Building a Business Case that is Aligned with the Strategies of...
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Enterprise Analysis Building a Business Case that is Aligned with the Strategies of your Enterprise Presented by Dave Bieg Executive Vice President, DevelopMentor
Transcript of Building a Business Case that is Aligned with the Strategies of...
Enterprise Analysis
Building a Business Case that is Aligned with the
Strategies of your Enterprise
Presented by Dave Bieg
Executive Vice President, DevelopMentor
2© Developmentor 2008
About DevelopMentor
DevelopMentor provides solutions for all professionals
involved in the lifecycle of software projects via our
consulting, mentoring & learning services.
We’re committed to …
“Developing People Who Develop Software”
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Dave Bieg
• Dave is the Executive Vice President of DevelopMentor, a learning and
consulting solutions and service provider to Fortune 1000 corporations.
• He is also on the Board of Directors and COO of the International Institute of
Business Analysis (IIBA).
• Dave has over 25 years of experience where he has consulted and facilitated
with Fortune 1000 corporations on learning, process and knowledge transfer
strategies, and building solutions to achieve their business objectives.
• Dave previously worked for General Electric and Lockheed Martin, where
Dave served as a Program Manager as well as a Business Analyst and
Systems Engineer.
• Dave holds a MS in Business Administration and Information Systems
Management from Johns Hopkins University and is active in the learning &
consulting community.
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Topics Covered
Getting Started
• Defining Enterprise Analysis
• The Business Case
• The Business Visioning Session
• From Visioning to Business Case
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What is Enterprise Analysis?
The collection of pre-project activities for capturing
the future view of the business.”
• Identify Business Opportunities
• Build the Business Architecture
• Determine Optimum Project Investment Path
(Source: BABOKTM)
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“Really“ Understanding the Business
• Some companies utilize the Business Analyst to support
“Enterprise Analysis” tasks:
– Creating & Maintaining the Business Architecture
– Conducting Feasibility Studies
– Determining Project Scope
– Preparing the Business Case
– Conducting the Initial Risk Assessment
– Preparing the Decision Package
Source: BABOK
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Business Architecture Framework (BAF)
The people and organizations that interact with the
business
The “things” tracked by the business
The locations where the business operates
Strategic goals, financial targets, standards, regulations
Business cycles
The business processesHow
What
Who
Where
When
Why
The same framework used to describe business requirements
can be used to guide analysis of the business
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Feasibility
Key Tasks in Enterprise Analysis
Business Architecture
Potential Initiative?
Scope it
Build a
Business CaseAssess Risks?
Decision Package
Go/No Go Decision?
Launch
Project
Manage for Value Measure Benefits (ROI)
After
Project
Prioritize
During
Project
GoGo
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Investment decisions are only as good as the
business case process
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The Business Case
The purpose of a business case is to capture the reasoning
for initiating a project or task. It is often presented in a well-
structured written document, but may also sometimes come
in the form of a short verbal argumentation. The logic of the
business case is that, whenever resources such as money
or effort are consumed, they should be in support of the
business.(Source: Wikipedia)
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Business Case Best Practices
Collaborate
• Involve all
stakeholders
• Focus on how the
business will
achieve changes
• Identify all potential
benefits
Document
• Link business case
to business plans
• Describe major
risks/mitigation
• Boost credibility by
packaging content
Leverage
• Guide & assess
project execution
• Track how changes
are being
institutionalized
• Capture lessons
learned
(Source: Building Brilliant Business Cases – Gartner 2004)
Business Led Process – Right Stakeholders – Right Time
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DevelopMentor Approach
• The Business Visioning Workshop
• The Business Visioning Document
• The Business Case Document
• Checkpoint Reviews
• Metrics Program
Collaborate
Document
Leverage
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What is Business Visioning?
• Outlines the project’s scope, objectives, and assumptions
• Identifies stakeholders for engagement
• Analyzes dependencies between users, other systems, etc.
• Documents graphically current and future business processes
• Defines measurable success criteria
• Develops consensus between members of the team
• Provides the basis for schedule, cost, and effort estimation
• Establishes a solid foundation for writing requirements
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Business Visioning Workshop
• Preparation and Fact Finding
Day One
– Introduction & Overview
– Sponsor’s Overview
– Define Business Objectives
– Align with Client’s Strategic Vision
– Review Critical Assumptions and
Constraints
• Business Visioning Wrap-up
Day Three
– Future State Business Process
Modeling
– Analysis of Options
– Cost/Benefit Analysis
– Measurable Success Criteria
– Review of Business Vision
Document
• Business Process Modeling
Day Two
– Stakeholder Analysis
– Risks & Sensitivities
– Business Context Diagram
– Current State Business Process
Modeling
– Opportunities for Improvement
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The Sponsors Role
Stakeholder
Inventory
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The Business Vision Document
• Project Purpose
– Business Need
– Business Objectives
– Strategic Fit
• Critical Assumptions &
Constraints
• Risks & Sensitivities
• Current State Process
Model
• Stakeholders
• Business Context Diagram
• Analysis of Options
• Cost Estimate
• Cost/Benefit Analysis
• Future State Process
Model
• Implementation Approach
• Need Date
• Measurable Success
Criteria
Table of Contents
Business Vision
Template
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Defining Business Need
• Describe the Business Unit
– What is the primary purpose of the Unit?
– What business goals is the Unit trying to achieve?
• Describe the problem that needs solving
– What is the problem?
• Capture the need
– Describe the “drivers” causing the need for change
• e.g. competitive pressure, out-dated technology, poor
guest/user experience
– Explain the reasons why these business problems are
occurring
• e.g. low-cost providers are penetrating into our market
space, frequent guests not being recognized upon check in
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Defining Business Objectives
• Provide specific business objectives
– What will the project accomplish?
– What will result from the project being done?
• Do not describe the solution
• Provide high level business goals
– e.g. Increase the number of registrations through Develop.com
from potential guests visiting our website
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Business Objectives
• {place objective statement here}
• by…– {place how here}
– {and here}
Objective #1:
How will we accomplish this objective?
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Business Issues
• List major assumptions made during the planning process
• Summarize the constraints that will drive the scope and
solution for this project
– i.e. existing contractual commitments
• If known, identify the risks that may be encountered during
the project
• Describe any sensitive issues that must be addressed before
or during the project.
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Benefits of the Project
• Consider the benefits to implementing this project
• If you successfully complete this project you will:
– Increase Revenue to the business• By how much? In what areas? Is it a one-time increase or ongoing?• Are you getting your product or service to market faster? How much
faster?– Cost Reduction
• By how much? In what areas?• Will the reduction come from increased productivity, reduced labor or
reduced waste?– Improved Customer Satisfaction
• Does the proposed solution drive more customers to you more often?• Reduce customer complaints or resolve customer issues faster?
– Increase Profit• Does the increase in revenues and the decrease in costs lead to more
profit?• Can you quantify the gains?
– Increased Market Share• Reduce customer churn?• Bring customers away from the competition?
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Benefit Matrix
Benefit Area Tangible Benefit Intangible Benefit Potential
You can predict and
quantify these benefits
Known but difficult to
predict these benefits
Indirect benefits that are
possible as a result of
the project
Increase Revenue
Increase Profit
Improved
Customer
Satisfaction
Cost Reduction
Increased Market
Share
Total Benefits
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Costs of the Project
• Consider the Cost of Implementation
• Which of these costs will the project incur? How Much?:
– Business Charter
– Requirements Elicitation
– Requirements Analysis
– Architecture Design
– Software Design
– Database Design
– Programming
– Database Implementation
– Unit Testing
– Integration Testing
– System Testing
– User Acceptance Testing
– New Hardware Purchases
– Hardware Upgrades
– Software Development Tools
– Developer Training
– User Training
– Database Administration
– System Administration
– Project Management
– Maintenance Fees
– New Staff Hires
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Cost Benefit Analysis
• Calculate Return on Investment (ROI)
– Dividing the benefits by the costs to arrive at a value.
• ROI = (Final Benefit / Initial Cost) – 1
– Positive ROI means profit; 100% ROI means benefit is twice the costs
– Example ROI = ($4M / $3M) – 1 = 33%
• ROI for time period = (Benefit achieved during time period / Cost incurred during time period) – 1
– Example: Year 1 ROI = ($1M / $2.5M) – 1 = - 60%
– Year 2 ROI = ($2M /$0.5M) -1 = 300%
– Year 2 More than offsets Year 1
• For more on ROI visit
– http://www.answers.com/return%20on%20investment
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From Business Vision to Business Case
• Collaborate • Document
• Link business case
to business plans
• Describe major
risks/mitigation
• Boost credibility by
packaging content
Pull in the experts (Finance, Project Manager, Tech Leads) to
Transition your business vision document into a
“Brilliant” Business Case
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Summary
• Defining Enterprise Analysis
• The Business Case
• The Business Visioning Session
• From Visioning to Business Case
Make sure your Initiative is
Aligned with your Business Needs before you Buy it!
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DevelopMentor
• Curriculum
• Foundations of Business Analysis
• Foundations of Effective Communication & Negotiation
• Essential Techniques for Gathering Requirements
• Developing Requirements with Use Cases
• Developing Requirements for COTS Package Solutions
• Facilitation Workshop for Business Analysts
• The Unified Modeling Language for Business Analysts
• Analyzing, Documenting & Validating Requirements
• Fast Track to IIBA Certification
• Software Functional Testing
• Consulting
• Mentoring
Business Analysis Products & Services
Contact me
Dave Bieg
Executive Vice President
DevelopMentor
678.296.8389
800.699.1932
www.develop.com
