Module 9 Making Business Case Flashcards
The business case in the project lifecycle
Business case is a key document in a business change project. This is where analysts/consultants present their findings and propose actions for management to consider
Areas of feasibility assessment
Business
Technical
Financial
Business feasibility
Strategic fit
Market appropriate
Timely
Architectural alignment- does the system fit within the business
Organisational fit
Cultural fit
Technical feasibility
Available
Reliable
Maintaineable
Performance
Scalable
Proven
Financial
Within budget
Acceptable ROI
Acceptable cash flow
Timely payback
PESTLE for feasibility acceptable
Political- is the proposed solution politically acceptable
Economic- can the organisation afford the solution?
Socio-cultural- does the solution fit with the organisations cultural or is it acceptable within society
Technological- con the solution be achieved technically?
Legal- does it comply with legislation
Environmental- does it raise any green environmental issues ?
Structure of a business case
Introduction
Management summary
Description of current situation
Options considered
Option description
Analysis of costs and benefits
Impact assessment
Risk assessment
Recommendations
Appendices, with supporting information
Analysis of costs and benefits
Tangible costs
Project staff costs
Business staff costs
Equipment
Infrastructure
Relocation
BENEFITS
Staff savings
Reduced effort an improved speed of working
Faster responses to customers
Other cost reductions
Analysis of costs and benefits
Intangible
COSTS
Disruption and loss of productivity
BENEFITS
Increased job satisfaction
Improved customer satisfaction
Improved management information
Better market image
IMPACT ASSESSMENT
Basically a way of seeing what areas of your business will be impacted by the change
Organisation structure- may be necessary to reorganise departments or functions to exploit the new processes and systems
Interdepartmental relations- relationships between departments may change and may need to introduce service level agreements
Working practises- new processes and systems may lead t changes in working practises
Management style- style that managers adopt may need to change
Recruitment policy- organisation may have to recruit people using a different recruitment approach
Appraisal and promotion criteria- may need to change targets, objectives and incentives for staff to encourage different behaviours such as improving customer-focus
Supplier relations- ways of working with suppliers a may change
Risk assessment
Description- cause of risk should be described and impact of it e.g uncertainty of the future may lead to resignation of key staff leaving organisation with a lack of experienced staff
Impact assessment- attempt to assess the extent of harm that would be suffered if the risk is occurred
Probability- how likely will the risk happen
Countermeasures- trying to reduce the likelihood for the risk or reduce the impact
Ownership- for each risk it is necessary to decide who is best placed to take the necessary
countermeasures
