IIBA GLOBAL THOUGHT LEADERSHIP SERIES

DIGITAL BUSINESS ANALYSIS - CROSSING THE CHASM FROM TRADITIONAL TO DIGITAL WORLD - MARCH 2018

IIBA GLOBAL THOUGHT LEADERSHIP SERIES



Digital is the future of business. Therefore, it will be the future of business analysis. It will alter the way industries and enterprises will function. It will alter the way business analysts work in the areas of business analysis, product management, business process management, data analysis, and business architecture. We will also see a blurring of the lines of delineation of the professions. We will see more specialization and a substantial increase in the way that we all will operate and collaborate in teams. Having said this, digital still builds on the foundations that all of these professions have established in their bodies of knowledge. Not that what we have is suffi cient, it will need to evolve with the demands in the marketplace for digital.

This paper is from the IIBA Global Thought Leadership initiative. It clarifi es what ‘digital’ means in the fi rst place. It frames the area of digital as not just a technology ‘thing’, but as an approach, which starts with customer focus. This paper provides a perspective to evaluate whether a company is a digital company. It tries to outline some of the major areas we see impacted and, more specifi cally, how digital impacts business analysis as a discipline and as a profession. It also provides a practical roadmap for organizations and business analysts to cross the chasm into the digital world.

This paper is the fi rst in a series about digital. IIBA’s Global Thought Leadership program will publish a series of papers with an intent to educate business analysis professionals on digital, deep enough to know what possibilities it offers, evaluate its utility, applicability and benefi ts in specifi c business situations. Future papers will also evaluate how requirements will need to be elicited, analyzed, and documented for a solution implemented in the digital space.

IIBA® holds itself to its core purpose of “uniting a community of professionals to create better business outcomes”. We will continue to drive towards that purpose in the digital world and remain focused on the business outcomes, while adapting to the challenges and the opportunities, which digital brings. We will actively participate, we will collaborate, and we will lead where appropriate in the areas to extend the profession and create greater career opportunities for our stakeholders.

IIBA, President & CEO

CEO’s MESSAGE

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Ken FulmerIIBA, President & CEO



Executive SummaryThe future is “Now”. “Now” is Digital.

Unlike popular perception, digital is not just about technology. Digital is about disrupting traditional business models, which place the business at the centre of attention. Digital is about creating brand-new business models by placing the customer at the centre of attention, creating processes that offer incredible customer experiences enabled by technology. In the digital world, the gap between business and technology is blurring. Technology drives businesses in the digital world by enabling businesses to offer better value propositions to their customers.

The worrying question is whether business analysis will remain relevant in a world where digital strategy is the key to business strategy. And if so, what’s the “New Normal” in business analysis that will help business analysts be successful in the digital world?

“Digital is about creating brand-new business models by placing the customer

at the centre of attention, creating processes that offer incredible customer

experiences enabled by technology.”

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• The core of business analysis will remain the same in the digital world. The knowledge areas, tasks and competencies as described in the of BABOK®of BABOK®of BABOK Guide will continue to remain relevant, and in fact, are going to be even more critical in the digital world.

• The digital world will expect the business in general and specifi cally business analysts to adopt an agile mindset. This requires a business analyst to develop a notion of a product rather than a an agile mindset. This requires a business analyst to develop a notion of a product rather than a project. Business analysts must adopt a minimum viable product (MVP) approach.project. Business analysts must adopt a minimum viable product (MVP) approach.

Here are highlights of the “New Normal” for Business Analysis:



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• Some of the best practices, which didn’t matter even if they weren’t applied in the traditional business analysis world, are going to be baseline practices for a business analyst in the digital world. Strategic thinking, customer centricity, empathy, design thinking, agility, technology, and continuous stakeholder engagement are now foundational best practices without which business analysts simply cannot succeed in the digital world.

• Business processes will play an absolutely critical role in the digital world. In the traditional world, business processes were centred around business stakeholders (inside out view). In the digital world, they are centred around business customers (outside in view). The traditional business analysis world required incremental changes to business processes with an intention to automate them. In the digital world, business processes must be reimagined with an intention to deliver exceptional customer experience.

• In the world where technology drives businesses, business analysts cannot afford to remain distant from technology. Business analysts must learn technology deep enough to know the possibilities offered by the technology, evaluate its utility, applicability and benefi ts in specifi c business situations, and to understand how business, stakeholder and solution requirements need to be elicited, analyzed and documented based on the technology chosen to implement a solution for a business situation.

• Going by the vastness and varieties of technologies that are emerging, business analysis will go the specialization way. No one BA would be able to deliver end-to-end solutions in the digital world. It’s the combination of business analysis specializations that will help deliver the desired customer experience.

Application of an effective business analysis mindset and best practices in the digital world is ensuring the success for businesses to adopt the digital wave.



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The Future is NowPaytm is a unicorn startup in India. It is a $7 billion US mobile wallet company. No, wait! Paytm was a mobile wallet company, but now they also are offi cially a retail bank (a Payments Bank to be precise). So Paytm is a bank. But, no…wait! They’re also an e-commerce company selling everything from movie tickets to gym equipment in their Paytm mall via their mobile app and website. They compete with Amazon. So, Paytm is a mobile wallet, a bank, and an e-commerce marketplace. But hold on...there’s more.

Recently, Paytm bought a majority stake by merging two hyper-local marketplace companies called Little Internet and Nearbuy. So, Paytm is also a marketplace for iOS, Android, and Windows Phone that serves up deals from merchants across a range of verticals, including restaurants, movies, hotels, salons, gyms, and spas.

Why would Paytm get into such diverse businesses? Is core-competence a concept past its lifetime? Well, if we think about it, Paytm has stuck to their core-competence. They intend to become the go-to place when people wish to pay for their purchases. Paytm is simply converging all related businesses that will help them become the leader in the payments space.

The following two-minute video, masterfully scripted by DELL-EMC, is another excellent example of how a company in the auto insurance space might synergize multiple, seemingly diverse business domains, yet retain their core-competence.

The scenarios described in the video might seem futuristic, but they are not. This is now. The future is now!

( https://www.youtube.com/watch?v=SmGRBoam1aA )

“Now” is digital. Paytm is a digital company. The insurance fi rm in the video is also a digital company. Uber, Lemonade Insurance, Airbnb, and almost every startup these days are digital companies. The behemoths like Walmart, Target, AIG, ING, GE, with no choice anymore, are all trying to reinvent themselves into a digital company. Even as per Forrester’s 2018 Predictions1 , rising customer expectations are forcing companies to go digital and deliver individualized experiences at scale and operate at the speed of the market.



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Many assume that ‘digital’ is the name given to a set of emerging technologies. They say digital is a solution that resides on the cloud, provides mobility, incorporates artifi cial intelligence, or robotic process automation, blockchain, virtual reality, and so on. It is like saying that a Bentley or a Lamborghini is a vehicle that offers extraordinary torque, or inbuilt GPS, or voice command sensors. These statements are all true, but a Bentley is much more than an amalgamation of technologies. Similarly, while it is true that digital is all of those technologies, it is not just that.

Businesses that have achieved their digital vision are those that have their business model designed at the intersection of two critical elements: Customer Experience and Technology.

1. Customer ExperienceZipcar is a car-sharing startup in the US that allows customers to rent cars on an hourly basis. Zipcar disrupted the obvious competition, the existing rental car companies. More recently, Zipcar managed to counter the biggest competition for all rental car companies – car ownership. How did Zipcar manage this? And also force the incumbents to follow-suit?

You see, Zipcar asked a question that even customers weren’t asking themselves – what do customers really want? The incumbents, even if they did ask this question, found the answer stuck inside their ‘world’ – better cars to rent, cheaper rentals, closer locations, and so on. Zipcar discovered a critical need that customers really wanted shorter rent-cycles and a frictionless customer experience. Zipcar offered them hourly rentals and took-over the responsibility of fuel and insurance. Zipcar thought about every customer touchpoint: how Zipcar thought about every customer touchpoint: how customers will fi nd their car, how they will lock and customers will fi nd their car, how they will lock and unlock it, how they will fi ll-up if the fuel goes low, where unlock it, how they will fi ll-up if the fuel goes low, where they will collect and drop off the car, and while thinking about solutions for all of these needs, they will collect and drop off the car, and while thinking about solutions for all of these needs, Zipcar ensured that their customers will fi nd the experience a breeze. Zipcar ensured that their customers will fi nd the experience a breeze.

Demystifying ‘DIGITAL’What is digital, anyway? Was the world not already digital since the advent of automation? Is digital simply automation of business processes using web technologies? People are confused about what digital means.

Well, let’s try to address that right away.



The interesting aspect here is that customers were not even actively looking for the facilities that Zipcar provided. The incumbents assumed that the customers only wanted what they were already getting. They designed their business processes with their business at the centre of their focus and worked on making their business processes more effi cient. To them, customer experience probably meant adding a water station in their lobby to make customers comfortable while they wait in line to rent their car, reducing the wait time, and so on; just incremental adjustments to their established business processes, not complete re-imagination. Customers, too, voluntarily ‘succumbed’ to their established business processes.

Zipcar reimagined their entire business model. They eliminated the need for customers to wait in any kind of line. They built a mobile app instead. They removed the need for customers to purchase insurance separately. They built the premium into their pricing plans. They eliminated the need to collect the car keys from an offi ce. They designed a way for the car keys to stay inside the car and use the mobile app or a Zipcard to lock and unlock the car. Zipcar placed customers at the centre of their attention, reimagined their business processes, and demonstrated to the customer what is possible.

Lemonade is not just a drink anymore. Lemonade is a start-up disrupting the property and casualty insurance market. Imagine the current process for buying insurance. It involves paperwork and intermediaries and is time-consuming. The claims process is another lengthy and unpleasant journey for customers. But, customers voluntarily ‘succumb’ to it, because they did not have any other option. The best that the incumbents are doing is bringing ‘automation’ to reduce the process time. But there is no real ‘change’ to the customer’s experience.

Lemonade reimagined the insurance space. They asked the questions that customers were not even thinking about. Lemonade designed business processes around the customer. Lemonade has zero-paperwork and they settle claims in a matter of seconds.

Netfl ix has transformed the whole game of entertainment and disrupted the TV and movie businesses. Reed Hastings, the CEO of Netfl ix, has gone on record to say that “Netfl ix is open to businesses. Reed Hastings, the CEO of Netfl ix, has gone on record to say that “Netfl ix is open to supporting theaters, but their subscribers deserve to watch Netfl ix original movies fi rst.” Imagine supporting theaters, but their subscribers deserve to watch Netfl ix original movies fi rst.” Imagine their courage to take head-on the established eco-system. The most recent Will Smith starrer their courage to take head-on the established eco-system. The most recent Will Smith starrer

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“Zipcar placed customers at the centre of their attention, reimagined their business

processes, and demonstrated to the customer what is possible.”



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‘Bright’ was only released on Netfl ix - not in theaters. The reason why they can confi dently do this is because Netfl ix’s entire business model rests completely on their sharp grasp of their customers experience, i.e. to be able to watch the best movies and TV series streamed to any device in the best quality possible on that device, anytime, anywhere.

Per Gartner2 , “Renovating the customer experience is a digital priority. The practical digital business sees customer experience innovation as the next frontier, and half of all consumer goods product investments are likely to be directed toward improving the customer experience”.

Ken Fulmer, President and CEO, IIBA mentions in his discussion paper titled “What does it mean to be Digital?”3 that the focal point switches from a model of the company and interfaces, to a model of the customer and the touchpoints, and integrating that experience. The key to delivering this experience is the ‘Outside In’ thinking that surrounds the ‘Customer’.

2. Technology Advancements in technology have made digital business possible. Digital business uses technology to create business processes with the primary intention of delivering a superior customer experience. More importantly, it is not one technology that drives the customer experience, it is a set of technologies being brought together to deliver a greater customer experience.

There is no way that Zipcar can do business without the use of technology. The founders of Zipcar are techies. Underlying Zipcar’s business model that delivers superior CX is the heart of their business – technology. Zipcar’s proprietary technology is a “black box” that sits in every car and connects to the car’s ignition, the locking mechanism and serial data that is put out by the car. The black box connects to the servers via GSM GPRS tech (mobility). The customers conduct business with Zipcar using their mobile device. RFID technology built into the black box is used to recognize the customer. Analytics technology is used to balance the demand for cars to their supply in various locations of a given city. The whole infrastructure runs on the cloud.

The heart of Lemonade is the Artifi cial Intelligence bot (which they fondly call AI Jim), which The heart of Lemonade is the Artifi cial Intelligence bot (which they fondly call AI Jim), which does the underwriting and the claims processing using powerful algorithms for fraud detection. does the underwriting and the claims processing using powerful algorithms for fraud detection. The entire business is conducted via mobile apps.The entire business is conducted via mobile apps.

Netfl ix operates its own global network of storage servers (called content delivery network) Netfl ix operates its own global network of storage servers (called content delivery network) that cache content close to where it will be viewed to optimize the bandwidth costs and make that cache content close to where it will be viewed to optimize the bandwidth costs and make

“In the digital world, customer experience is no longer just talk. The fi rst element of digital is single-minded

pursuit of superior customer experience.”



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it easier to scale the service over a wide area. Netfl ix uses analytics to predict what kind of content people might want to watch, and pre-populates appropriate servers with such content, thus reducing bandwidth use in peak hours. Netfl ix uses AWS cloud infrastructure for tasks like running its website and recommendations engine, which incidentally depends upon big data analytics. So what kind of a company is Netfl ix? Is it a technology company? Or is it a media entertainment company? Well, it’s both, isn’t it?

Likewise, Uber, Airbnb, Amazon and all the new age companies: Are they technology companies or behemoths in their cab, hotel and e-commerce industries? Or are they both? Innovation in any business domain is no longer possible without fi rst acknowledging the role of technology. Today, a confl uence of technologies creates a customer-centric business process. CEOs of Citigroup and ING have publicly acknowledged that they are “technology companies with a banking license”.

1. Artifi cial Intelligence and Machine Learning (AI/ML) – capability built into computers to learn, think, and make decisions

2. Wireless – includes all technology for wireless communication like RFID, ultra-high frequency sound waves, Bluetooth, GPRS, 3G, 4G, 5G, and so on

3. Mobile – technology that enables powerful computing capability to be bundled into handheld devices

4. Robotic Process Automation – technology that can automate mundane, repeatable human tasks

5. Blockchain – distributed ledger technology

6. Virtual / Augmented Reality – technology to provide real experience in theVirtual / Augmented Reality – technology to provide real experience in theVirtual / Augmented Realityvirtual world

7. Analytics and Big Data – technology that enables data driven decision making

8. 3D Printing – making custom production a reality

9. Cyber Security – the challenge that is every leader’s top priority in the digital worldCyber Security – the challenge that is every leader’s top priority in the digital worldCyber Security

10. Internet of Things – allowing real-time connectivity among devices possible

Every new age company that is disrupting the traditional business model is doing so because of technology. Some of these technologies are as follows:



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In the past, technology was considered just an enabler for business processes. At least, that is what most business analysts believed. This is not true anymore in the digital world. Technology is the driver of business processes. The imperative for BAs is that technology “appreciation” will no longer be suffi cient. We must understand technology better.

Business strategy of the future is signifi cantly about reimagining business processes to provide superior customer experience by exploiting the emerging technologies. Thus far, the focus was on incremental changes to existing business processes with an objective of infusing automation into the business. In the digital world, the focus is on the customer and hence, business processes must be conceptualized afresh from scratch to deliver exceptional customer experience. These reimagined business processes give birth to new business models at the intersection of “Customer Experience” and “Technology”.

Business Domain Convergence - A Result of Digital Amazon started off as a business selling books over the internet.They began with a single-minded focus on perfecting the technology and reimagining the customer experience of the book ordering and delivery business. Once that was done, they gradually moved on to include other products, from socks to drones, and invented the inventory-led model of e-commerce. What was once considered a separate furniture business, a separate garments business, a separate consumer durable business, suddenly all came under one roof.

Amazon then opened up their technology infrastructure to other companies and virtually invented the cloud business – the Amazon Web Services.

Flipkart, the e-commerce unicorn in India, is the only company providing any worthwhile competition to Amazon in the country. They too started by selling books. But now they, too, sell everything from socks to satellites. Flipkart pioneered the marketplace e-commerce model, where they offered their platform for traditional sellers to set-up shop in the online marketplace and conduct business. Flipkart invested a lot in their logistics and delivery business and brought supply-chain and logistics businesses within their fold. Then they moved to delivering groceries. All they had to do was to include grocery sellers into their marketplace. Flipkart forced Amazon’s hands. They had to get into the marketplace model in India. Amazon has now launched Amazon Now – a grocery delivery business.

Almost all e-commerce startups invest in a payments platform. Even Amazon is slowly developing Amazon Pay into a payments platform. Payments is a seemingly disconnected business to e-commerce. Amazon Pay into a payments platform. Payments is a seemingly disconnected business to e-commerce. But it converges on the e-commerce business model. Paytm traversed the path in the opposite direction. But it converges on the e-commerce business model. Paytm traversed the path in the opposite direction. They started off as a mobile wallet company and are now gradually turning into an e-commerce They started off as a mobile wallet company and are now gradually turning into an e-commerce marketplace.marketplace.



Uber started off as a taxi-hailing company. They perfected the technology and customer experience of that business. Now they are integrating other forms of delivery, like food (Uber Eats), into their business.

A bank is no longer just a bank. Apart from the fact that every bank is also a Fintech company, every bank is also an insurance company, and an investment banking company (Citigroup). A health insurance company is also a lifestyle company given the fact that they all are investing heavily in causing behavioral change in consumers towards healthy living (Aetna). A retailer is also an e-commerce fi rm, a streaming media company, a motion picture production company - all rolled into one (Amazon).

The convergence of business domains, which previously were assumed to be vastly different from each other, is the reality. This is the reality of the digital age – Business Domain Convergence. Technology is making this possible. This result of digital has made companies think through a new persona, a new process, and a new business domain and bring all of them together to build products/services that provide greater fl exibility to customers while giving them an exceptional experience. This trend may be observed in Amazon, Alibaba, Uber and Flipkart, all multi-billion dollar businesses of the world.

“The convergence of business domains, which previously were assumed to be vastly different

from each other, is the reality. This is the reality of the digital age – Business Domain Convergence.

Technology is making this possible.”

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Let us lay the fi rst apprehension to rest right up-front - business analysis will not become obsolete anytime soon.

As a mindset, a discipline, a manner of thinking while approaching business problems and their solutions, business analysis cannot and will not become obsolete. The core of business analysis will remain the same in the digital world. The knowledge areas, tasks, and competencies as described in the BABOK® BABOK® BABOKGuide will continue to remain relevant. These Guide will continue to remain relevant. These Guideare fundamental best practices and are going to be even more critical in the evolving digital world than ever before.

The Future for Business AnalysisThe digital world and the business domain convergences require us to think about business analysis differently. While looking forward into the future, business analysts are bound to be introspective. The questions that naturally linger in one’s mind are:

• Is business analysis going to be relevant at all in the digital era? • How will business analysis change to adapt to the future?• Are my skills going to be suffi cient in the digital era? • What should I unlearn and relearn to remain relevant?

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However, in the transformational times, such as the present and future, established business analysis approach, tools, and techniques, while still relevant and necessary, are not going to be suffi cient. How, then, should business analysts adapt to the future?



The best practices described in the BABOK® Guide. These best practices are necessary and relevant today more than ever.

In the ‘so-called’ traditional business world, a business analyst could succeed without applying, or worse, without even being aware of these best practices. As we cross the chasm into the digital world that is characterized with agility, evolving needs, and innovation, these best practices are the baseline practices for a business analyst. There is no choice, but to gain mastery over these best practices.

Simply put, the strategic imperatives are the big picture, the “why” behind the “what”. The real problem that is being solved.

As a business analyst, understanding strategic imperatives translates to having a thorough knowledge of, as the BABOK®BABOK®BABOK Guide eloquently articulates, the current state and the future state. The current state understanding relates to knowing how an enterprise functions currently, what their challenges are an and what they need to do to overcome these challenges. The current state understanding creates a baseline and context for change. The future state defi nes what the business will look like when the business needs are met. This is foundational. What makes the digital world exciting is the focus on the “customer” and the experience that they expect today! So, the digital strategies and initiatives for organizations would involve an extensive focus on the customer.

The strategic imperatives must guide all activities of the organization as well as those of the business analyst. The BABOK®BABOK®BABOK Guide lists a few practical techniques that enable a business analyst to assimilate strategic imperatives:

• The Balanced Scorecard is a strategic planning and management tool

• Business Capability Analysis is a technique that helps business analysts describe the capacity of anenterprise that helps it to achieve a business goal or objective

• Business Cases help a business analyst understand the rationale or the strategic intent forundertaking a change

• Business Model Canvas describes how an enterprise creates, delivers, and captures value forand from its customers

• SWOT Analysis helps identify the overall state of an enterprise both internally and externally by evaluating its strengths, weaknesses, opportunities, and threats

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Understand Strategic Imperatives1

Let us discuss these seven best practices in greater detail:



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Empathize With Real Customer2

A business model that delivers on the promise of a great customer experience is possible only when the business has unfailing empathy for their customers.

How would Zipcar be able to discover that customers need hourly rentals? How would Uber become aware that the challenge for customers lies in fl agging down a taxi, especially when taxis are so ubiquitous? How would Netfl ix know that customers need the experience of on-demand content streamed straight to the device in their hands? The answer is empathy, genuine empathy towards their customers.

No wonder, then, empathy is one of the foundations of design thinking. In his paper3, Fulmer states “[Business Analysis requires an] ‘outside in’ thinking. In the traditional business process and/or information-based approach, the work that a BA does is in support of the internal business. The stakeholders that are directly involved with a BA are all folks that belong to the internal part of the business. Stakeholders are identifi ed and [their needs] elicited to understand the business problem and then [the business analysts set out] to defi ne requirements and assess a solution.”

Fulmer continues “In a digital environment, the stakeholder of most prominence is the customer, meaning the person who writes the cheque. And many of the other stakeholders on the path are external partners, vendors, and providers. This change in perspective and how they all tie together to be part of the customer experience are at the heart of digital.”

“Business analysts are currently accustomed with business process mapping, analyzing those processes, and making recommendations for improvement in the process, and in the systems (including information systems) that are needed to establish a new solution. The digital world expects BAs to develop customer personas, empathy maps, ecosystem maps and customer journey maps. [Business analysis in the future] fully embraces the customer experience perspective and adapts to the new tools and techniques to support this form of analysis.”

Business analysis is increasingly about collaboration. It is about engaging with customers, Business analysis is increasingly about collaboration. It is about engaging with customers, partners and employees as part of the experience design process. The solutions are now typically partners and employees as part of the experience design process. The solutions are now typically more complex in this digital network of service components behind the scenes to deliver a more more complex in this digital network of service components behind the scenes to deliver a more seamless customer experience. Moreover, it is not one technology that is put to use for the seamless customer experience. Moreover, it is not one technology that is put to use for the desired customer experience, it’s the set of technologies, e.g. AI, machine learning, analytics, desired customer experience, it’s the set of technologies, e.g. AI, machine learning, analytics,

“In a digital environment, the stakeholder of most prominence is the customer, meaning

the person who writes the cheque.”



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Internet of Things, etc. that, once combined together, provide a customer experience which not only meets a critical customer need, but solves some critical problem and delights the customer.

“As the analysis of customer experience becomes so important, so too is the way in which we, business analysts, ‘elicit’ customer-centred input. We need to actively solicit feedback from the customers about their experience with the products and services. Many companies also extend this to include examining more indirect feedback from customers as evidenced in emails or calls to customer services, and social media posts,” said Fulmer.

Empathizing with the real customer is critical to learn their unstated needs. Empathy is not just discovering the ‘real customers’ and eliciting their needs in some workshop. Empathy is feeling what the customers are feeling, getting in touch with the true emotions of customers when they interact with the business. Only then would it be possible to learn the customers true needs even though, on the outside, customers don’t verbally or non-verbally declare these needs.

Infusing empathy into the equation takes elicitation to a whole new level. Learning customers’ real needs leads us to the possibility of reinventing business processes, which in turn leads to reimagined, superior customer experience. This new level is where BAs need to operate at in the digital world.

An incremental change to business processes might infuse effi ciency into the existing ecosystem. Reimagined business processes disrupt the market, create a new ecosystem and elevate it to a whole new level of equilibrium.

What if Zipcar sought out only to reduce the wait-time of customers while they stand in line to rent a car? They would probably have invented a more effi cient, but only incrementally better, business process. Instead, Zipcar aimed at a different space in customer experience, sought to reimagine the rental-car business model, completely reinvented their business processes, and set a new benchmark in the car rental space.

Netfl ix could easily have started a TV channel or a network, or a production company, and still be able to do everything they are offering today. But that would only be incremental. It wouldn’t change the game for everybody in the market. Instead Netfl ix asked themselves the question, “How do we bring high-quality content directly to the consumer on-demand and provide the highest quality of ad-free experience to them?” Netfl ix ended up creating a new conduit for offering entertainment ad-free experience to them?” Netfl ix ended up creating a new conduit for offering entertainment that has not ended up disrupting traditional TV networks and the Hollywood ecosystem.that has not ended up disrupting traditional TV networks and the Hollywood ecosystem.

The BAs of the future are expected to ask these bold questions to themselves that lead them to The BAs of the future are expected to ask these bold questions to themselves that lead them to reinvent business processes and disrupt the market. The digital business processes not only need reinvent business processes and disrupt the market. The digital business processes not only need

Reimagine Business Processes3



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to consider the expected customer experience to be delivered, they also need to consider the ways in which these processes are executed by the customer. Today, most customer-facing processes run on mobile devices, which require new thinking in the ways these digital business processes are executed, both in front and behind the scenes.

While reimagining business processes is essentially an exercise in creativity for imagining what is possible, the BABOK®BABOK®BABOK Guide lists specifi c techniques that provide structure to such imagination: Process Analysis and Process Modeling.

Every company in the digital world today needs an agile mindset. At the risk of sounding fl ippant, one can argue that even nature adopted an agile mindset while creating this universe. Evolution is the proof. The point is agile thinking is natural. Any approach that goes against the basic tenets of agile thinking is not.

Agility is not Agile SDLC. We are not referring to SCRUM or XP. We are referring to business agility as a sentiment, a mindset, a way of thinking. The Agile Extension to the BABOK®BABOK®BABOK Guide beautifully articulates the goal of agile mindset as “to maximize the outcome (value delivered) with minimum input: “do less and do the right things, right”.

Embrace Agility4

“Today, most customer facing processes run on mobile devices, which require new thinking in the

ways these digital business processes are executed, both in front and behind the scenes.”

The main aspects of agility include:• deliver value rapidly and consistently• collaborate courageously• iterate to learn• simplify to avoid waste• consider the context and adapt to realities• refl ect on feedback and adapt both product and process• produce the highest quality products



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Initiatives in the digital world have a defi ned beginning, but not a defi ned end. Initiatives are enduring and continuous. For instance, Google Search has no defi ned version numbers (at least those that are visible to users) nor are there any visible efforts to end further development of the product.

Agile thinking requires a business analyst to develop a notion of a product rather than a project. Business analysts must adopt a minimum viable product (MVP) approach to every deliverable. An MVP has just those core features that are suffi cient to deliver the product to the customer, seek feedback, accelerate learning from such feedback, and use that as a base to improve the product to its next MVP level. Likewise, this MVP approach can easily be applied to every activity and deliverable, not just for a product. MVP approach helps a business analyst to demonstrate considerable progress, seek feedback, elicit learning, and improve the deliverable to take it to the next MVP level.

Agility is a mindset that lays emphasis on staying true and aligned to the big-picture or the strategic intent (consider the context and adapt to realities), having relentless focus on stakeholder collaboration, seeking stakeholder feedback continually, delivering an outcome that is valuable at regular intervals, recognizing mistakes early and quickly, and rapidly adapting to emerging information.

The IIBA’s Agile Extension to the BABOK®BABOK®BABOK Guide, version 2 is the best guide for business analysts to internalize agile mindset, thinking, tools, and techniques to be successful in the digital world.

Continuous Stakeholder Collaboration5

Agile thinking requires continuous stakeholder engagement. The term ‘engagement’ means collaboration, i.e. the stakeholders assume an active role in your endeavor as a business analyst.

Now, the list of stakeholders in the digital world is a little longer and more complex than the traditional world! Business analysts always deal with internal and external stakeholders in their day-to-day life. The digital world goes beyond traditional stakeholder management:

• The key in the digital world is to create a deeper and continuous engagement with stakeholders, so they are part of the journey rather than just a document signing father fi gure. The imperative of establishing continuous engagement with stakeholders is that newer and more relevant stakeholders might surface at any time during the initiative. Therefore, business analysts must not only be welcoming of the new stakeholders but have to be proactive in discovering them all the time.



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Continuous stakeholder engagement is hard work. It requires the business analyst to up their game in elicitation and collaboration. Considering that business analysts must develop a notion of product (as opposed to project), they need to adopt a ‘Product Owner’ persona. They are the lead collaborator among the product stakeholders. In the digital world, the role of a business analyst is about taking accountability for the business outcome and the product to achieve that outcome. The BABOK®BABOK®BABOK Guideis the best guide to learn and internalize the best practices for stakeholder engagement.

• And, there is another set of stakeholders that are developing – “The Digital Stakeholders”. We are not referring to humans that use Facebook, Twitter, WhatsApp etc. We are talking about intelligent ‘digital’ systems evolving over time. We are talking about ‘intelligent’ systems being developed to provide ‘human like’ experiences. The interactions among such systems are not going to be as simple as a message format, or a data fi le exchange. Such digital system interactions would involve exchange of intelligence to deliver greater value and the desired customer experience. Hence, business analysts need to always be watchful of the IT landscape around them.

Drive Evidence-Based Decisions6

It is important to evaluate and analyze evidence while envisioning the new business model/processes in the digital world to deliver expected customer experience. This requires one to look for the data that can be leveraged to make the right decisions. Such data could come from various sources like surveys and trends, trade organizations, historical data of the business process being reimagined and so on. The challenge is that data may not be available or may not be in right forms or shape for the business analysis community to derive insights, prove hypotheses, and make decisions. But once you have the right evidence, it could help you understand the real customer pain points, improve your strategic imperatives, reimagine the business processes, and deliver a solution that solves the exact customer problem.

Target, one of the large retail chains, faced a challenge in low ROI in their coupons business. Upon analysis of feedback collected from their customers, Target discovered that their customers were viewing coupons as trash. They learned that since every fortnight, all customers essentially received the same coupons, and since those very coupons were also available at the store received the same coupons, and since those very coupons were also available at the store entrance, those coupons seemed worthless to the customers. entrance, those coupons seemed worthless to the customers.

To solve this riddle, Target decided to analyze the petabytes of sales data that they owned. They To solve this riddle, Target decided to analyze the petabytes of sales data that they owned. They fi gured out a way to personalize the coupons for their customers. They learned from the sales data fi gured out a way to personalize the coupons for their customers. They learned from the sales data



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that if a customer makes a series of purchases of a certain kind of product(s), they will purchase a specifi c product on their next purchase. Target sent them a coupon for that very product, much to the surprise of their customers.

Now, think about yourself in the digital world reimagining business processes to deliver a great customer experience, evidences collected by looking at data can vastly improve your chances of achieving the desired results.

Data could be a single source of truth that can make or break the value that one intends to deliver to its customers. Having exceptional data analysis, analytics, statistics, six sigma, and information architecture skills and capabilities can help the business analysis community succeed in the digital world.

So, business analysts in the digital world need to have the capabilities to:• understand the data that they need,• be able to collect it,• be able to organize and analyze it effectively.

Understand Technology7

Earlier in this paper, we argued that technology is one of the critical elements of the digital world. Reimagination of business processes in the digital world is impossible unless one knows what is possible with technology.

Lemonade’s claim settlement in literally seconds is impossible without AI and machine learning. As a BA, one would not be able to even think of a 3-second claims process if the BA is unaware of the technology underlying AI/ML.

Imagine a business problem that Target faced in their coupons business. The ROI on their coupons business was struggling, and they discovered that the only way to revive the business was to personalize the coupons. This meant that they had to create a business process that treats every customer so uniquely, that each customer receives personalized coupons leaving the customer wondering “Wow! This is great! I wonder how Target learned that I was looking to buy this exact product. I might as well buy this from Target.” How would a BA tasked with solving this problem be able to imagine a solution for Target if the BA is not aware of the possibilities offered by analytics able to imagine a solution for Target if the BA is not aware of the possibilities offered by analytics technology?



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Imagine a business problem where an auto insurance company that spends a fortune on their claims call centre, is looking to dramatically reduce these costs to remain profi table and afl oat. The call centre typically accepts notice of loss and helps maintain customer touch points throughout the claims process. As a BA, how would one be able to reimagine this business process if one does not understand the possibilities offered by robotic process automation, IVR technology, analytics, machine learning and software bot technology?

BAs cannot be evasive of technology by saying “My job is to defi ne the business needs. The tech part is the job of the implementation team.” The argument that business is enabled by technology is no longer true. Technology drives businesses in the digital world. The gap between business and technology is blurring and it is critical that the business analysis community gains the foundational knowledge of these technologies to deliver the expected outcome in the digital world.

It might seem that the above listed best practices were always required to be followed even in the past. While that is true, not many business analysts followed these best practices, but they were successful despite that. Not anymore. In the future, without mastering these best practices, it is highly unlikely that one would be a successful business analyst.



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Crossing the ChasmIn the previous section, we discussed the seven key best practices that business analysts must actively embrace and master to succeed in the digital world. In summary, in the digital world:

In this section, we list specifi c, actionable ‘tracks’ that business analysts can follow to migrate into the digital future. We use the word ‘track’ because they can run serially or in parallel, depending upon the individual pursuing these tracks. There are three tracks in all:

The two foundational tracks plus the choice of specifi c technologies will lead to a The two foundational tracks plus the choice of specifi c technologies will lead to a Business Analysis Specialization. For instance: Fintech BA, Data Science BA, InsureTech BA, and so on.. For instance: Fintech BA, Data Science BA, InsureTech BA, and so on.

1. Digital strategy is key to business strategy. The divide between business and technology is blurring in the digital world. Therefore, BAs cannot remain distant from technology. BAs must actively embrace technology and have suffi cient understanding of the same.

2. The solution to a business problem focuses on providing an exceptional customer experience. It spans across multiple business domains and is a combination of more than one technology. But one BA may not be able to master all these technologies.

1. Two foundational tracks – business analysis best practices and business domain expertise. These two tracks are compulsory, and every BA must master them.

2. The third track is the technology track, which is also compulsory. But, here BAs technology track, which is also compulsory. But, here BAs technologyhave a choice of selecting one or more technologies to deep-dive into.



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Finally, in the digital world, foundational business analysis capabilities as a discipline, a mindset, and a set of tasks, techniques, and best practices need to be honed by everybody, not just by those individuals designated as BAs, for digital initiatives to be successful.

Track 1Master foundational business analysis

The BABOK® Guide combined with the Agile Extension and other IIBA publications provide business analysts with a comprehensive body of knowledge of the most foundational business analysis capabilities.

Six of the seven best practices described in the previous section are described in detail in IIBA’s A Guide to the Business Analysis Body of Knowledge® (BABOK® Guide). An entire knowledge area is devoted to understanding strategic imperatives (Strategy Analysis). The tools, techniques, and best practices to engage stakeholders continuously is well documented under Elicitation and Collaboration knowledge area (KA 4), as well as under the Plan Stakeholder Engagement (3.2) task. The Agile Extension to the BABOK® Guide, version 2 is entirely devoted to embracing agility. Several techniques provide the hard skills in respect to modeling business processes and managing data.



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Track 2Pick a business domain and gain expertise in that domain

The digital world expects BAs to empathize with real customers. Techniques like customer personas, empathy maps, ecosystem maps and customer journey maps help business analysts in this regard. These techniques fall under the larger umbrella of design thinking. IIBA’s Global Thought Leadership program is in the process of publishing a series of papers that will be available free for IIBA members. There are already quite a few books and other resources BAs can reference to enhance their capabilities. For instance, IIBA’s recent live panel discussion titled “Incorporating Design Thinking into Your Practice” is available on IIBA’s member portal. Accomplished design thinkers participated in this session, offering valuable insights, which BAs will fi nd very useful. Business analysts may lend legitimacy to their skill and experience by acquiring a globally recognized IIBA certifi cation(s) as they progress through their career.

There is a raging, unsettled debate on the extent to which domain expertise is signifi cant for a business analyst. There are companies with differing views at both extremes. Some believe in domain expertise so much so that they hire doctors and nurses to work on healthcare projects and ignore all of the other skills and best practices required for the role of a business analyst. On the other extreme, there are companies that solely rely on business analysis skills and completely ignore domain expertise.

IIBA views business knowledge as one of the key underlying competencies for a business analyst and classifi es it by:

• Business Acumen: Understanding of fundamental business principles and best practices, which are common across all industry domains

• Industry Knowledge: Understanding of current practices and activities within a given industry

• Organization Knowledge: Understanding of the structure, business architecture, practices, processes and activities within a given organization

• Solution Knowledge: Understanding of a given solution to a specifi c or set of business processes in each industry

• Methodology Knowledge: Understanding of the methodology adopted by an organization while executing a specifi c process or a project



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In the digital world, domain expertise will continue to remain signifi cant. The ability of a business analyst to quickly learn new business domains will work in one’s favor. To gain legitimacy, particularly in the early years as a business analyst, IIBA recommends business analysts to acquire domain certifi cations. For example, LOMA is globally recognized as the authority for Insurance certifi cations. Universities typically offer short-term and part-time / full-time programs in specifi c domains. There are several MOOC courses (many are free) available on various online platforms.

IIBA will, in the due course of time, introduce micro-credentials in each of these technology areas. For example, cyber security was always seen as a hardware gig, and at most a fi rewall tech play. It was never seen as something relevant to business analysis until major data leaks from even the best of companies made cyber security the top priority of CIOs. IIBA is collaborating with the Institute of Electrical and Electronics Engineers (IEEE) to launch a Business Analysis certifi cation in cyber security. Likewise, IIBA will independently or in collaboration with other standards bodies develop and launch micro-credentials to equip business analysts with required knowledge, skills, and techniques in specifi c technology areas.

Business Analysis Specialization: IIBA will also introduce business analysis specializations like Fintech BA, a Data Science BA, an InsureTech BA, and so on. Foundational certifi cations plus a specifi c combination of micro-credentials will lead to a specialization. For example: An IIBA accredited data science business analyst may be one who has a valid IIBA certifi cation plus possibly one or more micro-credentials in business analytics, cognitive and AI/ML.

Track 3Take a deep-dive into one or more technologies, and aim for a BA Specialization

The fi nal track is about technology, and business analysts are required to venture into technology if they want to succeed in the digital world. There are several technologies emerging in the digital world, some very nascent like blockchain and some already robust like analytics.

Business analysts will need to acquire knowledge and skills related to technology for twobasic reasons:

• To ensure that they understand technology deep enough to know what is possible to be accomplished with that technology, evaluate its utility, applicability and benefi ts in specifi c business situations; and

• To understand how business, stakeholder and solution requirements need to be elicited, analyzed and documented based on the technology chosen to implement a solution for a business situation.



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Coming UpThis paper is the fi rst in the series of IIBA’s Global Thought Leadership publications on digital business analysis.

In the coming months, IIBA will publish a series of white papers to extend the conversation on Digital Business Analysis.

Stay tuned!



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Praveen Udupa, CBAPProgram Manager, IIBA

Praveen Udupa brings over 15 years of rich experience in all facets of Business Analysis. Praveen is a Certifi ed Business Analysis Professional (CBAP®) from International Institute of Business Analysis (IIBA®) and a Certifi ed Professional in Requirements Engineering from International Requirements Engineering Board (IREB).

Praveen believes in the necessity and effectiveness of the business analysis mindset in creating transformational impact on organizations and society.

Praveen is an advocate of business analysis education at the grass-root level. He has collaborated with other like-minded platforms like the BA Convention and has spoken on the signifi cance of BA Education in Academia.

For 12 years ending 2012, Praveen was a practicing Business Analyst at NTT Data working on several high-value initiatives for clients across the globe. Praveen used to manage the Business Analysis Centre of Excellence as a Director of Insurance Business Analysis Practice at NTT Data. In this role, he was responsible for Training, Coaching & Mentorship, Best Practices, Governance, Thought Leadership and Sales Support.

Ashish Mehta is a recognized thought-leader in the business analysis profession with over 23 years of experience and has worked with clients globally to establish highly effective Business Analysis and IT Consulting disciplines, enabling the delivery of solutions to business and technical problems.

Ashish is a Certifi ed Business Analysis Professional (CBAP®) and a Certifi ed Six Sigma Black Belt. In his previous assignment, Ashish was a Vice President and Global Practice Head – Business Analysis at NTT DATA Inc. where he established a unique business analysis practice model – a $50M book of business with 350 consultants. Ashish has consulted in multiple domains like BFSI, Healthcare, Retail, Airline, Travel, Manufacturing and Public Sector.

Recognized by IIBA for his dedication and commitment to business analysis profession, Ashish has volunteered with IIBA for a decade in different roles including Global Board of Director. Ashish has helped IIBA in strategizing numerous global initiatives.

A committed and passionate Business Analyst, Ashish frequently advises and speaks on business analysis topics at various conferences internationally and is dedicated to the growth of the business analysis profession.

Ashish Mehta, CBAPManaging Director – India, APACand Global Thought LeaderIIBA

Authors



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References1 Forrester© - Predictions 2018 A year of reckoning2 Gartner - Top Strategic Predictions for 2018 and Beyond: Surviving the Storm Winds of Digital Disruption3 IIBA® - What does it mean to be Digital? - Ken Fulmer, President and CEO, IIBA



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