Understanding the Components of Business Analysis Core Concept Model

6 min readJul 17, 2023

Business Analysis Core Concept Model

In today’s rapidly changing business environment, organizations strive to stay competitive by continuously adapting and meeting the evolving needs of their customers. To navigate this complex landscape, frameworks such as the Business Analysis Core Concept Model (BACCM) provide a structured approach to designing customer-centric businesses. This blog post aims to explore the components of the BACCM model, shedding light on its key elements, including Context, Stakeholders, Changes, Needs, Solutions, and Value. By understanding and applying these components, organizations, including those in the banking sector, can develop robust strategies and architectures that align with customer expectations and drive long-term success. So let’s dive into the world of BACCM and uncover its transformative power for businesses across industries.

Context

The Context component of BACCM involves understanding the external and internal factors that influence a business. It encompasses elements such as industry dynamics, market trends, regulatory requirements, and technological advancements.

By analyzing the context, organizations can gain valuable insights into the challenges and opportunities they face in delivering customer-centric solutions.

For example, a bank operating in a rapidly digitalizing market may need to consider how technological advancements impact customer expectations and shape their digital banking offerings.

Stakeholders

Stakeholders are individuals or groups that have a vested interest in an organization’s success. In the context of BACCM, stakeholders include customers, employees, shareholders, regulators, and partners.

Understanding the needs, motivations, and expectations of these stakeholders is crucial for designing customer-centric business architectures.

Customers

Customers are one of the most crucial stakeholders for a bank. They are individuals, businesses, or organizations that utilize the bank’s services, such as opening accounts, obtaining loans, making deposits, or conducting financial transactions. Customers expect reliability, security, convenience, personalized services, and competitive interest rates. Understanding customer needs and preferences is vital for banks to provide tailored solutions and enhance customer satisfaction.

Shareholders

Shareholders are individuals or entities that hold shares or equity in the bank. They invest capital in the bank and expect a return on their investment in the form of dividends and capital appreciation. Shareholders are interested in the bank’s financial performance, profitability, and growth prospects. Banks must balance the interests of their shareholders with other stakeholders to ensure sustainable growth and value creation.

Regulators and Government Authorities

Regulators and government authorities are stakeholders that play a critical role in the banking industry. They establish and enforce regulations, policies, and frameworks to ensure the stability, integrity, and compliance of banks. Regulatory bodies oversee areas such as capital adequacy, risk management, consumer protection, anti-money laundering, and data privacy. Banks need to comply with these regulations and maintain a strong relationship with regulators to operate within the legal and regulatory framework.

Employees

Employees are essential stakeholders within a bank. They include executives, managers, front-line staff, and support personnel. Employees contribute to the bank’s daily operations, customer service, innovation, and overall performance. Banks should focus on attracting, developing, and retaining talented employees to create a skilled workforce that can meet customer needs effectively.

Partners and Suppliers

Partners and suppliers are stakeholders that collaborate with banks to provide various products, services, and technology solutions. They can include payment processors, software vendors, security providers, marketing agencies, and professional service firms. Developing strong partnerships and maintaining effective relationships with these stakeholders is crucial for banks to access specialized expertise, enhance operational efficiency, and deliver value-added services to customers.

By considering the interests, expectations, and requirements of these stakeholder categories, banks can gain valuable insights into the areas they should prioritize. For instance, a bank may identify that its stakeholders value transparency, convenience, and personalized services, which can then inform the development of new products or service delivery channels. Understanding stakeholder needs allows banks to align their strategies, offerings, and customer experiences to drive customer satisfaction, loyalty, and ultimately, long-term success.

Changes

The Changes component of BACCM emphasizes the need for organizations to proactively respond to evolving market dynamics and customer demands. This component involves identifying and analyzing the changes that impact an organization’s business architecture. These changes can be technological, regulatory, competitive, or demographic in nature.

By anticipating and adapting to changes, organizations can stay ahead of the curve and better serve their customers.

For example, a bank may identify the rising popularity of mobile banking and invest in developing a robust mobile application to cater to the changing preferences of its customers.

Needs

The Needs component of BACCM focuses on understanding the requirements and expectations of customers and other stakeholders. It involves conducting research, surveys, and market analysis to gain insights into their preferences, pain points, and desired experiences.

By identifying these needs, organizations can design and deliver tailored solutions that address specific customer requirements.

For instance, a bank may identify that its customers require a seamless and personalized onboarding experience, prompting the implementation of an intuitive and user-friendly account opening process.

By identifying these needs, organizations can design and deliver tailored solutions that address specific customer requirements.

For instance, a bank may identify that its customers require a seamless and personalized onboarding experience, prompting the implementation of an intuitive and user-friendly account opening process.

Solutions

The Solutions component of BACCM revolves around identifying and designing the strategies, processes, and technologies that fulfill the identified needs of customers and stakeholders.

This component involves evaluating various options, developing prototypes, and implementing solutions that enhance the customer experience.

For example, a bank may introduce an AI-powered virtual assistant to provide real-time customer support, improving the efficiency and effectiveness of its customer service operations.

Value

The Value component of BACCM centers around the creation of value for both the organization and its customers. It entails identifying the benefits and outcomes that the customer-centric business architecture aims to deliver.

This component also involves measuring and quantifying the value generated, such as increased customer satisfaction, loyalty, revenue growth, and cost efficiencies.

For instance, a bank may measure value by tracking metrics like Net Promoter Score (NPS), customer retention rates, and cross-selling opportunities.

Conclusion

In conclusion, BACCM offers organizations in various industries, including the banking sector, a structured framework for designing customer-centric business architectures. By comprehensively addressing the components of Context, Stakeholders, Changes, Needs, Solutions, and Value, organizations can align their strategies, processes, and technologies with the ever-changing demands and expectations of their customers.