44.493 Issues in Technology and Security

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Building business case for technology use/acquisition

(accompanies ch. 3 of Making Sound IT Investments. Quotes, unless otherwise attributed, are drawn from it)

• What is a business case for a technology investment?
• Elements of a business case
• Problem statement
• Mission or vision
• Specific objectives
• Preferred approach
• Expected benefits
• Performance and progress measures
• Risks and ways to approach them
• Basic plan
• Project management and staffing
• Cost estimates and funding
• Alternatives considered
• Opposing arguments and responses

What is a business case for a technology investment?
"We define a business case as a well-reasoned argument designed to convince an audience of the benefits of an IT investment, while educating them about the changes, costs, and risks that will be part of the effort. The goal of your business case is to inform key players about your initiative and convince them to support it in some specific ways."

Combines information, analysis, and recommendations. Because of the caution raised earlier about so many IT projects failing because of lack of a problem statement, has a simple statement of the problem to be solved, plus data showing why it is important, and its severity and complexity. Identifies customers and other stakeholders and how the problem affects them. States assumptions, estimates, and other weaknesses in underlying data. Gives the decision maker options: compares features, costs and benefits, and stakeholder impacts for each option. "Concludes with a recommended course of action and a justification that presents its strengths and weaknesses."

Includes written and oral presentations, supporting materials. "Your business case distills weeks or months of work. You need to be armed with all the data, but you will also need to present your findings and recommendations in a cogent, convincing, and interesting way."

Essential elements of a business case
Includes:

• "A brief, compelling, service-oriented problem statement
• A mission statement or vision of the future that addresses the problem
• A description of the specific objectives to be achieved
• A description and rationale for your preferred approach
• A statement of the benefits that address the concerns of all relevant stakeholders
• Measures for gauging improved performance or progress toward each objective
• A statement of the likely risks of your initiative and how they will addressed
• A basic plan of work with a timeline and key milestones
• A project management plan and names and roles of key managers
• Alternatives considered and how they would or would not work
• Cost estimates and potential sources of funding
• Opposing arguments and your responses to them

(see Table 1 for sources of material for the case).

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