Course Transcript

Business Analysis Overview

Course Overview
Read the Course Overview .

Fundamental Business Analysis Concepts

1. The Definition of Business Analysis

2. The Business Analyst Role

3. Business Analysis Value

4. Business Analysis Knowledge Areas

5. Business Analysis Key Terms and Concepts

6. Project Team Stakeholders

7. External Project Stakeholders

8. The Requirements Classification Schema

Understanding Requirements and Designs

1. Requirements and Designs

2. The Requirements and Design Cycle

3. Exercise: Business Analysis Fundamentals

Course Overview
[Course title: Business Analysis Overview. The presenter is Marie Bankuti, Business Analysis Consultant, Coach, & Trainer.] If
organizations implement process and system changes without fully analyzing and planning them carefully, it can result in lost time, money,
and effort. A business analyst helps ensure that the needs of the organization and its stakeholders are well understood, and then design
solutions that will meet those needs.

In this course, you'll learn about the value of business analysis as well as some foundational terms and concepts.
The Definition of Business Analysis
Learning Objective
After completing this topic, you should be able to
define business analysis

1.
[Topic title: The Definition of Business Analysis.] Business analysis is a set of practices that are used to analyze an organization, business
unit or business process to take advantage of opportunities or solve business problems. The practice encompasses people, processes,
and technology.

The business analyst conducts stakeholder analysis, analyzes the data related to any errors, and documents the existing process. In
addition, the analyst interviews stakeholders at all levels to determine the goals, objectives, and rules, in an effort to understand the real
problem.

Let's say a business analyst finds that stakeholders have a need for automation in a scheduling system. They want a solution to automate
the rules related to overtime, time-off, vacation, and sick days, in order to remove the manual errors related to those rules. And because of
the importance of attendance, scheduling is a high risk area. The business analyst must ensure the documented business rules and
workflow are correct, and well-understood by the stakeholders revealing the resulting requirements. A prototype of screen flows and
decision matrices help to achieve this. Finally, the business analyst will document the impacts of the change to the stakeholders to
determine the training needed by them to be successful.

There are several contexts in which you can apply business analysis. First, a business analyst may work on enterprise initiatives and
projects. And continuously make improvements to the solution. These might include strategic initiatives such as the launch of a new
product line or the improvement of business operations.

The analyst would analyze the current environment, processes, and technology, to determine the optimal changes. And then write a
business case providing the options for change including cost benefit analysis, impact to stakeholders, and new processes in technology.
Tactical work often manifests itself as a minor change to the existing state, such as software enhancement. Operational changes may
come about because of new business rules, policies, or external drivers such as regulatory changes.

Business analysis may also apply to a project, which is a process that enables change. A project has a start and an end date, and it starts
once a business case is approved. The business analyst will then provide more detail of the business needs in the form of requirements.
Requirements ensure that the change reflects the business need and they must be clear enough for the project team to implement the
change.
Continuous improvement includes changes based on feedback loops. For example, a monthly report on cycle time for processing
insurance claims indicates that it is taking longer than the departmental objectives indicate that it should. The business analyst would
analyze the process, observe the staff at work, and make recommendations for change or not. The business analyst may discover that
there is an anomaly in the data and that no changes are needed.

A perspective is the point of view from which you approach business analysis. There are five project perspectives. Agile projects consist of
constant changes requiring the business analyst to be flexible and modify how they approach the business analyst tasks. Changes are
implemented in small iterations, requiring the business analyst to either act as the product owner requesting the change. Or to liaise with
the sponsor or product owner to deliver incrementally over a short period of time.

The business intelligence perspective utilizes data from multiple sources to provide information enabling evidence-based decisions,
reporting needs, or changes to data integration systems. The business analyst must have skills such as data modeling, decision modeling,
and knowledge of information dashboards.

The information technology perspective focuses on changes to information technology. The scope varies from enhancements to the
implementation of large systems. The business analyst is a liaison between the business and information technology.

The business architect perspective provides the blueprints of the business and manages or identifies changes to business capabilities,
processes, and they drive the need for a business case and a project. The business analyst does not typically participate at the
operational level.

The business process management perspective is about improving business processes. Unlike the business architect perspective, the
business analyst does most of the work at the operational level. The process manager will create an as is process model. And after
understanding the business goals, objectives, and key performance indicators, will make changes and produce the to be process. It's quite
possible for all business analyst perspectives to work on one initiative.
The Business Analyst Role
Learning Objective
After completing this topic, you should be able to
identify business analyst activities and responsibilities

1.
[Topic title: The Business Analyst Role.] Business analyst isn't just a title, it's the practices, tasks and activities that make someone a BA.
For example, if you work with a business to understand their needs for changes to processes or how data is collected, or how technology
needs to work in order to get the job done, then you're conducting elicitation tasks.

There are five business analyst activities. The first is analyzing needs, which is when the information you receive from the business is
analyzed against a desired state, outcome, or goal. If the need doesn't contribute positively to the goal, then the business analyst will
document it but advise the stakeholder that the requirement is out of scope.

Analyzing solutions occurs once the business analyst analyses that information and then looks for a solution.

When developing strategies, business analysts need to think critically, look at the big picture, and drill down into details and then create
strategies to address business issues.

Facilitating change is an important task for the business analyst and ensuring collaboration is one of your primary tasks. Without
stakeholders you have no requirements.

Some of the key business analyst roles are systems analyst, management consultant, and product manager. A systems analyst focuses
on changes to technology. The systems analyst will write functional requirements describing how the system must behave to reach an
outcome. The requirements must be written clearly, in enough detail that the project team, designer, programmer, and software quality
assurance person understand them. So that the changes can be made to the system.

Management consultants work for consulting firms, which advise companies on the best ways to manage and operate their businesses.
The firm will take advice on concepts like their business strategy and operational effectiveness and techniques. Management consultants
tend to have specialties in niche markets, for example, in insurance or oil and gas. This type of business analyst will conduct benchmark
studies, share best practices, and enable change.

A product manager is responsible for the development of new products for a company. A product manager needs to understand how a
customer perceives the value from the product. New products drive change.
There are also several other job titles under the business analyst function, data analyst, enterprise analyst, process analyst and business
architect.
Business Analysis Value
Learning Objective
After completing this topic, you should be able to
recognize the value of business analysis

1.
[Topic title: Business Analysis Value.] Business analysis can add value to an organization through improved project management.
Expectations are defined when a business analyst helps to find solutions at the beginning of a project. They ensure expectations of the
stakeholders are properly set in reality and managed throughout the project life cycle. Then, there are no surprises or disappointments at
the other end.

Project scope is managed when the business analysis achieves early buy-in from all stakeholders about the solution's scope, so that the
scope of the project doesn't expand. The management of requirements changes also helps to minimize cost and schedule overruns.
Project goals must align with business goals.

The business analyst must understand the organization's problems, goals and strategic objectives. This ensures that as a project
progresses, the business analyst can tell when the goal of the project doesn't align with business goals and could actually cancel the
project if necessary.

And finally, the business analyst ensures that estimates are dependable. Defining exactly what needs to be accomplished allows the team
to develop good cost and time estimates for solutions.

Improved cooperation has several benefits to an organization. First, it facilitates transition to production. Transitioning from the old to the
new state is difficult for users of the solution, so don't underestimate this. A good business analyst knows how to prepare an organization
for the change through training and communication. It's important for users to adopt the new way of doing things as soon as possible, so
that the organization reaps the benefits of the new system.

Next, it improves communication and collaboration. One of the main roles of a business analyst is to keep everyone communicating and
cooperating, and to facilitate understanding. It starts with eliciting needs, clearly communicating them and translating them into
requirements. Then getting stakeholders to collaborate on the design and clearly communicating the solution to the end users.

Finally, improved cooperation improves efficiency. A business architect advising a program office would ensure that there aren't duplicate
projects. A good business analyst can elicit and identify true needs and design the best solution to meet those needs, so that there is no
trial and error approach to problem solving, saving time and money.
Improved efficiency can be achieved in a number of ways. It prevents redundancies, ensures that you get it right the first time, and
reduces or eliminates waste.

The business analysis processes is iterative. As you gain more knowledge, more opportunities to improve efficiency may become evident.
Taking advantage of these opportunities will lead to continuous improvement. Having detailed rules, processes, and instructions for how to
roll out and use solutions also decreases the likelihood of user mistakes, and assists in identifying any defects or errors in the software or
service prior to rollout.
Business Analysis Knowledge Areas
Learning Objective
After completing this topic, you should be able to
identify the six business analysis knowledge areas

1.
[Topic title: Business Analysis Knowledge Areas.] A knowledge area represents a category of expertise that includes tasks and activities a
business analyst, or a BA, would perform. Each knowledge area has a specific purpose, inputs, outputs, and techniques associated with it.
The knowledge areas are not sequential, but there is a logic in their application. It's about what a BA does, not how to do it. For any given
initiative, a business analyst may use one, but most likely, all of the knowledge areas.

There are six knowledge areas. Business analysis planning and monitoring, elicitation and collaboration, requirements life cycle
management, strategy analysis, requirements analysis and design definition, and solution evaluation. [A diagram depicting the six
knowledge areas displays. It is captioned as Fig.1.4.1, BABOK® Guide v3.]

Business analysis planning and monitoring is about creating a plan of action. One key task to take note of is the stakeholder analysis task.
Doing so ensures you identify groups, individuals or departments who are impacted by the change. This ensures that you have identified
all the groups and therefore, you are more likely to identify all of the needs and requirements, which results in a complete requirements
package. You use business analysis planning and monitoring tasks and activities to plan for elicitation and collaboration with stakeholders.

The requirements life cycle guidelines, like managing requirements changes, will be entered into your plans so that both the project
manager and your stakeholders understand how requirements are going to be managed. The information gathered during elicitation needs
to be analyzed and designed, resulting in the close connection between business analysis planning and monitoring and requirements
analysis and definition. The plan will give you the guidelines, the techniques, and how you will analyze and communicate the design. The
plan also ensures that you are aligning the requirements to the strategy. Hence, the connection to strategy analysis.

[A diagram depicting the six knowledge areas displays. It is captioned as Fig.1.4.1, BABOK® Guide v3.] Elicitation and collaboration
describes the tasks a BA will undertake to engage with stakeholders and to obtain information. There are a number of key steps, one of
which is to prepare. The other is to actually conduct the elicitation activity, which could consist of workshops, interviews, or document
analysis. The results from the elicitation activity need to be managed and communicated. This knowledge area has a strong relationship to
business analysis planning and monitoring. It also has a strong relationship to strategy analysis. This is important for elicitation activities
as these are the activities needed to identify the business need and ensure it's defined.
Business analysts are continually eliciting information, even when they are engaged in solution evaluation activities. Collaboration is
critical to business analysis success. If relationships are not nurtured or the requirements plan isn't communicated, stakeholders may not
participate or support business analysis activities.

[A diagram depicting the six knowledge areas displays. It is captioned as Fig.1.4.1, BABOK® Guide v3.] Requirements life cycle
management is comprised of tracing, maintaining, prioritizing, and approving requirements. Requirements can't be traced or maintained
without first being verified, [A diagram depicting the six knowledge areas displays. It is captioned as Fig.1.4.1, BABOK® Guide v3.] which
is a task in requirements analysis and design definition.

Strategy analysis is directly linked to life cycle management as risk assessment is one component of prioritizing requirements. [A diagram
depicting the six knowledge areas displays. It is captioned as Fig.1.4.1, BABOK® Guide v3.] The business analysts approach to the task
in the life cycle management are documented and planned specific to any one initiative. Hence, the link to business analysis planning and
monitoring. Strategy analysis is central as the current state and the future state of the area under analysis is pivotal. It produces the
business requirements, objectives, and description of the future state. It has a relationship with all other knowledge areas. Several tasks
are performed in this knowledge area.

First is limitations and solutions assessment. Here you'll need to assess enterprise limitations and recommend solutions. Next is solution
evaluation. [A diagram depicting the six knowledge areas displays. It is captioned as Fig.1.4.1, BABOK® Guide v3.] Task and solution
evaluation rely on strategy analysis. Then there is current state analysis. You have to know the current state in order to evaluate it. The
next area is future state analysis. The future state helps you to manage stakeholder collaboration. Finally, there is requirements analysis.
[A diagram depicting the six knowledge areas displays. It is captioned as Fig.1.4.1, BABOK® Guide v3.] Strategy analysis also has a
strong relationship with requirements analysis and design definition. You have to analyze all requirements for potential value, which aligns
to the strategy.

Requirements analysis and design definition, also known as RADD or RADD, is also central to what a business analyst does. And
therefore, has relationships to all other knowledge areas. To complete the tasks in this knowledge area, your business analysis plan will
outline the information management approach. The elicitation results are needed before a business analyst can analyze and design the
solution. During the life cycle of requirements, they have to be approved, but the task to verify requirements must be conducted first, [A
diagram depicting the six knowledge areas displays. It is captioned as Fig.1.4.1, BABOK® Guide v3.] which is a task in requirements
analysis and design definition.

Validation, also in RADD, is the process of ensuring requirements align to the business need for any solution to be implemented. Which
explains its connection to strategy analysis. Any changes to the validated requirements are addressed in strategy analysis, as well.

Solution evaluation needs input from the strategy analysis knowledge area in order to measure, analyze, assess enterprise limitations, the
solution, and recommend action. The recommended actions from solution evaluation will assist in managing stakeholder collaboration. [A
diagram depicting the six knowledge areas displays. It is captioned as Fig.1.4.1, BABOK® Guide v3.] This knowledge area is about
ensuring a solution is meeting the expected value, which explains its connection to strategy analysis. Stakeholder impact analysis,
reviewing potential organizational structural change and other operational assessments help determine whether or not the enterprise is
able to adapt to any new changes.
Business Analysis Key Terms and Concepts
Learning Objective
After completing this topic, you should be able to
recognize the six core business analysis concepts

1.
[Topic title: Business Analysis Key Terms and Concepts.] It's important to have a common understanding of terms and concepts used by
business analysis professionals. As with any profession, business analysis uses specific terminology to communicate concepts and
activities. It's important to have an understanding of these terms. This will help you to utilize the knowledge areas in the Business Analyst
Body of Knowledge guide, or BABOK, and mitigate any misunderstanding.

Business analysis information refers to the broadened verse sets of information that business analyst analyze, transform, and report.
Examples of this information include solicitation results, stakeholders, plans, project progress, and changes.

A requirement is a usable representation of a need and should provide something of value to the stakeholders. Requirements need to be
decomposed and constraints identified in order to provide the best solution. There may be a time constraint so the customer relationship
management software should be provided with standard terminology for easy access and recording.

A design is a usable representation of a solution. It represents how value is realized from a solution.

A plan is a proposal. The business analyst should plan tasks, activities, and the sequence of those events.

Risk is the effect of uncertainty on the value of a change, solution, or enterprise. Operational risks include financial losses due to
stakeholder resistance to change and not adopting the solution or processes that don't meet regulatory constraints. A business analyst
assesses risks to the solution and may include tangible impacts, such as regulatory fines for non-compliance. Or non-tangible impacts
resulting from non-compliance that could affect the company reputation in the market.

An organization is a group of people under management who have common objectives that need to be met in order to achieve the goals
and meet the enterprise strategy. An organization is often referred to as the organizational level of the enterprise. Tactical business
analysis activities that often occur in the organization such as modifications to processes and enhancement to technology affect the
uncertainty on the value of a change, solution or enterprise.

And an enterprise is comprised of departments or business units. In essence, it's a company which includes solutions such as processes,
technology, policy, information, and business roles. Now that you know the key terms in business analysis, let's focus on the core concepts
as outlined in the Business Analysis Core Concept Model. [The Business Analysis Core Concept Model displays. It is captioned as
Fig.2.1.1, BABOK® Guide v3.]

The Business Analysis Core Concept Model is a framework for business analysis. It provides a common approach no matter the scope,
domain, or approach that the business analyst chooses. There are six core concepts in the model, changes, needs, solutions,
stakeholders, value and contexts. [The Business Analysis Core Concept Model displays. It is captioned as Fig.2.1.1, BABOK® Guide v3.]
These concepts are inter connected. Each concept influences and impacts the others.

Changes are introduced via solutions that are carried out within the context of the organization, responding to stakeholder's needs and
what signifies value to them. Change is transformation, it can be large or small, complex or simple. Change in an organization is
predicated on a need. Changes don't always include improvements, but they should, even if the change relates to a regulatory need. A
project typically controls the activities of the change, and is deliberate because a project must be approved and funded.

A need is a problem or opportunity. Examples of needs include incorrect data, and key performance indicators not being met.
Opportunities include new products and new markets. Needs motivate performing activities necessary to make improvements. The higher
the risk or level of adversity experienced by a company, the greater the need and usually the less time allocated for a solution. These are
prioritized during project and program allocation.

A solution should ultimately satisfy a need, resolve a problem, or use an organization's strengths to exploit an opportunity. The
effectiveness of a solution can be measured using key performance indicators.

The stakeholder's perception of how the problem is resolved may be different. Depending on their position in the organization, and their
perception of how the problem impacts them. A solution to a problem takes many forms. Each stakeholder holds a piece of the puzzle that
provides information on the respective needs and helps formulate the overall solution. Which should be investigated against those
requirements.

Stakeholders have a vested interest in the outcome. They are often subject matter experts and decision makers who will have influence
over the outcome. Other stakeholders, like the end user of a solution, typically have less influence and are prone to resisting the change.
The stakeholders can be grouped in a number of ways, including their level of authority, their attitude toward the change, and their level of
involvement with the change.

Value is what stakeholders find worthwhile. What's in it for me? Often the change is communicated as urgent, or needed by senior
executives. Then the importance of it adds value. When a solution is useful, it's considered valuable. The value of a solution can be
tangible, such as saving money, or intangible, such as increasing a person or company's status. When value is absolute, there is no
disputing its value. Such as a way for stakeholders to manage their own customer profile. This would save the customer time and remove
the need for an administrator or a sales person to be engaged, freeing up that resource. This will likely increase the validity of customer
data, saving time and money. Relative value is in the eye of the beholder.

Context is the environment and circumstances into which you are trying to introduce change. It is what impacts and effects the change and
how successfully it can be implemented. The environment under which the solution will operate includes the attitude and beliefs about the
change.
The culture of the organization should always be taken into consideration when choosing a solution. As well as the demographics. The
current processes and structure of the environment are important as well.

Technology has a big part to play and should always be examined, especially when making process changes. Good compatibility between
systems can improve efficiency while poor system integration can cause new defects or even failures.
Project Team Stakeholders
Learning Objective
After completing this topic, you should be able to
identify examples of project team stakeholders

1.
[Topic title: Project Team Stakeholders.] There are several key project team stakeholders including the sponsor, the business analyst, the
project manager, the domain subject matter expert, implementation subject matter experts, and the tester.

The sponsor is a driving force in defining the overall needs, including goals and objectives for the organization and the development of the
solution. Sponsors control the budget and therefore the resource allocation to initiatives and projects. The sponsor is usually someone
who is an executive or senior manager. As a project sponsor, the person will have a vested interest in the outcome of the project.

The business analyst is responsible for the activities and tasks needed to describe the solution. In a project, the business analyst is
accountable for the execution of the requirements phase of a project. Based on the availability, the business analyst could also play other
roles such as software tester or even trainer.

The project manager oversees the completion of the work required to deliver the solution. They're responsible for meeting project
objectives outlined in the project charter.

The project manager manages certain constraints. The first is scope and budget. The project manager delivers those elements of the
solution that will meet stakeholder needs within the allocated time and budget. Next are schedules and resources. The PM will plan a
schedule in order to meet the allocated time and budget, obtaining and managing the resources needed to deliver the solution. Another
constraint is quality. The quality delivered by the project team in the form of a solution that meets the acceptance criteria outlined by the
business analyst. And finally, there are the risks. The project manager is constantly identifying, monitoring, and mitigating risks to ensure
project success.

A domain subject-matter expert is often referred to as a SME. This person has in-depth knowledge of the current state and the needs of
the operation. This can be anyone in the organization, including end-users of the existing solution who know the ins and outs and current
issues. Managers who need data and reports in order to run day-to-day operations. Process owners who are responsible for the key
performance indicators for a process. Legal and regulatory experts, who are critical when defining constraints imposed by the law. And
consultants who are often brought in because they have specific expertise.
Implementation subject-matter experts are responsible for the implementation of the described solution. These roles are typically assigned
to a project and use the requirements to implement the solution according to the specifications and acceptance criteria outlined by the
business analyst. These roles include the project librarian, change manager, process owner, configuration manager, solution architect,
developer. Database administrator, information architect, usability analyst, trainer, and organizational change consultant.

The tester's role is to verify the solution and ensure it meets the specifications. The tester will create test cases aligned to ensure that the
processes and software perform according to specifications. The tester's primary concern is to ensure that the outcome meets quality
standards and therefore reduces risks and defects.
External Project Stakeholders
Learning Objective
After completing this topic, you should be able to
identify examples of external project stakeholders

1.
[Topic title: External Project Stakeholders.] Once the project is over. The solution is turned over to operational support for day-to-day
management of the solution. This will include maintenance, updates, and enhancements.

There are several operational support roles. The operational analyst may provide support to end users and/or analyze the solution for
enhancements or changes.

The product analyst studies the market and is responsible for researching market strategies, which may result in some solution changes.

The helpdesk supports the end users and provides feedback on the solution and its issues.

The release manager oversees the development and implementation of software releases. They may accumulate a number of changes,
and put them together in a software release. Which would then go out to the end users.

Customers use products or services which are delivered and enabled by technology.

End users use the solution provided through projects and operational support. They use them to complete their day-to-day activities. They
use the end product, and may include participants of the entire business process, or just a subset.

Suppliers are external to the business or organization, and they provide products such as software or services. The roles include
providers, vendors, and consultants.

Regulators define and enforce standards on a solution. Regulations are often seen as a constraint to or a driver of a solution. And they
may be from within an organization. Regulators may be a compliance department, government officials, members of a regulatory body, or
auditors.
The Requirements Classification Schema
Learning Objective
After completing this topic, you should be able to
distinguish between requirement classifications

1.
[Topic title: The Requirements Classification Schema.] Business requirements describe the reason for the change. They're recorded in a
business requirements document, also known as a BRD. A BRD describes the goals and records objectives. The requirements include a
current state description and a description of the desired future state. A high level description of processes, business rules, functionality
and data are all included. There's also a description of the stakeholders, which includes their type, demographics, locations and contact
information.

Assumptions are also documented. Assumptions are the things that are thought to be true, but have not yet been validated. For better
management of the project constraints, constraints must be documented by the business analyst. These include when the solution must
be delivered and budget details. And the technology constraints such as compatibility with specific browsers.

Stakeholder requirements describe the need that must be met. They bridge the business and solution requirements, and provide specific
information about the solution to be delivered. For example, a business requirement might read, the customer account record shall include
account number, customer name, customer billing address, customer shipping address, phone number, and website URL.

Solution requirements describe the qualities and capability the solution must deliver. It's everything needed to create and implement the
solution. There are two types, and the first are the functional requirements which describe how the system or software application should
behave. The second type are the nonfunctional requirements, or quality of service, which describe how well the solution behaves. This can
include usability, performance, and system reliability which describes mean time between failures. There are also audit requirements
which would include recording the date, time, and the name of the user each time a transaction is entered or modified.

Transition requirements are needed to go from current to future state. They are temporary and address certain aspects such as data
conversion. This is the process of moving existing data from an old system to a new system. This requires that the data be reviewed,
cleaned and described in a way that the new system can read and record it.

Another aspect is the training requirements, including the number of users to be trained, where and when they should be trained, and the
length of training. This may also include details like the language the training might be delivered in and how the training will be delivered,
for example, in class or online.
And finally, business continuity, which describes how the area under change will operate. You might consider running the old system along
with the new system. This is called running in parallel. Or perhaps, there will be phased roll outs of the functionality to different
departments.
Requirements and Designs
Learning Objective
After completing this topic, you should be able to
distinguish between characteristics of requirements and designs

1.
[Topic title: Requirements and Designs.] Contrary to popular belief, business analysts are responsible for both requirements and designs.
The various techniques used to analyze requirements are also used to design the solution. The business analyst may create a prototype
to describe the functionality of the system and identify if there's functionality missing that needs to change or should be removed. It's an
iterative process.

For example, the prototype could be used to validate the requirements which may prompt the need for more requirements and a change to
the design. Like requirements, designs are communicated at various levels of detail known as levels of abstraction. Once the requirements
are accepted and turned over to the implementation team, a designer will add more detail to describe the physical level of requirements in
another type of design.

Requirements focus on meeting a need. The business analysis elicits information and analyzes that information to answer questions. Such
as who, what, when, where, how much, and how often? The requirements are validated by stakeholders. The business analyst manages
the requirements, and therefore must also manage the supporting designs.

While requirements focus on a need, designs focus on a solution. A design can be used to represent the solution using process models,
data models, decision trees, prototypes, or screen captures. Designs can be used to ensure that the solution will satisfy the requirement
and fulfill the need.

The requirements and design relationship is iterative. Meaning that requirements may be revisited and designs updated until the
requirements are clearly understood and the design represents an effective solution. The business analyst must clearly define the design
and then review the final design.
The Requirements and Design Cycle
Learning Objective
After completing this topic, you should be able to
recognize activities in the requirements and design cycle

1.
[Topic title: The Requirements and Design Cycle.] In the early stages of the requirements cycle the business analyst will elicit information
from the business to understand goals and objectives.

The requirements and design cycle involves four stages. [The requirements and design cycle diagram displays. It is captioned as
Fig.2.5.1, BABOK® Guide v3.] Stage one moves from business requirements to design, to stakeholder requirements. Stage two moves
from stakeholder requirements to design, to solution requirements. Stage three moves from solution requirements to design, to transition
requirements. And stage four moves from transition requirements to assess outcomes and back to business requirements.

Business requirements could apply, for example, if a company wanted to provide an advertising and rating service for their customer. In
this scenario the customer would view the advertisement online, rate the advertisement, and receive points. Once they reached a certain
number of points, the user would get a coupon. The business reason for providing the service would be to sell the resulting data to other
customers who need market information. This results in a high level process model which sets forth the tone for eliciting stakeholder
requirements to further understand the business rules and needs.

The stakeholders would discuss the process and provide details of what needs to be achieved at each step. This results in requirements
that list the data needed to create a user profile. [The requirements and design cycle diagram displays. It is captioned as Fig.2.5.1,
BABOK® Guide v3.] This would include the user's email, demographic information, and the need for the user to indicate his or her birth
date. The business rule requires that anyone participating in the survey must be 18 years or older. All of this is documented.

The stakeholders' requirements result in a high level data model, data flow diagram, detailed process flow, and a paper prototype of the
form the user would need to complete.

In the scenario, the solution requirements detail the system behavior and logic to complete a step. Such as calculating age using the birth
date, the size of the fields, or which fields are mandatory.

A screen flow diagram is completed to describe the behavior of the system when certain tasks are completed. Decision trees provide input
into what should happen when certain criteria is met or not. [The requirements and design cycle diagram displays. It is captioned as
Fig.2.5.1, BABOK® Guide v3.]
The transition requirements use the designs to created training for internal staff on processes and expected outcomes. The screen
captures, process flows, and use cases are reused to produce accurate information for the staff prior to the launch of the new site. Once
the new site is up and running, it is monitored to ensure the necessary outcomes are being realized.

Help desk calls report to the implementation team and the business analyst, [The requirements and design cycle diagram displays. It is
captioned as Fig.2.5.1, BABOK® Guide v3.] who then assess the issues to determine if changes to the site are needed.

Modifications to the usability of the site are necessary to ensure a hassle-free experience for the end user. Which results in the review of
business requirements, new designs, new requirements, and an update to the site.
Exercise: Business Analysis Fundamentals
Learning Objective
After completing this topic, you should be able to
demonstrate your understanding of foundational concepts related to the field of
business analysis

1. Exercise Overview
In this exercise, you'll demonstrate your understanding of how to be an effective business analyst by understanding what the role involves,
what benefits you can bring to an organization, and who the various stakeholders involved in a project are.

In this exercise, you'll demonstrate that you can

define business analysis

recognize the value of business analysis
understand key business analysis concepts, terms, and activities
identify project stakeholder roles, and
recognize characteristics of the relationship between requirements and designs

2.

Question

Which statement best defines business analysis?

Options:

1. The automation of business processes through computer systems

2. The practice of defining needs and recommending solutions that provide value
for the stakeholders in order to bring about change in an organization
 3. The tasks that an organization implements to achieve its needs, goals, and
objectives

Answer

Option 1: This is an incorrect option. The automation of processes is often performed by a

systems analyst. This was an early form of business analysis, which has since developed
beyond the realm of IT. Today, business analysis is described as defining the needs of an
organization in order to determine solutions that will enable it to provide value for stakeholders.

Option 2: This is the correct option. Business analysis comprises the tasks, techniques, and
technologies used to understand how a specific business area functions and to provide
solutions that will enable the business area to achieve its goals and objectives in order to
provide value to stakeholders.

Option 3: This is an incorrect option. Business analysis involves bringing about change in an
organization and providing value to stakeholders through defining needs and identifying
solutions. It includes identifying tasks an organization must perform, but not actually
implementing these tasks on the organization's behalf.

Correct answer(s):

2. The practice of defining needs and recommending solutions that provide value for the
stakeholders in order to bring about change in an organization

Question

Business analysis practitioners help to identify the solutions that will enable organizations to
reach their goals.

What are the key activities of a business analyst?

Options:
 1. Managing project resources and ensuring that a project is completed on time
and within budget
2. Eliciting the actual needs of stakeholders
3. Implementing the solutions suggested by project managers
4. Aligning the needs of organizational units with information technology
capabilities
5. Identifying problems and opportunities in a specific area of business in the
organization

Answer

Option 1: This is an incorrect option. Project managers are the ones who manage project
resources and ensure that projects are completed on time and within budget. Business
analysts are responsible for ensuring appropriate solutions are identified.

Option 2: This is a correct option. Business analysts gather and analyze the requests of
stakeholders in order to determine the stakeholders' actual needs.

Option 3: This is an incorrect option. Business analysts are responsible for determining and
recommending solutions, but not for implementing them.

Option 4: This is a correct option. Business analysts facilitate communication between the
different organizational units of an organization. They often need to align the needs of
organizational units with available information technology capabilities.

Option 5: This is a correct option. Business analysts identify problems and opportunities; elicit,
analyze, and validate requirements for change; document requirements; and recommend
solutions.

Correct answer(s):

2. Eliciting the actual needs of stakeholders

4. Aligning the needs of organizational units
with information technology capabilities

5. Identifying problems and opportunities in a specific area of business in the organization

Question

What are the benefits of business analysis?

Options:

1. Allocating and managing project resources efficiently

2. Determining realistic expectations at the start of a project
3. Identifying duplicate processes and providing the best solution to meet the
stakeholders' needs
4. Facilitating the transition to new systems and improving collaboration among
stakeholders
5. Building a positive and inclusive organizational culture
6. Determining whether a project's goals align with the organization's goals

Answer

Option 1: This is an incorrect option. A project manager adds value to an organization through
managing project resources efficiently whereas a business analyst helps to identify problems
within a project – such as redundancy and misalignment with the organization's goals – and
provide solutions for overcoming these.

Option 2: This is a correct option. By helping to define solutions at the beginning of a project, a
business analyst ensures that the expectations of the stakeholders are realistic to avoid
surprises later on in the process.

Option 3: This is a correct option. Effective business analysts can eliminate redundant projects
that are being used to solve the same problems in the organization. In addition, business
analysts can reduce time and money waste by designing the best solution to meet business
needs from the outset, rather than adopting a trial-and-error approach.

Option 4: This is a correct option. Business analysts are able to prepare organizations for
change so that users are willing to adopt new ways of working. In addition, business analysts
can improve communication and cooperation among stakeholders by facilitating
understanding.

Option 5: This is an incorrect option. Other members of senior management help to build an
inclusive and favorable work environment, whereas a business analyst helps to align project
 goals to organizational goals, reduce duplication of effort in processes, determine realistic
expectations of stakeholders, facilitate transitions to changes in work processes, and improve
communication and collaboration.

Option 6: This is a correct option. Business analysts understand the organization's problems,
goals, and strategic objectives. Therefore, as a project progresses, the business analyst can
determine whether the project goals align with the business goals, and make recommendations
about how to bring the project into alignment with the organization's goals.

Correct answer(s):

2. Determining realistic expectations at the start of a project

3. Identifying duplicate processes and providing the best solution to meet the stakeholders'
needs

4. Facilitating the transition to new systems and improving collaboration among stakeholders
6. Determining whether a project's goals align with the organization's goals

Question

There are several knowledge areas in business analysis.

What is the correct definition of knowledge areas?

Options:

1. Categories of business analysis expertise that occur in a particular sequence

2. Categories of implementation strategies that are generally accepted by
practitioners and are available for business analysts to use
3. Areas of specific business analysis expertise that encompass several tasks
and techniques and are logically related

Answer
 Option 1: This is an incorrect option. A knowledge area is a category of expertise of a
business analyst. However, the knowledge areas are not sequential in their application.

Option 2: This is an incorrect option. A knowledge area describes the knowledge, skills, and
processes that the business analyst requires to perform tasks associated with the knowledge
area competently. It does not dictate which tasks and activities should be implemented.

Option 3: This is the correct option. A knowledge area represents a specific category of
expertise that includes tasks and activities a business analyst performs. Each knowledge area
has a purpose, inputs, outputs, and techniques associated with it. There are six knowledge
areas in business analysis.

Correct answer(s):

3. Areas of specific business analysis expertise that encompass several tasks and techniques
and are logically related

Question

What are the six business analysis knowledge areas?

Options:

1. Business Analysis Planning and Monitoring

2. Elicitation and Collaboration
3. Requirements Life Cycle Management
4. Strategy Analysis
5. Requirements Analysis and Design Definition
6. Solution Evaluation
7. Budget Analysis
8. Cause and Effect Analysis

Answer
 Option 1: This option is correct. This knowledge area is about creating a plan of action.

Option 2: This option is correct. Elicitation and collaboration describes how a business analyst
will engage with stakeholders and obtain information.

Option 3: This option is correct. This involves tracing, maintaining, prioritizing, and approving
requirements.

Option 4: This option is correct. This knowledge area connects with all other knowledge areas
and produces the business requirements, objectives, and description of the future state.

Option 5: This option is correct. RADD is central to a business analyst's work and has
relationships to all other knowledge areas.

Option 6: This option is correct. This knowledge area is about ensuring a solution is meeting
its expected value.

Option 7: This option is incorrect. This is not one of the business analysis knowledge areas.

Option 8: This option is incorrect. Cause and Effect Analysis is not a business analysis
knowledge area.

Correct answer(s):

1. Business Analysis Planning and Monitoring

2. Elicitation and Collaboration

3. Requirements Life Cycle Management

4. Strategy Analysis

5. Requirements Analysis and Design Definition

6. Solution Evaluation

Question

The Business Analysis Core Concept Model ™ is a framework for business analysis.

Which statements correctly describe the core concepts?

 Options:

1. Need is a problem or opportunity that motivates action for improvement

2. Change is a controlled transformation in response to a need
3. Solution is a means of satisfying a need or providing a resolution to a problem
4. Context is the geographic location within which the enterprise is situated
5. Stakeholders are individuals or groups who are actively involved in
implementing a project
6. Value is a usable representation of a solution

Answer

Option 1: This is a correct option. A need is a problem such as incorrect data or key
performance indicators not being met or an opportunity such as a new product. Needs provide
motivation to make improvements.

Option 2: This is a correct option. In the BACCM ™, change refers to a simple or complex
transformation in response to a need. The activities of change are deliberate and controlled
through a project.

Option 3: This is a correct option. Solutions satisfy the needs that are identified. A solution to a
problem can take many forms and all relevant stakeholders can contribute to the overall
solution.

Option 4: This is an incorrect option. Context refers to the circumstances that surround the
change rather than just the physical location. Context can include the beliefs and attitudes
regarding the change, organizational culture, infrastructure, and technology.

Option 5: This is an incorrect option. Stakeholders include all individuals and groups who have
a vested interest in the outcome, not only those who are involved in the implementation of the
project. Stakeholders include subject matter experts and decision makers as well as end users.

Option 6: This is an incorrect option. In business analysis, a design is a usable representation

of a solution. Value is defined as something that stakeholders consider worthwhile, important,
or useful.

Correct answer(s):
 1. Need is a problem or opportunity that motivates action for improvement
2. Change is a controlled transformation in response to a need

3. Solution is a means of satisfying a need or providing a resolution to a problem

Question

The Business Analysis Core Concept Model ™ identifies six core concepts.

Which statements accurately describe the core concepts of business analysis?

Options:

1. Change is unstructured and accidental transformation in response to

stakeholder needs
2. Solution is a proposal that lays out the tasks and events in sequence
3. Need is a specific way of satisfying stakeholders
4. Value is what stakeholders find worthwhile, important, or useful
5. Context refers to the environment around a change and includes attitudes,
culture, and technology
6. Stakeholders are individuals or groups who have a vested interest in, and can
impact, the outcome

Answer

Option 1: This is an incorrect option. While change is a transformation in response to

stakeholders' needs, the activities that bring about the change are intentional and controlled
through a project.

Option 2: This is an incorrect option. A solution in business analysis is the specific way in
which stakeholder needs are satisfied. It does not lay out the tasks and events in the required
sequence. This is done in a project plan.
 Option 3: This is an incorrect option. A need is a problem or opportunity that has potential
value to a stakeholder. The specific means of satisfying a need is the solution.

Option 4: This is a correct option. Value is defined as something that stakeholders consider
worthwhile, important, or useful. The value of a solution can be tangible such as increasing
profits or intangible such as employee morale. Value can also be absolute or relative.

Option 5: This is a correct option. Context refers to the circumstances within which a change
occurs. This can include stakeholder beliefs and attitudes about the change, the organizational
culture, infrastructure, and technology.

Option 6: This is a correct option. Stakeholders include all individuals and groups who have a
vested interest in the outcome. Stakeholders include subject matter experts and decision
makers who provide input into the solution. The end users of a solution are also stakeholders.
They typically have less influence and are often resistant to the change.

Correct answer(s):

4. Value is what stakeholders find worthwhile, important, or useful

5. Context refers to the environment around a change and includes
attitudes, culture, and
technology

6. Stakeholders are individuals or groups who have a vested interest in, and can impact, the
outcome

Question

Who are some of the stakeholders on a project team?

Options:

1. Project sponsor
2. Project manager
3. Tester
4. Supplier
 5. End user
6. Subject matter expert

Answer

Option 1: This is a correct option. The project sponsor is usually an executive or senior
manager who controls the budget and resources allocation for projects and approves project
initiatives that align with the goals and objectives of the organization.

Option 2: This is a correct option. The project manager is responsible for meeting the project
objectives and ensuring that the project is completed within the allocated time and budget.

Option 3: This is a correct option. Within a project team, the tester needs to verify the solution
and ensure it meets the specifications. This can be done by creating test cases. The tester is
primarily concerned with reducing risks and defects and ensuring that the solution is of a high
quality.

Option 4: This is an incorrect option. Suppliers are external to the organization and supply
products or services that are used as inputs.

Option 5: This is an incorrect option. End users use the solution provided through projects and
operational support to complete their day-to-day activities. They do not form part of the project
team.

Option 6: This is a correct option. A subject matter expert, such as a manager, the owner of a
process, or a legal expert, possesses an in-depth knowledge of the current state and the needs
of the operation and can provide valuable input into the solution as a project team stakeholder.

Correct answer(s):

1. Project sponsor
2. Project manager

3. Tester

6. Subject matter expert

Question

Who are some of the stakeholders who are outside of the project team?

Options:

1. Vendor
2. Regulator
3. Customer
4. Release manager
5. Project sponsor
6. Tester

Answer

Option 1: This is a correct option. Vendors are external to the business or organization. They
provide products such as software or services.

Option 2: This is a correct option. Regulators are external stakeholders who define and
enforce standards and regulations on a solution. Examples of regulators include government
officials, members of a regulatory body, and auditors.

Option 3: This is a correct option. Customers are external stakeholders who use products or
services, which are delivered and enabled by technology.

Option 4: This is a correct option. A release manager is an external stakeholder who is

responsible for overseeing the development and implementation of software releases, which
are deployed to end users.

Option 5: This is an incorrect option. The project sponsor is usually an executive or senior
manager who is the driving force in defining needs and developing solutions. The project
sponsor decides on the budget and the resources allocation and is therefore a stakeholder
from within the project team.

Option 6: This is an incorrect option. The tester verifies the solution to ensure it meets the
specifications and focuses on reducing risks and defects. The tester is therefore a project team
 stakeholder.

Correct answer(s):

1. Vendor

2. Regulator
3. Customer

4. Release manager

Question

You're implementing a new computer system to monitor a hospital's prescriptions. You have
the requirements and want to identify their categories.

Match each category to its requirement.

Options:

A. Business requirements
B. Stakeholder requirements
C. Solution requirements
D. Transition requirements

Targets:

1. The hospital will install a new state-of-the-art prescription system

2. The system will have safeguards so that only authorized staff members can
access patients' confidential information
3. Duplicate prescriptions will be flagged and require a manual override
4. Authorized staff members will need training to operate the new prescription
system

Answer
 Business requirements are high-level statements that affect the organization as a whole.
Business requirements include the project's objectives. In this case, the objective is to install a
new prescription system.

Stakeholder requirements describe the needs of a stakeholder or group of stakeholders. In this

case, stakeholders require that only certain staff members have access to confidential patient
information.

A functional requirement is a subcategory of solution requirements. Functional requirements

specify what a system needs to work efficiently. They are concerned with how a system should
run in order to achieve the required end result.

Transition requirements describe the temporary capabilities that are necessary to transform an
organization from its current state into the desired future state.

Correct answer(s):

Target 1 = Option A

Target 2 = Option B

Target 3 = Option C

Target 4 = Option D

Question

Requirements and design are both key in business analysis.

Identify the statements that correctly describe the relationship between requirements and
design.

Options:

1. Requirements are focused on need whereas design is focused on solution

2. Requirements serve as inputs to design
 3. Design can reveal further requirements
4. The business analyst oversees requirements whereas the project manager
oversees the design
5. Different techniques are used to analyze requirements and design solutions

Answer

Option 1: This option is correct. Requirements are representations of stakeholders' needs. For
example, a need to record and access a medical patient's history. The design provides a
solution to the problem. For example, a screen mock-up that shows specific data fields.

Option 2: This option is correct. Requirements gathered by eliciting and analyzing information
from stakeholders provide input into the design of a solution.

Option 3: This option is correct. Requirements and design have a cyclic relationship. The
requirements are used to create the initial design. At this point, additional requirements are
identified, which results in the design being modified. This process continues until the
requirements and design are finalized.

Option 4: This option is incorrect. Both requirements and design are the responsibility of the
business analyst. The business analyst elicits and analyzes information to arrive at the
requirements and then synthesizes and clarifies the requirements in the design of the solution.

Option 5: This option is incorrect. The same business analysis techniques – for example,
prototyping and workshopping – are used to analyze requirements and design solutions.

Correct answer(s):

1. Requirements are focused on need whereas design is focused on solution

2. Requirements serve as inputs to design

3. Design can reveal further requirements

Question
 The requirements and design cycle provides a process framework for tackling new projects.

What are the characteristics of the requirements and design cycle?

Options:

1. The business analyst determines the requirements for transitioning the

solution to customers and then determines the solution requirements
2. The business analyst elicits information about business goals to understand
how to meet those objectives before determining stakeholder requirements
3. Once the solution is up and running, the business analyst monitors it to ensure
that the business requirements are being met and makes further modifications
if necessary
4. The business analyst uses the stakeholder requirements to determine the
requirements around how the solution will be transitioned into being used by
the customer

Answer

Option 1: This is an incorrect option. It's the other way around. Once the solution requirements
have been determined, the business analyst decides what conditions are required for
transitioning the solution to the customer.

Option 2: This is a correct option. In the early stages of the requirements and design cycle, the
business analyst needs to determine the business requirements before going on to determine
what the stakeholders' needs are.

Option 3: This is a correct option. After a solution has been transitioned and put into use, the
cycle begins again to ensure that the solution meets all the types of requirements.
Modifications and updates are made to the solution if required.

Option 4: This is an incorrect option. In the requirements and design cycle, stakeholder
requirements are used to determine solution requirements and then solution requirements
determine the transition requirements and conditions for implementation.

Correct answer(s):

2. The business analyst elicits information about business goals to understand how to meet
those objectives before determining stakeholder requirements

3. Once the solution is up and running, the business analyst monitors it to ensure that the
business requirements are being met and makes further modifications if necessary

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