Future State | To Be
Define Future State "is to determine the set of necessary conditions to meet the business need." The BABOK®.
After analyzing the current state, it is necessary to define the future state and reach a consensus among key company stakeholders. It simply answers the question of where we are heading from here. As stated in the previous article about the current state, defining the future state can be applied to business, career, and personal. When it comes to business, we work on defining the following:
Business Goals and Objectives: What are the main goals and objectives we are trying to achieve? Goals are long-term in nature, while objectives are short-term and more specific. Example: to increase factory production by 20% in 2025.
Space of Solution Space: Which option should be considered while searching for solutions to achieve the goals and objectives? Are we changing the structure, the technology, or the marketing strategy?
Constraints: What are the limits? The current state analysis will help us define those constraints. The most obvious is the budget allocated for the change, but there are many more, such as the time allocated, contractual obligations, regulations, technology...etc.
Assumptions: When we don't have enough data or proof of something, we must assume. Example: Assuming a long-term agreement with supplier X will increase commitment and reduce the cost of raw materials.
Potential Value: What is the net value of the solution? Here, we need to think about the gains or benefits of the solution as well as the expected cost of the solution. Is it more beneficial to change compared to taking no action at all? Example: the potential value of having a clear marketing strategy and plan is to increase organic brand visibility, which will reduce the cost of sponsored posts by 12000 USD annually - the solution's price is 3000 USD - and the potential value is 9000 USD.
Above are the key elements. However, we must define the impact, readiness, and change regarding the Organizational Structure and Culture, Capabilities and Processes, Technology and infrastructure, Internal Assets, and Policy.
OUTPUT:
The outputs of this task are the Future State Description, the Business Objective, and the Potential Value. Those outputs are helpful for the following:
The most crucial benefit is putting key stakeholders on the same page; having them agree on those outputs is essential to reducing stakeholder conflict regarding the change strategy and the allocated resources.
Utilized gap analysis and risk analysis.
Guide and reference for identifying options for solutions and recommending the solution.
Moreover, it is essential to evaluate the solution after being implemented.
If you are interested in such topics, you might be interested in #Business_Analysis. "Business analysis is the practice of enabling change in an enterprise by defining needs and recommending solutions that deliver value to stakeholders." The BABOK®.
At Business by Design, we aim to raise awareness about this field of work and its value to business development in Iraq. You are welcome to participate in supporting this mission and follow for more.