Business Analysis: The Question And Answer Book - Launch

Afternoon newspaper, a leading daily published in Mumbai covered book, 'Business Analysis: The Question And Answer Book' and author, Sandhya Jane.

Afternoon article excerpt: Based out of Hong Kong, Sandhya is quite a jack of all and a master of all. "The key to balancing work, writing and parenting is to focus on each and giving each my all in that moment. When I am spending time with my son, I am not thinking of work and when I am working everything else is switched off," she said.

A message for aspiring writers? "Discipline," she quipped. "That is one quality that can take you from point A to point B successfully. Many people have excellent ideas but struggle to implement them. The key to being successful is to go ahead and make that first draft before changing it a million times if need be. However, that first step is the most important and also the most difficult step," she added.

Here is the link to complete article: http://www.afternoondc.in/education-careers/business-analysis-for-dummies/article_203871

Automated model-driven BPMN approach for Business Analyst

This is my review to research paper “Resource-based Modeling and Simulation of Business Processes” written by Andrea D’Ambrogio. It is an interesting research paper that explores the simulation-based analysis of business processes that covers all the phases in BP lifecycle, starting from design to execution and improvement to post implementation enhancement phases.

The goal of the paper is to introduce a reliability in analysis that considers unexpected failures of resources to execute the process task due to unavailability of a resource allocated to a task.

The paper exploits both model-driven principles and Discrete Event System Specification, also known as DEVS.

This process requires first interpreting the BPMN model with the allocation of task resources described in terms of performance and reliability properties of the task resources and then transforming the annotated BPMN model into a DEVS-based model that in turn analyzes and produces the better outcome. This DEVS-based model can be used effectively by business analysts due to their unfamiliarity with or lack deep knowledge of the formalism. In addition, the author of the paper has proposed the automated model-driven approach, which would overcome the issues related to the manual building DEVS model, which are effort and time consuming, as well as error free. The mapping of BPMN elements to DEVS atomic models are later linked to the process control flow logic to get the final DEVS-coupled model. Work is currently in process to complete the specification of mapping rules for basic BPMN elements.

If this research is applied to advanced BPMN and becomes successful, it will have more scope in writing business requirements, business rules, and designing the systems.

How to conduct Stakeholder Analysis?

The basics of requirement management is planning for stakeholder analysis. If you miss this, you will face many hurdles. Stakeholder analysis is key to succeed in your project as missing any stakeholder in the stakeholder analysis means that stakeholders requirements will add to the project as either an additional requirements or a change. Both would have an impact on project timeline and budget. Moreover, the stakeholder may be disappointed for not counting him/her in the first place.

Let us understand how to work on stakeholder analysis...following are few tips of analyzing the stakeholders and creating the list in most effective way.

- By studying the business need (problem or an opportunity) and solution scope document to understand stakeholders and their involvement.

- Outlining the stakeholders’ details by studying the organizational structure or modelling the organization (enterprise architecture) and their relationships, and communication.

- Getting additional details through existing documents related to stakeholder analysis.

- Communicating and collaborating with identified stakeholders to confirm details thus obtained (except for details on their attitude and persona).

Process: First identify the impact of the business need (problem or an opportunity). Once you know the details, that will become your basis to build stakeholders. You also obtain organizational structure to understand the people and their role. You discuss with the main stakeholders to identify the stakeholders or you can obtain the official stakeholders list as some of organizations have formal designated person for every dept who act as stakeholder(s) for them.

You can compile the data in excel and verify the data with the relevant stakeholders.

The data can be compiled using following parameters.

1. # / Stakeholder Number
2. Name
3. Contact Number
4. Email
5. Location
6. Role
7. Responsibiltiies
8. Authority Level
9. Profile or
10. Technical skills / proficiency
11. Preferred environment
12. Special Needs
13. RACI (R - Responsible, A - accountable, C - consulted and I Informed. Some may add S for support, but that is an optional)
14. Additional Description
15. Group / category
16. Influence *
17. Attitude *

Please remember that all the information can be send to stakeholders to validate the data, except last two (influence and attitude) unless you want get fired. This list must be modified by authorized person to avoid complication of loss of data or changes made to the documents.

You can add more parameters to this and create a matrix that can be easily used.

The role of Business Analyst in designing UI/UX prototypes

''What is the role of business analyst in designing UI (User Interface) /UX (user experience) prototypes?' This was an interesting question asked of me to answer by a student. After responding, I thought of writing a detailed blog on this topic to cover many aspects of UI/UX design, as it is one of the most interesting but least visited topics. 

Most of the time, UI and UX are used interchangeably, however, they represent different areas. Let’s take a few minutes to understand and differentiate between them. 

User Interface (UI): User interface design focuses on better interaction with solutions and the design may focus on the placement of menu, look, and feel of the page. 

The goal of user interface design is to make the user's interaction as simple and efficient as possible, in terms of accomplishing user goals (user-centered design). Good user interface design facilitates finishing the task at hand without drawing unnecessary attention to itself. 

User Experience (UX): UX focuses on optimization of a software solution in terms of users' experiences and their feelings associated while interacting with the solution or product. It is human-computer interaction in a useful and meaningful way. For example, effortless identifying of the menus, flexible font size, usage of white space to declutter the website (and readers' minds), or using a familiar color (logo color) to enhance the product ownership. 

UI/UX Design Life Cycle.

User Need: This is an initial activity when need is identified. Business Analyst will understand the user problem or an opportunity. For that, business analyst will refer current state and other relevant documents to understand the current design and related issues and the focus area for proposed solutions.

Elicitation: There are no specific standards available for preparing the UI / UX designs. However, the business analyst can use standards that are specific to the project, their comfort level, and consideration of the internal and external usability standards that may be applicable. The requirements are split into requirements (descriptive text) and model/design (descriptive pictures/models). These are mentioned in IIBA's BABOK Guide version 3 You can use the same standards or customize as needed. 

Business analysts can elicit these requirements through design or models in collaboration with stakeholders and users. The business analyst can provide the details in the form of: 

Requirements: Functionality, features, and data needed in designing UI/UX Design. In addition, the user inputs these and validations needed for the same are also elicited. 

Organization policies and standards (internal and external): Internal policies will include the organization’s standards or policies for creating the UI and usability standards; for example, using colors, fonts, placement of items such as logos and menus, and so on. It will also include menu style, pagination, and navigation across sub-pages. While the external standards will include the standards specified by web browser (Safari 9.1.3 or Internet Explorer 10.0 etc...) operating system (Windows, Mac etc...), external agencies to whom you are sending or receiving feeds, and other requirements... These details need to be part of the requirement and provided to the designer for preparing the prototypes/wireframes. The design style will include menu style, pagination, and navigation across sub-pages. You can use a template/excel sheet to describe the details (for example: first name, input box, size, position) and provide them the basic design in MS Visio.

UI/UX Approach

Design/Prototype Approvals: Once the designs are prepared, the business analyst can use these designs/prototypes and the supporting materials (such as the excel sheet that was provided to technical person to create the prototypes) as a requirement to complete a mock-up and communicate them to the stakeholders. The stakeholders will review both the design and the supporting documents, and provide their feedback to improve, if needed. Once the changes are made and the designs are presented, they are required to verify and validate before starting the approval process. These designs and supporting documents become your verified and validated requirements for UI/UX.

At the end, the stakeholder preference will overrule all other standards in defining the UI/UX design. For example, do stakeholders prefer to follow industry standards such number of clicks for a functionality or detailed functionality, standard placement of menu over customized menu, and more.

User Acceptance (Validation): Ensure that all the windows are prepared and connected; i.e., the flow of the requirement screen by screen using all the flows mentioned in the FRD (basic flow, alternate flow, and exceptions). Some business analysts are creating this type of wireframe. But it is an option, as they can get these completed by the technical person.

Deliver: These approved designs are delivered along with supporting requirements to the technical team to develop. Once the development is completed, they are tested and deployed.

Enrich and Enhance: Once the solution settles in user community (production environment, website, or product delivery/acceptance) with no new bugs or issues reported, the enrichment and enhancement will begin as needed. UI/UX is most dynamic interface in comparison  to other part in solution architecture.  

Principles of UI/UX Design:

UI/UX design principle

Consumer apps can be trendy and catchy to appeal to the customers and business analyst can expect fewer formalities or standards used in these types of apps.

Summary: The UI/UX designs depend on the types of app or solution and stakeholders or user preference.

The designs are presented, reviewed, and confirmed before they enter into the development phase.

The scope of Business Analyst Role

The scope of the business analysis is infinite as it deals with a broad term ‘improving business with or without technology’. Any work within that spectrum is business analysis, for example, it could apply in improving a small process within a department or implementing a relugaltory framework across the industry or building a product (Apple had an app for music but couldn’t use it independently. On other hand, Hitachi developed a mini storage that could hold 1 GB data and they didn’t know what to do with it. Steve Jobs integrated both invention to create iPod that was one of the most successful products during its time).

The scope of business analysis work can broadly categorized into three areas:

1. Strategy Analysis
2. Business Analysis
3. IT System Analysis

(Reference: Debra Paul, Donald Yeats and James Cadle in Business Analysis, Second edition, published by BCS)

Following is the partial list of scope within the lifecycle that covers all the areas mentioned above.

• Business Strategy Analysis - Part I: These Business Analyst come from business/domain background who define the business need, high level solution scope and present the business case to the sponsors. 
• Business Technology optimization and management
• Process management
• Define the business need (problem or an opportunity)
• Define solution scope that would to cater to the business need
• Define and present business case (cost vs benefits analysis)
• Secure funding
• Business Analysis: These Business Analyst come from either business or technical background who start the core business analysis once the business need is defined or project is funded. These Business Analysts, primarily involved in eliciting the requirements and defining the solution. In addition, they are also involved in identifying the IT team (internal or external) and managing them during the solution development and implementation.
• Elicit Requirements, document them, confirm them, scope them, present them and get them approved / signed them off.
• Define solution or BRD or Product roadmap
• Further requirement analysis (FRD, Requirement models and so on…)
• Identify or recommend IT team (internal or external)
• Finalize solution and its scope
• Strategy Analysis - Part II
• Verify and validate the solution against the enterprise need, current ability and new business case analysis (cost vs benefit) to accept the solution
• IT Business system or System Analysis: These Business Analyst come from technical background having software developing (coding) or testing testing skills who primarily collaborate with technical team members to communicate the requirements. They ensure that software solution meets the business requirements solution. They also act as a bridge in translating and transferring  business requirements into solution requirements (functional, non-functional and technical constraints) to help the technical team understand the business requirements. In addition, IT business analysts also collaborate with implementation SME (subject matter experts) to elicit the transition requirements that are needed for transitioning the software solution into user community. 
• Support technical team in requirement and change management
• Oversee the development and testing activities
• Ensure high quality solution is implemented
• Close out documentations
• End user training
• Enrich and enhance the solution during its lifecycle
• Orderly terminate the solution when it reaches to end of its lifecycle
• Strategy Analysis - Part III
• ROI to review the business case (cost vs benefits)
• Lesson learned
• Data Business Analyst - The business Analyst working in decision support systems are working closely with business stakeholders to understand their role and their needs in terms of reports needed for making effective decision. They also work with market research team in projecting market trends - past, present and future. In addition to business analysis skills, they are required to be well versed with SQL, dataware-hosuing or other tools, and advance excel and access to analysis the data. 
  These are BAs who deal with big data and statistics. They tend to crunch numbers using algorithms and data models. Similar to a data scientist, in a sense. They tend to determine market trends and present to business stakeholders on what direction they should take.
  Apart from above, there may be specialized designation assigned to a Business Analyst, such as Business Process Analyst (who focused on process engineering) or Product Business Analyst (who is involved in software product development) depending on the role.

Why professional training and certification is important to a Business Analyst?

In early 2000s, it was easy to get a BA job without professional training.  However, the situation has changed due to increased competition and plenty of availability of trained, certified and experienced Business Analysis professionals in job market. Therefore, without professional training and certification Business Analysts may lose out to competitors.

Formal ‘Training’ and ‘Certification’ will definitely help BAs getting focused, structured and systematic knowledge, and skill in business analysis field form an experienced professional that is required to build the solid foundation in the BA domain, to get a job, earn respect after joining the job.

Some may underestimate the professional training, but the hiring manager will not. If he/she has to hire a Business Analyst, they will prefer someone who is already equipped with knowledge and skill acquired through professional course over someone who isn’t, because their company can save time and money in training the new joiner. It also helps to reduce the leaning curve after joining the job.

Most of my students had MBA degrees, and additional BA certificate helped them to compete others easily.

Followings are some of the benefits of professional certificates:

1. Better Recognition: It provides recognition of your skills and competence for doing a job, which will allow you to justify your experience and improve the employability.
2. Better Career Plan: It helps to build a systematic career plan and advancement strategy.
3. Better Alternate option: Professional certifications provides an affordable and focused alternate to the university education that many can’t afford due to their high cost and longer time schedule.
4. Better Knowledge and Skill: Professional certifications focus on the fundamentals and ensure that the certificate holder has the minimum knowledge and skill in the related area.
5. Better investment for organization: The hiring manager would find it more beneficial as the company can save time and money in training the prospective employee.
6. Better skilled employees/ quality for organization: The professional certification of employees will validate the company’s ability to assign knowledgeable and skilled professionals on the project. Sometime, the clients insist that the consultants or employees on their project must have the professional certification to ensure high quality delivery.
7. Which is better?: Reputation of certification awarding body is important. Currently IIBA, and BCS are both highly recognized organization in the field of business analysis. Although PMI more recognized and offering PMI-PBA, it has limited focus in terms of business analysis.
8. Better productivity: It adds to increased engagement, employment satisfaction and productivity that are the top ways of measuring the value of professional certification, as they contribute in reductions in staff churn, training, and recruitment costs.
9. Staying updated: Re-certification ensures that the professionals stay updated in their field.

How to select the right training program?

A profesional training - classroom or virtual doesn’t matter. 

What matters is:

• Content of the training,
• The technology used for delivering the online training,
• The style of teaching to keep audience engaged, and
• Specialization of the institute (some institute offer generalized mass training in every field and those courses usually don’t add value). So, select institutes who offer specialized training that is focused and intense in their specialized field.
• The reputation of the institute.

Check our website for business analysis, project management, quality assurance and data management training. Domain training and certification in Investment banking, retail banking, insurance, supply chain and more are also offered.

I have been teaching business analysis, digital marketing and other interesting topics in both classroom and virtual mode since 2005(over ten years). I find virtual trainings are as good as classroom training if proper training tool is used and the same view is echoed by my students as well.

In classroom session, you are looking at the white board or large screen for the presentation and practical session. Sometimes, it becomes difficult for the students seating at the end of the class. So, if you are learning to create a model, you may or may not see the the instructor’s actions on the screen or how he/she is creating a model. However, in the virtual class, it is easier to see how instructor is creating diagram/models or focusing topic on the slide on your screen. You may have an option to enlarge if you wish to see it better.

The training tool is very important as it allows you to interact with the instructor, share the presentation, deliver the notes automatically, and view the screen during practical session.

At the end, it also depends on the instructor’s style of delivering the training to ensure to keep the audience engaged and interested. :)

Please visit my blog to know the comparative analysis of certifications available in Business Analysis field at entry-level and mid-level.

If you need details, please write to - priti.verma@anisans.com

Disadvantage of being business analyst

As we have seen, there are many benefits to being a professional business analyst. However, no one ever talks about dark side. Here are few points that you need to watch out for if you wish to build a successful career in business analysis.

Getting it done without Authority: Being positioned in a central role, the business analyst has to be a Jack of all trades and juggle numerous duties and responsibilities. These duties can range from managing stakeholders (from the CEO to the end user who is generating a report in some corner) and maintaining an IT department along with balancing a unique set of requirements specific to the task.

It sounds difficult, but that’s the fun. Not everyone is a people person.

Value Creator: Sometimes you need to elicit requirements, confirmation and enter into communication with stakeholders when they each have their own BAU and other priorities. Beware that at times, stakeholders do not always see value in business analysis efforts and respond accordingly.

Know it all: While joining a new role, the hiring person/line manager mentioned that they knew I was new to the domain and they were fine with it. However, after 3 months, the same person suggested I obtain more knowledge than the SMEs and senior director who had been working there for over 10 years.

It is an unrealistic expectation to require business analysts to have a deeper and wider knowledge of the domain than the stakeholder. To elicit the requirements in the correct way, boil down the question to its simplest and purist form, and manage the scope at the right place.

If the BA changes the domain, then it is like starting all over again.

Super Dynamic: The business analysis is very dynamic profession as they are the first to react to new changes in business/industry such as new regulations, laws, codes of practice, business processes and methods.

The business analyst often has to walk on a challenging path through both the academic and practitioners' world, acquiring new knowledge and skills and implementing them effectively in real life situations.

If you are not quick to adapt to new circumstances and conditions, it will invariably lead to frustration.

Superman(woman)’s Confidence: A good BA must have the confidence to stand up for their points to present, negotiate, and manage conflict (if it arises) using logic and every weapon in their arsenal. Remember, the audience could be anyone in the organization.

Unsung Hero: Think of the person who provides ideas to integrate business with technology to create a million (or billion) dollar enterprise. For example, the iPod that changed the music industry or airbnb who revolutionized the hotel industry. The identity of these individuals remains largely unknown, unless he/she happens to be ‘Steve Jobs!’

Most modern inventions that applied technology and innovation to industry are a direct result of business analysis that created billions of dollars of revenue, but many are yet to get their dues.

However, the situation is changing. Being a professional BA is now considered a proper career and many organizations, both profit and non-profit, are working towards making it even better.

Apart from these pitfalls, being a BA is fun!

What is the difference between incident and problem?

Based on ITIL standards,

Incident - An incident is an unplanned disruption or degradation of service.

Problem - A problem is a cause of one or more incidents.

Incident Management
It’s considered as incident only it extends and impact on regular business process. They are flagged as emergency if they impact on critical services.
It needs to be resolved immediately.
It can be resolved using either permeant or temporary fix
Incidents can turn into a problem when it reoccurs or likely to reoccur.

Problem Management
Unresolved and repeated incidents become a problem that needs long terms fix.
A problem need policies and/process to resolve it to prevent it from reoccurring it.
Problem may be known or unknown
It can be remained unsolved or used an alternate option if the cost of resolving the solution is higher than the benefits it would bring in. (cost vs benefit analysis)

Incident vs problem.

Incident: If your 3 years phone breaks down, you need to fix it as you haven’t taken a backup. The technician fix it for you for USD 40.

Problem: There is battery and other hardware component issue, so the technician ask you to replace battery and the other component that combined would cost you USD 180. While the current value of your phone is USD 150 that you originally bought it for USD 500 as a newly launched model at that time)

You may take a backup immediately and make a decision if you want to fix your phone or buy the same model that now would cost you USD 350 (because, currently there is a new model in market).

If you read the example carefully, you understand that the incident needs immediate fix and problem can be prolonged till next incident occurs or you are ready to resolve it using other options (buying new battery and component or new phone, either the same model or new model). However, you will keep a close watch (i.e. taking backup regular or preparing yourself the new phone ) since you are aware of the problem due to the past incident.

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Certified Business Analyst: The best option to launch your Business Analysis career

I had a long association with ANISAN so recommending them for their quality, dedication, and delivery.

ANISAN Technologies, one of the pioneers in providing the Business Analysis Training offers and created several success stories since 2006 in USA, Hong Kong, China, Australia, UK and India with proud alumni base in leading companies across the globe.

ANISAN offer comprehensive 6 days (48 hours) training in Business Analysis.

Who should attend?: Suitable for aspiring Business Analyst with or without IT knowledge and fresher or experienced professional.

Brief Syllabus:

Part I : Introduction to Business Analysis, Introduction to SDLC approaches

Part II : Business Analysis Knowledge areas (as per international standards, BABOK Guide and BCS standards)

Part III : Practical - Part I Strategic Business Analysis (Business Need, Gap Analysis, Solution Scope & Business Case)

Part IV : Practical - Part II Business Analysis Deliverables (Elicitation, Requirement Management, BRD, FRD, UML (Use Cases, Activity Diagrams and Sequence Diagram), UAT, other documentations

Part V : BA Techniques & BA Essentials


Part VI : Tools Training - UML with MS Visio

ANISAN USP:

1. ANISAN is one of pioneer in the field of Business Analysis and providing BA related training and placement since Mar 2006.

2. Our entire training program is based on International Standards (IIBA, BCS & IREB)

3. Successful Completion of ANISAN's Certified Business Analysis certification our participants join renowned corporates like ORACLE, TCS, L&T InfoTech, Accenture, NSE, HDFC, Morgan Stanley, Well Point, Credit Suisse', Novartis, Cox and Kings....

4. Courses offer comprehensive syllabus that have practical and real world approach. All content is reinforced through group exercises, discussions, and sharing of real-world experiences by our subject matter experts.

5. Well experienced faculty with average 15 years Industry experience.

6. Faster Career growth for professionals who would like to work efficiently in IT and non-IT field by improving their productivity and expertise.

7.Produced large and successfully alumni base across the globe.

8. Placement Assistance.

ANISAN Technologies already a well-known name in Business Analysis courses is official partner with IREB, Germany and IIBA, Canada in delivering the BA training.

Exam Preparation Training for IREBs both CPRE(R) Foundation and Advanced Level exams

Exam Preparation Training for IIBA's both CCBA (R) and CBAP (R) certification

Fees: Please write to us.

Please create a login online at www.anisans.com and use PayPal payment option for enrollment and other fees for making payment. You can use any option to complete the payment)

Fees covers: Training + Certification + Study Material book + case Studies + 40 PDU towards CCBA/CBAP exam at IIBA, Canada

Business Analysis Training and Certification - Course Book

* ANISAN is most cost effective training in the industry.

** ANISAN is official training partner with IIBA, Canada and IREB, Germany

*Part Payment option is also available for course fees.

Location: Both classroom (in selective cities, pls refer our schedule) and online (Online training using training tool to share desktop, create notes and share application for practicals.)

Please contact me if you have any queries.

Contact us at:

email - info@anisans.com or priti.verma@anisans.com

Or
what's up message at - +1 (201) 448 4386

For more details, read 'Business Analysis - The Question And Answer Book' . It is way you can understand all... over 200 questions and elaborated answers.

In India Order link https://www.amazon.in/dp/B074PRQQ5V or Global Order link https://www.amazon.com/dp/B074PRQQ5V

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How Business Analyst defines a "business need"?

Here is the short blog on how to how to define the Business Need (either a problem or an Opportunity)

These high level guidelines or parameters will help business analysts defining their Business Needs.

Understand the business:

1.1 Business definition:

Business definition consist of analysis of following information:

1.1.1 What is the 'Entity Type'?
you need to define if the is proprietary or Corporate or Public Limited or Cooperative or Government…
You need to understand what are their governance standards  (such as tax, regulatory process) and requirements. and do they impact on your business need in anyway?

1.1.2 What is the Business Domain?
Is it agriculture or Service, or Hospitality or Defense or  Health Care or Banking or retail or manufacturing, or logistics and so on...

1.2. Products and Services:

1.2.1. Organization Structure (organization units and sub-units and how they are connected to main entity/Head office. People and their association with these entities and their role and position in the organization hierarchy)

1.2.2. Management and its culture (Democratic, lean management, hierarchal, traditional, modern….) Quality policy and standards, quality management process, values and beliefs

1.2.3. Clients, customers and the market: To understand their background and the special needs

1.2.4. Operations and legal and compliance requirement: How the products and services are reached to the end customers?

1.2.5. Organization goals: Long term and short term goals

1.2.6. Core competence: Products and services and other issues. Why these are better selling products compare to their competitors.

1.2.7. Competitive stance: who are competitor and comparison with competitors

1.3. Industry Standards 

  1.3.1 Current Industry Benchmark

  1.3.2 Current and potential future trends in the industry

1.4 New regulations

All these information and data is very useful to analyze the business in comprehensive manner. Without this analysis, the Business Analyst cannot provide the correct business solution that is appropriate the organization.

1.5 Background of Business Need (problem/opportunity):

When we identify the problem or the opportunity we have following area to work on:

1. The Record the problem or opportunity area.

2. Source of the problem or the opportunity:

3. Background of the problem: How it has arisen? Or how the opportunity has been generated.

Impact analysis or identify business value or Business Impact Analysis (BIA):

4.1. Area (department, functions): which part of the organization or which functions are getting affected with business need. For example, the problem is in retrieving sales data for retail chain store, check if the problem is in one region or it is across the region. Or it could be one ‘field’ or some more fields.

4.2. Stakeholders: Who (role – user or customer, signing off authority) are getting affected directly or indirectly? Are there more number of stakeholders is getting impacted with the problem or opportunity. The nature of impact needed to consider before the business need is fully defined. Pls refer stakeholder analysis in planning phase for more details.

4.3. Business Operations: where the impact is? One process or entire business processes are affecting? Is it industry wide impact (example. Change in service tax may affect the pricing and accounting process of the organization. Whereas, implementation of Basel II and Basel III would affect entire banking industry irrespective of size or location).

The best way to approach the problem is to complete the “Gap Analysis” where current business processes are compared against new (required) business processes and the organization’s current and future capability required implementing the same.

5. Financial and non-Financial impact of proposed solution

5.1 Will it increase revenue?

5.2 Will it decrease expenses?

5.3 Will it bring in new customers?

5.4 Will it bring in more money from existing customers?

5.5 Will it improve employee moral?

5.5.1 Not all the problem solving will result into business value such as financial and brand value. Sometime, resolving problem may result into improving the process that result into making things easier for employee in performing their daily work. Repeated work, instant access of data to make decision, decision support system.

5.5.2 Redundant process or lengthy or cumbersome process can be improved to make employees easy to do their daily work without unnecessary hurdles for additional approval or so on. This may result into improved employee moral with additional challenging project/work in their professional life.

6 Brand and image impact: problem within existing products or services or problems related to customers or problems related to operations ie delivery of products / services to the end customers.

6.1 Will it increase shareholder/taxpayer value? Increased customer satisfaction or improved products of services may result into increased revenue. Reduced operations cost could result into increased revenue. Both the cases, there will be direct or indirect impact on shareholder value.

7 Policy, Legal and compliance

7.1 Any new compliance or policy change may result into change in exiting operations or need for new business operations. Either way it may result into need of new business systems.

Once you analyze the business need on above parameters, you will have an understanding of business need and it's impact on the business. This analysis will support the stakeholders to make a decision - go/no-go.

More details in next blog - how to create a business need documents using these parameters and support the solution scope.

Reference:

http://www.uie.com/articles/business_value/

Business Analysis: Basics of Investment Banking Domain - part 1

Business Analysis is relatively matured professional field having adequate research done in last decade and having clear industry standards defined by few institutes for business analysis and also brought more clarity to business analyst role. Obviously, the next level for a business analysts would be creating a niche for themselves in the field.

This blog provides guidance on what business analyst need to know to build a successful career in investment baking domain. This blog provides high-level information about investment banking domain for a business analyst who is new to the domain.

Although Investment Banking domain is vast, but his article helps you in selecting and understanding the major area(sub-domain) you wish to focus on in future.

Please note that this blog throws only high-lights over the domain information for your understanding and further reading highly recommended to understand and master the topic.

History: 
The investment banking has not started with some act 1933 or with one of the old banks...The New York Stock Exchange originated in May 1792 under a buttonwood tree at 68, wall street.

Investment Banks have changed drastically since last century that offered services mainly focused on raising capital and straggles in merger and acquisitions. Currently they wide range of products and services to issuing and investing clients. This including strategic advice, buying and selling investments products, raising capital, offering public and private investment market place, Trading securities, advising corporates on merger and acquisition, launching IPO and much more...to broad client base, from high net worth individuals to big business houses.

Let us understand the financial products and services...

Products:
Financing(Capital Raising):

• Capital Financing(Individuals/Financial Institutions), 
• Capital (Corporates)
• Bond underwriting  (Governments)
• Principal Advisor (Proprietary)

Markets (Capital Market services):

• Market Maker Broker (Individual/Financial Institutions)
• Risk Management  (Corporates)
• Government Dealer (Governments)
• Proprietary Trading (Proprietary) 

Advisory Services(investments and Merger & Acquisition):

• Sales and Research (Individual/ Financial Institutions)
• Merger and Acquisition: (Corporates)
• Privatisation Investment Partnership (proprietary)

Capital are raised through debt market (including high-yield bond market) or equity market (including new markets like the private equity markets)

Relationship Management and strategy:

There are various roles such as Super Banker, Coordinator of Product Specialists, Tandem RM (a generalist and an M & A banker), Functional RM (product specialists work as RMs for middle market clients) and so on...depending on the internal structure of the bank the role and responsibilities could change.

Trust generated through long term, transparent, fruitful association is only factor to strengthen the relationship.

Trading and Capital Market Activity:

Three different trading models:

1. Over-The-Counter (OTC) market against organised exchanges
2. Quote Driven market against order-driven markets
3. Floor-based exchanges against electronic markets

Products: 

Over-the-counter

• Equity-based products and activities include cash equities, equity options, warrants and swaps
• Interest-rate products include fixed-income securities, government agencies, money markets and repos, swaps, futures, forwards-rate agreement (FRAs), options, caps and floors.
• Currency related activities: customer-driven and discretionary foreign-exchange trading, cross-currency transactions, currency derivatives (currency options, forwards, futures and swaps)
• Credit-based products include investment-grade, junk bonds and credit derivatives 
• Mortgages include liquid products, asset-backed products, and structured products.
• Commodity-based products and activities include commodity futures, options and forwards typified by underlying assets such as power assets, metals, oil products and so on...

Quote Driven Market: is based on quotation determined by market makers or dealers and investment bank plays vital role in quote driven system.

Order Driven Trades: are auction markets in which prices of the trade is determined by the publication of ordered shares. The stock exchanges such as NYSE, Bombay Stock Exchange or London Stock Exchange provide the platform for buyer and seller and the facility of electronic transmission of the trade and its execution.

Floor based Exchanges: The exchange house highly regulated market that lists registered instruments like stocks, bonds and derivatives and allows face-to-face broker meetings for conducting trading business.

Strategies in Trading: The trading strategies largely based on following few factors:

• New players: New exchange houses or expansion of existing exchange houses: 
• Supplier choice: Supplier has a choice to list their shares on any exchange place - one or more
• Buyer choice: Buyer has a choice to buy from various market place, not restricted to one. They has option to trade cross-border.
• Multiple options: Some of the investment banks are providing exclusive alternate services to trade and report transactions. 
• Increased competitiveness: Empowering the exchanges to create competitiveness.  

Equity Research: This is extended services provided by financial organisations and investment banks who are suppose to educate clients on buy/sell recommendation. However, with advanced research facilities, the banks are offering advice to clients or institutional investors on various financial matters that may not be ethical sometimes...

Does research data needed on trading the equity that is publicly traded? why it is needed when all the information stated in public is correct(?) catch 22. In any way, the financial analyst are expected to provide information about investment and potential appreciation of the same using various financial models including complex system that helps the analyst to calculate the information using market data and provide the potential value that may not be absolute. Some time the calculation method or formula could be wrong that could have serious impact on forecasting the portfolio value.

The analyst and investor may use various data such as S & P calculation and credit rating to present P/E (Price/Earning) data is used to calculate P/E(Price/Estimated) value.

In addition, there are other methods to estimate the prices such as Discounted-Cash-flow or automated system using Monte-Carlo prediction tool...

Equity Offering:
Following are the various equity offering mechanisms.

• IPO
• Auction Mechanism 
• Fixed Priced Offering
• Book building Details
• The Pre-filling Period 
• Cooling Period

 Managing IPO is one big and challenging project for the investment banks...The IPO of Google or Alibaba were complex and highly challenging.

Fixed Income Business:The government and large corporates issues bond to raise funds. These bond are traded on global financial stocks. They are one of the key part of asset class in investment portfolio.
Bank typically help the government or large corporations to formulate the strategy of issuing, pricing, and distributing the securities. The bank also provide services to the buyer to arrange finance to buy these securities.

Types of Bond
Bond
The Domestic Bond Market
The foreign Bond Market
The Euro Bond Market
The Euro Dominated Bond Markets
Public and Private Issuers
Government Bonds(Treasury bill or Treasury notes)
Corporate Bonds

Issuing of Bonds: 
Following are the different way bonds can be issued.

New products:

• Zero Coupon convertibles
• Perpetual Debt
• Subordinated Debt
• Mezzanine Finance
• High-yield Bonds
• Structured-Financed Products
• Collaterlized debt obligations
• Credit Derivatives
• Project Finance

Zero Coupon convertibles: The are convertible at the holder's option and do not pay a coupon. They are highly discounted and are known as zero coupon instruments. They are convertible bond, liquid yield option notes or LYONs.

Perpetual Debt: The perpetual debt issued by financial institutions has no maturity date, but pay regular interest. The issuer can buy them back.

Subordinated Debt: These are unsecured debt or preferences shares offering interest rates 2 to 5 percentage points.The junior bond are low on the priority of payment. interest is paid in the form of cash flow after the interest on senior bonds are paid, if money is left. They are used to finance pools of assets in a securitisation.

Mezzanine Finance:
High-yield Bonds
Structured-Financed Products
Collaterlized debt obligations
Credit Derivatives
Project Finance
Strategies in Fixed Income

The next blog will have more details on following topics:

Merger and Acquisition Business

Strategies of M & A

Hedge Fund and lather native Investments

You can any of the following path to again the domain knowledge.

- Part time MBA in Finance or CFA (when I was working in Investment Bank in Manhattan, many of my colleagues were doing it). I would prefer CFA over MBA as it is intense and highly focused. 

- Short term courses in Investment Banking Operations provided by universities or reputed institutes. for example - Executive Diploma/Certificate in Investment Banking - HKU or Investment Banking Operations Certificates (website: IOC) and many more in USA and UK. Many courses are provided online and classroom mode. 

- Self-study through books written by well-known authors, reputed websites such as wikipedia (check the reference sections), Investopedia - Educating the world about finance and more sources.


Please do not attend certification courses that are provided by private institues having no affiliation as they have no value later stage in your career i.e. mid-level and above.

#businessanalysis #businessanalyst #investmentbanking #investmentbankingdomain #domain #finance #career #certification #training #analyst #sandhyajane #anisantechnologies 

Opportunities for Business Analysis in future…

Business Analysis includes strategy analysis, business process management, business-technology-management i.e. analyzing business (using business analysis process and business analysis techniques) and identifying solution for better business with or without using IT.

Business Strategy Analysis: Analyst with business background can go for strategy analysis part of business analysis and work closely with business stakeholders. Strategy Analysis will include, but not limited to identifying business need (problem or opportunity) and recommend the solution to achieve organization’s goal. The organization goal could to taking care of exiting problem, or improving existing business or clutching new opportunity to expand business.

Business Technology Analysis: Analyst with technology background can go for system/technology analysis part of business analysis work closely with technology team. Business / System analysis will include, but not limited to analysis the solution requirements (capability and conditions of solutions or Functional and non-functional requirements) to ensure that the future solution meets the problem or opportunity mentioned in business need document.

Opportunities: There is tremendous opportunity in every sector as every organization strives to improve their business (product, services, operations technology and so on...) to remain competitive or to create competitive edge or new create a business (for example Facebook, a networking was a new/emerging business just a decade ago…)

The need for business analysis will increase for following reasons:

• The increase in complexity in technology with new innovation technology will have highly sophisticated solutions.
• The increase in complexity and competition in business will have larger scope for strategy analysis, one part of business analysis.
• Dynamic business environment where change is not only accepted, but also accepted at the speed of light
• A dramatic change in traditional to technology focus business with technology savvy new generations will experience new business opportunities that were never thought of...and many more...

This is one of the reasons why many universities in UK and USA have started offering full-fledged courses in either in business analysis or business technology management. Although IEEE, USA is pioneer in setting the standards for IT industry, recently many professional institutions such as IIBA from Canada, PMI from USA, BCS from UK and IREB from Germany and more are working towards improving the quality and setting new standards for this field.

There are few institutions involved in setting standards in business process management.

Most of the institutes offer certification program suitable for business analysis professionals and also support industry to create center of excellence.

All industries need business analysis as every industry and every company will need business technology optimisation and management throughout their life-cycle.

Following is the partial list of industries and functions who will extensively use the business analysis for their day-to-day business operations. 

To read more about career paths in Business Analysis, pls visit my blog: Career Paths for Business Analyst

Construction, manufacturing, healthcare, non profit, advertising, agile, architecture, automotive, agency, budget, building, business development, consulting, communication, clinical research, design, software development, product development, interior design, web development, engineering, education, events, electrical, exhibition, energy, ngo, finance, fashion, green card, oil gas, hospital, it, marketing, media, mining, nhs, non technical, oil and gas, offshore, pharmaceutical, real estate, retail, research, human resources, telecommunications, technology, technical, senior, digital, software, web, clinical, hr, infrastructure, business, ERP, Creative, ICT, hvac, sales, quality management, uk, implementation, network, operations, architectural, environmental, crm, website, interactive, security, supply chain, logistics, training, project management, administrative management…








#Analysis #BusinessAnalysis #BusinessAnalysisTraining #Businessprocessmanagement #ANISANtechnologies, #SandhyaJane,