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What Is BACCM Model (Business Analysis Core Concepts )?

BABOK core concepts model

Business Analysis Core concepts Model (BACCM) is the core framework integral to BABOK Guide v3. Core concepts are fundamental to the practice of business analysis as defined in BABOK guide. IIBA BABOK v3 is the new version of BABOK guide for latest version of business analyst certifications. In this article, I am going to discuss the basics of BACCM model (Business Analysis Core Concepts Model).

You can directly go to the end of this blog post to watch a video on BACCM model, if you would prefer to watch video rather than reading the text. Your best career opportunity is just a few tests away. Start preparing for your Certified Business Analysis Professional (CBAP) exam now!

What is the Purpose of BACCM Model?

The main purpose of  Business Analysis Core Concept Model (BACCM) is to assist business analysts to conduct and communicate their work in a common vernacular that is not reliant on their perspective, industry, methodology, or position in the company. BACCM also directs business analysts in performing better business analysis by assessing the relationships between these six concepts from a holistic perspective and by analysing the effect of these concepts and relations at any stage during a project in order to establish both groundwork and a path forward.

Essential Key Concepts of BACCM Model

The business analysis core concept model is a set of 6 concepts that define the business analysis practice as per IIBA BABOK v3.

The six core concepts are as shown below:
Business Analysis core concepts model (BACCM)
Let’s try and understand each one of them with the help of an example. If you are not familiar with BABOK guide, you can read introduction to BABOK guide for starters.

Need

Need is defined by BABOK as:

A problem, opportunity or constraint with potential value to a stakeholder (s)

Need can be thought of as the reason which starts a project. The need arises from the current state of the organisation.

For example: An organisation is receiving a lot of complaints from customers about the after sales support provided. So, the organisation has a need to address the problem. 

An organisation is selling subscription software, where people subscribe to the software and pay on a monthly basis. In recent times, the drop out period and rates are very high. 60% of people stop paying after 1 month and 80% after 2 months. The organisation needs to address the problem and that’s an example of a need.

What is not Need: Need is not a solution. Solutions are ways to address the need. So, in our first example, if we say that the company wants to automate its after sales service process, it defines the solution and not the need.

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Solution

The BABOK guide refers to this core concept as:

A specific way of satisfying one or more needs in a context

Organisational needs can be satisfied or addressed through one or more than one solutions. A solution to address the need can be specific to an organisation as different organisations or situations may need different solutions.

For example: To address the need for resolving poor after-sales service, the organisation may use a software application. 

A need can be addressed in more than one way, which means that we can have more than one solution. 

In our case, the organisation can opt for a Software as a Service (SaaS) CRM system, or a COTS (commercial off the shelf) CRM product or a completely custom-built software application.

So, how does a business analyst/Organisation decide which is the best solution? BA takes a decision based on multiple factors like cost, benefits, risks, etc.

Change

BABOK refers to this core concept as

The act of transformation in response to a need.

First, an organisation recognises the need. A need requires a solution. The organisation chooses the solution, which is the best fit.  

The organisation implements the solution (internally or through a vendor). During the implementation of the solution, changes take place within the organisation. The change includes team changes, process changes, and more.

For Example: In our example, the support team, at the least, needs to learn how to use the new software. Are they ready? If not, they need to be skilled appropriately.

Context

Context refers to the environment in which the solution needs to be implemented. It includes organisational background, structure, locations etc.

Context may also influence the decision to select a solution to address the need for an organisation.

For Example: In our example, Software as a Service (SaaS) CRM option is suitable for Organisation A, it is possible that a custom-built software is more suitable for Organisation B. Organisation A is a small organisation with just 10 employees. 

Value

BABOK refers to “Value” as:

The worth, importance, or usefulness of something to a stakeholder within a context.

A need merits an investment (in a solution) only if it is valuable to address the need. The value can be tangible or intangible.

For Example: By implementing a CRM solution to address the after sales support issues, the organisation wants to keep the customers happy so that they can refer more customers.  This is what is meant by “Value”.

Stakeholder

Who is a stakeholder?

A group or individual with a relationship to the change, the need, or the solution.

A stakeholder is an individual or group who can influence the project or can get influenced by the project as a user. The stakeholders can be from the customer organisation, the solution provider or an external organisation.

BABOK guide has proposed specific categories of stakeholders but does not limit them to only these categories. The stakeholder’s categories as per BABOK are:

  • Business Analyst,
  • Customer,
  • Domain subject matter expert,
  • End user,
  • Implementation subject matter expert,
  • Operational support,
  • Project manager,
  • Regulator,
  • Sponsor,
  • Supplier, and
  • Tester.

For Example: In our example, the stakeholders are support staff, Customer service managers, and the director. 

These core concepts are an important part of the BABOK guide and therefore also important for the IIBA Certifications preparation. Understanding BABOK thoroughly is the most important element of IIBA Certifications preparation.

Conclusion

The BACCM specifies the field of business analysis, facilitates communication between all parties involved, aids in the identification and evaluation of relationships among both core concepts, and provides tools for interpreting the impact and actual outcomes of business analysis methods that have been applied.

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