Chapter9_Making a business and Financial case

PHÂN TÍCH NGHIỆP VỤ KINH DOANH Bài 9: Thực trường hợp kinh doanh HCM – Apr-21 4/7/2021 Objectives Be able to: Discuss steps of developing a business case Identify and discuss aspects of project feasibility Understand the structure of a business case Explain approaches to investment appraisal Understand the importance of benefits management 4/7/2021 Trang AGENDA The business case in the project lifecycle Identifying options Assessing project feasibility Structure of a business case Investment appraisal Presentation of a business case Benefits management and realization Business analysis process Business strategy and objectives Investigate situation •uncover issues and problems 4/7/2021 Consider perspectives •analyze stakeholders and their perspectives on the situation Analyze needs • identify where improvements can be made to the business system •gap analysis: ‘as is’ view vs ‘to be’ system  Define how the new processes should look Evaluate options •examine the potential improvements identified so far, develop some business options and evaluate them for acceptability and feasibility Define Delivering changes • gather and document the detailed requirements for changes to the business system •Consider how the requirements are to be delivered, the changes implemented and the business benefits realized requirements Trang Evaluating Options Objectives:  examine the potential improvements identified,  develop some business options and evaluate them for acceptability and feasibility MAKING A BUSINESS CASE 4/7/2021 Trang Evaluating Options 4/7/2021 Trang What is a Business Case?  a key document in a business analysis project where  the analysts/consultants present their findings  propose actions for senior management to consider  a sales document  to take a decision  Key rules of successful selling apply  stress the benefits, not the features;  sell the benefits before discussing the cost  Display the size of the problem – or opportunity Business Case in the project lifecycle Identifying Options business options: explore what the proposed solution is intended to achieve in business terms technical options: consider how the solution is to be implemented, often through the use of IT 4/7/2021 Trang The Process for developing options Intangible costs Disruption and loss of productivity Recruitment Tangible benefits Staff savings Reduced effort and improved speed of working Faster responses to customers Reduced accommodation costs Reduced inventory Other cost reductions Intangible benefits 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 Structure of a Business Case Impact assessment  Organization structure  Interdepartmental relations  Working practices  Management style  Recruitment policy  Appraisal and promotion criteria  Supplier relations Structure of a Business Case Risk assessment  Description  Impact assessment  Probability  Countermeasures  Ownership Structure of a Business Case Recommendations  summaries the business case  make clear the decisions • outline of the main tasks and timescales Investment Appraisal shows whether and when the project will pay for itself Example: a payback calculation 4/7/2021 Trang 25 ... options and evaluate them for acceptability and feasibility MAKING A BUSINESS CASE 4/7/2021 Trang Evaluating Options 4/7/2021 Trang What is a Business Case?  a key document in a business analysis project... a business case Investment appraisal Presentation of a business case Benefits management and realization Business analysis process Business strategy and objectives Investigate situation •uncover... principal advantages and disadvantages; • A clear statement of the recommendation  Length: or pages Structure of a Business Case Description of the current situation  explain the current situation