Summary Business Analysis
BA1: ANALYSING STAKEHOLDERS
- Stakeholder matrix
o X axis: impact on/interest of stakeholder
o Y axis: influence/power of stakeholder
Latents: keep satisfied(low x and high y)
Key players: manage closely (both x and y high)
Laggards: monitor (both x and y low)
Defenders: keep informed (high x and low y)
- Onion diagram
o Stakeholders in concentric layers around the system
o The closer to the center, the more direct involvement
- RA(S)CI matrix
o More fine grained: also steps of the process
o Defines roles and responsibilities for activities in a project or process
o Letters:
Responsible
Accountable
Consulted
Informed
(Support, RASCI)
1
,BA2: CONTEXT ANALYSIS
- Business Strategy
o Mintzberg:
Plan, Ploy (actively decide how to compete in market), Pattern
(historically grown ways), Position (in value chain, bring uniqueness),
Perspective
o Importance: foundation for success through aligning execution with the context
of internal and external environment
Working without reference to strategic context reduces the value of
business analysis services
o Key considerations: global competition, increased complexity, continually
changing customer expectations, technology
o Strategic mission or roadmap:
Current state →strategy execution →target state →performance
measurement →current state →…
o SWOT analysis: current state
Strengths, Weaknesses → internal context analysis (VMOST, Resource
audit, BSC, Growth share matrix)
Opportunities, Threats →external context analysis (PETSLE, Porters 5
forces)
- External Context Analysis
o External perspective: economic growth, monetary policy, regulations,
technological trends
o Focused on opportunities and threats
o PESTLE(E) analysis : discuss at high level (eg 1 paper)
Political (stability, govern policy, tax policy, foreign trade policy,
corruption, labour law, trade restrictions)
Economic (economic growth, exchange rates, interest rates, inflation
rates, unemployment rates, disposable income)
Sociological (population growth rate, age distribution, career attitudes,
lifestyle attitudes, safety emphasis, health consciousness, cultural
barriers)
Technological (technology incentives, level of innovation, automation,
R&D activity, technological awareness, technological change)
Legal (employment laws, consumer protection laws, copyright and
patent laws, health&safety laws, discrimination laws, antitrust laws)
Environmental (environmental policies, climate change, pressures from
NGOs, climate, weather)
Ethical (GDPr, AI regulatory initiatives, … )
o Porter’s 5 forces:
Rivalry among existing competitors
Bargaining power of buyers
Bargaining power of suppliers
Threat of new entrants
Threat of substitutes
In many ways this model does not fit, especially for technological
companies since they are not entering existing markets (red ocean)
2
, o Blue ocean strategy
Porter’s model is not always great in case of “disruptive” change,
especially in technological or technology-driven environments
Red ocean: compete in existing market space, beat the competition,
exploit existing demand, make the value-cost trade-off, align the whole
system of a firm’s activities with its strategic choice of differentiation or
low-cost
Blue ocean: create uncontested market space, make the competition
irrelevant, create and capture new demand, break the value-cost trade-
off, align the whole system of a firm’s activities in pursuit of
differentiation and low cost
- Internal Context Analysis
o Internal perspective: organizational strategy, business model, capabilities,
organizational culture and structure
o Focused on strengths and weaknesses
o VMOST : what do we want to do , 1 pager doc (high level)
Vision: defines the target state for the organization
Mission: describes what the organization does or will do
Objectives: the specific objectives or outcomes that the organization
wants to achieve (SMART: specific, measurable, achievable, relevant,
time-bound)
Strategy: long-term approach taken by the organization to achieve vision,
mission and objectives
Tactics: specific and detailed means by which the strategy should be
executed. Tactics are often adapted when feedback regarding success of
the strategy is received
o Resource Audit : focused on capabilities and resources
Identify strengths and weaknesses per resource type
• Tangible: physical, financial, human
• Intangible: know-how, reputation
Can be applied to sub-units
What resources matter most for successful execution business model
o BSC : Balanced Score card
Quantitative version VMOST
For each: objectives, measures, target, initiatives
Financial process
Internal business Vision & strategy Customers
processes
Learning and growth
o Boston Box : Growth share matrix = BCG matrix
Identify strengths and weaknesses of portfolio
Relative market share x market growth rate
• Stars: high market share and growth
• Cash cow: high market share and low growth
• Dogs: low market share and growth
• Question marks: low market share and high growth
3
, - Strategy Execution
o Developing and executing strategy:
Starting from results internal and external context
Analysis of gap between current and desired target state
Business Model Canvas (BMC)
• 9 aspects: key partners, key activities, key resources, value
propositions, customer relationships, customer segments,
channels, cost structure, revenue streams
• Customer segments & value propositions
o Who are the organization’s important customers? For
whom is value proposed?
o Value proposition Canvas:
▪ Customer jobs (functional, social, emotional)
▪ Customer pains
▪ Customer gains (required, expected, desired,
unexpected)
▪ -------------------
▪ Products&service (physical, intangible, digital,
financial)
▪ Pain relievers
▪ Gain creators
o Product market fit
• Market segmentation
o Dividing market into different clusters of customers
• Channels & customer relationships
o Customer journey mapping
o Channel: describes how a company communicates with
and reaches its customer segments to deliver its value
proposition
o The funnel (awareness →interest →consideration
→purchase →keep customers →Un-bundling →up-sell→
cross-sell →referrals →back to start)
o Types of customer relationships:
▪ Personal assistance, dedicated personal
assistance, self-service, automated services,
communities, co-creation
• Key resources & Key activities:
o Resources: most important assets (resources) required to
make a business model work (Physical, IP, Human,
Financial)
o Activities: most important things a company must do to
make its business model work
• Cost structure and revenue streams
o Profit = revenues – costs
o Types of revenue streams: sales, usage fee, subscription
fee, renting/licensing fee, brokerage fee, advertising fee
4
BA1: ANALYSING STAKEHOLDERS
- Stakeholder matrix
o X axis: impact on/interest of stakeholder
o Y axis: influence/power of stakeholder
Latents: keep satisfied(low x and high y)
Key players: manage closely (both x and y high)
Laggards: monitor (both x and y low)
Defenders: keep informed (high x and low y)
- Onion diagram
o Stakeholders in concentric layers around the system
o The closer to the center, the more direct involvement
- RA(S)CI matrix
o More fine grained: also steps of the process
o Defines roles and responsibilities for activities in a project or process
o Letters:
Responsible
Accountable
Consulted
Informed
(Support, RASCI)
1
,BA2: CONTEXT ANALYSIS
- Business Strategy
o Mintzberg:
Plan, Ploy (actively decide how to compete in market), Pattern
(historically grown ways), Position (in value chain, bring uniqueness),
Perspective
o Importance: foundation for success through aligning execution with the context
of internal and external environment
Working without reference to strategic context reduces the value of
business analysis services
o Key considerations: global competition, increased complexity, continually
changing customer expectations, technology
o Strategic mission or roadmap:
Current state →strategy execution →target state →performance
measurement →current state →…
o SWOT analysis: current state
Strengths, Weaknesses → internal context analysis (VMOST, Resource
audit, BSC, Growth share matrix)
Opportunities, Threats →external context analysis (PETSLE, Porters 5
forces)
- External Context Analysis
o External perspective: economic growth, monetary policy, regulations,
technological trends
o Focused on opportunities and threats
o PESTLE(E) analysis : discuss at high level (eg 1 paper)
Political (stability, govern policy, tax policy, foreign trade policy,
corruption, labour law, trade restrictions)
Economic (economic growth, exchange rates, interest rates, inflation
rates, unemployment rates, disposable income)
Sociological (population growth rate, age distribution, career attitudes,
lifestyle attitudes, safety emphasis, health consciousness, cultural
barriers)
Technological (technology incentives, level of innovation, automation,
R&D activity, technological awareness, technological change)
Legal (employment laws, consumer protection laws, copyright and
patent laws, health&safety laws, discrimination laws, antitrust laws)
Environmental (environmental policies, climate change, pressures from
NGOs, climate, weather)
Ethical (GDPr, AI regulatory initiatives, … )
o Porter’s 5 forces:
Rivalry among existing competitors
Bargaining power of buyers
Bargaining power of suppliers
Threat of new entrants
Threat of substitutes
In many ways this model does not fit, especially for technological
companies since they are not entering existing markets (red ocean)
2
, o Blue ocean strategy
Porter’s model is not always great in case of “disruptive” change,
especially in technological or technology-driven environments
Red ocean: compete in existing market space, beat the competition,
exploit existing demand, make the value-cost trade-off, align the whole
system of a firm’s activities with its strategic choice of differentiation or
low-cost
Blue ocean: create uncontested market space, make the competition
irrelevant, create and capture new demand, break the value-cost trade-
off, align the whole system of a firm’s activities in pursuit of
differentiation and low cost
- Internal Context Analysis
o Internal perspective: organizational strategy, business model, capabilities,
organizational culture and structure
o Focused on strengths and weaknesses
o VMOST : what do we want to do , 1 pager doc (high level)
Vision: defines the target state for the organization
Mission: describes what the organization does or will do
Objectives: the specific objectives or outcomes that the organization
wants to achieve (SMART: specific, measurable, achievable, relevant,
time-bound)
Strategy: long-term approach taken by the organization to achieve vision,
mission and objectives
Tactics: specific and detailed means by which the strategy should be
executed. Tactics are often adapted when feedback regarding success of
the strategy is received
o Resource Audit : focused on capabilities and resources
Identify strengths and weaknesses per resource type
• Tangible: physical, financial, human
• Intangible: know-how, reputation
Can be applied to sub-units
What resources matter most for successful execution business model
o BSC : Balanced Score card
Quantitative version VMOST
For each: objectives, measures, target, initiatives
Financial process
Internal business Vision & strategy Customers
processes
Learning and growth
o Boston Box : Growth share matrix = BCG matrix
Identify strengths and weaknesses of portfolio
Relative market share x market growth rate
• Stars: high market share and growth
• Cash cow: high market share and low growth
• Dogs: low market share and growth
• Question marks: low market share and high growth
3
, - Strategy Execution
o Developing and executing strategy:
Starting from results internal and external context
Analysis of gap between current and desired target state
Business Model Canvas (BMC)
• 9 aspects: key partners, key activities, key resources, value
propositions, customer relationships, customer segments,
channels, cost structure, revenue streams
• Customer segments & value propositions
o Who are the organization’s important customers? For
whom is value proposed?
o Value proposition Canvas:
▪ Customer jobs (functional, social, emotional)
▪ Customer pains
▪ Customer gains (required, expected, desired,
unexpected)
▪ -------------------
▪ Products&service (physical, intangible, digital,
financial)
▪ Pain relievers
▪ Gain creators
o Product market fit
• Market segmentation
o Dividing market into different clusters of customers
• Channels & customer relationships
o Customer journey mapping
o Channel: describes how a company communicates with
and reaches its customer segments to deliver its value
proposition
o The funnel (awareness →interest →consideration
→purchase →keep customers →Un-bundling →up-sell→
cross-sell →referrals →back to start)
o Types of customer relationships:
▪ Personal assistance, dedicated personal
assistance, self-service, automated services,
communities, co-creation
• Key resources & Key activities:
o Resources: most important assets (resources) required to
make a business model work (Physical, IP, Human,
Financial)
o Activities: most important things a company must do to
make its business model work
• Cost structure and revenue streams
o Profit = revenues – costs
o Types of revenue streams: sales, usage fee, subscription
fee, renting/licensing fee, brokerage fee, advertising fee
4
