Strategic Management Analysis

Basis for any senior management decisions are analysis with influences on short and long-term financial statements – results. It is not only profitability that needs to be taken in analysis because, short-term decisions could lead into significant enhancement of Profit (NOPAT – Net Operating Profit After Taxes) but in long-term period company might lose on its value much more because of this profit enhancing strategic decisions. Companies could even go to bankruptcy if they lose experts, innovative cycles, process and environment value. They could lose their competitive advantage. All this could happen if strategic management analysis is oriented on short-term financial results aka maximizing current profitability.

Sustainable growth and value contribution should be main target for any strategic management analysis. One of best models with all respect to Balance Score Card, Activity Based Costs and Six Sigma is definitely Economic Value Add (EVA) that gives best view into sustainable opportunities in industry and extra profit. Catch with EVA model is to have accurate Weighted Average Cost of Capital (WACC) but this material for another story.

Doesn’t matter what business model top management uses to build company and society value it provides strategic management analysis needs to take care about level of corporate knowledge integration with financial statements. This is the basis of everything – integration of current and planned business performance figures (key performance indicators, business analysis reports, ad hoc analysis and similar) together with financial statements. In other words, company information flow and knowledge generation, best is through customized business intelligence software solutions, must be quantified directly in financial statements.

If business data from KPIs and from financial statements and financial ratios are not integrated strategic management decisions will not have quantity analysis, estimation. Strategic management decisions will than rely more on experience and feeling instead of poor quality plans and analysis. Low integration means exactly that data from production systems, financial and non financial are not directly related. If sales figure is changed (revenues and costs) will be not transparently presented in financial statements. This is main game, complete integration of non financial indicators into financial ratios. That would allow ultimate strategic management analysis.

Strategies must rely on solid corporate knowledge from information systems like standard business intelligence, business performance management, data warehouse, data mining, business intelligence for finance and business models. That is a must! Only then can be many analysis be compared and to fine tuned. Only then can valuable strategic decisions be made upon strategic management analysis. There is no other way to go without high quality strategic management analysis that is based upon company information flow and external data (marketing research).

With results in financial and non-financial world it is easy to find, to compare strategic decisions in strategic management analysis. For example if EVA model is implemented in company then it is easy to base strategic management decisions on simply just finding which analysis brings more EVA.

Business Strategy Planning For the Future

The Importance of a Business Strategy.
Many business operators become so caught up in the day to day running of their business that they devote little time to considering their business strategy for the future. Yet putting a little time aside now can benefit your business significantly. While you’re pre-occupied with the daily demands or minor crises of your business, things are happening in your blind spot! Advances are occurring in technology and your clients’ demands for faster and more efficient service are increasing.

Meanwhile, your nearby competitor may be busy developing a business strategy for the future, determined to climb over you to the top! A little business analysis and strategic planning now might help you take the lead.

Do you want to remain competitive in your field? If you do, spend time on your business by analysing your current situation. Develop a business strategy and a technology strategy that will help your business grow and develop profitably as trends, technology and client expectations change.

Analyse Your Business.
As you analyse your business and plan your new business strategy, you’ll need to consider several aspects of your business. These should include human resources, technological assets and processes, advertising methods and the needs and desires of your clientele. Are you meeting your clients’ expectations? Are you taking full advantage of the Internet and all it offers? Are there new trends emerging that may require you to change your product range or upgrade the services that you offer? If there are, making those changes before your competitors do can give you a major advantage and increase your profits!

Consider your current methods of operation. Can you apply new technology to increase the efficiency of your business? Will the technology you have now be adequate in the future? Are you employees utilising your technology to the advantage of your business or do they need additional training? Technology and the changes it brings are inescapable. It advances at an ever increasing pace and for many over-worked business operators, it’s only too easy to slip behind and lose touch with change. It pays for modern businesses to have a technology strategy in place to ensure they remain competitive.

Developing a Technology Strategy.
The content of your technology strategy will depend on the nature of your business – whether you sell technology or simply use it in the running of your operation. If you sell it, part of your technology strategy will be designed to ensure you keep up to date on available products. There are other things to consider too – are changes in technology likely to bring about new trends or products? Depending on the nature of your business, your strategy may include new ways of marketing your products or services, product development, plans to attend relevant conferences and expos, or simply ensuring that you’re subscribed to industry publications for up to date information.

If your business is service orientated, the major role of technology in your business is likely to be in the day to day operation of your business. That is no less important. The quality and speed of your service can be determined by the quality of the technology you are using. Quality and speed of service are vitally important to your clients. If you want to be competitive or take the lead in your field, keeping your systems up to date is a necessity.

Think about some of the businesses that have left you unimpressed in recent years and why that occurred – it’s quite likely that as you walked out the door you considered them to be behind the times! Having a business strategy for the future and a technology strategy to keep you in front will give you a significant advantage over your possibly out of touch competitors.

The Work of a Business Analyst

A business analyst plays a crucial role in the success of a company. By simple definition, the work of a business analyst is to examine, understand and provide accurate documentation about the changing needs of businesses.

This important administrative position is a big help for business owners as they try to evaluate their standing in the industry. Coming up with effective strategies to boost the business will be so much easier with the help of these valuable data.

Back in the early days, business analysis tasks mainly involved manual paper work. Thankfully, much has changed with the introduction of modern technology. The process has become significantly quicker to perform and the results are definitely more accurate. The work has greatly improved with the development and use of advanced software and computer systems. This resulted into huge savings for the companies because they didn’t have to employ a lot of people just to get the needed results.

Nowadays, business analysis duties are found in several organizational structures such as the IT (information technology) department, management and coordination department, as well as individual business units.

In order to perform their chores well, those who do this type of work should be excellent communicators. They also need to be critical thinkers and expert problem solvers. Despite the fact that data are easily accessible now because of new technology, analyzing the information should be done by someone who is familiar with the ever-changing business industry.

Besides, a good business analyst takes the responsibility for determining changing trends as well as providing assessment for the present and future impact of such changes. Potential problems should also be determined and appropriate solutions should be devised and proposed based on the acquired details.

In short, the effectiveness of your business analysis team will tell whether you and your organization can prepare well for the challenges to come. Your business goals and mission will be harder to realize without the assistance of these professionals. On the other hand, necessary adjustments and action can be made as you plot your course with the help of these industry specialists.

Individuals interested to qualify as a business analyst should undergo required training courses. Familiarizing analysis software and other tools is very important. Exercising proper business etiquette and professional behavior should be valuable, too. Numerous opportunities in the industry await competent applicants who have the skills and knowledge to work as business analysts.

the Spice of a Business Analyst’s Life

Part of the reason why some people still struggle with what it means to be a Business Analyst is because it is a very diverse career by definition. Business Analysis is defined very clearly in the IIBA® BABOK® guide, and yet, if you read this guide, you will agree that there is enormous scope for a Analyst to do a wide variety of things with their careers. So let’s look at some of the aspects that make our careers so diverse and interesting.

# All industries have BAs.

Business Analysis applies to any organisation big or small and in any industry where there is a form of business need that requires a business solution. Business Analysis is analysing the business needs (regardless of domain or industry) and facilitating the translation of need into a business solution. So as a BA, you pick where you would like to work, and you can keep it interesting by moving between industries every few months or years.

# Business Analysis can live at the top or the bottom of the corporate ladder.

Enterprise analysis is more often performed by experienced BAs; as a result, this is a career goal that you need to work towards. It does however exist as a very interesting and challenging analysis role at the top end of the corporate ladder. This makes Analysis even more diverse, as it is one of the few careers where the same set of skills can be applied in both junior and senior roles. The only real difference is that the level and type of business problem will be more conceptual than physical at the top end rather than at the bottom end.

# Analysis can be fluffy and feel good, or very technical and detailed: which are you?

Some BAs are naturally talented in discussing business needs in a language that business stakeholders really understand. These BAs are great at conversing with these stakeholders about their business needs in terms what they would like to achieve, or what they are not achieving. The Business Analyst can then translate these required business benefits into business requirements which can in turn be captured as part of a proposed solution to the problem. Then on the other side, some Business Analysts like the specifics and the details surrounding good business requirement definitions. These Business Analysts are good listeners, good documentation experts, and can be relied upon to support their counter-part Business Analysts who “talk the talk”. Your strengths and your choices will determine where you fit, and remember that both types of Business Analysts play their roles equally well.

# Do you like to work in a loud and explicit way or do you prefer it to be implied and assumed?

In some types of projects, particularly those that are more waterfall-based, you will find that there is a great emphasis placed on requirements gathering activities – running workshops, documenting requirements and running these requirement documents through various cycles of reviews and approvals. This is what I meant when I referred to “loud and explicit” business analysis. In other cases, the requirements gathering aspect of the project is still very important, but takes a more fluid and implied role in the everyday life of the project. Often this is the way requirements are managed within an Agile project environment. Business analysis is therefore applied in two very different ways without changing the nature of what is being done. This makes business analysis very adaptable and flexible as a skill set.

# Which part of the project life cycle would you prefer?

When you are a software developer, you get involved mostly in the build aspect of the software development cycle. With business analysis, you are involved at some or all of the stages of the software development life cycle. This applies to both traditional and Agile approaches. Your involvement will vary depending on which stages you get involved in, but you will nevertheless be performing some aspect of business analysis throughout. So you choose, once again, what type of business analysis activities you would most enjoy doing, and push to be involved in the parts of the projects that you want to be!

# Do you want to be part of a project team or the operations team?

Some Business Analysts are employed as part of business operations. They tend to work on business cases, feasibility studies and a variety of other enterprise level business analysis activities. This is great because not all business analysts like the project environment. However, most Business Analysts are employed in projects and thrive in that environment of peaks and troughs. Depending on your preference, you can once again, choose what type of environment you would like to be a Business Analyst in.

# Business Analysis can be domain agnostic or it can be deeply ingrained in a domain.

The one big divide that I have noticed through the years between different Business Analysts is that there are Business Analysts who taught themselves to be experts in one specific domain, and then there are others who taught themselves to be experts in any domain. Both of these types of Business Analysts are equally valuable. In some cases a particular role requires the individual to be a subject matter expert as well as a Business Analyst and in some other roles it requires pure business analysis skills. Once again, this leaves the highly skilled Business Analyst with a choice about whether they want to focus on one domain and have one aspect of their role as a subject matter expert, or whether they would like to remain a pure Business Analyst who is an expert in transferring their business analysis skills between different domains.

In a nutshell, these are just a few of the huge number of things to consider when you choose to be a Business Analyst. There are many more dimensions for a Business Analyst to choose from when they embark on this career. So jump in and try out as many different parts of the business analysis profession as you can, before choosing which aspect you most enjoy!

Techniques Regarding the Business

First and the most important concept in the field of data analysis is being the necessity of the comprehensive data information. When the information is being lacking, thorough analysis in this regard is not being possible or could be certainly more time consuming, difficult, and less accurate, that is why the class action of the data management system shall contain strong integrated deficiency curing system. Deficiency curing process would allow the agent to quickly eliminate hole in the plaintiff information enabling the analysis to ensue. Gathering the data is first step for solving the problems and also satisfying the organizational curiosity. When people look up the information so as to answer the question or so as to formulate the new questions, they are analyzing and gathering the data. While a person conducts survey and draw conclusion, they are being are gathering and analyzing data.

To mange and make the business to work properly analyst is being required. Analyst is therefore the specialist in a particular field like statistics, science and mathematics. Role of a Business Analyst vary between organizations and industries. They should develop confidence as regards their work. They should be aware about the organizations goal and should aim to reach their goals. Key for success is basically their ability so as to deal with the vendors, internal departments and the stake holders. He should make themselves ware about the present and the future situation. He should compare the data of different years. They should involve themselves in the business projects. They should timely meet with the team leaders. They should rather begin their feasibility study and monitors a new system. They should ensure problems and the errors in the business scenario. All business encounters the problems and the situations that require an attention so as to keep them ahead.

Continuity and Disaster Recovery in Business – Analysis of Business Impact

Analysis of business impact would be a crucial aspect of the process of the business continuity planning. This step would be quantifying the data and would be getting into the real issues of potential losses, which could negatively impact your business. This particular step is used to be able to understand the most critical impacts, as well as how to be able to protect your data, processes, people, assets, communications and the goodwill and reputation of the organization.

Organizations usually think of disaster recovery, when business continuity and the analysis of the business impact is a lot more focused on making sure that the business is kept operational and less focused on disaster recovery. The analysis of business impact is also not focused just on the possible disasters but also on the possible critical discontinuities. The primary elements of Business Impact Analysis would be identifying the critical business functions, establishing the maximum outage time, which is acceptable for each of the functions, and determining the impact of not being able to perform those functions. All of these could be measured using legal, financial, operations, regulatory and customer service requirements.

As soon as the adequacy of the security and controls has been evaluated and the critical business functions as well as the outage times have been defined, the business continuity planner has to develop some level of understanding on the probability threats which is factored by the impact or severity and also to start developing an analysis of cost benefit for the largest impact as well as the highest probability threats.

Business Analysis and Market Share Analysis

This new business analysis stage is crucial in the total process of new product development because several vital decision regarding the Acai project are taken based on the analysis done at this stage. This stage will decide whether from financial and marketing point of view, the project is worth proceeding with. Investment and profitability analysis of the project under different assumptions are made at this stage. The projects overall impacts on the corporations financial position with and without the new product are estimated and compared. The financial estimated would be reliable only if they are based on a fairly accurate demand forecast and related market factors. The marketing experts by now should have undertaken detailed exercises on the marketability of the product. They have to come up with information on the following aspects, in particular: estimate of demand for the proposed product.

A fairly reliable demand estimates is essential for evaluating the visibility of the proposed project. Demand estimation for intrinsically new product is being discussed in a separate section. If the proposed product is only a ‘me-too’ product, the demand for the product category has to be estimated and the likely share the proposed product can take, has to be evaluated. Seasonal patterns in consumption, if any. Major competitors, their market share, the dominant market segments held by them. Special market feature affecting demand. The marketing organization required for marketing the product whether the existing marketing organization set-up is required. If so, what would it cost?

Only when information on the above aspects is complete, meaningful estimate of overall profitability of the project can be made and it is based on the overall profitability picture that the corporation decides further. In feature films of Lenox and sponsor tale-serials, the cast is drawn from mostly established actors/actress. Most of them have period practice. In some of these productions, enterprising directors initiate new faces which they might have spotted. Before a recruit is assign a male, a screen test is taken to see how the person is able to behave in front of the camera. Mostly casting is the prerogative of the producer-director team. In mega budget projects, a separate casting director takes care of this function.

For a greater part of this century, we had to depend on a talented breed of commercial artist to transform our ingenious urges into artistic art works. These artists had different job-titles to finishing artists, paste-up and layout artistes and the designers. The designers today change a sum equivalent to the cost of personal computers to visualize a single ad movement. The desk-top publishing came as ground-breaking techniques a few years ago to finish the finished artists. Tomorrow, there may not be the need for them in any of the ad agencies.

Article Source: http://EzineArticles.com/4167073

Effective Business Analysis Techniques

The term business analysis refers to the discipline of identifying needs within a business, and determining the appropriate solution.

These solutions may include changes in the organization itself, strategic development or development of new policies. The person who takes on the responsibility of business analysis is called a business analyst.

When the time inevitably comes for some sort of change, the business analyst has several techniques at his disposal. Precisely which techniques are used will depend on the nature of the problem, and the scope of the solution. Here are five that are used successfully by business analysts to help solve an array of different problems.

MOST

The MOST technique is an internal analysis. It contains four attributes that are defined by the business analyst to ensure the project you are working on is aligned and on track. These attributes are as follows:

Mission (where the business intends to go)
Objectives (the key goals that will help achieve mission)
Strategies (the different options for moving forward)
Tactics (how the different strategies are put into action)

PESTLE

The PESTLE technique is an external analysis designed to examine the many different external elements affecting a business and its operations. It includes six attributes:

Political (Current and future political influences)
Economic (The local, national and world economy impact)
Sociological (Different ways society can affect an organization)
Technological (The effect of new and emerging technology)
Legal (The effect of national and world legislation)
Environmental (Local, national and world environmental issues)

CATWOE

CATWOE is a technique used to encourage critical thinking about what the business is trying to achieve. There are six different elements included in this technique:

Customers (who benefits from the highest level business process and how does the issue affect them?)
Actors (who is involved in the situation? Who is implementing solutions? What will impact their success?)
Transformation Process (what processes or systems are affected by the issue?)
World View (what is the big picture and what are the wider impacts of the issue?)
Owner (who owns the process or situation being investigated and what is their role in the solution?)
Environmental Constraints (what are the limitations that will impact the solution and its success?)

SWOT

A SWOT analysis is used to give a more complete overview of both internal and external factors affecting a business. There are four attributes to SWOT:

Strengths (examine advantages and what is done well within the company)
Weaknesses (examine the disadvantages and areas that need improvement)
Opportunities (examine opportunities for improvement in all areas, including market share)
Threats (examine the obstacles the business faces in accomplishing their goals)

FIVE WHY’S

The Five Why’s technique is used to help get to the root of any given problem within the business. It is a question asking method to examine the cause and effect of a particular situation.

You will start with a problem, such as “my car won’t start,” then ask a succession of why questions until the root of the problem is uncovered and a solution is evident.

Business Analysis can be a complex and intricate process. Within this broad spectrum lie several sub-disciplines, roles and even more techniques.

All businesses encounter situations and problems that need attention to help keep them moving forward. With a skilled business analyst employing the right techniques, a solution won’t be far behind.

Business Analysis in Web Design

The term business analysis refers to the discipline of identifying needs within a business, and determining the best solution.

In a any web design project the goal should always be to meet a business need. The need for more customers, the need for more sales, the need to distribute information, store information, collect information etc. The different needs of a business that can be satisfied with a website or web based application are endless.

Working with business owners and stakeholders, a business analyst determines what these needs are, and helps to determine the best solution for these needs. Acting as the liaison between the business and the technical team, the business analyst can speak to both and ensure that requirements and specifications are communicated accurately, and any technical constraints or challenges are transmitted back to the business in business terms.

A web design project has many elements aside from the actual design of the site. Things such as integration with social media, integration with email marketing software, optimizing your site for search engines, merchant accounts for e-commerce solutions, privacy requirements for collecting data etc. are not the expertise of the graphic designer or web programmer, and are often overlooked when working with just a graphic designer.

The Business Analyst knows what is needed to ensure the success of your web project, understands your business goals as a whole, and can coordinate with the experts in each of these fields to bring all of the required elements together. By acting as the liaison between the client and the technical team the client is kept up to date on the progress of all teams and can identify any potential integration issues by keeping an eye on the big picture.

Depending on the size of project a separate project manager may be assigned to develop and maintain the project plan. In the case of smaller projects the business analyst is trained and will act as the project manager as well.

An astonishing number of web projects are a failure as the clients’ overall business needs and goals are not properly understood or delivered by the design firm. By simply asking around you will find all too many dissatisfied business owners with a new website that is not meeting their needs. There are hundreds of designers out there – great at design – not so great as business. Make your business needs the first priority in your next web project and hire a business analyst specializing in web solutions.

Consider Before Selecting a Business Analysis Training Provider

Now-a-days, a professional degree and experience alone doesn’t count, if a person wants to become a leader in his field. A person should understand the truth that the market is competitive and organizations value candidates who have an extra qualification or certification acquired through proper training along with the degree and experience. Some candidates who have enough experience may not have a proper degree. For such candidates, these training and certifications are an additional value-add to their resume.

Here are a few things one should consider before narrowing down on the best business analysis training institute.

• Do an analysis and find out whether the certification provider is registered or endorsed to provide a certification.

• The training provider should be fairly experienced or if the training is provided by a registered institute then they should have appointed experienced certified professionals to give proper training.

• The foremost thing to consider is the interaction employed by the trainer in the class. Attend a mock session if the institute allows before deciding on the provider.

• Check what kind of training options the institute provides- whether they allow you to learn at your own pace or it’s a fast track course.

• The institute should be able to provide training in a time feasible for the learner, as mostly experienced professionals opt for such courses than students and they may barely have time after their work schedule.

• Check for the cost of the training. Some institutes provide good training at affordable and negotiable price.

• Check for reviews from friends as well as through online source about the institute or the training provider.

• Ask a few questions about the trainer like educational qualification, number of years of experience in the field and the skills of the trainer.

• Check for the course content and the time duration devoted for each module. Also check whether the provider provides a hands-on experience during the training sessions.

• Check whether the trainer will be able to provide support for some time if approached even after the course. This is important for students who write the certification exam after the training.

• If the company or organization is sponsoring the course for a few professionals or employees at a time, then ask if the trainer or the institute provides in-house training.

With the above points in mind, finally make sure you gain the maximum out of the course and the course should be able to make you ready as a leader and not as a mere professional.