1. Making the Business Decision Business Case Approach to Demonstrate Value Suhas Uppalapati Director – Statewide IT Planning Georgia Technology Authority October 12, 2007

2. Georgia Technology Authority A Business Case answers: What is the right thing? Is the proposed investment: In line with the vision? Consistent with the business principles? Contributing to objectives? Providing optimal value, at affordable cost, at an acceptable level of risk? What is the Value? Is there: A clear and shared understanding of the expected benefits? Clear accountability for realizing the benefits?

3. Georgia Technology Authority A. Introduction E. Recommendations & Conclusions D. Risks & Sensitivity C. Projections B. Thesis Building a Business Case

4. Georgia Technology Authority A. Introduction Proposed actions that support business objectives that results in measurable goals but possibly bounded by specific constraints with value exposed by selected models.

5. Georgia Technology Authority Cost Models – NPV Approach Option-1Option-2 Year 1$1,000,000$1,800,000 Year 2$1,200,000$1,600,000 Year 3$1,400,000 Year 4$1,600,000$1,200,000 Year 5$1,800,000$900,000 Total$7,000,000$6,900,000

6. Georgia Technology Authority Cost Models – NPV Approach Option-1Option-2 Year 1$1,000,000$1,800,000 Year 2$1,200,000$1,600,000 Year 3$1,400,000 Year 4$1,600,000$1,200,000 Year 5$1,800,000$900,000 Total$7,000,000$6,900,000 Net Present Value Option-1Option-2 Year 1$1,000,000$1,800,000 Year 2$1,142,000$1,523,000 Year 3$1,269,000 Year 4$1,382,000$1,036,000 Year 5$1,480,000$740,000 NPV - Total$6,273,000$6,368,000

7. Georgia Technology Authority B. Thesis Defines problem bounded by conditions, explained through scenarios that introduce assumptions, drivers & data sources that support a benefits analysis

8. Georgia Technology Authority Analysis: TCO

9. Georgia Technology Authority Analysis: Cost Vs. Performance

10. Georgia Technology Authority Benefits Analysis Public Sector Objectives are not all about Systems! Strategic Results Objectives/Tactics Systems Focus of business cases that win Focus of business cases that fail

11. Georgia Technology Authority C. Projections Public Sector Objectives are not all about finances ! Value is paramount !!!

12. Georgia Technology Authority Complement TCO w/ Public Value of IT

13. Georgia Technology Authority D. Risks & Sensitivity SENSITIVITY ANALYSIS RISK ANALYSIS

14. Georgia Technology Authority D. Risks & Sensitivity E. Recommendations & Conclusions Based on the business case analysis presented here, we recommend ……

15. Georgia Technology Authority A. Introduction E. Recommendations & Conclusions D. Risks & Sensitivity C. Projections B. Thesis Building a Business Case

16. Georgia Technology Authority