Tag: Best Practices

Introduction to the 4 Pillars of Digital Transformation

Written by Frank Quintana on November 15, 2023. Posted in Articles.

In the wake of World War I, French Premier Georges Clemenceau advised the French people that “War is too important to be left to the generals”. Paraphrasing his words I would say that “Digital Transformation is too important to be left to the marketing and sales departments”- Why? Because they are infatuated with the client and it is right because it is their main objective and priorities.

While the customer is very important, I will say paramount, I believe the causes of so many pitfalls and failures in the implementation of DT (Digital Transformation) are the obsession of marketing and salespeople on the customer the hyper concentration in the customers disregarding what I believe are the foundation of DT: The Four Pillars of Digital Transformation.

Even before any consideration of the digital part (Software and Hardware) of the DT equation we need to take care of what I call the 4 pillars of Digital Transformation.

Culture
Process and Policies
Data
Security

They exist in a hierarchical cycle so while some overlapping is possible, the same that when you wear your shoes, you first need to put your socks on. In the four pillars, Culture comes first, then Processes, Data and Security.

Following the diagram of The Four Pillars of Digital Transformation:

For marketing and sales, a customer is an external agent, a person that buys the company’s goods (products and services) for the DT practitioner. The concepts should be broader, instead of customer we should think about USERS.

Please, do not read me wrong. The Sales and Marketing people are paramount for the success of your DT but are not the only ones, in my humble opinion. DT is a matter of life and death for your company and if the CEO and all the C-Level are not deeply involved in the DT projects the probability of success is null, zero, nada.

I am using data as a general term because what we call data is often confused with Information and Knowledge, other two important blocks of the ILC, as I explained in my article “Do we know what are Data, Information and Knowledge?” on this website.

In my other model, “The Intelligence Life Cycle” which I used to discover the AI limitations, I explained what Data, Information and Knowledge really are and created a model of the intelligence Life Cycle based on 4 axioms or postulates in the style of the ancient Greek mathematician Euclid’s. I am going to present the ILC and the Limitations of AI at the PMBA Conference in Orlando next year.

Data is not the New Oil as the hyper propaganda instigated by the media and some data scientists in search of fame, support and money claim, and as you can see from the above diagram, occupied a 3rd position in importance.

You can get more details by watching my 4 Pillars of the Digital Transformation at the Virtual BA and PM conference in Dec this year.

Do we understand what Data, Information, and Knowledge are?

Written by Frank Quintana on November 8, 2023. Posted in Articles.

“Data is everywhere, but it requires CONTEXT and accessibility to be useful…”

This compelling statement by Symphony Logic immediately caught my attention. It resonates with my model of “The Intelligence Life Cycle,” whose first axiom, or postulate, is “Data is measured in context”—a notion that I expanded upon with my second axiom, “Information is organized data with a purpose.”

At first glance, it might seem trivial, but currently, there’s significant confusion in the semantics, ontology, and taxonomy of the three terms that form the building blocks of Intelligence.

Data, Information, and Knowledge are often used interchangeably as though they are synonymous, but they’re not. This confusion compromises the quality and analysis of our data.

The Delphi study titled “Knowledge Map of Information Science,” conducted between 2003 and 2005 sought to explore the foundational elements of Information Science. 130 definitions of data, information, and knowledge are documented in this study. The international panel consisted of 57 leading scholars from 16 countries, representing (almost) all the major subfields and essential aspects of the field.

Working with 130 different definitions for terms as vital as DATA, INFORMATION, and KNOWLEDGE seems excessive, and rather than providing clarity, it obscures and leads to confusion.

Therefore, I took it upon myself to find or create simple yet accurate definitions for these pivotal terms using an axiomatic approach, similar to the one used by Euclid in his fundamentals of Geometry.

Axiom 1: Data are measured in context.

Axiom 2: Information is organized data with a purpose.

Axiom 3: Knowledge is the discovery of patterns and their relationships.

Axiom 4: Wisdom is the effective use of knowledge. As Professor Drucker put it, effectiveness is doing the right thing, as opposed to efficiency, which is doing things right.

Fortunately, I did not need to introduce a fifth axiom.

I applied these axioms to develop a model that I call The Intelligence Life Cycle, which has helped me identify the limitations of AI and numerous pitfalls in Big Data models and architectures. I presented my theory about the ILC in July 2023 at Nova Southeastern University in South Florida during a presentation titled “The Intelligence Life Cycle and the Limitations of AI” at the SQL Saturday event.

More recently, I also spoke at USF during DevFest to a select audience about the ILC and the Limitations of AI, and I introduced my other model, “The 4 Pillars of Digital Transformation.” Here, I argued that Data is not the new oil nor the first block of importance; instead, it is a third-level block in a hierarchy of importance, preceded by the Cultural and Procedures and Policies Pillars.

You can learn more about The Intelligence Life Cycle and Limitations of AI in my LinkedIn article.

The Unique Competing Space: A Framework for Evaluating the Competitive Landscape and Strategic Options

Written by Oluwakorede Asuni on October 25, 2023. Posted in Articles.

The Unique Competing Space (UCS) is a macro-level strategy visualisation framework, which enables teams to understand the broader scope of customer needs, evaluate how well their offerings are meeting customer needs, and evaluate how well their competition is also meeting the needs.

The UCS can easily be one of the tools in a firm or team’s arsenal for probing and situating “…the firm’s strategic position in its greater competitive context”^[1].

First introduced by George Tovstiga in their book Strategy in Practice: A Practitioner’s Guide to Strategic Thinking. The framework is often presented as a venn diagram consisting of three overlapping individual circles that overlap to provide a view of the firm or team’s competitive space unique to them, the opportunities open to them and the challenges on offer by the competition(s).

First each circle.

Figure: Components of the UCS framework

Customer needs:

Customers are the reasons any business is in business. They are the stakeholders whom businesses seek to serve and create value for. It is in meeting their stated, or, observed, or perceived needs that businesses indeed create value for these stakeholders, who in turn pay for the goods and or services the business has provided them. When or if satisfied, these stakeholders return to make repeat purchases as their needs may dictate and the business’ bouquet of unique offerings, prices, and customer experience may afford.

The firm’s offerings:

These are individual or collective products or services or both, that a business offers to its customers as a way of meeting the customers’ needs.

These offerings are often dictated by the alignment of the firm’s capabilities, enabling regulatory, social and cultural environments, and noted customer needs.

The competition’s offering:

Rarely is it the case that there isn’t an alternative or substitute product or service that can meet a customer’s needs other than the one offered by any one firm. This collection of offerings from one or more competing entities servicing the same market or market vertical or segment combines to make up the competitors’ offerings.

And now to the Unique Competing Space:

Figure2: The UCS framework

The UCS emerges when the customer needs overlap with the firm’s offering and, the competition’s offerings where those exist, are accounted for.

The portion of the Venn diagram where the customers’ needs uniquely overlap with the firm’s offerings is the firm’s UCS.

A firm’s strategic objective could be:

to defend that space from shrinking – if it is large enough or
to grow that space if isn’t large enough and there are potential benefits to the firm for growing the UCS or
To exit the UCS completely if it is shrinking and there isn’t any value to the business for defending or growing the space.

Using the UCS:

Figure 3: The UCS framework with conceptual labels

To use the UCS, it may be best for teams to gather around a large whiteboard with sticky notes (or an electronic equivalent – think Miro, Mural etc.) and then create the Venn diagram representation of the customers’ needs, the firm’s offerings or capabilities and the competition’s offerings.

On the sticky notes write down:

All known customer needs that both the firm and their competitors are not currently meeting: place these on the part of the Customer needs component of the UCS that isn’t overlapping with the firm’s offering or the competitor’s offerings. This portion of Figure 3 is labelled C1.
All known customer needs that the firm is currently meeting: place these on the overlapping section of Customer needs and Firm offering components of the UCS labelled C3 in Figure 3.
All known customer needs that the firm is currently addressing and that also have alternative or substitute offerings from competitors: place these on the overlapping section of Customer needs, the Firm’s offerings and Competitor offerings components of the UCS labelled C5 in Figure 3.
All known customer needs that are not being met by the firm, but are being met by the competition: place these on the overlapping section of Customer needs and Competitor offerings components of the UCS – labelled C2 in Figure 3.
All firm’s offerings (and available capabilities) that may or may not overlap with those of the competitor but which are not currently being utilised to meet customer needs: and place these on the non-overlapping section of the Firm’s offerings component of the UCS – labelled A2 in figure 3.
All of the known offerings from competitors which isn’t currently offered by the firm or meeting any known customer needs: place this in the non-overlapping portion of the Competitor’s offering component of the UCS, labelled A2 in Figure 3.
All known competitor offerings which are also offered by the firm, but meet no known need of the customers: place this in the portion of the UCS framework labelled A1, where the Competitor’s offering overlaps the firm’s offering but both are not known to be meeting any known customer needs.

What to do with the information:

In general, the UCS helps the firm see the size of their UCS relative to that of the competition(s), and can provide clear inputs into the strategic choices the firm makes.

In some cases, these options include but are not limited to:

Defend the UCS
Customers often end up churning for one reason or the other, and the goal of every business should be to retain customers for as long as they can manage and also attract new customers. When customers churn, it could only mean that the UCS shrinks one churned customer after the other, with the implication, if unarrested, of a negative impact on a business’ bottom line.So how does a firm keep customers? Listen to customers.
Observe what they love most about your products and your competition’s offerings. Ask what can come along and replace your firm’s offerings in your customer’s mind (clue – look at those things already replacing your firm’s offerings).Lock customers in (though customers protest malicious lock-ins, however, you are better off locking customers in by ensuring your offering is the most delightful to the customer). Apple had no business making watches, right? But it risks losing some iPhone users to Android OEMs who have leapfrogged the smartwatch economy and were building ecosystems between their watches and mobile devices. By introducing the Apple Watch, Apple figured out a way to lock customers into their ecosystem, whilst selling more to the same customers (people buy a phone once every two years on the average, and Apple figured out to sell to the same customers a second device which relies on the first one within the same or adjacent sales circle – both defending and growing their UCS in one fell swoop.
Grow the firm’s UCS
Growing the UCS could require selling more to the same customers, selling to more customers or both. Additionally, it could also imply meeting customers needs that were not previously a focus for the firm but that has a great potential for cementing the existing relationship between your firm and customers. You may recall that during COVID, UberEats which was a predominantly food delivery business expanded to also deliver medicines and small packages – both of which have now become additional sources of income for UBER and in a way, has expanded the UCS for Uber.

Closing notes

Whilst most strategy teams and firms understand that having a current bird’s eye view of the competitive landscape in which they compete, the UCS may be one easy-to-use framework for doing so and carrying all stakeholders within the business along for the ride.

^[1] Chapter 5 Strategic Analysis II: High-Level Sense Making: https://www.oreilly.com/library/view/strategy-in-practice/9781118519271/chapter05.html (accessed: 18/09/2023)

Always Ask Why: A Practical Example

Written by Adrian Reed on October 18, 2023. Posted in Articles.

I don’t know about you, but I find that I can’t turn my business analysis brain off. I find myself wanting to improve just about every process that I experience, and I often find myself conducting business analysis on the processes that I experience as a customer.

This happened to me recently when a company asked me for a physical ‘wet signature’ on a form. This wouldn’t be unusual if I was in the same physical location as the person requesting the signature, but I wasn’t—they were literally going to email me a PDF form for me to print out, sign, scan in and email back. Even though Adobe PDF has a signature function (and I have a graphics tablet, so I can literally do the same signature electronically), this wasn’t good enough. It had to be old-school pen on paper. I eventually complied, deciding that I’d rationalize it by calling the process “retro” and “vintage”…

Badly “Improved” Processes Might Be MORE Risky:

In situations like this, I always want to ask ‘why’ to understand the underlying reasons that things work in a particular way. In this case, if we were to ask why I suspect the underlying answer would be that an old paper process had been replaced, with each step being recreated electronically. In this context, ultimately, a signature acts as a way of authorizing something to happen.

You can almost imagine the conversation with a group of Subject Matter Experts (SMEs). One of them is adamant that we couldn’t possibly accept electronic signatures. The legal & compliance SME says that electronic signatures are completely valid, but there is reluctance from other stakeholders for other reasons. Perhaps there’s a perception that by getting a physical signature there is less risk… or perhaps there are other reservations. Some might be genuine, others might be founded on unsubstantiated fears or assumptions.

Left unchecked, there is a risk that ‘we’ll do things the way we’ve always done them, just in an electronic format’. This can lead to the worst of both worlds where risk is increased and customers are inconvenienced:

Alternation: I could have altered the PDF before I printed it and signed it (it’s relatively easy to edit a PDF). Unless they check it word-for-word they’ll never know, and since it’s scanned, auto-comparing will be difficult.
Verification: They didn’t actually have my signature on file. If they weren’t comparing it against anything, then really what is the point? I could have scrawled any old signature and it probably would have been accepted.
Security: Unencrypted email isn’t a secure transmission format. Even though it was relatively low-risk mundane information, it’s liable to interception en route. Plus emails can be spoofed so there’s a risk of a customer being impersonated.
Scanners: How many customers have scanners? What about people who just take photos on their phone, will that be sufficient?

These are just four examples, but they illustrate a key point: The process probably isn’t achieving what it actually set out to do. Yes, you are getting a physical signature. But if the aim is to get a secure, authenticated nonreputable authorisation for something… then the process is failing!

Always Ask Why: “Good” Questions Make A Difference

The key to avoiding situations like this is to ask why, in varied ways, lots of times. Do this and you’ll get to the core purpose of a process, or process step. In their book “Mastering the Requirements Process: Getting The Requirements Right”, James & Suzanne Robertson call this “The Essence”. In this example ‘getting physical signature’ might be the current step, but the essence is ‘authorize transaction’ (or whatever).A key point here is that if you understand the essence, you can question any underlying assumptions or business rules. It’s possible to ask “how else might we be able to do this”. If the aim is to ‘authorize transaction’ then there are countless other ways of doing this that are more secure and verifiable than a scanned PDF in an email. You could even use the Brown Cow model to question any underlying assumptions that have been made.

Asking these questions will help encourage stakeholders to think about the true essence of the process, and about how it might change in the future. A half hour discussion now might save tens of thousands of processing time later, once the process is implemented.

This is yet another area where BAs add significant value by helping to ensure things improve in a way that maximizes the benefits that will be delivered both to the organization, and to its customers.

Building a Business Analysis Center of Excellence: A Blueprint for Success

Written by Abhi Puri on September 21, 2023. Posted in Articles.

A Business Analysis Center of Excellence (BACoE) is a dynamic and strategic organizational asset that can significantly enhance the effectiveness and efficiency of business analysis processes. Often referred to as a Competency Development Center, a BACoE serves as a hub for collaboration, best practice management, and competency development in a specific functional area. This article explores the key elements of establishing a BACoE and its pivotal role in increasing business success.

Defining a Business Analysis Center of Excellence

A BACoE is more than just a department; it’s an organization that promotes collaboration, manages best practices, and elevates the competency level within a specific domain. Whether established as a virtual entity integrated into the broader organizational structure or a distinct group with a dedicated budget and authority, a BACoE can be staffed with either full-time or part-time members.

Creating a BACoE signifies an organization’s move toward higher organizational maturity, and as maturity increases, the risk of project failures tends to decrease.

Responsibilities of the BACoE

One of the primary responsibilities of a BACoE is to ensure consistent quality in business analysis artifacts throughout the organization. Variations in the quality and format of these artifacts can lead to project risks. The BACoE takes the lead in standardizing the expected quality, format, and presentation of artifacts, initially through training and artifact templates. Additionally, it promotes the use of standardized tools among business analysts and provides support for projects to maintain consistent professionalism.

Functions of a Business Analysis Center of Excellence

A well-established BACoE should provide support and oversight in several critical areas:

Tactical Project Assistance: The BACoE offers assistance to projects through project coaches, mentors, and staff. This includes planning business analysis activities at the project’s initiation phase, ensuring appropriate resources and approaches are in place, and providing resources as needed.

Methodology: The BACoE defines standard approaches for business analysis planning, monitoring, and execution. A methodology aligned with industry best practices, such as the IIBA®’s Business Analysis Body of Knowledge® (BABOK®), serves as a foundation for training and practice within the organization.

Best Practices: The BACoE curates a collection of company and industry-best practices for business analysis and artifact creation. This includes standards for use cases, data models, process models, and other documentation types.

Learning and Professional Development: It manages a competency model, training curricula, certifications, assessments, and practices for knowledge sharing. This includes the maintenance of knowledge repositories, discussion forums, and collaborative tools like “wikis.”

Tool Standards: The BACoE provides guidance on tools essential for preparing high-quality, standardized business analysis artifacts, including requirements management and visual modeling tools. It also maintains a repository of templates and guides for artifact preparation.

Forming a Business Analysis Center of Excellence

The establishment of a BACoE involves a series of steps:

Assessment of Current State: Evaluate the organization’s current business analysis maturity by assessing the skills of business analysts and gathering feedback from project managers.

Determination of Desired Future State: Define the level of maturity needed to support projects effectively.

Analysis of Gaps: Identify gaps between the current and desired states.

Specification of Desired Level of Maturity: Clearly outline the competency model and practices required to bridge the gaps.

Development of Competency Model: Create a competency model that aligns with the organization’s needs and industry best practices.

Dissemination of Improvements: Implement strategies to disseminate competency improvements through training, mentoring, and internal resources.

Maintenance and Continuous Enhancement: Regularly assess and enhance competencies through retrospectives, surveys, and ongoing training.