• Developing the Business Case

    Developing the Business Case

    Some Notes on Business Cases and IT Strategy

    Strategic Justification
    This key deliverable, completed after final selection and confirmation of the IT Strategy, is the business case for the strategy as a whole, and an evaluation of its impact on the enterprise and its relevance to the enterprise's Major Business Programs & Directions.

    The key features are:
    • Risk,
    • Feasibility,
    • Levels of investment,
    • Tangible and intangible benefits,
    • Responsibility for the realization of both costs and benefits.

    Overall cost, benefit and resource plans are included. Policies for the future financial management of IT within the enterprise are also included.

    Benefits by Business Program

    This deliverable lists the tangible and intangible benefits that have already been identified as potential benefits in the Major Business Programs & Directions. They are quantified as far as possible and related to the achievement of business objectives in the major business programs. Benefit targets are defined and the responsibility for achieving them allocated. This will form the basis of allocating benefits to individual projects in the Cost/Benefit Analysis for each option being assessed.
    The deliverable includes:
    • Confirmed Opportunities
    • Benefits Related to Business Processes
    • Quantified Benefits Related to Business Programs
    • Benefit Targets and Responsibilities for Achievement
    Strategic Cost/Benefit Analysis
    This deliverable, developed for each of the options being evaluated, is a detailed statement of costs and benefits. It is a time phased investment and benefit/cash flow analysis. Costs are typically built up from the component level in the proposed IT strategy. Benefits are derived for each component as it relates to the achievement of business objectives in the Major Business Programs & Directions.
    It is supported by:
    • Cost Breakdown
    • Allocation of Benefits
    • Risk/Contingency Adjustments
    • Cash Flow Analysis
    • Sensitivity Analysis
    • Financial and Strategic Priorities

    REM
    This article was originally published in forum thread: Developing the Business Case started by royston View original post