How to define “Business Problem”

How to define “Business Problem”


§A problem statement describes the unfavorable condition that prevents the goal or objective from being achieved

§Quote by Albert Einstein
“If I had an hour to solve a problem I'd spend 55 minutes thinking about the problem and 5 minutes thinking about solutions.”


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§Questions to be Answered when defining “Business Problem”

§Who is affected
§What are the negative impacts
§Where is it happening ?
§When does it happen
§Note : We should not look for answers for below question :
§Why is it happening
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At minimum, a business problem statement should include :

§What is problem or defect

§Magnitude of the problem ( events , how often )

§Where is the problem ?

§Why is it important to work on this problem

§Note : Problem Statement should have impact

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Writing the Business Problem Statement

§Describe the current unsatisfactory condition

§Keep it Simple

§Ensure it has impact

§Make it understandable

§Compose wording that is engaging

§Formatted as a bulleted list or paragraph

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Examples – Paragraph or Bulleted list

Paragraph

Assembly Line #1 is producing defects at the rate of 4.5% of production (based on the number of returns we are receiving from customers). Reducing defects is critical to improving customer satisfaction.

Bulleted List

•What is problem : High rate of defects

•Magnitude of the problem : 4.5% of production

•Where is the problem : Assembly Line #1

•Why is it important : Reducing defects is critical to improving customer satisfaction