Business Analysis
How many times have you heard variations of this statement? Perhaps the person making this statement can quantify it. He or she can show you how a process is failing, the amount of effort needed to do simple things, how a feature is unusable, or how the lack controls produce inconsistent results. Indeed, this person may have already come up with a solution that solves this problem. If others in the organization share the opinion, then problem is recognized, and it merits resolution. In other circumstances, we might find that others in the organization have different views on the problem, and some may not think it is a problem at all. As we communicate with different people, it will rapidly become apparent that we need some representation of the problem. This representation can be used to communicate the problem, establish different perspectives, and also to come up with outline different solutions.
2 Business Analysis
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"We need a better system."
How many times have you heard variations of this statement? Perhaps the person making this statement can quantify it. He or she can show you how a process is failing, the amount of effort needed to do simple things, how a feature is unusable, or how the lack controls produce inconsistent results. Indeed, this person may have already come up with a solution that solves this problem. If others in the organization share the opinion, then problem is recognized, and it merits resolution. In other circumstances, we might find that others in the organization have different views on the problem, and some may not think it is a problem at all. As we communicate with different people, it will rapidly become apparent that we need some representation of the problem. This representation can be used to communicate the problem, establish different perspectives, and also to come up with outline different solutions.
This section provides guidelines for making representations of business information. These representations are then used to derive business systems realized through optimal solution choices. The challenge is to create a rationalization around what we consider optimal, and to create a system that adds value to the business as a whole. This isn't as easy as it sounds. Let's consider the example of a warehouse.
Let's consider a warehouse management system built to support an online store. Customers shop online, make their choices, and then order some items. The order is then fulfilled by the warehouse, which dispatches the items with a logistics provider to the customer. Customers would like their items delivered quickly and in perfect condition. The management would like the cost of managing the warehouse to be as low as possible. The operator who works in the warehouse would like to work efficiently. The warehouse manager would like to standardize tasks so that it is easier to manage the high turnover of operators. The logistics provider would like the warehouse to consolidate all of their shipments to similar destinations. Finding an optimal solution means finding the optimal balance between these perspectives, some of which are not compatible with each other.
Why do any analysis? Isn't there a one
size fits all solution?
But surely, warehouses are warehouses?
Isn't there an optimal way for all warehouses to operate? Actually,
there are several reference models on how a warehouse should operate.
Massively simplified, the functions of a warehouse are to store goods
upon arrival, and disptach goods when demanded. Yet warehouses can
have several types of storage, are usually optimized for variance
(the number of different types of goods managed in the warehouse),
volume (the amount of goods managed in the warehouse), the market
value of the goods, and stability of the goods (the goods may be
flammable, perishable, or fragile). For instance, if a warehouse is
being used to manage shipments of a few diamonds each month, the
requirement is for a highly-secure and compact warehouse staffed by a
few people. On the other hand, if the warehouse is being used to
manage shipments for a large supermarket chain, then the requirement
is for a large warehouse staffed by a lot of people with
relatively-low security.
Creating business representations
provide a foundation for ensuring that all parties within an
organization are on the same page. A decision-making process to
select the optimal solution would require an assessment of the
business problem, and this is how business representations should be
used. The following are some of the business representations covered
in this section.
- An explanation of the business situation,
illustrating the circumstances in which the problem occurs, and
situation's consequences (problem statement)
- A representation of
the processes involving the problem
- A representation of the
things (people, products, infrastructure, equipment, etc.) that are
affected by the problem
Proposed solutions can be realized completely by a human agent, through a collaboration between a human agent and an information system, or completely by an information system. A proposed solution can either be part of an existing system, or it could result in a completely new system. In either of these cases, developing a business representation will help realizing the optimal solution. The next section, System Analysis, provides guidelines for outlining these solutions.
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