What is BACCM (Business Analysis Core Concept Model)?

As a business analyst, having a common language and clear ways of working is super important. It is like having a roadmap for smooth teamwork, especially in the ever-changing world of business analysis. In my professional journey as a business analyst, I dive into a lot of information, handle different tasks, and build connections with my team and work with a variety of organization sizes ranging from startups, mid-size organizations to Fortune 500 companies.

The Business Analysis Core Concepts Model (BACCM) is the cornerstone of the IIBA’s BABOK Guide v3, playing a pivotal role in defining essential principles for business analysis. The simplicity of a clear structure and straightforward business analysis concepts is a big game-changer. It helps me make sense of my tasks, figure out what resources and skills I need, and make good decisions. This shared understanding is the secret sauce for easy communication and teamwork in the always-evolving world of business analysis. 

In this blog post, I will walk you through the foundations of the BACCM model, highlighting its importance in influencing the comprehension and utilization of important ideas in the field of business analysis.

What is the Purpose of BACCM Model?

The Business Analysis Core Concept Model (BACCM) serves as a unifying framework, enabling business analysts to execute and articulate their work with a shared language, independent of their perspective, industry, methodology, or organizational role. BACCM core concepts guide business analysts in enhancing their business analysis practices by evaluating the interconnections among the six key concepts from a holistic viewpoint which are explained further in this blog. 

This analysis considers the impact of these concepts and their relationships at any stage of a product or project implementation, laying the foundation and providing a clear trajectory for effective business analysis. Enrolling in a reputable Business Management course can provide individuals with the essential skills and knowledge needed to excel in the field of business analysis.

The BACCM - Six Core Concepts [With Examples]

The BACCM consists of six core concepts: Change, Need, Solution, Stakeholder, Value, and Context. All core concepts are equally important and necessary. There is no ranking among these - no single concept holds greater importance or significance over any other concept. Each core concept is defined by and dependent on the other five core concepts and cannot be fully understood until all the concepts are understood.

Let’s review the six core concepts in detail, along with their definitions as provided by the BABOK Guide:

1. Change

Change is an act of transformation within an organization in response to a need. The need can be internal or necessitated by an external event such as a disruption in the market. The aim of the change is to improve the performance of an enterprise through deliberate actions controlled through business analysis activities.

Each change brings about advantages and drawbacks. Through initiation and exploration of potential transformations, a business analyst identifies challenges and formulates actions to optimize value. If the analysis suggests that a particular change might reduce value, endeavors are directed towards preventing or mitigating its impact, empowering the organization with self-regulation capabilities.

2. Need

Need is a problem or opportunity to be addressed by the business analyst. Needs can cause changes by motivating stakeholders to act. Changes can also cause needs by eroding or enhancing the value delivered by existing solutions or creating the need for new solutions.

Example 1: Improved Customer Satisfaction 

• Problem: An e-commerce company has been receiving a significant number of customer complaints about the slow response time of its website during peak hours. 
• Need: The organization recognizes the need to improve the website's performance to enhance customer satisfaction and retain a competitive edge in the market. 
• Solution: Implementing a content delivery network (CDN) to optimize website loading times and responsiveness. 

Example 2: Cost Reduction Opportunity 

• Opportunity: A manufacturing company identifies an opportunity to reduce operational costs by streamlining its supply chain processes. 
• Need: The organization realizes the need to address inefficiencies in the supply chain to capitalize on the cost reduction opportunity. 
• Solution: Implementing a supply chain management system to automate and optimize inventory management, procurement, and distribution processes. 

3. Solution

A specific way of satisfying one or more needs in a context. A solution satisfies a need by resolving a problem faced by stakeholders or enabling stakeholders to take advantage of an opportunity.

Example1: For instance, to tackle the issue of inadequate after-sales service, the organization might opt for a software application. It is important to note that a single need can have multiple solutions, offering flexibility in addressing challenges.

Example2: Implementing customer relationship management (CRM) software to streamline communication, enhance data management, and improve customer interactions.

4. Stakeholder

A group or individual with a relationship to the change, the need, or the solution. Stakeholders are grouped based on their relationship to the needs, changes, and solutions.

Every project should maintain a stakeholder list, encompassing those participating or affected by proposed changes and solutions. Throughout the project, the business analyst is likely to engage with most stakeholders, providing training for those needing assistance in adapting to new solutions or changes. Adjustments to the solution may be made to facilitate this process. 

BABOK outlines various stakeholder categories based on their project roles. This list is not exhaustive, with some stakeholders occupying multiple subcategories, and individuals may fulfill roles in multiple categories.

Examples:

Primary Stakeholders: 

• Customers: Representing external stakeholders, they are vital as the target audience for the new product. 
• Shareholders/Investors: Have a financial interest in the success of the new product, expecting a return on their investment. 

Internal Stakeholders: 

• Product Development Team: Involved in the creation and design of the new product, ensuring it meets quality standards and aligns with market needs. 
• Marketing Team: Responsible for promoting and positioning the product in the market, aiming to maximize sales and brand visibility. 
• Sales Team: Tasked with selling the new product, meeting revenue targets, and maintaining customer satisfaction. 

5. Value

The worth, importance, or usefulness of something to a stakeholder within a context. Value can be tangible or intangible. Examples of tangible values are potential or realized returns, gains, and improvements. Intangible value often has a significant motivational component, such as a company's reputation or employee morale.

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Example 1: Implementation of a new software system streamlines processes, leading to a 20% reduction in operational costs, thus providing tangible financial value to the organization. 

Example 2: Launching a corporate social responsibility initiative enhances the company's reputation in the community, contributing to intangible value through improved public perception.

6. Context

The circumstances that influence, are influenced by, and provide understanding of the change. A change always occurs within an environment. A context is a wide-ranging term that can include everything from an organization’s culture, mission, and demographics to government policies, competitors, products and sales. In order to successfully implement the change, the business analyst must carefully define and analyse the context within which the change is being implemented.

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Example: For instance, the Software as a Service (SaaS) Customer Relationship Management (CRM) option may be suitable for Organization A, while custom-built software could be more appropriate for Organization B. Organization A, being a small entity with only 10 employees, may find the flexibility and cost-effectiveness of a SaaS CRM aligning well with its needs. Conversely, Organization B, with potentially unique and complex requirements, might benefit more from a tailored solution to meet its specific business processes and objectives. 

Example to Illustrate the BACCM (Business Analysis Core Concepts Model)

Let’s consider an example to illustrate the BACCM in more detail. The wave of digitization is transforming many traditional industries. A traditional retail business that operated brick and mortar stores for years must now compete with e-commerce companies that provide the same goods to customers but with additional benefits such as convenience (shop from home), wide range of products and attractive discounts (due to the lower cost business models of e-commerce players). In order to respond to this change in market dynamics, a business analysis task can be performed at a traditional brick and mortar retail store using the BACCM. Here is how the six core concepts may be analysed in this example:

1. Change: Provide e-commerce solutions to customers who prefer shopping online. This will require completely new business processes and functions to fulfil online orders.

2. Need: Rising popularity and market share of e-commerce competitors who directly compete in the marketplace with the company, to attract a growing share of customers, transactions and volume of goods sold.

3. Solution: Depending upon the company’s organizational structure, capabilities and time-sensitive nature of the change, the probable (but not exhaustive) list of solutions could be to implement an IT project that enables the organization to set up its own e-commerce store, partner with existing e-commerce players to use their infrastructure for order fulfilment or acquire an existing e-commerce player and merge it with the company’s existing operations.

4. Stakeholder: The stakeholders, in this case, are almost from all functional areas – sales, marketing, IT, HR and Operations – within the organization.

5. Value: The tangible value, in this case, can be increase in sales and increase (or maintaining) the company’s market share. The intangible value can include transforming the organization to a digital future, introduction of new talent and ideas.

6. Context: The context for this proposed change can be the growing market share and popularity of e-commerce players, changing demographic profile of the customers, improvements in the digital infrastructure in the country, entry of foreign players in the market and easier government regulations towards setting up of e-commerce companies.

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Conclusion

To conclude, the BACCM model acts as a comprehensive guide that not only defines the landscape of business analysis but also equips practitioners with the tools to navigate, communicate, and assess the impact of their efforts within the complex business environment. The Business Analysis Core Concept Model (BACCM) offers a structured framework for comprehending the six essential business analysis concepts: change, need, solution, stakeholder, value, and context. Serving as a foundational basis, the BACCM facilitates a deeper understanding of business analysis and serves as a platform for knowledge development.

It is advisable to actively seek opportunities within your projects to gain hands-on experience with these concepts and hone your skills in employing business analysis techniques that support and reinforce these fundamental principles. This comprehensive framework serves as a guide to navigate the intricate landscape of business analysis, ensuring clarity, coherence, and informed decision-making throughout the process.