Business Value Analysis (BVA)
What is Business Value Analysis (BVA)?
Business Value Analysis (BVA) is a comprehensive assessment of the value and business gains that result from introducing or eliminating specific products and services. It is an important tool for businesses to understand how their products or services can add value to their bottom line. By utilizing BVA, organizations can make well-informed decisions about which products and services best fit the needs of their customers, allowing them to maximize profits while minimizing costs. The key components of BVA include identifying the client's involvement, collaboration among team members, developing a practical strategy that meets objectives, understanding agile/SAFe ICPs (Integrated Capability Processes), using appropriate tools/techniques to gather requirements in an iterative manner, obtaining an appreciation for Value Management as an Agile discipline, analyzing business value and creating a value proposition.
What are the key models of BVA?
- Cost-Benefit Analysis: Cost-Benefit Analysis (CBA) is a key model of Business Value Analysis (BVA) which helps businesses make informed decisions regarding investments and resources. CBA allows companies to weigh the benefits of potential investments against their costs, helping them prioritize their investments and decide which ones are likely to be most successful in achieving desired results. Through this method, businesses can reduce costs, improve efficiency, and increase effectiveness.
- Cost-Effectiveness Analysis: Cost-effectiveness analysis is an important technique used by businesses to reduce costs and improve the quality of their products. Through cost-effectiveness analysis, businesses can break down their products into smaller components for evaluation, allowing them to identify which components are unnecessary. This helps eliminate unnecessary costs and leads to more valuable improvements in production efficiency. Creativity is important when trying to find these unnecessary costs, as it ensures that all potential areas of improvement are identified. Cost-effectiveness analysis also involves obtaining accurate and relevant data from reliable sources through the use of a questionnaire, which includes information on costs, methods of manufacturing, and packing.
- Return on Investment Analysis: Return on Investment Analysis helps businesses make better decisions by allowing them to compare different investments and determine the profitability of a company's products or services. Furthermore, it helps reduce costs and improve the quality of products by breaking down operational processes into smaller components and improving or removing them to ensure the increased value of a product in the future.
- Break-Even Analysis: Break-even analysis is a key model of Business Value Analysis (BVA) that allows companies to assess the costs and benefits associated with different projects. This model helps them identify when they are making enough money to cover their costs, and when they need to make changes in order to reduce expenses. Break-even analysis provides businesses with clarity on which expenses are worth spending, and which ones should be eliminated or reduced. By using this approach, businesses can maximize efficiency and effectiveness while also improving the quality of their products.
- Risk Analysis: A risk model is a tool used to identify, measure, and assess the risks associated with a particular idea or project. It helps organizations evaluate the potential costs, benefits, and impact of their proposed plans. It is an important part of business value analysis (BVA), as it helps organizations determine whether or not the potential returns from an endeavor outweigh its associated risks. A risk model typically includes detailed financial projections based on certain assumptions and data inputs related to the project or idea being analyzed. These models can also include more subjective elements such as competitor analysis and customer surveys in order to gain insight into specific aspects of a proposed solution. By using a risk model during BVA, businesses can make more informed decisions about whether or not an investment is worth making in terms of both cost and benefit.
How can BVA be used in Team Agile/SAFe ICPs?
Step 1: Understand the concept of BVA: Business Value Analysis (BVA) is a concept from Harrington's book "Business Process Improvement: The Breakthrough Strategy for Total Quality, Productivity, and Competitiveness" that helps teams improve their efficiency by eliminating non-value-adding (NVA) steps. BVA is a risk-based approach to process improvement where each step is mapped to business goals and requirements and then weighed against the possible consequences before being eliminated. This ensures customer satisfaction and meets the requirements necessary for that step. In Team Agile/SAFe ICPs, BVA can be used to understand the business value of software products, identify and prioritize the most valuable features in those products, as well as automate tasks or reduce control steps when appropriate in order to eliminate NVA steps.
Step 2: Identify the Value Streams
Step 3: Map the Value Streams: It is important to map the value streams in order to use Business Value Analysis (BVA) in Team Agile/SAFe ICPs because it helps identify and understand which activities add value to the customer's perspective, as well as those that do not. Without mapping these value streams, it is difficult to make informed decisions about how best to improve processes and eliminate non-value-adding activities. Mapping the value streams also helps teams become more knowledgeable about how their business functions, so they can better adjust their strategies accordingly.
Step 4: Analyze the Value Streams: Business Value Analysis (BVA) is a powerful business performance assessment tool used to measure and improve business agility. It helps businesses identify value mismatches, generate new ideas for improvement, evaluate potential solutions, and develop them as part of an ICP. The goal of this step is to find alternatives so that the project can perform the same functions while eliminating unnecessary activities from the process without sacrificing customer satisfaction. NVA activities do not add value to the process or improve customer satisfaction and should be avoided in order for BVA to be effective. By employing BVA techniques, teams are able to accurately assess their overall performance, determine which areas need improvement, and make adjustments where necessary in order to better adapt to changing conditions and increase their competitive edge within the market.
Step 5: Create an Action Plan: Creating an action plan in BVA for Team Agile/SAFe ICPs is important as it enables the team to effectively manage the value generated by their project. With an action plan, team members can define planned value and determine measurable outcomes, helping them to stay on track with their goals. Additionally, teams can utilize survey information and key learning objectives & video resources to ensure that they are getting the most out of their BVA experience. An effective action plan allows stakeholders to understand what value is being delivered so that they can be confident in supporting the project moving forward.
Step 6: Implement the Action Plan: Step 6 is the final step in Business Value Analysis (BVA) and Scaled Agile Framework Implementation Certification Program (SAFe ICPs). It helps organizations assess their BVA and SAFe ICPs and measure their progress in implementing them. Step 6 allows organizations to objectively assess the value of their improvements, identify areas for improvement, and set measurable goals. Furthermore, it enables teams to create a plan of action, optimize processes, track results, consider customer feedback and continuously improve value delivery.
Step 7: Monitor and Evaluate the Results: It is important to monitor and evaluate the results of a BVA implementation in an Agile/SAFe environment in order to ensure that the benefits of the implementation are realized. Monitoring these results allows teams to identify any areas where value-mismatched functions occur, as well as to develop improvement ideas and plans for addressing them. Additionally, monitoring and evaluating implementation results help Site Engineers fulfill requests more efficiently by enabling Works Engineers to open and examine requests more quickly. Ultimately, this can increase customer satisfaction through improved response times while keeping overall costs low.
Step 8: Leverage Dynamics 365 Field Service Consultant and ITIL 4 Foundation: Business Value Analysis (BVA) is a tool used in Team Agile/SAFe ICPs to improve communication and collaboration between different teams. It seeks to assess the value of specific actions and strategies within a business environment, providing insight into the potential impact of decisions. BVA can be used within teams to identify areas where optimization is needed, as well as changing customer demands or trends in the industry. Additionally, BVA can help with identifying best practices, quantifying success, and maximizing return on investment. Dynamics 365 provides tools that are essential for leveraging BVA insights in Team Agile/SAFe ICPs. Avantiico's expertise with Dynamics 365 allows businesses to utilize these tools for improved process deployment, management, and optimization.
Step 9: Utilize Training Solutions: Business Value Analysis (BVA) is an assessment and model that is used to help teams become more agile and safe. BVA offers training methods such as private group training, on-site of your choice, or virtually to help teams transform their business goals into effective solutions. It also offers a certification that can be used in Team Agile/SAFe ICPs (Inner Circle Processes). Training courses are available to learn more about the certification and how to use it in Team Agile/SAFe ICPs.
Step 10: Be Up to Date with the Latest Technology and Software: It is important to be up to date with the latest technology and software when using BVA in Team Agile/SAFe ICPs because it can save time, and reduce overhead, and help staff skilled positions quickly. Additionally, having knowledge of the latest industry knowledge is important for BVA in Team Agile/SAFe ICPs so that companies can take advantage of expert-led courses and programs like MakeDev Reskill Program to teach existing non-technical talent technical skills.
Step 11: Download free Reports: In Team Agile/SAFe ICPs, BVA can be used to facilitate communication and collaboration between teams by providing a way for them to share and exchange information, ideas, and feedback. BVA can also help teams identify customer needs and want in order to provide solutions that meet those needs more effectively. Additionally, the twelve techniques of value analysis can be used with BVA to reduce costs by streamlining processes and identifying best practices early on in the development process. Furthermore, trial users are able to access the tool for free.
Step 12: Stay Connected with the Latest Blogs and News: Staying connected with the latest blogs and news can help one successfully use BVA in a Team Agile/SAFe ICP. By reading, blogging, and following industry news, an individual can become more familiar with key terms such as the six steps of value analysis and the twelve techniques for assessing value. Through YouTube advertising and social media outreach, one can stay up to date on pertinent blog posts that explain how to use BVA in a Team Agile/SAFe ICP.
Step 13: Follow Dynamics 365 and Windows 11 Updates: The use of Business Value Analysis (BVA) in Team Agile/SAFe ICPs offers several benefits. BVA can help teams improve their business processes and customer experiences by automating processes, increasing agility and effectiveness through automation, and providing a range of licensing options for flexibility. Additionally, BVA's download guide provides valuable information about the product to help teams make informed decisions.
What are some best practices for implementing a successful BVA process?
- Have a well-defined goal in mind: It is important for organizations to have a well-defined goal in mind when implementing a BVA process in order to ensure that the process is aligned with the organization's goals and objectives. A well-defined goal also helps guide the implementation of the BVA process, ensuring that it moves towards achieving desired outcomes. Having a clear objective guides teams and keeps their efforts focused on what needs to be done in order to achieve success. Additionally, having a well-defined goal can help motivate teams and keep them motivated throughout the process.
- Identify the key stakeholders: Identifying the key stakeholders when implementing a successful BVA process is important because it allows for meaningful and effective communication between all parties involved. It ensures that everyone understands their role in the process, as well as how their actions can contribute to achieving the desired business objectives. Stakeholders should be included in decision-making throughout the project and consulted regularly so that they are kept up to date on progress and any changes or updates. Having clear lines of communication with these key stakeholders helps ensure that all potential solutions will be considered, which leads to an optimal outcome for everyone involved.
- Establish a standardized process: It is important to establish a standardized process for Business Value Analysis (BVA) in order to improve efficiency and accuracy. Having a methodology that is aligned with the business objectives allows for the analysis to achieve both qualitative and quantitative measures, which can help define the business value. This will enable team members to assess current challenges and opportunities for future growth, generate new ideas for improvement, determine primary and secondary functions of projects more effectively, as well as evaluate proposed changes to ensure they make sense and will improve overall business performance.
- Develop a comprehensive plan: A comprehensive plan for a BVA process should include identifying current challenges and opportunities for future growth, gathering qualitative and quantitative data to determine the business value of the process, determining technology requirements and benefits based on the company's business strategy and vision, creating new ideas for improvement and evaluating them to decide which ones are most suitable for the project, developing these ideas into feasible plans of action with value engineering techniques, relaying all relevant information in a clear and concise manner so that stakeholders can understand it, aligning with the business objective in order to provide maximum benefit from BVA initiatives. Additionally, since every organization is different it is important that the BVA methodology be tailored to each individual’s specific needs. Finally, teams should use Agile/SAFe ICPs (Integrated Continuous Planning) when working collaboratively on projects.
- Define the criteria for success: It is important to define the criteria for success when implementing a successful BVA process in order to ensure that the analysis and evaluation are properly conducted and that the project scope, risks, costs, and other issues are accurately assessed. Defining criteria for success can also help ensure that stakeholders are presented with viable solutions based on identified needs and objectives. Additionally, it allows for more effective decision-making by providing guidance as to what constitutes a successful outcome as well as which ideas should be pursued.
- Evaluate potential solutions: When evaluating potential solutions for a BVA process, it is important to consider the project's purpose and function, generate new ideas for improvement, and evaluate them against the best options. It is also important to consult with a licensed BVA provider and assess various CRM and ERP solutions available in order to make an informed decision. Additionally, reading through the ERP evaluation guide can help ensure that all necessary information has been considered before making a purchase. Finally, implementing improvements suggested by the value analysis process is essential in order to obtain desired results.
- Implement the chosen solution: It is important to implement the chosen solution because it can improve the company's current state and save money in the long run. Value analysis helps identify the benefits of implementing a solution, and compares it to the costs of delaying or not implementing it. This ensures that companies make informed decisions that are beneficial for their bottom line. Additionally, by choosing a suitable improvement and introducing it quickly, companies can stay ahead of their competitors in terms of providing efficient products or services.
- Monitor and adjust the chosen solution: Monitoring and adjusting the chosen solution is important for a successful business & solution evaluation in order to ensure that the desired outcomes are achieved. By monitoring and adjusting the chosen solution, consultants can assess how well it is performing and make necessary changes if needed to meet the client's objectives. This helps them identify any pitfalls or opportunities that may arise, allowing them to adjust their strategy accordingly. Doing so ensures that they are best positioned to maximize value from their investment.
- Measure and assess performance: It is important to measure and assess performance when conducting a BVA process, as this helps teams accurately identify the costs and benefits of ideas. By properly measuring and assessing performance, teams can select the best ideas that will be most beneficial to stakeholders. Additionally, having an example for each stage provides guidance for how to properly evaluate value-mismatched functions in order to generate new improvements. Measuring and assessing performance allows teams to confidently move forward with their BVA process knowing they have considered all potential solutions before making a decision.
- Communicate results and make necessary changes: It is important to communicate results and make necessary changes when implementing a successful BVA process in order to ensure the success of the project. By effectively communicating and discussing each idea in detail with stakeholders, the value engineering team can identify any value-mismatched functions that need improvement. This also provides an opportunity for salespeople to present ideas in an effective manner so that stakeholders are more likely to accept them. Finally, making constant improvements to course material ensures that all materials are up-to-date, relevant, and accurate which further increases the chances of achieving project success.
What are the benefits of BVA?
The benefits of Business Value Analysis (BVA) include the ability to identify tangible and intangible benefits of a Microsoft ERP or CRM solution, as well as check insurance coverage before treating patients. Involving the client in the process, it allows for the exploration of solutions to major business challenges and the identification of current high-cost issues. Additionally, collaboration is essential for success, enabling an objective assessment that is feasible and achievable.
What are the different types of BVA?
Business Value Analysis (BVA) is an activity that seeks to add value to a business, but not necessarily to the customer. It originates from Harrington's book "Business Process Improvement: The Breakthrough Strategy for Total Quality, Productivity, and Competitiveness." BVA activities are aimed at providing value to the business but not necessarily to the customer. BVA can be applied in different contexts including financial, functional, and intellectual. Each type of assessment has its own set of measurements and metrics used for assessing the value of a company or product. BVA is also known as Brown Vence and Associates as they specialize in different industries. Additionally, it can stand for other things such as Business Valuation Associates, Burning Vigor Attack, Business Valuation Advisors, Business Value Accelerator, or even Business Value Alliance depending on context.
What is the difference between BVA and other development methods?
BVA is a type of development that adds value to both the business and the customer, in contrast to other methods which only add value to the business.
BVA comes from the book "Business Process Improvement: The Breakthrough Strategy for Total Quality, Productivity, and Competitiveness" by H. James Harrington.
The BVA is responsible for guiding their teams through iterative and rapid product development to maximize business value, while other development methods focus on creating a single product.
The BVA must have the mindset shift for an Agile environment in order to be successful. Through this course, participants will be able to cultivate an appreciation for Value Management as an Agile discipline.
BVA is different from other development methods in that it emphasizes the importance of stakeholder collaboration and continuous learning.
What are the skills needed for BVA?
A Business Value Analysis (BVA) requires participants to possess certain skill sets in order to be successful. These skills include the ability to understand the role of a business analyst in an Agile environment, knowledge of best practices and techniques for gathering requirements, a shift in mindset from managing requirements to adding value, and understanding Harrington's book "Business Process Improvement: The Breakthrough Strategy for Total Quality, Productivity, and Competitiveness." Additionally, participants must possess strong analytical and problem-solving abilities as well as interpersonal skills such as communication/listening prowess. Finally, it is important that participants have experience with Agile/SAFe ICPs (Integrated Continuous Processes) so that they can properly assess the business value of tasks.