1. Carmen David, Senior BA Business Analysis Carmen David, Senior BA Business Analysis Foundation in Business Analysis Session 9 MAKING BUSINESS AND FINANCIAL CASE

2. Carmen David, Senior BA Business Analysis A business case is a key document in a business analysis project where the analysts or consultants present their findings and propose a course of action for senior management to consider. A business case is a sales document, aimed at getting people to take a decision. Key rules of successful selling apply –stress the benefits, not the features; –sell the benefits before discussing the cost and get the ‘buyers’ to understand the size of the problem – or opportunity – before presenting the amount of time, effort and money that will be needed to implement a solution. What is a Business Case?

3. Carmen David, Senior BA Business Analysis Business Case

4. Carmen David, Senior BA Business Analysis The Process for developing a Business Case

5. Carmen David, Senior BA Business Analysis Aspects of feasibility

6. Carmen David, Senior BA Business Analysis Introduction; Management summary; Description of the current situation; Options considered; Analysis of costs and benefits; Impact assessment; Risk assessment; Recommendations; Appendices, with supporting information. Structure of a Business Case

7. Carmen David, Senior BA Business Analysis Costs/Benefits analysis

8. Carmen David, Senior BA Business Analysis Development staff costs User staff costs Hardware Infrastructure Packaged software Relocation Staff training and retraining Ongoing costs Tangible costs

9. Carmen David, Senior BA Business Analysis Disruption and loss of productivity Recruitment Intangible costs

10. Carmen David, Senior BA Business Analysis Staff savings Reduced effort and improved speed of working Faster responses to customers Reduced accommodation costs Reduced inventory Other cost reductions Tangible benefits

11. Carmen David, Senior BA Business Analysis Increased job satisfaction Improved customer satisfaction Better management information Greater organizational flexibility More creative problem-solving time Improved presentation or better market image Better communications Intangible benefits

12. Carmen David, Senior BA Business Analysis Organization structure Interdepartmental relations Working practices Management style Recruitment policy Appraisal and promotion criteria Supplier relations Impact assessment

13. Carmen David, Senior BA Business Analysis Description Impact assessment Probability Countermeasures Ownership Risk assessment

14. Carmen David, Senior BA Business Analysis Investment Appraisal

15. Carmen David, Senior BA Business Analysis Net present value

16. Carmen David, Senior BA Business Analysis This is a calculation that assesses what sort of return on investment is represented by the project in terms of a single percentage figure. It can then be used to compare projects one with another in order to identify the better investment opportunities, and to compare them all with what the same money could earn if just left in the bank. For example, if the IRR of a project is calculated at 3 per cent and current bank interest rates are 5 per cent, then on financial grounds alone it would be better not to spend the money. Internal Rate of Return

17. Carmen David, Senior BA Business Analysis Think about the audience Keep it short Consider the structure Think about appearances Presentation of a Business Case

18. Carmen David, Senior BA Business Analysis Benefits Management and Realization

19. Carmen David, Senior BA Business Analysis Thanks you! References: Business Analysis 2 nd edition by Debra Paul (Editor), Donald Yeates (Editor), James Cadle