Making the Business Decision Business Case Approach to Demonstrate Value Suhas Uppalapati Director...
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![Page 1: Making the Business Decision Business Case Approach to Demonstrate Value Suhas Uppalapati Director – Statewide IT Planning Georgia Technology Authority.](https://reader030.fdocuments.in/reader030/viewer/2022032800/56649d2a5503460f949ffb9e/html5/thumbnails/1.jpg)
Making the Business Decision Making the Business Decision
Business Case Approach to Demonstrate ValueBusiness Case Approach to Demonstrate Value
Suhas UppalapatiSuhas UppalapatiDirector – Statewide IT PlanningDirector – Statewide IT PlanningGeorgia Technology AuthorityGeorgia Technology Authority
October 12, 2007October 12, 2007
![Page 2: Making the Business Decision Business Case Approach to Demonstrate Value Suhas Uppalapati Director – Statewide IT Planning Georgia Technology Authority.](https://reader030.fdocuments.in/reader030/viewer/2022032800/56649d2a5503460f949ffb9e/html5/thumbnails/2.jpg)
Georgia Technology Authority
A Business Case answers: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?
![Page 3: Making the Business Decision Business Case Approach to Demonstrate Value Suhas Uppalapati Director – Statewide IT Planning Georgia Technology Authority.](https://reader030.fdocuments.in/reader030/viewer/2022032800/56649d2a5503460f949ffb9e/html5/thumbnails/3.jpg)
Georgia Technology Authority
A. Introduction
E. Recommendations & Conclusions
D. Risks & Sensitivity
C. Projections
B. Thesis
Building a Business Case
![Page 4: Making the Business Decision Business Case Approach to Demonstrate Value Suhas Uppalapati Director – Statewide IT Planning Georgia Technology Authority.](https://reader030.fdocuments.in/reader030/viewer/2022032800/56649d2a5503460f949ffb9e/html5/thumbnails/4.jpg)
Georgia Technology Authority
A. IntroductionA. IntroductionA. IntroductionA. Introduction
Proposed actions that support
business objectives that results in
measurable goals but possibly bounded by
specific constraints with value exposed by selected
models.
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Georgia Technology Authority
Cost Models – NPV Approach
Option-1 Option-2
Year 1 $1,000,000 $1,800,000
Year 2 $1,200,000 $1,600,000
Year 3 $1,400,000 $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
![Page 6: Making the Business Decision Business Case Approach to Demonstrate Value Suhas Uppalapati Director – Statewide IT Planning Georgia Technology Authority.](https://reader030.fdocuments.in/reader030/viewer/2022032800/56649d2a5503460f949ffb9e/html5/thumbnails/6.jpg)
Georgia Technology Authority
Cost Models – NPV Approach
Option-1 Option-2
Year 1 $1,000,000 $1,800,000
Year 2 $1,200,000 $1,600,000
Year 3 $1,400,000 $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-1 Option-2
Year 1 $1,000,000 $1,800,000
Year 2 $1,142,000 $1,523,000
Year 3 $1,269,000 $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
![Page 7: Making the Business Decision Business Case Approach to Demonstrate Value Suhas Uppalapati Director – Statewide IT Planning Georgia Technology Authority.](https://reader030.fdocuments.in/reader030/viewer/2022032800/56649d2a5503460f949ffb9e/html5/thumbnails/7.jpg)
Georgia Technology Authority
B. ThesisB. Thesis
Defines problem bounded by
conditions, explained through
scenarios that introduce
assumptions, drivers & data sources that support a
benefits analysis
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Georgia Technology Authority
Analysis: TCO
![Page 9: Making the Business Decision Business Case Approach to Demonstrate Value Suhas Uppalapati Director – Statewide IT Planning Georgia Technology Authority.](https://reader030.fdocuments.in/reader030/viewer/2022032800/56649d2a5503460f949ffb9e/html5/thumbnails/9.jpg)
Georgia Technology Authority
Analysis: Cost Vs. Performance
![Page 10: Making the Business Decision Business Case Approach to Demonstrate Value Suhas Uppalapati Director – Statewide IT Planning Georgia Technology Authority.](https://reader030.fdocuments.in/reader030/viewer/2022032800/56649d2a5503460f949ffb9e/html5/thumbnails/10.jpg)
Georgia Technology Authority
Benefits AnalysisBenefits 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
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Georgia Technology Authority
C. ProjectionsC. Projections
Public Sector Objectives are not all about finances !
Value is paramount !!!
![Page 12: Making the Business Decision Business Case Approach to Demonstrate Value Suhas Uppalapati Director – Statewide IT Planning Georgia Technology Authority.](https://reader030.fdocuments.in/reader030/viewer/2022032800/56649d2a5503460f949ffb9e/html5/thumbnails/12.jpg)
Georgia Technology Authority
Complement TCO w/ Public Value of IT
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Georgia Technology Authority
D. Risks & SensitivityD. Risks & Sensitivity
SENSITIVITY ANALYSIS
RISK ANALYSIS
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Georgia Technology Authority
D. Risks & Sensitivity
E. Recommendations & ConclusionsE. Recommendations & Conclusions
Based on the business case analysis presented here, we recommend ……
![Page 15: Making the Business Decision Business Case Approach to Demonstrate Value Suhas Uppalapati Director – Statewide IT Planning Georgia Technology Authority.](https://reader030.fdocuments.in/reader030/viewer/2022032800/56649d2a5503460f949ffb9e/html5/thumbnails/15.jpg)
Georgia Technology Authority
A. Introduction
E. Recommendations & Conclusions
D. Risks & Sensitivity
C. Projections
B. Thesis
Building a Business Case
![Page 16: Making the Business Decision Business Case Approach to Demonstrate Value Suhas Uppalapati Director – Statewide IT Planning Georgia Technology Authority.](https://reader030.fdocuments.in/reader030/viewer/2022032800/56649d2a5503460f949ffb9e/html5/thumbnails/16.jpg)
Georgia Technology Authority