1172Introduction to IT/Business Cases

for Developers Using CaliberRM

Rick HubbardFast Search & Transfer, Inc.

AgendaOverview of Talk

– Section I. IT/Business Cases & IT Professionals

– Section II. IT/Business Case Fundamentals– Section III. BRIEFCASE—the Accelerated

IT/Business Case Approach for IT Decision-Making

– Section IV. Building a Case for CaliberRM Using CaliberRM

Discussion

Overview of this Talk• Purpose of this Talk

– Equip IT Professionals to participate in IT/Business Cases

• Rationale• Concepts• Process

– See How CaliberRM can be Used to Construct IT/Business Case

• Case Study: Acquire CaliberRM!• This Talk and the Supporting Paper• Invitation to Participate:

– Challenge– Support– Question

Software Delivery Optimization

•Competing Business Priorities and Resources•Constant Change and Shorter Release Cycles•Chasms Between Organizational Teams•Gaps Between Individual Roles•Complexity and Heterogeneity•Maximize Opportunity•Accelerate Software Delivery•Reduce Spend•Mitigate Risk

•Ensure Quality•Real-time Governance•Comprehensive IT Project Portfolio Management•In-depth Application-level Metrics Collection•Process-driven Productivity•IT Organizations are Business Aware•Operations Aware•Productive Yet Disciplined

Maximize the Business Value of Software

Where Does Maximization of Business Value Start?

When the Code is Delivered?When the Code is Tested?When the Code is Written?Designed? Architected?Analyzed?Requirements?When?

IT all Starts with the IT/Business Case

What Meaningful Steps Can Developers Take After Project

Approval to Improve the Outcome of a Bad Decision?

Section I. IT/Business Cases & IT Professionals

Decisions are Moving Closer to Source– Proper assessment requires technical and

business skillsOrganizations are Shrinking

– There are fewer middle managers, business analysts, financial analysts

Visibility & Accountability– Those who have to deliver are making

commitments• Software Professionals are optimistic• Managers of Software Professionals are

<fill-in>…?

An IT/Business Case is…

…is at the point where business and technology meet– …explains the business implications of technology

and the technology implications of business

…is a “sales job” based on objectivity and professional judgment upon which you have bet your reputation and possibly entrusted your career

…is a proposal to change something

Conditions for theIT/Business Case

An important aspect of someone’s area of responsibility is out-of-balance

Important people acknowledge the gap between expectation and result

– Results insufficient

– Expectations have changed

Important people desire to re-establish balance

Section II. IT/Business Case Fundamentals

Fundamental Purpose• Describe and justify a proposal for a

change– A change intended to bridge the gap

between expectation and result• A change motivated to restore balance

Types of IT/Business Cases

Understand the Decision Being Made!

There is not “a Business Case” method…there are…

Five Bases of Valuation:

1. First-mover Advantage

2. Risk Reduction

3. Cost Avoidance/Reduction

4. Increase Revenues

5. Regulatory/Legal

Understand the Audience

There is not “an audience,” there are…

1. Business vs. Technology audiences– IT/Marketing/Ops/Finance/HR…

2. Organizational-level audiences,– Executive– Operational Manager– Direct End-user

3. Organizational-range– Individual Extra-enterprise

A Note About Doctrine

Advocacy vs. Independence

It’s OK to be an Advocate…

…if you say so…

IT/Business Cases are Used by IT Sales Professionals

IT Estimation Methods

There is not “an estimation method,”…Delphi Method (A)Analogy MethodsCost Adjusted Function/Feature PointsPrice-to-winAlgorithmicBottom-up (1)Parameterized Databases[Other] Expert JudgmentParkinsonian MethodsTop-down (1)

IT/Business Cases Include Recommendations

“Recommendations are the results of analysis of data based on application of an analysis model/decision model within scope.

Models are used to create insight and understanding regarding data.

Based on insight, the proposal identifies changes to accomplish goals and objectives, also with scope.

Changes incur costs and are justified based on ability to obtain benefits.”

Changes Effect…

1.People

2.Process

3.Technology

Complexity and Importance of Scope

All IT/Business Cases are Contextual…• IT Costs Only?

• IT Costs & Benefits Only?

• Or, Projection of Impact on Business?

What’s the Key Question?

Precision

1.Threshold

2.Target

3.Forecast

The Math of the IT/Business Case

Simple Case

Simple Return

Complex Set

TC

BT

C

BT

C

B

TC

B

TC

CB

)(T

C

CB

)(

TC

CB

)(

ii

ii

iBTTT

BCTC

BBTBi

Common Problems

1. Failure to acknowledge forces of opposition

2. Sufficient effort threshold

3. Excessive/Insufficient details

4. Difficulty describing benefits of technical aspects

5. Applying financial analysis to non-financial benefits

"Do, or do not. There is no try.“—Yoda. Famous IT Professional, from a long, long-time ago…

How Much is Sufficient?As little as possible, yet no smaller…

More on Context

Type of Decision Being Made

Ecology of the IT/Business Case

Planning Time-frames• Costs

• Money

• Time

Opportunity

Metrics & Measurements

Absolutes & Relatives

MOH—the Hard Part

Basics of Financial Analysis

MBA in Finance on One Slide

Getting a dollar today is worth more than getting a dollar tomorrow

Why?

Time-value-of-money

Section III. BRIEFCASE—the Accelerated IT/Business Case Approach for IT Decision-Making

BRIEFCASE is • Lightweight, yet comprehensive• IT/Business Case Process• That Increases Clarity, and• Improves IT Decision-making

BRIEFCASE Helps to Maximizes the Business Value of Software

Accelerated Initiation Framework

BRIEFCASE

BRIEFCASE 5 “Sprints”

Section IV. Building a Case for CaliberRM Using CaliberRM

Scenario

Geographically & Functionally Distributed Team

Could be Professional Services, could be Systems Integrators, could be Internal IT

“Customers” are from Various LOBs• Their job is not to build IT systems

Projects are always frantic, end up being under-resourced & over-committed

We are the team assigned to fix this problem

BRIEFCASE 5 “Sprints”

Where to Start?

Hint:

Balance

Harvest Enablers & Impediments

CaliberRM is a GREAT Tool for This!

Thank You and Discussion

1172

Introduction to IT/Business Cases for Developers Using CaliberRMPlease fill out the speaker evaluation

You can contact me further at …Rick.Hubbard@fastsearch.com

CaliberRM AcquisitionIT/Business Case

An Example…