Wednesday, April 20, 2016

What Business Analyst needs to know about Agile Approach?

Here is the brief blog written on "What Business Analyst need to know about Agile approach?" in Q & A form. It is helpful for you to know about Agile in-depth and will also be helpful in preparing you for your Business Analysis interview. This blog will focus more on Scrum as it is more popular and widely used Agile approach. My next blog will have summary of other Agile approaches.

Please explain - what is Agile.
Agile is an approach to project management that is used in developing software solution. It is group of methodologies based on incremental and iterative approach to help the team to respond to the unpredictability of building a software solution. It also helps the team to explore the solution as requirements continuously evolve through assessment and adaption while producing the software solution through a series of demonstrable, executable releases of product/project.

The process can be custom-made by development or client or organization optionally based on the technical constraint, organizational standards, team’s comfort, or project scope, budget.

The point to remember that every iteration progressively contributes to developing and delivering the solution.

Following are some of the ‘Agile’ methodologies:

· Extreme Programming
· Scrum
· Lean Software Development (LSD)
· Feature Driven Development (FDD)
· Dynamic Systems Development Method (DSDM)
· Agile Unified Process (AUP)
· Adaptive Software Development (ASD)
· Kanban

Scrum is most commonly used Agile approach in the modern IT environment.

What are agile manifesto?

  • Individuals and interactions over processes and tools
  • Working software over comprehensive documentation
  • Customer collaboration over contract negotiation
  • Responding to change over following a plan
Explain Scrum. How did you use it in your last project?

We used Scrum as it is the most preferred agile framework. We applied in managing and controlling iterative and incremental software solution (projects).

(for additional information: Ken Schwaber, Mike Beedle, Jeff Sutherland and others have contributed considerably to the evolution of Scrum.

The “Scrum’ is derived from rugby game where the ‘scrum’ means of restarting play after a minor infringement.)

We applied common strategies of Agile as follows:

  • Sprint consisted of 3-4 weeks that was delivered in the form of workable component or feature.
  • Informal communication: It was close interaction among small team (2-12). 
  • Light and informal communication: Along with informal communication and informal process were followed. These meeting were frequent and face-to-face to understand the progress from every team members and resolved the issues, if any.
  • Change management: was informal and changes were welcome at late stages
  • Customer collaboration: Each iteration or sprint was delivered to user to access. The changes or improvement were done during the following release(s).
  • Informal Process: Every sprint or iteration was part of product or solution. End of the release the component, the remaining components were assessed and prioritized for the next development. If any new component was added and was found to be important, it was accommodated before other complements were developed depending on the prioritization. This prioritization was part of every post release activity and no changes were added once the Sprint was in the process.
  • From technical perspective, every iteration or Sprint was considered as a mini-project that went through entire lifecycle phases (define, requirement analysis, design, development, test and deployment) in compressed and fast paced mode.

What is Product Backlog?

‘Product Backlog’ is a prioritized Backlog containing the end user requirements. It is also a prioritized list of features (requirements or bug fixes, non-functional requirements, etc.) that contains short descriptions of all functionalities desired to be implemented to deliver the working or potentially shippable increments of the software product or solution.

This is used in place of traditional requirement specifications such as BRD (business requirement document) or a product roadmap or SRS (Software Requirement Specification).
The product owner owns the product backlog. Product owner along with cross-functional team estimate and sign off to deliver potentially shippable increments.
Stakeholders and other team members can add stories / features / functionality / requirements to the product backlog in the form of ‘To-Do’ list.
Product backlog is enough to start work in Scrum instead of lengthy formal documentation used in traditional project management approach.


#
User Story
Priority
Estimation
1
As an authorized user, I want to access ‘manage beneficiary’
1
2
2
As an authorized user, I want add a beneficiary
2
3
3
As an authorized user, I want to edit beneficiary
3
1
4
As an authorized user, I want to set transfer limit to the beneficiary
5
1
5
As an authorized user, I want to receive alter on my registered mobile phone after completing the transfer
6
2

Total

9
  • Each story adds a value to the user/customer.
  • Each story is prioritized and developed in an order.
  • Any team members can add a story and delete (his/her) story at any time during the project life cycle. 
  • However, a “Sprint” (or iteration) can’t be changed by adding or removing story. 
  • The product backlog is analyzed and re-prioritized after every “Sprint” and based on the prioritization, the stories are selected for development for the next “Sprint”
  • The Product backlog is updated during entire project life cycle.
  • All stories are estimated.
  • All the stories are complete within and no low level tasks are added in the product backlog.

What do you understand the term ‘an epic’ in an agile project?

There are many requirements scattered across the multiple areas of the complex solution or product. The segregation and grouping of the User Stories belonging to the same domain is known as ‘an Epic’. An Epic is complete when all the User Stories are added and concluded.

What is the User Story in Agile?

A User Story is a requirement / feature / functionality described in the form of a story. User Story explains ‘who’, ‘what’ and ‘why’ of a particular requirement.

For example: As an authorized user, I want to access ‘manage beneficiary’ to add the new beneficiary.

This will define:

Who - authorized user,

What - access ‘the manage beneficiary’ functionality,

Why - to add the beneficiary

During the life cycle, these user stories are identified, prioritized, and selected for a Sprint for implementing. They are further specified into tasks, estimations and other details related to tasks.

What is Sprint?

Sprint is an iteration or basic unit of scrum approach. It is typically consist of 3-4 weeks or 30 days. Software solution / software product is delivered through successive sprints.

What is a sprint backlog?

Similar to Product backlog, a sprint backlog is a list of features and requirements that team shall achieve in the next sprint. It is based on requirements priority and development team’s ability to complete the work.

What is the sprint-planning meeting?

The sprint meeting is conducted at the beginning of every sprint. The product owner, scrum master, and development team member(s) meet to understand the capability of the team, create the ‘sprint backlog’ by prioritizing the items, plan and delegate the work for the sprint. Although some mention 8 hours required for the sprint-planning meeting, but, there can’t be a fixed duration of the same as the components may not take same duration to discuss and finalize.

What is Daily Scrum Meeting?

As name indicates, these are short terms strategies. Every day during the sprint, the team assembles to discuss the progress of the sprint and strategy, if necessary. It is short (average 15 min long) and informal that can be even done at the team member’s desk.

Each member in turn answers three questions:

1. What did I do since the last Scrum meeting?

2. What do I plan on doing between now and the next Scrum meeting?

3. Do I have any roadblocks?

What is Scrum (Kanban) Board? What is a ‘Story Board’?

This board represents the progress in the ‘Agile’ approach.

You can create virtual or manual story board by placing note on each section.

The column indicates the stage and row indicates the User Story/task in a particular stage.

This is an excellent way to represent the status of the User Stories/tasks along with the project.



Design
Development
QA Testing
UAT
Deployment
Done
Task L
Task H
Task E
Task C
Task B
Task A
Task M
Task I
Task F
Task D


Task N
Task J
Task G



Task O
Task K




Task O






Or
Product Backlog
In Sprint (Development)
Delivered
Task F
Task C
Task A
Task G
Task D
Task B
Task H
Task E

Task I




Explain Sprint Review Meeting.

At the end of sprint or on the last day of the ‘Sprint’, there are two ‘sprint review meetings’ – one for customer review and demonstrations and other for team to review for the possible improvements. The adequate time is allowed (some can calculate by deriving the value from.

The duration of the meetings may vary. For each week of sprint duration, apply one hour of meeting time for the customer review. For the retrospective, apply .75 hours (45 minutes) for each week of Sprint duration. For example, a 30-day Sprint would result in a four-hour review and three hour retrospective. A two weeks Sprint would result in a two hour review and a one-and-a-half hour retrospective. Additionally, the team should spend no more than one hour preparing for the review.

These are the meetings that review - what was achieved in the course of the sprint and what is left.


What is Sprint Retrospective (meeting)?

Team members analyze the past sprints to understand the "lesson learned"  from the previous project to avoid similar mistakes and improve continuously.

What is Scrum Framework?

It outlines broad guidelines for scrum projects with few rules (dos and don't), roles (Product owner, Scrum master, scrum team), artifacts (deliverables or prioritized backlog) and events (Scrum Planning Meeting, Scrum Meeting, Sprint Review Meeting etc.) to deliver a software solution or products via iterative, interactive, and incremental approach.

This framework provides guideline for the role, nature of customer collaboration, communication.

It works on a principle of:

- Continuous improvements - inspect & adapt policy to engineering processes, product, and requirements.

- Change Management – is an integral part of project life cycle.

Thus, the framework allows defining only high-level requirements at beginning and low-level requirements at later stage/during implementation.

Communication: Scrum Product Owner collaborates with scrum master and scrum team to identify and prioritize the user stories/functionalities.

Why do we use a sprint burn-down chart?

It is graphical presentation of the progress of the sprint that is updated daily during the sprint.

Explain the Scrum Team and their role?

Scrum Team comprises of Product Owner, Scrum Master and the Development Team.

Product Owner:

Product Owner is a primary stakeholder of the software product/solution. He works intently with the team to create product backlog by identifying, adding, modifying and prioritizing the user stories.

Scrum Master:

Scrum Master works as a facilitator to the project team. He manages resources, enforces the scrum rules on the team, lead the scrum meeting, and guide the team as required.

Scrum Team:

The team decides what and how much they can do in a given project iteration or a Sprint. The team is responsible for developing and delivering the sprint.


What the term ‘Spike’ in scrum?

Spikes are time bound planned activities or sessions between the Sprints created for analyzing or answering queries.

What is the Velocity of a sprint?

It is the capability of the team to complete the work during a particular Sprint that is derived from analyzing the historical data.

What is ‘Tracer Bullet’?

The ‘Tracer Bullet’ is a ‘Spike’ or analyzing session using latest technology, latest architecture and latest best practices in the industry to produce top quality product.

What do you know about ‘Impediment’?

Impediments are ‘the causes’, which are hindering the team or team member to achieve their goals or maximum capability.

What do you mean by ‘ScrumBag’?

‘ScrumBag’ is the person or group or any factor responsible for ‘Impediment’.

Do you know ‘Invest’ in Scrum?
‘Invest’ suggests the characteristics of a good ‘User Story’ based on following criteria:

Autonomous: No other ‘User Story’ is depending on.

Zero-Trade-Off – No further negotiation required for this

Value – User Story brings in sizable value to the end product.

Scalability – The User Story can fit various sizes easily

Testability – It is testable to verify the success criteria of implementation of the User Story.

What is Planning Poker?
It is bringing consensus among the team on estimation of a particular User Story during planning phase.

Planning Poker Cards are distributed to the team members. Each card has a number that is associated with estimations in the form of either hours or days. Once a User Story is selected, every team member is asked to display their card that conveys their estimation for that User Story. If all the cards display the same number, that number (estimation) is finalized as ‘estimation’ for the User Story.

In case the cards displayed have different numbers for a User Story, estimations are discussed and finalized by brining everyone on an agreeable term.

Reference: 
1. Agile Estimation and Planning by Mike Cohn

2. Scrum Institute 
(http://www.scrum-institute.org)

Saturday, March 19, 2016

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 

Thursday, March 17, 2016

Career Paths for a Business Analyst

There are many flavours of business analysis and Business Analyst can opt for any one of the flavours depending on his/her academic and professional background.

To know more about the growth in Business Analysis field, you can visit the blog: Opportunities Business Analysis in future.
Followings are some of the career paths a Business Analyst can opt for:
  1. Operations Head - Business Strategy Analyst who analyses the business need by analysing their current products, services, process and operations, and recommends solution (with or without IT) to improve the business.
  2. Enterprise or Business Architect - A Business Analyst starting a career as a Business analyst, and moving towards lead Business analyst, and a role of heading Business Analysis activities as an enterprise or Business Architect in an organisations. 
  3. CTO: In rare cases this is also a possibility for a business analyst if the person comes from technology background. He will have to work through many technology roles such as in-charge of IT projects and overall technology in non-IT company to reach to CTO role.
  4. Product Owner - Business Analyst working in a IT company specialised in product development can becomes Product owner/manager through a BA path.
  5. Practice Head  - In-charge of projects with similar domain in an non-IT company and establish the process and standards for Business Analysis activities such as creating "Centre of Excellence" for Business Analysis. 
  6. Program Manager - Business Analyst from technical background can become an in-charge of projects from same domain in an IT company.
  7. Delivery Head - Business Analyst from technical background who is in-charge of delivery of project or IT services in an IT company having same or different domain.
Business Analysis - Career Path


8. Management Consultant - A Business Analyst starting with Jr consultant, create a path towards Consultant, senior consultant and management consultant.


To read more about Business Analysis Career, Please read my book, Business Analysis: The Question And Answer Book. It is available on amazon in both eBook and paperback version.

It is the 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




Business Analysis: The Question And Answer Book



Wednesday, March 16, 2016

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,