1. Conceptualizing & Initializing the IT Project
Chapter 2

2. Husky Air – Angel Pilots
Develop a MOV table based upon the case description.
Organizational Impact?
Value?
Metric?
Time Frame?
Summarize the MOV

3. Business Case Template

4. Developing the Business Case
Step 3: Identify Alternatives
Base Case Alternative
Possible Alternative Strategies:

5. Husky Air – Angel Pilots
What are the potential alternatives to developing the system to track pilots?

6. Developing the Business Case
Step 4: Define Feasibility and Assess Risk
Risk focus on:

7. Developing the Business Case
Step 5: Define Total Cost of Ownership Step 6: Define Total Benefits of Ownership

8. Husky Air – Angel Pilots
What are the TCO for both the proposed project and potential alternatives?

9. Developing the Business Case
Step 7: Analyze alternatives using financial models and scoring models
Payback Period
Break Even
ROI
NPV

10. Developing the Business Case
Payback Period

11. Developing the Business Case
Break Even

12. Developing the Business Case
Return on Investment

13. Developing the Business Case
Net Present Value
Year 0
Year 1
Year 2
Year 3
Year 4
Total Cash Inflows
Total Cash Outflows
Net Cash Flow
NPV = -I0 +  (Net Cash Flow / (1 + r)t)
Where:
I = Total Cost or Investment of the Project
r = discount rate
t = time period

14. Developing the Business Case
Net Present Value
Time Period
Calculation
Discounted Cash Flow
Year 0
Year 1
Year 2
Year 3
Year 4
Net Present Value (NPV)

15. Developing the Business Case – Weighted Case
Criterion
Weight
Alternative A
Alternative B
Alternative C
Financial
ROI
15% 2 4 10
Payback
10% 3 5
NPV
Organizational
Alignment with strategic objectives 8
Likelihood of achieving project’s MOV 6 9
Project
Availability of skilled team members 5%
Maintainability 7
Time to develop
Risk
External
Customer satisfaction
Increased market share
Total Score
100%
2.65
4.85
8.50
Notes: Risk scores have a reverse scale – i.e., higher scores for risk imply lower levels of risk

16. Husky Air – Angel Pilots
What are the TBO after analyzing the alternatives using the financial models?
Create a weighted table for the alternatives and make suggestions based upon this table.

17. Developing the Business Case
Step 8: Propose and Support the Recommendation

18. Project Selection and Approval
The IT Project Selection Process
The Project Selection Decision
Project must map to organization goals
Project must provide verifiable MOV
Selection should be based on diverse measures such as
tangible and intangible costs and benefits
various levels throughout the organization