1. Info-Tech Research Group1 1 Info-Tech Research Group, Inc. is a global leader in providing IT research and advice. Info-Tech’s products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns. © 1997-2016 Info-Tech Research Group Inc. V4 Fund Innovation with a Minimum Viable Business Case Full business cases are for scaling, not for starting. Info-Tech's products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns.© 1997 - 2016 Info-Tech Research Group

2. Info-Tech Research Group2 2 Ask yourself these questions: Am I making IT investment decisions based on inaccurate data? Am I overly speculative about the benefits of any particular IT solution? Are my business cases being taken seriously? How much time have I wasted on business cases that were rejected? How long before the business is fed up with all of this? Starting small and then scaling up once you have configured your solution accurately will help you achieve a project’s benefits faster than going big bang. This approach will also help you build and maintain your credibility as a business leader. Measure twice, cut once. David Glazer CIO Practice Info-Tech Research Group Smaller is almost always better. ANALYST PERSPECTIVE

3. Info-Tech Research Group3 3 Resolution Situation Complication Info-Tech Insight Executive summary To truly be viewed as a strategic leader in the eyes of the business units, the CIO must be prepared to spot opportunities for organizational growth and build the case to actually make it happen. The business case is still the primary vehicle to gain the necessary support and resources from the business to execute on IT projects. Most IT projects are not delivering on their expected value because the costs and benefits of technology solutions are often difficult to predict. Innovation projects are inherently less certain than “business as usual” projects, and therefore, benefits and costs are harder to predict. o This hurts IT’s chances of contributing to organizational growth as the business is already averse to IT spending due to uncertainty of benefit. The IT department needs a structured approach to building the case for projects that not only helps the project get funding, but realize benefits as well. Our approach guides the effective design of a solution, de-risking a project through impact reduction techniques, building & pitching the case for your project, and applying the business case as a mechanism to ensure that benefits are realized. Full business cases are for scaling, not starting. Even if you think you are certain of a project’s benefits, or the desired/necessary functionality, you are probably wrong (in fact, there’s a 70% chance that you are wrong). Take the minimum viable approach to start ALL projects to improve your speed to market, speed to scale, and speed to benefit. Source: California Management Review (2007)

4. Info-Tech Research Group4 4 This Research is Designed For:This Research Will Help You: This Research Will Assist:This Research Will Help You: This Research Is Designed For:This Research Will Help You: This Research Will Also Assist:This Research Will Help Them: Our understanding of the problem CIO Director of IT Chief Innovation Officer Business Unit Heads Get the necessary support and resources from the business to formally start your project. Communicate the value of your project in a concise manner. Plan your project in a way that reduces time to market, resource needs and scope, and helps realize benefits. VP of the PMO Enterprise Architect CTO Chief Digital Officer Innovation Lead Filter ideas coming from the innovation team. De-risk the innovative project by gathering the necessary information and data to make more informed strategic decisions.

5. Info-Tech Research Group5 5 Most projects are not delivering on their expected benefits Source: “Building Better Business Cases for IT Investments,” California Management Review (2007) of IT professionals believe that they do not adequately quantify benefits in business cases. 70% of IT professionals believe their current approach leads them to overstate benefits. 40% of IT investments require a business case. 96% of IT professionals view developing a business case as important. 68% Only 30% of business cases for IT investment deliver on their expected benefit.

6. Info-Tech Research Group6 6 Market Uncertainty Effervescent Technological Uncertainty Context Dynamism Advanced R&D Tech Breakthrough New Platform New Product Marginal Improvement Stable Changing Known Market Unknown Existing Market Market Creation Source: S. Floricel, “Innovation Projects Lifecycle” New Smartphone App New IoT Product New Telecom Service A better approach is needed if IT is going to help the organization grow According to McKinsey & Co., more than 60% of CEOs are expecting upwards of half their earnings growth to come from technology-enabled business innovations over the next five years.

7. Info-Tech Research Group7 7 Introducing the minimum viable business case approach For years, cash-strained start-ups have been applying a leaner approach to bring solutions to market that involve testing to validate assumptions, and failing fast and cheap, through the delivery of a minimum viable product. Info-Tech suggests a similar approach for a broader organizational context, where resources are increasingly constrained and unfortunately, benefits often go unrealized. Follow Info-Tech’s minimum viable business case (MVBC) methodology to secure the resources for IT investments in a way that promotes the effective tracking and realization of benefits. Create a Solution to Someone’s Problem This phase helps you design an effective value proposition for the solution you intend to develop. Reduce the Impact of Your Project Phase two provides you with the tools necessary to reduce your project impact (time, resources, scope), and thus better manage the risks associated with uncertainty. Build the Case and Secure Approval Phase three will walk you through the steps necessary to get support for your project. Implement, Measure, and Scale Once you’ve received project approval, it is time to implement. Phase four helps you ensure that you get the most out of this approach. 1 1 2 2 3 3 4 4

8. Info-Tech Research Group8 8 Full business cases are for scaling, not starting Business cases must be standardized across an organization so that projects can be evaluated on the same criteria. Conventional Wisdom Transformational Thinking Full business cases are for scaling, not starting. Even if you think you are certain of a project’s benefits or the desired/necessary functionality, you are probably wrong (in fact, there’s a 70% chance that you are wrong). Take the minimum viable approach to start ALL projects. This will improve your speed to market, speed to scale, and speed to benefit. Innovation projects are different; they have higher uncertainty and thus the current frameworks and evaluative criteria do not apply. An expedited format for creating a business case can help you get your ideas to market FASTER. There are two steps to scaling an innovative project. Step one is your minimum viable business case, which helps you decrease the impact. The second step is the full business case, which helps you scale.

9. Info-Tech Research Group9 9 Don’t overburden yourself with work before you get started Work smart to build the business case for a technology solution by basing financial benefit projections on real information collected by testing the solution at a small scale in your organization first. Once you have collected the necessary information from running your initial project, proceed to build out the rest of the full business case, if you determine that it is a good idea to scale the project more broadly based on the data. Elements of a Minimum Viable Business Case: Value proposition Vision Cost estimate Expected benefits Implementation plan Elements of a Full Business Case: Forward/introduction External trends/forces Background System/process assessment Cost of problem System requirements Deployment options Cost estimate on a 3-5 year horizon Anticipated ROI Quantified savings/revenue Process review diagrams List of key challenges Connection to strategic goals Vendor selection process Subject-matter strategy best practices Justification/decision criteria (rubric) Current vs. proposed technology environment Dependencies Capability readiness assessment

10. Info-Tech Research Group10 Info-Tech Research Group Helps IT Professionals To: Sign up for free trial membership to get practical solutions for your IT challenges www.infotech.com Quickly get up to speed with new technologies Make the right technology purchasing decisions – fast Deliver critical IT projects, on time and within budget Manage business expectations Justify IT spending and prove the value of IT Train IT staff and effectively manage an IT department “Info-Tech helps me to be proactive instead of reactive – a cardinal rule in a stable and leading edge IT environment. - ARCS Commercial Mortgage Co., LP Toll Free: 1-888-670-8889