CBAP Enterprise Analysis Tutorial

5.2 Enterprise Analysis

Hello and welcome to module 5 of Certified Business Analysis Professional™ (CBAP®) (read as C-Bap) certification course offered by Simplilearn. In the previous module we had discussed requirements management and communication. In this module, we will discuss enterprise analysis. Enterprise analysis describes how Business Analysts identify a business need, refine and clarify the definition of that need, and define a solution scope that can be feasibly implemented by the business. This knowledge area describes problem definition and analysis, business case development, feasibility studies, and the definition of a solution scope. In other words, enterprise analysis is a central document for the project. It contains core knowledge areas and repository for various other findings that make up the project in its totality. We will look into enterprise analysis in detail in this module. Let us begin by discussing the agenda of this module in the next slide.

5.3 Agenda

We will start this module by establishing the business needs gathered through the elicitation process. Once the needs have been identified, the company capabilities, in terms of assets and knowledge, are assessed. At this point, any needs for outsourcing requirements are identified. Once the needs, requirements and company capabilities are identified, a solution scope is developed for the purpose of gaining consensus. Risk analysis follows-on to determine what type of solutions looks most feasible, and what the associated risks might be. A SWOT analysis is produced to test the solution scope. After the results of the SWOT analysis have been reviewed, the solution approach is determined. An economic feasibility analysis is done to determine if the proposed requirements and solutions is financially feasible for the company. The financial and other constraints are used to help determine the solutions approach. For example, if a solution will exceed budget limitations, a different solution will need to be considered. As a culmination of this chain of events, the Business Analyst (BA) develops the business case, which is a narrative or presentation in support of the project. Let us look into business need in the next slide.

5.4 Business Needs

What is a Business Need? A business need is a perceived weakness or improvement, the client sees as vital for achieving the client’s goals and objectives New business needs can be generated in several ways: The top down approach is applied when there is the need to achieve a strategic goal. The bottom up approach is applied when there is a problem with the current state of a process, function, or system. Middle management approach is applied when a manager needs additional information to make sound decisions, or must perform additional functions to meet business objectives. External drivers approach is driven by customer demand or business competition in the market place However, in most circumstances, the need for making changes will be moved up the organization, from users to the decision makers, to pass judgment on whether or not a change is operationally and financially justified. Most companies have a procedure for considering changes and innovations. In today’s digital world, many new and task-specific software applications are constantly pushing change in an effort to improve productivity. However, almost invariably, the changes or innovations must meet certain goals and criteria. For example, a new investment will require a justification in terms of a measureable Return on Investment (ROI). Even good solutions can be too expensive to implement. Business goals and objectives: a business goal is the benefit from achieving a specific objective. Companies are constantly re-inventing themselves to keep up with the real drivers of change, the customer needs and the competition. Many companies make one of their primary goals to be aggressively seeking to understand the customers’ changing needs, and in some cases, trying to anticipate new needs. However, good ideas are only just that a good idea, until it moves from idea to reality. This is where the enterprise analysis comes into play. The analysis attempts to determine if the current stated company goals are real or imagined. Are the goals being used as performance benchmarks? Business goals and objectives are what the company is trying to achieve over the short and long term. Goals are usually more subjective (“We strive to be the best in our industry”) and objectives are measureable metrics that support the goal. (“Our goal is to be number one in the industry in revenues, profit, and customer satisfaction”). Revenues, profits, and customer satisfaction are all measureable. Let us continue our discussion on the business needs in the next slide.

5.5 Business Needs(contd.)

“Smart”: is an acronym used to define the parameters of a solution. Specific– describing something that has an observable outcome. Measureable – for tracking and measuring the outcome of the objective Achievable – whether the objective is feasible and achievable. Relevant – is the solution in alignment with the organizational vision, mission, and goals? Time Bounded – can the objective be achieved in a timeframe that is consistent with the need? A business need must also present a real opportunity for improving the business. Even though the sponsor may state a need and explain why a solution is needed, other stakeholders who are closer to the problem that is driving the need may have a deeper understanding of the need, ideas for solutions, and requirements. Techniques for defining the business need: elicitation of consensus from SMEs and domain stakeholders. To gain a deeper understanding as well as a stakeholder and SME consensus of the need, elicitation techniques need to be used. Brainstorming, focus groups, functional decomposition, and root cause analysis are effective techniques to gain in-depth knowledge and build consensus on the needs. Stakeholders: there are many types of stakeholders and the stakeholder analysis helps to identify roles and responsibilities. Stakeholders can be customers, suppliers, domain SMEs and anyone who has a vested interest in the production or service outcome. For the purpose of the requirements, solution design, and implementation of a solution, key stakeholders are defined by the BA and other stakeholders, as a result of the creation of the stakeholder list with responsibilities and accountabilities. Also, input from the legal department or regulatory offices, that deal with regulations that might affect the project, can be considered as stakeholders if they are part of the company organization. The nature of the project and problem will determine which subset of stakeholders will be included in the elicitation activities or in the communications loop. In the next slide, we will deal with company capability analysis.

5.6 Company Capabilities Analysis

Current capabilities analysis: does the company have the human and material assets to meet the need requirements? Once there is an idea of what a solution and its requirements may be, it’s time to analyze to see if the company has the assets-skills, software, and/or equipment, to meet the requirements of the solution. The first step is to review the current company organizational architecture, policies and procedures, and fully understand how the company currently goes about its normal daily operations. The company capabilities gap analysis: it is the technique used to determine company capabilities. The analysis attempts to identify the requirements, that the company may not have to successfully, or more cost effectively, implement the proposed consensus solution. Some examples would be the need for a new software application, piece of equipment, or contracted expert expertise. Sometimes a gap may not be obvious until a prototype solution is tried out to see how the current system reacts. It is not uncommon to discover unexpected consequences appearing. The company may find that it needs special outside expertise, a specific software solution, or special piece of equipment to resolve the requirements for a problem solution. If it is found that there are requirements that cannot be met by the current company capabilities, the next step would be to contract a solution or requirement through outside vendors. When there is need for outsourcing, the cost-benefit needs to be analyzed, as the additional cost might compromise the overall return on investment (ROI) of the solution. Requirements management: whenever requirements are changed, they need to be updated in the requirements list and requirements package, for validation by stakeholders. If new requirements are needed to fill the gaps in existing company abilities, the requirement list needs to be updated and verified by stakeholders through the communications plan established by the BA. SWOT Analysis: the primary tool for analyzing an existing or proposed scenario, or solution. The SWOT analysis is usually applied to business and marketing plans; however, the SWOT analysis can also be used to help in the capabilities analysis. At first, a SWOT is done for the current company or domain situation pre-solution. As a follow on, a SWOT analysis is done for the proposed solution. This technique can be used in the business case, to support the narrative for the solution benefits. However, as noted many times, as the analysis progresses so can the need, requirement, solution chain. Let us understand the company capability analysis diagram in the next slide.

5.7 Company Capabilities Analysis Diagram

The diagram in the slide describes the inputs and outputs of the company capability analysis. Inputs include the business need analysis, the requirements list, the solution assessment (before formalizing the solution scope), and the enterprise architecture. The BA then observes the company resources – both human and capital equipment, software assets – to see if the required capabilities for the proposed solution are resident in the company. The BA needs to seek out stakeholder input as to the existing capabilities to supply the requirements. Once the company’s ability to meet the requirements has been confirmed, the best strategy for the implementation of solutions is developed in the solution scope. This process starts with the prioritization of solutions, followed by a round of verification and validation by the domain stakeholders and SMEs. The requirements are checked to make sure they can meet the expectations of the solutions and the solution scope, and requirements package are updated. After this, the new information is communicated via the communication process to other stakeholders and sponsor. Let us move on to solution scope in the next slide.

5.8 Solution Scope

Pre-elicitation solution scope: is the starting point for building the solution scope. The International Institute of Business Analysts (IIBA) defines the solution scope in this way: “The purpose of the solution scope is to conceptualize the recommended solution in enough detail to enable stakeholders to understand which new business capabilities an initiative will deliver.” The solution scope starts with the pre-elicitation phase. As the analysis progresses, the solution scope will change throughout a project, based on changes in the business environment, or as the project scope is changed to meet budget, time, quality, or other constraints. The solution scope includes: the organizational unit domain or process for which requirements are being developed; a number of tasks that may reside in different domains or deal with a range of solutions; the scope needs to provide the context in which the solution is implemented; Moreover, the solutions are put into the context of the company capabilities to support the individual solution releases or iterations. The solution scope starts its development early in the enterprise analysis. Once the BA has had a chance to interview the sponsor and do the documentation analysis, the BA will start forming an idea of what solutions and requirements may be needed. This preliminary version is used to build a foundation for the elicitation activities that will draw detailed and pertinent information from the stakeholders and SMEs as to the need, possible solutions, and possible solutions that will add real meaning to the preliminary pre-elicitation solution scope imagined by the BA. As a matter of fact, experienced BAs usually would have developed a close approximation to the solution scenario. However, all experienced BAs know that each situation has its own individual twists and turns. One of the most important mind sets that a BA must have is to have an open mind and not presume anything. We will continue our discussion on solution scope in the next slide.

5.9 Solution Scope(contd.)

Assumptions and constraints: validation of assumptions and constraints is a priority before building solutions and requirements. Before solutions can take shape, the assumptions and constraints that may affect the solution and requirements need to be fully understood and verified. If the assumptions are not fully examined, the resulting solutions and requirements may be faulty. Again, the preliminary assumptions and constraints are identified, but it isn’t until the elicitation activities that an in-depth analysis of assumptions and constraints can be developed. However, even at the stakeholder level, not all the assumptions and constraints may be identified. For example, not all stakeholders are privy to the financial constraints nor the regulatory constraints. It is the duty of the BA to make sure that the assumptions and constraints are thoroughly communicated at all levels of the organization and inputs from all departments have been taken into consideration. Techniques for defining the assumptions and constraints are aimed at looking at all aspects that can define the needs, the solutions, and the requirements. For example, root cause analysis of needs and SWOT analysis are helpful in examining the assumptions and constraints. When the progressions of needs, solutions, and requirements have been identified, those factors need to be analyzed to see if the company has the capabilities to implement the solutions with the proper requirements. Company capabilities analysis was discussed before but the solutions scope can be fluid as new information is discovered. Indeed, the solution scope will undergo more iterations than any other analysis document. Techniques for determining the solution approach: objective measurements are not always the best way to define a solution approach. Some of the techniques used to help define the solution scope are: functional decomposition – where the solution is broken down into smaller work products and deliverables as part of the whole solution; interface analysis – looks at the points of integration, that the solution must be harmonized with the general solution process flow; scope modeling – identifies the boundaries of the solution scope. Once the solution is at the point of prototyping the model and testing it out by parallel trials running side by side with the legacy process, the actual users and end users should provide feedback for making adjustments and making sure all the proper requirements are functional. In anticipation of some problems, brain storming should help produce an anticipated problem statement which attempts to explain the problem, the impact of the problem, and what would be a successful solution. This proactive approach helps not only to draw attention to potential problem areas, but also prepares a format for approaching any unforeseen problems. In the end, the solution scope must define the deliverable solution to the business need, as well as the effect the deliverable will have on the business and stakeholders. The next slide deals with risk analysis.

5.10 Risk Analysis

Risk tolerance: Risk tolerance attempts to measure the tolerance for uncertainty as the best solution may sometimes carry excessive risk for the company. Once the solution scope has been firmed up, it’s time to re-visit and re-identify the possible risks associated with the change management process, and the possible risks associated with implementing or choosing not to implement the solution change. Risk analysis looks at understanding the positive as well as the negative effects of change. One of the main variables in this undertaking is understanding the risk tolerance of the company. Some persons or entities are more aggressive and tolerant of risk. Others are not. At some point in the process, the risk-reward balance comes into play once the facts are in. Some players are risk averse and have a very low tolerance for risk, and are not willing to take actions without a high probability of success. Others are risk neutral and they are unwilling to accept a high risk-reward situation, rather they will accept more risk than the risk averse, but not go out too far on the probability curve for negative outcomes. Finally, there are entrepreneurs who actually seek risk in anticipation of large rewards. Indeed, many successful entrepreneurs have been unsuccessful or even bankrupt, but continued to seek high risk-reward situations for the perceived probability of a positive outcome. These entrepreneurs are called risk-seekers. There are tests that ask for a response to various risk-reward scenarios to measure the risk tolerance of a person. And if these persons are the decision makers, it can have an impact on the risk a company is willing to take in making changes. Some psychologists suggest that risk tolerance is not so much a process of prudent judgment but more of certain types of personalities. If a company is tolerant to risk, it will be more willing to accept the risk and do little to evade the possibility of a negative outcome. Some company decision-makers reduce risk by transferring the risks and possible effects to a third party. That is one major reason that the consulting industry has become so important. The company’s decision-makers can blame the outside contractors and escape responsibility if things go wrong, while still retaining the right to claim any success by pointing out they were smart enough to bring in the contract vendor. Other organizations prefer to totally avoid any risks. Risk assessment techniques: there are many ways to assess risk, but stakeholder and SME input is essential to understand the subtleties of risk and risk tolerance of the sponsor. Risk analysis helps an organization to examine the probability that some events not called for may happen and how those events might be handled. On the other hand, risk analysis may create an overly negative outlook and prevent a company from evolving or being left behind by more aggressive competition. Some of the techniques used to analyze the risk are: Root cause analysis goes deep into the source of a perceived risk. Often, a risk is just one possible response to certain underlying sources. If the actual source of the risk can be identified, it is preferable to remove the source or remove oneself from the source. A source of a risk can be mitigated, accepted, or avoided. Two common techniques to assess risks are the fishbone diagram and the five whys. Fishbone diagram will be explained in detail in the following slide. The five whys is a simple idea of drilling down into the “whys” of why a problem exists. The first level why is decomposed to another level; the second level cause is further decomposed by asking the question why? This process continues down until it reaches the fifth iteration of “why”. The fishbone and five whys work well together. We will look into the fishbone risk analysis diagram in the next slide

5.11 Fishbone Diagram for Risk Analysis

The fishbone diagram, as seen in the slide, is also known as the Ishikawa or cause and effect diagram. It tries to identify and organize the possible causes of a problem. It focuses on the problem and not on the solution. The problem is put in a box at the top of the diagram and causes of the problems and their effects are traced along the path to creating the problem effect. Each problem branch is a brainstorming point until it leads to more branches of the problem. These new branches are brainstormed further until clear relationships can be traced to the problematic effects. Once the problems have been decomposed, solutions are developed, to address the core problems and assess how, and if, those causal events can be mitigated, avoided, or accepted. Risks are traced back to the root causes. This process is intended to avoid building solutions and requirements on false premises. Indeed, risk analysis may lead to other organizational processes and procedures that are not obvious at first pass. Let us understand SWOT analysis in the next slide.

5.12 SWOT Analysis

SWOT analysis is one of the most versatile and useful tools in helping to define risks and problems. This analysis tool is usually associated with business and marketing plans, but it can be used to help analyze the compartmentalized problems as well. The following is a presentation of how the IIBA views the elements of best practices for the popular tool: Advantages: SWOT analysis is a very popular analysis tool. An advantage of the SWOT analysis is that, it helps to quickly analyze various aspects of the current state of the organization and its environment, prior to developing a solution. Disadvantages: there are some disadvantages of the SWOT analysis technique A disadvantage of the SWOT is that it is a high-level appraisal of the situation and may not reveal important details. However, the SWOT analysis is a good place to start. The following is a typical technique to use with SWOT analysis: draw a grid or a matrix; describe the issue, or problem under discussion at the top of the grid; conduct a brainstorming session to complete the each section in the grid. Strengths and weaknesses are factors internal to the organization, organizational unit, or solution, while opportunities and threats are external factors. Strengths: what are the company’s competitive advantages? Strengths: are anything that the assessed group does well. It may include experienced personnel, effective processes, IT systems, customer relationships, or any other internal factor that leads to success. Weaknesses: what are the areas of greatest concern? Weaknesses: are those things that the assessed group does poorly or not at all. Weaknesses are also internal. Opportunities: what needs to be done to take advantage of the opportunities? Opportunities: are external factors that the assessed group may be able to take advantage of. It may include new markets, new technology, changes in the competitive marketplace, or other forces. Opportunities exist beyond the scope of control of the assessed group; the choice is whether or not to take advantage of one when it is identified. Threats: what are the greatest threats for the company’s survival? Threats: are external factors that can negatively affect the assessed group. They may include factors such as the entrance into the market of a new competitor, economic downturns, or other forces. Threats are also outside the group’s control. Facilitate a discussion to analyze the results. Remember that the group has identified only potential characteristics of the problem. Further analysis is needed to validate the actual characteristics, ideally confirmed with data. Once the characteristics of the issue or problem have been validated, the group brainstorms potential solutions to solve the problem. A standard practice for this is to compare internal strengths and weaknesses against external opportunities and threats and try to define strategies for each cell in the matrix. In the next slide, we will look into determining solutions approach.

5.13 Solution Scope Approach

The solution approach defines how the required capabilities are identified for achieving the business need. Constantly morphing: as the analysis process progresses, the need-requirement-solution chain can change. As with most of the analysis processes, the solution approach may change with new findings. In fact, the first iteration of the solution approach happens even before the elicitation activities. However, once the due diligence has been done for validating the needs, solutions, requirements, company capabilities, risks and constraints, an updated solution scope is developed and actively managed. Focus on methodology: there should be a disciplined approach to how changes to the solution scope must be followed. The solution approach focuses on the methodology or development life cycle used to deliver the solution. The Business Analyst is responsible for defining the solution approach. The implementation stakeholders and SMEs are responsible for assessing the feasibility of the possible solution approaches and if all is well, the sponsor approves the selected solution approach. Stakeholder impact: there are different levels of impact that solutions have on stakeholders. All solutions need to be assessed as to the impact on all stakeholders. This means that the solution impact needs to be examined from the points of view of the full range of stakeholders such as the customer, domain SMEs, end users, vendors, and the organization as a whole. Solutions must be clearly defined and validated: clear consistent communications about solution design and implementation are important for success. The solution approach should be decided before defining the ultimate solution. If the Business Analyst does not know how he/she plans to create the new capabilities to achieve the business need, he/she cannot effectively define the solution scope. Once the most recent iteration of the solution scope approach has been defined, it needs to be written and communicated in a clear and consistent manner, so that what and how it is to be done and what it will achieve may be understood. This is one of the key responsibilities of the BA. Let us look into the solution approach diagram in the following slide.

5.14 Solution Scope Approach Diagram

The solution scope is one of those processes that may undergo a number of iterations as the information is developed. For that reason, the BA must ensure to properly number which iteration is current. The solution scope can also play an important role in helping to provide traceability. The process begins with the development of business needs. From there the Organizational gap analysis is done, to fully understand the current operational processes, and if those existing process and procedures can support the contemplated solutions. A solution approach is developed considering the assumptions and constraints found in elicitation and consensus. This preliminary solution approach is then run through a series of stakeholder and SME brainstorming sessions, to arrive at a consensus approach. This new approach is then checked for its economic feasibility, and whether or not it meets the constraints and goals of the company. Once validated, it is documented and passed on to the sponsor for sign off. Economic feasibility analysis is dealt with in the following slide.

5.15 Economic Feasibility Analysis Future Value

Estimated future value of a solution investment: answers the question “what will today’s investment be worth in the future?” The future value (FV) of money represents what an amount of money today will be worth in the future. The variables are the rate of return, and the number of periods in consideration – normally years. The formula is FV; future value is equal to the present value of the money in question times one, plus the rate of return times the power of n, which represents the number of periods. In the example, if it is estimated that the current investment needed for a solution would be $250,000; and the estimated rate of return needs to be at least 6percent, for a justification of the investment, and the time horizon for estimated to be an acceptable time frame; the future dollar return at the end of the three year period should be at least $297,754. If it is felt that this return is possible over the three year period (time horizon), then the solution would be considered financially feasible. So, any number over the $297,754 (hurdle) is a go for the solution. We will continue our discussion on economic feasibility analysis in the next slide.

5.16 Economic Feasibility Analysis Present Value

Estimated present value of an estimated future value of a solution investment: answers the question “what amount of investment today will be needed to yield a future amount?” Finding present value is the inverse of future value. For example, it is estimated that a solution may save a company $500,000, 3 years after implementation. Implementation is planned to take six months. The amount of money needed to make the investment, has to be calculated. So, future value (FV) of $500,000 is divided by (1+.06)³·? (pronounce as one plus point zero six to the power of three point five) where .06 is the discount rate and the exponent 3.5 is the time period in years. It works out that the present value today needed to invest to receive the benefits of about $92,245 ($500,000-$407,755). Is that return on the investment acceptable for the company? We will look into the answer in the next slide.

5.17 Return on Investment(ROI)

Return on investment: what will be the annual percentage return on the investment? Return/Investment x 100= Percent return (Pronounce as return divided by investment multiplied by hundred equals percent return) In the slide, it is seen that after the period has been completed, the solution would bring in an annual average return of 7.5 percent. While this is not earth shaking, this annualized return is better than investing in most low-risk investments. However, there is another step to help decide if this is a sound investment. That is time for investment breakeven. It is important to note that if the investment is not liquid then the formula changes. This is typical of a capital investment made by businesses. In this case the formula is: Investment returns-Original Investment ÷ Original Investment (pronounce as investment returns minus original investment divided by original investment) This means that there is no real positive ROI (abbreviate) until the original investment has been paid back. Let us understand investment breakeven in the next slide.

5.18 Investment Breakeven

Investment breakeven (payback): given a certain annual rate of return, how long will it take to payback the total investment amount? How long will it take to recover the original investment? For example, in 3.5 years $92,245 was recovered, or after the six months of installing the solution, $92,245/3 years which equals $30,748 per year was recovered in returns from the investment of $407,755. That means at that rate of return, it will take over 14 years in the present dollar rate to payback the original investment. This would not be a good investment. In other words, it would take almost 14 years to recover the investment. Most companies look for a payback of investment capital within 2 to five years. Opportunity costs are the loss of potential income that could have been made in higher yielding investments. We will move on to business case.

5.19 Business Case

The business case provides the justification for the project. The business case section of the enterprise analysis can change like the other important variables as needs, solutions, requirements, risks, constraints, and economic feasibility change. The business case is the narrative presentation or documentation, that describes the overall business objectives and measureable goals, that a solution is expected to deliver. To arrive at the final version of the business case, the business case and all of its elements must be validated to ensure that they meet the scrutiny of the stakeholders, sponsor, or any appointed decision making entity. The narrative of business case needs to cover the following points: Identify assumptions: are the assumptions credible and developed through consensus? Usually the business case will begin by identifying the assumptions. Some assumptions can be verified, while others may only be best estimates. However, there must be a clear correlation between assumptions, problems, solutions, and deliverables. Define measurable evaluation criteria: what are the benchmarks for success? While there is a tendency to speak of the benefits in general terms, there should be measureable ways to determine, if the benefits are real and tracking expectations. These evaluation metrics should be clearly defined. Sometimes, some benefits are hard to quantify but there are tools, such as surveys, that can approximate some marketing data to support the proposition. An example of a measureable evaluation criterion is: gross profit margins increase by 5percent due to the new purchasing procedures. Another example of a less objective measure is: customer service survey index increases by at least 5 points after the installation of the new sales follow-up procedures. Business value: what are the net benefits of a solution for the company? The business case should define the value of the solution deliverable, as it is depicted in the solution scope. Business value can be more than financial. It can be a part of the overall brand building and building customer equity. Normally, a business value supports the company goals and mission. Expected benefits or deliverables come from a full understanding of the underlying elements, and it is important to identify those key dependencies, and make sure they are being optimized to help realize the full potential of the benefits. Benefit dependencies: what are the risks and other variables that can affect the desired outcome? The benefits of the deliverables should be compared to the opportunity costs of investing in other projects, or not investing at all. In other words, the project is the best use for company equity, or taking on debt to finance the project. Compare the business case to the opportunity costs: what might be a better use of resources other than the project? There are financial opportunity costs and intangible opportunity costs. A tangible opportunity cost would be the lost profits from investing in buying another company rather than the cost of making changes to the company. These lost opportunities can be historically compared for the highest ROI. An intangible opportunity cost would be when a company decides not to undergo changes while competitors make the changes. The company might be seen as not keeping up with the times, or not interested enough to invest in its future. The case for going ahead with a project, selecting a competing project, investing in a higher ROI in a non-industry investment, or maintaining the status quo should be discussed in the business case. Let us summarize what we have learnt in the next slide.

5.20 Summary

This module starts by defining the needs of the company. The needs help define the requirements to remedy the solution to meet the need. Once the requirements are known, an analysis of the company’s capability to provide the requirements is undertaken. If the company cannot provide some of the requirements, then qualified vendors are solicited. The solution scope is a documented and detailed strategy of how the solutions to the needs will be designed, measured, and implemented. However, as more information becomes available, the solution scope, and its supporting documents like the requirements list will evolve. Risk analysis is made up of validating the assumptions and constraints on the solution scope as well as the consensus risks from stakeholders and SMEs. Once risks and constraints are known, solutions can be prioritized and a strategic approach to how to implement the solution scope can be developed. To assess the risks, a SWOT analysis is done and validated by stakeholders and SMEs. The next step is to do a feasibility study to make sure the cost-benefits, the ROI, and the promised deliverables are within the project constraints. Then the solution approach is determined. Finally, the business case is fully developed and presented to the company’s decision making process for approval before implementation. In the next module we will understand requirement analysis.

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  • PMP, PMI, PMBOK, CAPM, PgMP, PfMP, ACP, PBA, RMP, SP, and OPM3 are registered marks of the Project Management Institute, Inc.

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