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Systems and processes are integral to business today but are still difficult to implement successfully. Successful processes and systems are those that meet the business requirements. Businesses utilise these technological and intellectual assets to create value for themselves.
Performing analysis upfront ensures the business requirements are met and ensures the success of a project/integration, while also saving costs over the lifespan of the system.
Although analysis is intuitively necessary, it can still be difficult to justify because it is a means to an end rather than an end in itself. Stakeholders are hesitant to invest in analysis as there is a risk that the project will be terminated after the analysis phase.
This could be due to a variety of possible reasons and lead to the perception that the effort and cost was wasted. Such an early termination is precisely why analysis should be carried out - to prevent spending much more on a poor quality solution that will not be used effectively. This is the case for analysis of the business needs and proof that it will reduce the risk of failure and the total cost of the solution.
The objective of good business analysis is to ensure that businesses realise the full potential of their project initiatives. When optimising processes or implementing systems, the associated business cases will set out the cost versus benefit analysis with the benefit being that which the business is trying to maximise. The obvious issue that arises is whether, by investing in analysis, the business is raising the costs in greater proportion than it is raising the benefits.
Ian Munro, BSG, Head of Business Solutions, JHB, says that while you may potentially be raising the costs in the short-term, or for the duration of the project, you are, in effect, raising the benefits over the longer-term of the business so that the benefits will outweigh the costs. Munro says the benefits of a system which is fit for purpose and thus supports the fundamental drivers of efficiency, improved customer service, cost containment, etc, are tangible, while maintaining a system which has bugs or which is not fit for purpose has a significantly higher cost
posted @ Wednesday, May 28, 2008 1:28 AM by nyll
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