1. From Idea to Business Case
Jimmy Vuccolo

2. Level Set

3. BRM Definition
Business Relationship Management stimulates, surfaces, and shapes business demand for a Provider’s products and services and ensures that potential business value from those products and services is captured, optimized, and recognized – Business Relationship Management Institute

4. Engaging customers and Service Owners.
BRM
Customer Relationship Management
Value Management
Service Provider Partnership
Engaging customers and Service Owners.
Documenting and understanding customer requirements.
Providing Service Owners with feedback about their services.
Working with the customer to navigate the service catalog.
Documenting customer’s KPIs based on their strategic goals.

5. Terminology Business Partner: customers, sponsors, etc.
Provider: IT, Human Resources, Financial, and Health Care.

6. Material Source
Business Relationship Management Institute's BRM Body of Knowledge (BRMBoK)
HBR Guide to Building Your Business Case by Raymond Sheen with Amy Gallo

7. Value management

8. What is Value Management?
Ties together into a holistic and comprehensive approach the concepts of Ideation, Value Planning, Portfolio Management, and the Business Case to capture, optimize, and communicate the business value of Provider investments and capabilities.

9. Uses for Value Management
Identify initiatives that have the potential to create business value by positively impacting business drivers.
Ensure that value is delivered by tracking progress against investment targets.
Assist with priority setting for Provider investments.
Evaluate competing investment opportunities.
Avoid making the wrong investments.

10. Value Management Lifecycle
Value Discovery – Define
Ideation, Value Planning, and Business Case
Value Realization – Refine
Build and delivery phase of a project
Value Optimization – Monitor & Improve
Continual Service Improvement (CSI)

11. Value Management Process
Project is chartered
Develop Business Case
Business Case
Approve Business Case
Value Creation Ideas
Refine Ideas
Value Creation Plan
Monitor Value and Adjust
Communicate Value

12. Value Management Process
Capture Value Ideas – Examines ideas/possibilities for business value. Its output is an Idea Document.
Create Value Plan – Plan for the value to be realized if the idea is pursued. Its output is a Value Creation Plan.
Create Business Case – Completes a business case for investment.
Approve Business Case – Analyzes submitted business case and approves based on strength.
Capture and Communicate Value – Executes the value plan to track, audit and communicate the actual value generated.

13. Time Estimates Idea Document Value Creation Plan (optional)
Facilitated interview session(s): minutes
Document generation: 1 business day
Value Creation Plan (optional)
Facilitated interview session(s): minutes
Business Case
Development and generation: 7-14 business days

14. Approval Gates Idea Document Business Case
Business partner: to ensure that idea was accurately captured.
Provider: to ensure that this is an idea they want to pursue.
Business Case
Provider will be given a number of recommendations to solve the problem. They will select one based on cost and other factors. They can also elect to shelf the opportunity.

15. Idea document A high-level overview of an IT idea or an opportunity

16. Facilitated Interview Questions
What is the name of the idea?
Who are the key stakeholders?
Define the idea
What business driver(s) are impacted, how are they impacted and why?
What is the business problem to be solved?
What does the future state look like if the problem is solved?
What is the value to the business?

17. Facilitated Interview Questions
What are the consequences if the problem is not solved?
What business process(s) will be changed and how?
High level features and functions
What is in scope for this idea?
What is out of scope for this idea?
What are the major assumptions?
What are the constraints?

18. Idea Document Examples
IT Alerts
IBIS Reorganization and Complementary Accounting System

19. Pitfalls
Turning the idea document process into a “solutioning” exercise.
Ignoring the gates and going right to the business case.

20. Value creation plan Identifies how business value will be created and monitored if the idea is pursued

21. Value Creation Plan Components
For each impacted business outcome, define:
Definition of the impact
Value by timeframe
Reporting schedule
How value is measured
How long will value be measured
Stakeholders
Point of action

22. Value Dials Example Q1 Q2 Q3 Q4
Number of complaints associated with improperly worded alerts messages
Planned 50 40 20 10
Actual 90
The actual value of 90 in Q2 will trigger a point of action where staff need to come together and determine why things deviated significantly from the planned amount.

23. Value Creation Plan Examples
IT Alerts
Office 365 and Calendaring

24. Recommendations
Very important to define measurable items for the value dials.
Stick with 3-5 value dials.

25. Business case Justification for a proposed project

26. Why do a business case?
Justify pursuing an investment that will satisfy strategic business objectives and goals.
Acquire full commitment by all stakeholders involved.
Support the decision making process.
Provide leadership with alternatives to address a problem identified in an idea document.

27. Business Case Components
Executive summary
High-level summary of problem and recommendations
Project overview
Rough project schedule
Infrastructure impacts
+/- impacts to infrastructure
Strategic plan alignment
Direct/indirect alignment to University strategic plan

28. Business Case Components
Cost model
5-10 year costing of alternatives
NPV, IRR, and ROI
Benefits
Risks
Alternate solutions
Value creation plan

29. Business Case Team Recommendations
A finance representative -- costing and financial metrics
A project manager – runs the project
BRM – voice of the customer
Subject matter experts – designer of potential solutions

30. Cost Modeling
Depending on the request, either a 5 year or a 10 year cost model is developed.
Staffing is based on mid-point of the salary band (OHR website).
All salaries are adjusted to include fringe and GSI.
Also includes costs for: hardware, software, IT services, operations, facilities and miscellaneous

31. Financial Metrics Return On Investment (ROI) = (Gain – Cost) / Cost
Net Present Value (NPV)
Compares cash inflow to cash outflows
Positive NPV – good investment!
Internal Rate of Return (IRR)
Rate of return over the life of an initiative

32. Helpful Questions Which option costs the least?
Which option is the fastest to implement?
Which option has the fewest risks?

33. Business Case Examples
Desktop Support
World Campus and Continuing Education Position

34. Summary
Value management is a process that starts with an idea and can go all of the way to an implemented solution.
Value management artifacts
Idea document – high level overview of an idea/opportunity.
Value creation plan – identifies how business value will be created and monitored.
Business case – justification for a proposed project.

35. Wrap Up
Questions?