Business Needs Analysis and Business Process Analysis
Summary
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Business needs analysis. What does the business need to operate profitably?
Business Process Analysis (BPA) consists of the following steps:
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Analysis of the current business operations and current computer systems/applications
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Development of the best practices for your business
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FIT/GAP analysis
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The Business Process Analysis is an absolute must before your company installs new systems such as a cloud ERP and other software applications. The results of the Business Process Analysis will be used in the next stage being Planning.
Business Needs Analysis
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What does the business need to operate profitable? Which organization structure, which business functions, which jobs, which equipment and tools, which services, and which computer/cloud systems and software are needed to operate the business profitably? Which business process flows should be in place to operate profitably?
For instance, a commercial HVAC service company needs to do marketing, sales, servicing HVAC units and installations, purchasing, accounting and payroll to operate properly.
Business Process Analysis (BPA), Best Practices and FIT/GAP Analysis
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BPA is the analysis of the current business processes. Analyzing which business processes are in place, and how they flow.
In our example above of the HVAC service business, the business may perform the needed business processes/functions except for marketing. They may do some marketing but far from being effective. Best practices will point out how to do marketing effectively. The ineffective marketing business process will be a gap.
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Analysis of the current business operations and current computer systems/applications
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A business process flow chart (level one) is developed first based on your current business operations. See an example below.
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This will require the following:
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A selection of managers who should be involved for the BPA and planning.
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A gathering of all the important reports, spreadsheets, paper forms and current computer systems/applications
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Access to computer systems/applications
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A schedule of interviews with top management (CXOs) and middle management, where manager will walk through the business operations.
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Development of the best practices for your business
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Best practices for your business specify how your operations should be managed and performed to be efficient time wise and cost wise while delighting the customer.
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FIT/GAP analysis
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The gaps between the best practices and the current business operations and the current computer systems/applications
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The remediations to these gaps are part of the planning.
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The Business Process Analysis is an absolute must before your company installs new systems such as a cloud ERP and other software applications. The results of the Business Process Analysis will be used in the next stage being Planning.
Case: Private Equity Companies and Holding Companies Requiring a Total Business Needs Analysis and BPA
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Private Equity (PE) companies and Holding companies merge and acquire companies. However each acquired company has their own way of operating and their own computer systems/applications. To be efficient the holding company needs to standardize the business operations and the computer systems/applications. This requires first a thorough total business needs analysis and Business Process Analysis.
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Internet Customer Solutions performed such a total business needs analysis, BPA and Planning task for an asbestos removal company in the mid west of the USA. It was intense but successful. Existing business operations and computer systems were thoroughly analyzed, discussed, documented and presented. Top management bought in to the planned remediations/solutions.
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Another Acumatica partner, Accunet, has described in a general article a good approach for BPA at Private Equity companies. Enjoy the article.