Getting the Business Case Right
A complete guide to create compelling
presentations that align IT technology
benefits to enterprise value initiatives.
- Making Technology Investments Profitable: ROI Roadmap from Business Case to Value Realization by Jack M. Keen
Presented by Sheldon McCarthy, BA at
Farm Credit Bank of Texas
1
Definition of a Business Case
A document written for executive decision makers,
assessing the present and future business value and
risks related to a current IT-enabled investment
opportunity. The purpose of a business case is to guide
management in making the investment decision, from a
business value point of view.
A business case primarily consists of cost and benefit
calculations, assumptions, rationale, evidence, and
support – all recapped into a narrative “value story.”
- Making Technology Investments Profitable: ROI Roadmap from Business Case to Value Realization by Jack M. Keen
Presented by Sheldon McCarthy, BA at
Farm Credit Bank of Texas
2
Getting the Business Case Right
• Defining
INPUTS
Decision Needs
-Who expects what?
-Who cares about what?
Scope
Criteria
Align
Align Criteria to
Enterprise Business
Strategy & Values
OUTPUTS
Project Plan
Aligned Criteria
- Making Technology Investments Profitable: ROI Roadmap from Business Case to Value Realization by Jack M. Keen
3
Getting the Business Case Right
• Assessing
INPUTS
Aligned Criteria
Determine Proof Needs
Provide Evidence
Calculate
Prove
Analyze
Payoff Explanations
OUTPUTS
Calculated Payoffs
ROI Computations
- Making Technology Investments Profitable: ROI Roadmap from Business Case to Value Realization by Jack M. Keen
4
Getting the Business Case Right
• Delivering
INPUTS
– Story telling
ROI Computations
Test
Build
Define
75%
Deliver
OUTPUTS
Final Business Case
- Making Technology Investments Profitable: ROI Roadmap from Business Case to Value Realization by Jack M. Keen
5
What makes business cases FAIL
• 50 pages of data and no pages of why it matters!
• Abundant use of technical terminology to which
the audience cannot relate
• Details about systems features, but little
explanation of how they help the enterprise
• Unclear reasoning behind the conclusions offered
• A writing style that does not communicate well to
an executive audience
- Making Technology Investments Profitable: ROI Roadmap from Business Case to Value Realization by Jack M. Keen
Presented by Sheldon McCarthy, BA at
Farm Credit Bank of Texas
6
Supporting Documents
• Mind Mapping Diagram of Business Case Report
• POLDAT Questionnaire List
– Process, Organization and Location (Business Architecture) and Data,
Applications and Technology (Systems Architecture)
• Detail cost estimating spreadsheet (show calculations)
• Business Case and Feasibility Study Templates are
available online at the IIBA Austin Chapter website
www.austin.theiiba.org/professionaldevelopment/template-library
Presented by Sheldon McCarthy, BA at
Farm Credit Bank of Texas
7
8
DETAIL COST ESTIMATING SPREADSHEET
PROJECT NAME: ABC Project
TIMELINE: May -2013 until Feb-2014
BUSINESS SPONSOR: Cash Management Services
PROJECT MANAGER:
PROJECT PHASE:
DEFINE
PROJECT RESOURCES
NAME
COSTCENTER AVG RATE
PM NAME
435
125
BA NAME
334
75
QA NAME
334
75
SME
709
125
DEV 1
560
150
DEV 2
560
225
DBA
560
150
CONTRACTORS
Resource 1
Resource 2
225
150
MAY
BUILD
JUNE
80
120
20
80
80
80
20
60
170
0
80
80
80
170
170
170
170
JULY
40
25
25
15
170
170
170
170
ASSUMPTIONS
$
WORK YR AVG MO MONTHS $
2080 173.3333
10
$
TRAIN
DEPLOY SUPPORT
TEST
AUG
SEP
OCT
NOV
170 AVG HOURS PER MONTH
40
40
40
40
15
15
15
130
15
10
160
160
40
170
170
80
60
170
170
80
40
65
65
65
170
170
170
170
170
170
DEC
JAN
40
40
80
40
FEB
60
45
25
20
40
80
170
170
1,007,750.00
733,800.00
1,741,550.00
TOTAL HOURS HR*RATE
40
15
45
80
25
25
25
WHEN INCURRED?
300000
200000
100000
SOFTWARE&LICENSE
License purchase costs
ANN. Maintenance costs
WHEN INCURRED?
54000
12000
RACKS/CABLES/PORTS
List items
WHEN INCURRED?
1800
25000
COUNT
AVG HR
MONTHS MONTH
ALLOCATI
ON %
173
28%
35%
31%
33%
55%
55%
30%
480
545
480
400
855
855
360
60,000
40,875
36,000
50,000
128,250
192,375
54,000
561,500.00
10
48
9
61
9
53
7
57
9
95
9
95
7
51
TOTAL FTE RESOURCES
1190
1190
267,750
178,500
446,250.00
7
170
98%
7
170
98%
TOTAL CONTRACTORS
1,007,750.00
HARDWARE
(3) Virtual Servers
(2) Application Servers
(2) Database Servers
TOTAL RESOURCE COSTS
TOTAL H/W, SW, Other
TOTAL PROJECT COSTS
TOTAL ALL RESOURCES
300,000
200,000
100,000
600,000.00
54,000
12,000
66,000.00
1,800
67,800.00
TOTAL OTHER COSTS
733,800.00
TOTAL H/W, SW, Other
TOTAL HARDWARE
TOTAL HARDWARE
9
References
• IIBA Online Library
• Book: Making Technology Investments Profitable:
ROI Roadmap from Business Case to Value
Realization, Second Edition by Jack M. Keen
• IIBA Austin Template Library
– Business Case Template
– Feasibility Study Template
– Risk Assessment Template
Presented by Sheldon McCarthy, BA at
Farm Credit Bank of Texas
10