1. Strategic Information Initiatives Week 5 Analysis Framework

2. 2 Framework for Analysis Advantages and Limitations Information Audit Advantages Driven by people in the org Holistic (aka nooks and...) Should be vs what is Limitations Driven by people in the org May miss opportunity for new ways to do things Linkage to Organization Plan Advantages Aligns to important opportunities by LOB Ensure relevance to the business Limitations May be too passive

3. 3 Framework for Analysis Advantages and Limitations Costs, Benefits and Value Advantages Can quantify intangibles Standardizes decision making process (measurements) Limitations May not capture intangibles Time value of money

4. 4 Following is a list of CBA items that need to be included in your Preliminary Proposal Presentation. All of the numbers that you create will probably be fictitious, but they need to tie in to the overall story of the initiative you are developing. Total cost of proposal research work [this is all costs up to the final presentation of your proposal] Staff costs [assume $40 per hours worked] Consultant costs Purchased research data Travel and other costs Total proposed initial implementation costs [all one-time initial costs] Upfront purchases of software, equipment, or other facilities Upfront development, installation, test/validation, operations set-up Staff costs Consultant/contractor costs Other support costs Training costs Legal costs Marketing and promotion costs Total annual operating costs per year; show each year for 3 years Staff costs Facilities and maintenance costs Customer or end user support costs Annual training costs Ongoing development costs Revenues or cost reductions (show only if appropriate); show each year for 3 years Revenue from sales Savings from reduced staffing or reduced labor hours Savings from discontinued systems Other savings Other non-quantifiable benefits Enhanced image or market position Customer/user satisfaction Improved quality From the totals above, show the following: Total 3 year costs Total 3 year dollar benefits Break-even Months to payback of initial investment ROI If possible please build your summary and calculations on a spreadsheet. Create a list of assumptions that drive your numbers.

5. 5 Preliminary Proposal Concept Summary (include decision being requested and expected costs of project and preliminary cost/benefit summary) Business Context –Business Strategy being Addressed –Business Objectives Addressed –Key Needs, Issues and Opportunities Preliminary Cost/Benefit Assumptions (include ROI summary) Alternatives to be Analyzed Project Costs and Timing Next Steps (ask for approval)

6. 6 Proposal Executive Overview (1 page summary of report) Business Context –Business Strategy being Addressed –Business Objectives Addressed –Key Needs, Issues and Opportunities Alternatives –Summary –Analysis of Alternatives ($, staffing, timing, risks, cost reductions, benefits) –Comparisons Recommendations (include risk mitigation, metrics, key decision points) Implementation (milestones, timing, key decision points, staffing, costs, quality control, ownership, sponsorship, task plan summary) Next Steps (resolve any prerequisites, key decisions to get started, project kick- off, staff buy-in process, detailed project planning)