Comprehensive Analysis Methodology for Business Planning

Comprehensive Analysis Methodology for Business Planning

Copyright: © 2022 |Pages: 41
DOI: 10.4018/978-1-7998-8073-8.ch008
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This chapter uses the normative research methodology to review the literature for business research and analysis to search for a set of tools that can provide a comprehensive analysis methodology. The investigation of competitive advantage follows the dynamic capability of the subjective approach to the resource-based view (RBV). This view needs to establish the current position of the company's resources in the context of the surrounding environment to develop a clear understanding of the current competitive status of the organisation. The best practice of suggestions from the literature will be gathered into a proposal for a systematic research and analysis methodology governed by an information policy. A formal information project is suggested to collect and store the required information and to use a formalized set of visualization tools to provide an evolving holistic picture of the information leading to the architectural blueprint.
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This Book’s title is ‘Critical Analysis and Architecture for Strategic Business Planning’, and an architecture cannot be designed to represent the business structure without critical analysis of all the significant elements of the business to ensure accuracy and relevance. However, because the architecture is required for strategic business planning, the analysis must also look outward from the company to determine what external factors impact the organisation.

The investigation for a suitable methodology took a dual approach, using the normative research methodology to provide the overarching research framework to investigate the literature for the area of concern. The search for difficulties and omissions was combined with noting best practice tools and techniques from business research and information systems analysis to provide a methodology for the solution development. The development of the proposal is based significantly on linking existing constructs and theories for business analysis into a single cohesive method. The focus in the literature search comprised an assessment of the role of management in business analysis, planning and development and includes appraisals and discussions about tools and techniques for business research and analysis. The methods from information systems analysis were examined for techniques that might prove helpful in the development of a solution.

Reviewing the whole of the business and the external factors impacting the organisation requires the analysis to be comprehensive and critical. The methodology for seeking competitive advantage follows the dynamic capability of the subjectivist approach to the resource-based view (RBV). The methodology comprises the critical analysis guided by the knowledge management structures and the development of the architectures required to assist the managers making the strategic decisions.

Originally the resource-based view looked only internally to the organisation “The resource-based view (RBV) concentrates on concepts internal to a firm and disregards the world outside, whereas the industry view neglects internal antecedents and consequences”, which is recorded by (Gellweiler, 2018). However that early RBV approach has been extended with later opinions about dynamic capabilities and the subjectivist approach as mentioned previously and Gellweiler’ paper “combines most influential concepts on firm resources and industrial forces to a complementary picture for strategic positioning” (2018), which is the approach used by the methodology proposed by this chapter.

Knowledge management has at the core of the application the requirement to know what knowledge is available to the organisation and where it can be found. Chapter 2 reviewed the importance of information and the requirement to determine what information and its extension to intelligent knowledge which is needed to acquire competitive advantage. Therefore any methodology to rsearch and analyse the business situation will require knowledge management to be embedded with the methodology and requires the “ability of organizations to realize economic value from their collection of knowledge assets as well as their assets of information, production distribution, and affiliation” (Gold, Malhotra, and Segars, 2001). Knowledge management needs to be adopted by the organisation at the highest level “knowledge management, which is an institutional systematic effort to capitalize on the cumulative knowledge that an organization has (Serban and Luan, 2002)

The research and analysis methodology is focused on the intersection of the internal resources with the external factors to select choices for optimal competitive advantage. It is subjective in approach as the value of changes are subject to the interpretation of the staff and managers and dynamic as the valuation might change as circumstances change. A reference architecture model would be a valuable mechanism to help guide the implementation of this complex project. “A Reference Model (RM) or reference architecture is a conceptual framework to identify the major elements that comprise a concept and to show at a general level how these elements are related to each other” (McKee, 2018, p.78).

Key Terms in this Chapter

Framework: A conceptual structure intended to serve as a support or guide for the development of something.

Critical Elements: There are a small number of pieces of information that are particularly critical to a job, and it is important to ascertain which information is the most important and keep only a few vital elements.

Value System: The value chain extended outward to include the supply chain.

Information map: Is a visualization tool and can show either the index of information that is available or information that is required and where it can be found, or the flow of information and will comprise information elements and the relation between them.

Business model: It answers the questions; who is the customer? And what does the customer value? ( Magretta, 2002 ).

Value Chain Analysis: A process where a firm identifies its primary and support activities that add value to its final product and then analyze these activities to reduce costs or increase differentiation.

Reference Architectures: A model to provide guidance for future developments to help create the actual business architecture blueprint.

Competencies: Used to describe the level of skill and procedures in place to affect the company business.

Normative Research Methodology: Has a similar approach to systems analysis and design but with a more significant research orientation to researching a topic to gather information and also point out in which aspects the object of study can be improved.

Information Management: The management approach to the organisation, control, and application of organisational information resources through coordination of people and technology resources.

Knowledge Management: The management approach to ensure that there is a well-organized, readily available infrastructure that contains the type of knowledge required.

Capabilities: Used to describe the amount of resources available to perform required function.

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