factory built home. One of your requirements might be it must have a bathroom.

16. 16 Building an Example 16 Example of Requirements Build a bathroom –Must have a linen closet Move into hall –Must be blue –Must have a toilet Must face north –Must have a sink Must have a double sink –Must have a shower Must have a tub Must have separate shower You want to build a house. You can chose between building from the foundation up or you can have a factory built home. One of your requirements might be it must have a bathroom.

17. 17 Building an Example 17 Example of Requirements Build a bathroom –Must have a linen closet – Fit –Must be blue – Fit - Configuration –Must have a toilet - Fit Nice to face north – Fit –Must have a sink - Fit Nice to have a double sink – Fit/Gap – Configuration/Customization –Must have a shower - Fit Nice to have a tub – Gap - Customization Nice have separate shower – Gap - Customization You want to build a house. You can chose between building from the foundation up or you can have a factory built home. One of your requirements might be it must have a bathroom.

18. 18 Package Implementation Challanges 18 o Recognize you have a cultural change initiative o Look at people and process not just technology o Obtain strong sponsorship from leaders o Minimal in house experience with package solution o Avoid over customization o Understanding critical requirements o Underestimating implementation o Overlooking scalability and performance

19. 19 How does the BA role change? Biggest changes to the BA role come in the Analysis Phase Conversation changes from “What do you want?” to “Here’s what it does. What are the gaps?” Mapping exercise vs. building exercise More problem solving than custom development Process re-engineering is part of analysis discussion Introduction of gap identification and analysis 19

20. 20 Analysis Phase for Package 20 Determine Configuration and Gaps in the system Package Terminology As Is Process Flow – Process of current system To Be Process Flow – Process of new package Conference Room Pilot (CRP) Fit/Gap Assessment Configuration Customization PRICEFW Options for Gap Resolution Remove Requirement Defer Requirement Re-engineer Business Process Customize Package

21. 21 How can a BA adjust? Involve business teams early Understand reason behind requirements to determine criticality and priority levels Bring multiple solutions to the table Think about how it can be done differently – business needs to be able to understand and visualize the end state Develop a strict gap process Defined approval process Need to prove “why customization”? It is a cost/benefit analysis Use proof of concepts to demonstrate functionality 21

22. 22 Configuration vs. Customization 22 Many packages permit and require a certain amount of switches & levers to be maintained or configured, allowing a level of individualization for business processes & different industry requirements. It is paramount to come to a consensus of what defines “configuration” vs “customization” at the onset of a package implementation. Typical customization item: Change that requires additional code The change needs to be analyzed before applying an upgrade or patch The change requires IT involvement for future upgrades Typical configuration item: Change is limited to enabling functionality through system setting Maintenance of the configuration can be transitioned and owned by the business

23. 23 Rationalizing Customization 23 Value Prop - What is the value of making this change? Cost Dimension - What is the impact of making this change in these areas? Customization Impact Level - What is the impact to the overall health of the product? Upgrades are easy and integration integrity within package is maintained Example: Configuration, Scripting etc. Low Upgrades maybe impacted, but the change is supported and most likely will require only testing on upgrade Medium Change type is supported, but programming intervention is very likely on upgrade & high potential that any new functionality delivered with upgrades cannot be leveraged High Change type is not supported by the package and/or the change will have a very large financial or risk impact Very High

24. 24 Tips and Tricks  Discuss role expectations, communication & escalation plans up front with sponsor  Consider people and process not just technology Don’t underestimate the cultural change initiative BA needs to have a strong understanding of the business process  Avoid over customization by identifying critical requirements early  Understanding how the business will react & prepare them to compromise, embracing a “best for the organization” mentality  Use experienced resources who understand range of package vs. process options and can mentor internal resources 24

25. 25 Q & A 25

26. 26 Wrap-up 26