The Business Case Solution for IT
Justifying information technology (IT) actions or acquisitions in a complex business environment can be a serious challenge.
IT is notorious for “hidden” long-term costs and business benefits that are hard to quantify. All of the business case questions about IT "ROI," IT payback, and total cost of ownership, are not trivial, as you know if you have ever tried to implement a major software system or infrastructure upgrade.
It is no secret that the challenge in justifying IT actions is not financial arithmetic. The mathematics are simple and have been used since the early 1900s. The real challenges in justifying IT actions are:
- Knowing which costs and benefits belong in the case and which do not .
- Assigning value to cost and benefit impacts from the IT action.
- Making costs and benefits concrete when they are not measured in financial terms (so-called "intangible" benefits and costs).
- Connecting the results of IT actions with important business objectives.
"Making the case" can seem especially challenging when the proposal is for:
- Complex, wide-ranging software systems (ERP, SCM, or CRM, for instance).
- Product data management or design software systems.
- Hardware infarastructure upgrades.
- New technology (VOIP telephony, for example).
For an overview of the approach and the kind of business case that answers the challenging questions effectively, in practical terms that everyone, including your CFO, engineers, and other professionals can understand and trust, please see our white papers "The IT Business Case: Keys to Accuracy and Credibility" and "Business Case Essentials." For more information on Solution Matrix Ltd. clients, please click here.
These papers also preview the process and results we can bring to your IT decision making and planning with The Business Case Solution for IT.
The Business Case Solution for IT
The Business Case Solution for IT is a structured, collaborative project, led by senior Solution Matrix consultants. The project has two objectives:
- To develop an accurate understanding of the financial results and other business consequences of a proposed IT action.
- To prepare the sponsors for using this understanding to their best advantage, for decision support, for planning, and for improving the quality of the next business case they build.
The case-building project is normally scheduled for completion in three calendar weeks, or less, depending on the complexity and scope of the IT action under study. This includes includes onsite meetings and collaborative workshops with IT management, proposal sponsors, technical specialists, and other key individuals, as well as a formal report to senior management.
Typical calender time: |
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