1. Developing a compelling investment / business case

2. Basics
Every project is a business initiative focused on a business outcome that produces improved business performance
Business owners can control costs when the factors that drive costs are made visible to us.
IT services and systems need to be measured in terms of business performance and business outcomes
There is nothing called IT Project (CJ’s Opinion)

3. Technology Investment Governance Structure
Enterprise Governance Council
Technology Prioritization Committee (Revenue Generators)
Technology Prioritization Committee (Revenue Enablers)
20%
80%
Lic/Sales
Biz Dev
Fin HR IT
Mktg/PR
Legal 3

4. Organizational Prioritization Model
(Quantitative) 4

5. Prioritization Business Assumptions
(Qualitative)
The second aspect of the framework involves the use of qualitative reasoning supported by team’s experience and understanding of organizational constraints to derive the right mix of projects within the portfolio.
Things we analyze :  
Business Owner understanding and articulation of the business problem to be solved
Organizational readiness for change as validated by charter and business case
Availability and readiness of solutions that address high-level business requirements
Executive/Business Sponsor representation and support of the business case
Alignment of the project or initiative to the department’s strategic and operating plan & goals 5

6. Technology Investment Framework
3) Forced Ranking
1) Organizational Prioritization Model
And
2) Prioritization Business Assumptions 6

7. IT Investment Transparency
Run the Business
Enable essential services
Benefits are measured in reduced cost or risk
E.g. : Exchange 2010 upgrade
Grow the business
Improvements in operations and performance related to existing markets and customer segments
Benefits are measured in operational improvements like cycle time, increased revenue
E.g.: Opening new channel of sales
Transform the business
New markets, new products, new horizons for the company or industry
Benefits are measured in revenues in the new horizons, typically involve big rewards but also have high risk
E.g.: New acquisition model, Angry birds game on the iPhone

8. IT Investments Metrics (Connect investments to P&L)
Financial Metrics
IRR
Payback
NPV
P&L Business Impact
Gross Margin Revenue Increase
Gross Expense Reduction
Operating Expense Reduction

9. Compelling Investment
Get the basics (of a business case) right
Build stories around compelling subjects: achieving rewards, avoiding major
losses, strengthening security, reducing risk
Translate the main investment payoffs into favorite senior exec initiatives
Choice of language. If promoting competitive advantage, consider words like
conquer, crush or triumph. If urgency is the driver, speak of pressure, speed
or stress
Keep it truthful. Make sure any facts or quotes you use are accurate. If
describing future situations, make it clear that they are projections
Evangelize the business value and business performance
Socialize your investment ideas before you present for “real” approval
Know your “approval” audience and their needs
Identify “influencers” & “champions”
Use Industry Benchmarks (Gartner/Forrester/IDG) wherever applicable

10. IT Value Traps (Beliefs & Habits that seem to be good but actually lead to trouble)
Visibility
Trap
We shouldn’t have to talk about our performance; it speaks for itself
IT is the cost of doing business
IT delivers great technology for the enterprise
Excuse
Nothing is perfect especially something as complex as IT
If you don’t follow our policy we can’t guarantee it will work
Role
“The business” is IT’s customer
The customer should know their business processes really well
The customer is always right 10

11. Q&A