1. 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

2. Definition of a Business Case
2
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

3. Getting the Business Case Right
3
INPUTS
 Defining
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

4. Getting the Business Case Right
4
 Defining
Scope (Who expects to see what?)
•
•
•
Define business case drivers and boundaries. (Address issues of concern to business sponsor,
identify what is and is not included in the business case: business areas involved, systems
impacted, people and resources consulted).
Identify deliverables, team, and schedule. (Enlist members of the business case evaluation team
responsible for development and delivery of the business case, create a final report and specify
detailed project timelines).
Solidify executive sponsorship. (Provide a confident level of accuracy in estimates to sponsor +/10%)
Criteria (Who cares about what?)
•
•
•
•
Define decision participants. (Sponsor, BSA, PM, SME, Enterprise Architect, DEV, DBA, Hardware
& Software Managers).
Identify decision criteria. (These are your benefits, costs, and risks).
Specify intangibles. (Target business results, not system features).
Filter business value criteria. (Reduce Cost, Increase Profit, Reduce Risk, Regulatory Compliance)
Align (Connect the dots.)
•
Align criteria to enterprise business strategy.
- Making Technology Investments Profitable: ROI Roadmap from Business Case to Value Realization by Jack M. Keen

5. Getting the Business Case Right
5
INPUTS
 Assessing
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

6. Getting the Business Case Right
6
 Assessing
Calculate



Construct explanations. (Business importance, solution drivers, evidence, references).
Define formula sets and variables. (Display all components used to calculate benefits).
Identify metrics and calculate. (Show formula, time period, % change, KPI, input data).
Prove


Determine “proof” needs. (Market comparisons, audit report, financial reports, survey s).
Provide evidence and references. (Research docs, vendor quotes, estimating spreadsheets, context
diagrams).
Analyze




Review alignment and compute final ROI. (IRR, NPV, ROI, payback period, etc.).
Identify key themes. (“Reduce operating cost”, “Provide better service to customers”, “Security
Compliance”).
Determine recommendations. (Explain factors of decisions made, summarize results
Say it all in 50 words or less!
- Making Technology Investments Profitable: ROI Roadmap from Business Case to Value Realization by Jack M. Keen

7. Getting the Business Case Right
7
INPUTS
 Delivering
 Story telling
ROI Computations
75%
Test
Build
Deliver
OUTPUTS
Final Business Case
Define
- Making Technology Investments Profitable: ROI Roadmap from Business Case to Value Realization by Jack M. Keen

8. Getting the Business Case Right
8
 Delivering
Story Telling
• Construct graphics and narratives. (Convert key themes and data to
visuals when possible).
• Write ROI stories. (Improve understanding of the business case findings
and rationale).
• Define and deliver presentations. (Build on sequence of topics, speak the
audience language, show visuals).
- Making Technology Investments Profitable: ROI Roadmap from Business Case to Value Realization by Jack M. Keen

9. What makes business cases FAIL
9
 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

10. Supporting Documents
10
 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.iiba.org/professionaldevelopment/template-library
Presented by Sheldon McCarthy, BA at Farm Credit Bank of Texas

11. 11

12. 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
1,007,750.00
733,800.00
1,741,550.00
TOTAL HOURS HR*RATE
170
170
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
ALLOCATI
ON %
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
267,750
178,500
446,250.00
7
170
98%
7
170
98%
TOTAL CONTRACTORS
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
25000
12
173
28%
35%
31%
33%
55%
55%
30%
480
545
480
400
855
855
360
1,007,750.00
HARDWARE
(3) Virtual Servers
(2) Application Servers
(2) Database Servers
COUNT
AVG HR
MONTHS MONTH
1190
1190
45
25
20
40
80
40
15
45
80
25
25
25
TOTAL RESOURCE COSTS
TOTAL H/W, SW, Other
TOTAL PROJECT COSTS
TOTAL H/W, SW, Other
TOTAL HARDWARE
TOTAL HARDWARE

13. References
13
 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

14. 14
Thank You for Viewing