Functional Analysis

What is Analysis?

A function is a series of actions performed to meet one or more business purpose or to fulfill one or more business requirements.

Functional analysis corresponds to the various functional relationships among various business functions. It mainly focuses on how the overall functionality is developed and its interaction between entities.

Large or complex business functions are more easily understood when broken down into simpler functions using functional analysis.

Each business function can be assigned to the below categories. In some cases, a function may be assigned in both categories.

• Core Business category

Functions that may be included in this category consist of those activities which are directly involved in production, providing services, generating revenues and profits or management of these areas.

• Administrative category

This category includes those functions which service the firm as a legal entity and encourage its growth. The administrative category basically contains functions such as personnel (employees), buildings and maintenance, administrative executives, etc.  

Applications of Functional Analysis

1. Functional Analysis is mostly used during the project analysis phase as part of the functional requirements document
2. Functional Analysis  is done after meeting with business analysts and subject matter expertise
3. Achieve a detailed understanding of (business) components and their functions
4. Perform an end-to-end study of the business operation and check each function to confirm that it is correct
5. Role of Business Analyst in Functional Analysis
6. Conducting feasibility study
7. Defining new business opportunities
8. Preparing business cases
9. Conducting risk assessment of business functions
10. Documenting and modeling business processes
11. Alignment & automation of different business & IT processes
12. Business Continuity planning and assistance in strategic decisions
13. Assist in User Acceptance Testing sessions

An Overview of steps involved in performing Functional Analysis

Requirements

A collection of elementary/general functions. For instance, the core functions of the business may be product development.

Expected Result

The result of the function analysis is a thorough understanding of the functions and sub functions of the business.

Procedure

1. Describe the main function of the business in the form of a black box. If you are unable to define one main function, go ahead to the next step.

2. Make a list of sub functions of the main function to be performed.

3. For a complex business function, develop a function structure. There are three principles of structuring: put functions in a chronological order, connect inputs and outputs of flows between functions.

• To visualize the chronological order, simply list the functions.
• To visualize the flows, connect boxes by arrows.  
• To visualize hierarchy, draw a tree structure.

4. Elaborate the function structure. Fit in a number of minute details which were left out and find variations of the function structure so as to find the best function structure. One can explore variations in functions by changing the sequence of sub functions and splitting or combining functions. Exploring various possibilities is the essence of function analysis: it allows for an exploration and generation of possible solutions to the functional problem.

Conclusion:

The Functional Analysis is without any doubt one of the most fundamental tool of business analysis as it guarantees a thorough analysis of the requirements, it fosters the search of alternative solutions, thus avoiding or at least limiting the risk of forgetting valuable options. It is therefore of utmost importance for every business analyst to learn how to apply Functional Analysis to explore new concepts and then satisfactorily come out with innovative solutions.

About Author:

Harpreet Kaur Dua is a consultant in Systems Plus Pvt. Ltd. Within Systems Plus, she actively contributes to the areas of Technology and Information Security. She can be contacted at: harpreet.dua@spluspl.com 

Sources: http://www.people-tech.com/services/consulting/business-and-functional-analysis 

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