Business Analysis Competencies: Mirror, Mirror: A Self-Assessment by Banks and Insurers

by Michael Fitzgerald, March 9, 2011

Abstract

Business analysis, the identification, communication, and management of business requirements, is a critical skill set in any company pursuing significant change.

In order to determine the state of the business analysis function in the financial services industry, Celent teamed with the International Institute of Business Analysis (IIBA) to survey banks and insurance firms to take a snapshot of performance in key business analysis skill areas. The survey was designed to hold a mirror up to the industry and reflect its perception of its performance.

The report, Business Analysis Competencies: Mirror, Mirror: A Self-Assessment by Banks and Insurers, finds that, in many organizations, business analysis skills are insufficient and will not result in sustained performance at sufficient levels. Among the conclusions:

  • There is much work to be done to improve business analysis skills. Very few companies rate their performance in any business analysis area as a strength.
  • In terms of importance, across all industries, requirements analysis ranked highest; enterprise analysis ranked lowest.
  • There were significant differences between banks and insurers in the relative importance of analysis skills. Banks stressed requirements management and communication, while insurers placed more emphasis on elicitation and requirements analysis.

“The innovation and renewal of business processes are the key focus areas for many companies, and the quality of business analysis is a key success factor in these transitions,” says Mike Fitzgerald, Senior Analyst with Celent’s Insurance group and author of the report. “This study shows that gains are being made in some important areas, but the overall message is that focused development must continue to sustain results.”

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

3

Introduction

5

Survey Demographics

6

Model Description

10

Importance Vs. Performance

12

Banks

14

 

Importance

14

 

Performance

14

Life/Annuity/Health Insurers

20

 

Importance

20

 

Performance

20

Property & Casualty Insurers

26

 

Importance

26

 

Performance

27

Conclusion

32

Leveraging Celent’s Expertise

33

 

Support for Financial Institutions

33

 

Support for Vendors

33

Related Celent Research

35

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