Explaining Strategy Analysis with an Example

The BA Guide | Jeremy Aschenbrenner
A free video tutorial from The BA Guide | Jeremy Aschenbrenner
Business Analyst Trainer and Coach | Best Selling Instructor
4.5 instructor rating • 13 courses • 163,834 students

Lecture description

You have tickets for a local sporting event. The problem is, you are at home and the sporting event is at a stadium across town. Let's use our Strategy Analysis Process to solve this problem.

Learn more from the full course

Conduct a Strategy Analysis using Business Analysis

Learn business analysis tools and techniques to recommend solutions and strategies that produce business value

07:48:15 of on-demand video • Updated May 2020

  • Learn how to assess and analyze the current state (as-is) of an organization to get a good feel for their structure, culture, and capabilities
  • Understand how to properly define project success by identifying the conditions that need to be met within the future state (to-be)
  • Understand how to use gap analysis to uncover the necessary changes to get the organization from the current as-is state to the future to-be state
  • Learn how to utilize the brainstorming and workshop techniques to identify, assess, and mitigate risks to the project and the organization
  • Learn how to determine viable solutions and recommend the best solution to meet the business needs and fill the identified gap
  • Gain the ability to conduct a cost-benefit analysis to validate when the recommended solution will give a return on investment
  • Learn to create a Business Case that gets approved by tying all of the learned details together into on succinct document that provides reasoning and financial justification to move forward
English In this lecture we're going to walk-through a high level example of the strategy analysis process as a whole. What I want to do is I just want to give you kind of a brief glimpse into a real world scenario where you can walk-through the stages of analyzing the current state, defining the future state, assessing risks, determining the changed state and creating a business case. Now again this is really high level, but it will help give some practicality to what we spoke about in the last lecture. So our problem, the challenge we have is we're currently at home and we have tickets for a local sporting event at a nearby stadium. So we have those tickets and we want to obviously attend that game. So our problem is we're currently at home and we need to get to the stadium. So let's start out with analyzing the current state. So our current state again we're keeping this high level and fairly simplistic is where at home we have $200 in our pocket and it's currently 2 pm. So we've analyzed our current state and obviously there's a lot of other elements that we could we could dive into here but we're trying to keep it very simple. So now that we have our current state defined now we need to define our future state. The big thing about dividing the future state is you're not actually creating any type of like documents that would be used for implement implementation. Instead you are setting in understanding the conditions of what success would look like. Ultimately, how do you know that you solve the problem or that the ultimate project in this case would be successful at the end. So in our case our future state for success would be that we're at the stadium, we have at least $170 in our pocket and that will be for food, beverages, souvenirs et cetera. We arrive by the start of the game which is 3:15 and we're in a capacity to watch the game meaning we're not too exhausted or injured or anything like that where we can watch the game and enjoy the game. So that is our future state. Now notice here we haven't talked anything about solutions future state is just defining what are the conditions that we want to meet that would we would consider this overall to be successful. So now we've got our current state analyzed, we've defined our future state. Let's go through and assess some risks. There's a couple of basic risk. Number one is we don't have enough money, right we start with 200 bucks and $200 and we want to be at the stadium with $170. While we may not have enough money, we may not have that. We also could get there late and we could be injured or exhausted depending on what we choose to do in regards for a change strategy. So those are some of the high level risk. There there's some additional risks and we're not going to get into the details of these risks at this point. We're just going to assess the high level risks and talk about it. So not enough money. This is fairly important, but it's not a super necessity. We want to have a $170 when we get there for food and whatnot, but if we don't have a $170 we would still be able to enjoy the game. So that is a fairly minor risk. We also could get there late, that one that we don't want to miss part of the game. You know we've gotten tickets for these games. We paid good money for the tickets. We don't want to get there late. That is a higher risk. That is one that we want to make sure that doesn't occur. We want to be there on time and that's important to us. And the third one is we don't want to be injured or exhausted. And that is another high one and we don't want to be injured we walk around the broken arm or exhausted and not being able to catch our breath for the first 30 minutes of the game because then we're going to really not be able to enjoy it. So those are our risks. We did some base assessment of those risks. So now let's move forward and determine a change strategy. The first thing we're going to do in the change strategy is conduct a gap analysis. So really what this is doing is comparing the the as is state to the to be future state, so the current to the future. The current is where at home the future is when you get to the stadium. So we know we need to somehow get there. Our solution needs to help us to arrive. We have $200 currently and we want to have $170 when we get to the stadium. Again we need to make sure that we can do that. So the gap is $30 so we have $30 to spend to get from at home to the stadium and then the third thing is it's currently 2 p.m. and we want to get there by 3:15 p.m. So we have an hour and 15 minutes to get there. So now we've identified the gap we to get from at home to the stadium within an hour and 15 minutes with 30 dollars or less being spent. So let's look at some of our potential options. So here's some options we came up in our in our brainstorming we have. We can take an Uber. We can take a taxi. We can always take the city transit, the bus. We could bike there, we could walk or we always have the option of doing nothing which in this case would be not going to the game. So that's always an option. Remember that it's very important as you're working through your projects and you're conducting a change strategy. So let's look into these options a little more. So for Uber the cost is $21 and 25 cents. We did some research and it would take 25 minutes for us to get there for a taxi it's $42.50 and it would take 30 minutes to get there. The bus $2 and 25 cents it would take an hour and 45 minutes to get their bicycle. No cost. It would take 80 minutes and walk. It would be no cost. It would take 225 minutes. So as we look through this list the best thing to do is I like to first try to eliminate any options that just won't work. Right. That just won't fit. Our two biggest risks that we've identified is being able to to get there on time. That's one of the high risks we want to make sure that we're there on time. So when we look at the list, the bus is going to take a hundred and forty five minutes which equates to over two hours that's two hours and 25 minutes. We only have an hour and 15 minutes. Scratch the bus. That's not going to work for a feasible option. The next one that's another higher rate is a walk that's two hundred twenty five minutes that can take us way too long to get there. That's not a feasible option from a recommendation standpoint so we're to cross those out. Those really aren't good options for us because they don't meet one of our biggest requirements which is that we get there on time. So now we're down to the three: Uber, taxi and bicycle. Let's go ahead and start with bicycle and to take us 80 minutes that's an hour and 20 minutes to get there. We would be slightly late for the game, about five minutes late for the game. But we're going to go ahead and leave that that's a no cost option. And yes we may be slightly late for the game but maybe that is worth it for saving the money to get there. So we're going to leave that as a potential option and that will be one of our potential options in our business case. So let's then roll up to taxi going to cost us $42 and 50 cents which is a little more than what we wanted to spend because we only want to spend $30 and it's going to take us 30 minutes so we'll definitely get there in time. And that will work. So that's a feasible option as well. Again we're going to have to make a concession potentially because we won't have as much money to spend on beverages and souvenirs and whatnot that we wanted to. But again it's a feasible option that might be something that we determine is the best option. And then the third one is Uber. So it's going to be two dollars and twenty five cents which is within our $30. That's awesome. And it's going to take us 25 minutes and that's within our timeframe. Our other risks were we didn't want to be exhausted or injured. So there's probably a little higher likelihood that we get injured in Uber than we would in let's say a taxi or a bus because Uber is you know a kind of a peer to peer driving if you will. I mean any anybody that has a car can sign up and get qualified and drive, but they don't go through extensive driving tests or anything like that where taxi drivers have to have a certain driver's license and go through a very certification so Uber is a little bit risky in regard to the injured risk. But by looking at all of these we're either late with the bicycle. We spend a little too much with the taxi or we have a slightly higher risk for being injured in an Uber. I think from a recommendation standpoint that Uber is the best option that meets all of our requirements and we would just want to make sure that we're looking to mitigate the potential risk for injury as much as possible. Now let's go ahead and jump to create a business case. Creating a business case we're not going to go through it in detail here. But ultimately you're defining what the problem is and putting that together there the vision of the future. And then you're going through the potential solution. So in our case we would have four solutions that we would list we'd have Uber, we'd have the taxi, we'd have the bicycle and we would have do nothing because again do nothing is always an option and that should always be an option in your business case. Then we would have a section where we're talking about our recommended solution which in this case would be Uber we'd go through the pros and cons as to why we felt Uber was the best choice and we basically make our sales pitch for why we feel Uber is the best choice to solve this problem. So I hope this example helps take you through kind of a high level of flow of the strategy analysis and kind of give you an idea of what we're going to be doing throughout the rest of the course we're going to be diving a lot deeper into each of these individual steps. We'll give you practical exercises tools and techniques to make sure that you fully understand all of the sub steps within each of those particular tasks.