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Business Analysis Print
Written by Sergei Kostigoff   
Friday, 14 March 2008

General

informationPurpose of this diagram set is to provide the tools for Business Analysis Process (which is a part of Feasibility Study Process).
informationScope: Some steps to be taken for the Business Analysis and some tools to make it possible are described. Tools are given in the form of diagrams with some comments.
acceptStatus: Draft release.
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Glossary and Abbreviations

  • GL - General Ledger
  • FA - Fixed Assets
  • R-A-G - Red-Amber-Green

Business Analysis

The following diagrams are shown and at certian level are commented below:

  • Applications:: Data Flow
  • Applications:: Applications Map
  • Applications:: Business Function Mapping
  • Applications:: Inadequacies Assessment

Applications:: Data Flow

When you are doing Business Analysis, there are few key issues:

  • It is necessary to find out, how the Payroll accounting is integrated with General Ledger;
  • It is necessary to find our how the Fixed Assets (FA) accounting is integrated with General Ledger;
  • Does interface exists between General Ledger (GL) and Business Applications and if yes,
    • is the Interface bi-directional
  • Does Workflow Automation applications exists, and if yes
    • does interface exists between GL and Workflow Automation, and if yes
      • is the Interface bi-directional


By answering to the above questions you actually will prepare report of the current situation with the Business Applications.

Figure 1 shows generic template of the Data Flow. The template should be adopted for the given situation as appropriate.

appicaltions: data flows

Fig.1: Applications:: Data Flow

After you will fill the template with names of the systems / applications used by the Company and show existing interfaces with the General Ledger you will create Data Flow Diagram for the Company you are working with.

Based on the analysis of the Data Flows you may then set priorities, choose (or replace) applications for the functions, propose and implement controls and interfaces.

Applications:: Applications Map

To simplify your work as a first step you can map all Business Applications to the following list:

  • Front Office;
  • Middle Office and Finance;
  • Back Office and Reporting;
  • External Links.

Figure 2 shows the example of such applications mapping. You may change it according to you applications and/ or business units.

applications: applications map
Fig.2: Applications:: Applications Map

After you will list all the existing systems and document interfaces between them - you may show the resulting map to Company Management, and you will prove that you do understand Company Business Flows and Applications.

As a side effect, you will really understand Company Business, and may explain it to Development Team. As another side effect, you will see which interfaces are missing or needs to be improved.

Applications:: Business Function Mapping

If you will map business functions to existing systems using a table similar to shown on Figure 3, you may find Primary and Derivative systems Company using. As well you will be able to show links including information transfer between business units and functions.

Applications: Business Functions Mapping
Fig.3: Applications:: Business Functions Mapping

Again, such a map may serve as a tool for the analysis. You may discover that Business Application and/ or Accounting databases does not provide necessary analysis or/ and can not be customized as required, and users have to write their own macros on Excel or Access (or whatever generic office applications). As a next step you may find out that these macros are not documented nor maintained. As a next step you may discover that such approach may cause problems if user leaves Company. And finally you may explain why it is necessary to replace or upgrade existing Business Application or Accounting ssytem.

You may discover a lot of interesting things using quite simple tools.

Applications:: Inadequacies Assessment

To estimate quality of the particular system, it is fashion at present time to use so-called "magic quadrant" (will not shown). "Magic Quadrant" is widely used in marketing slides, but its usage as a tool looks a bit inappropriate from my personal point of view.

If you will instead use Red-Amber-Green (R-A-G) diagram shown on Figure 4 you get:

inadequacies assessment
Fig.4: Applications:: Inadequacies Assessment

  • better analysis tool;
  • non-linear logic usage instead of 2-level or 3-level used in so-called "magic quadrant";
  • tangential dependencies usage between adequacies and system serve readiness, which is not perfect as well, but much closer to reality.
As a result, your assesment of the systems and applications will be better than if you will use so-called "magic quadrant", (will not shown) which is linear simplified approximation of R-A-G diagram (Fig.4).

Downloads

addDiagrams from the above Diagram Set could be downloaded in Zip format here:
 compressed icon business_analysis_dia.zip
informationDiagrams are created in Dia format. For Unix/Linux users it is a standard diagram drawing software. Windows users can obtain legal GPL-ed copy of Dia from http://dia-installer.de/index_en.html

 

Your Comments

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Regards,
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Sergei

Last Updated ( Sunday, 16 March 2008 )
 
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