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Making the Business Decision

Making the Business Decision. Business Case Approach to Demonstrate Value Suhas Uppalapati Director – Statewide IT Planning Georgia Technology Authority October 12, 2007. A Business Case answers:. What is the right thing? Is the proposed investment: • In line with the vision?

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Making the Business Decision

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  1. Making the Business Decision Business Case Approach to Demonstrate Value SuhasUppalapati Director – Statewide IT Planning Georgia Technology Authority October 12, 2007

  2. A Business Case answers: What is the right thing? Is the proposed investment: • In line with the vision? • Consistent with the business principles? • Contributing to objectives? • Providing optimal value, at affordable cost, at an acceptable level of risk? What is the Value? Is there: • A clear and shared understanding of the expected benefits? • Clear accountability for realizing the benefits?

  3. A. Introduction B. Thesis C. Projections D. Risks & Sensitivity E. Recommendations & Conclusions Building a Business Case

  4. A. Introduction Proposed actions that support business objectives that results in measurable goals but possibly bounded by specific constraints with value exposed by selected models.

  5. Cost Models – NPV Approach

  6. Cost Models – NPV Approach

  7. B. Thesis Defines problem bounded by conditions, explained through scenarios that introduce assumptions, drivers & data sources that support a benefits analysis

  8. Analysis: TCO

  9. Analysis: Cost Vs. Performance

  10. Benefits Analysis Public Sector Objectives are not all about Systems! Strategic Results Focus of business cases that win Objectives/Tactics Focus of business cases that fail Systems

  11. C. Projections Public Sector Objectives are not all about finances ! Value is paramount !!!

  12. Complement TCO w/ Public Value of IT

  13. D. Risks & Sensitivity SENSITIVITY ANALYSIS RISK ANALYSIS

  14. E. Recommendations & Conclusions Based on the business case analysis presented here, we recommend …… D. Risks & Sensitivity

  15. A. Introduction B. Thesis C. Projections D. Risks & Sensitivity E. Recommendations & Conclusions Building a Business Case

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