Business Case , Project Charter & Project Plan

By Vimukthi Randika
 Business Case
Why Business Case ?

Getting an High level idea on how the project

will beneficial for organization’s strategic
planning and support organizational goal
and objectives.

By Vimukthi Randika
 Business Case
Core Team

MOV

Alternatives Propose + Recommendations

Feasibility Alternative Analyze

TCO Total Benefits

By Vimukthi Randika
 Business Case – Core Team
I Know market
I Know how to make behavior
project success I know opportunities,
limitations, and risks
associated
with IT

Manager Market Specialist

I Know how to align

project with the IT Specialist
business I Know what I want

Business Specialist
User

By Vimukthi Randika
 Business Case – Core Team
Out comes :

Provide Creditability

Align with the company goal

Access to the real cost

By Vimukthi Randika
 Business Case – MOV

Be Measurable Be verifiable

MOV

Provide Value to
Be Agreed Upon
Organization

By Vimukthi Randika
Business Case – MOV
Organization Goal

Organization
Strategy

MOV

By Vimukthi Randika
 Business Case – MOV
Scenario : Company ABC is a medium size Service Company which provides the
service of residential interior and garden decorations. Currently they have loyalty
customers around 200 who have get their service more than one occasion. They are
maintaining a website, which is just a static one to display their decoration packages,
rates and choices. Other than that there isn’t facility for online payments, ordering
and suggestion forums currently. The management of ABC company wants to expand
their customer base while providing more quality efficient service to their registered
customers through a B2C application.

By Vimukthi Randika
 Business Case – MOV
Area of impact and Nature of impact
Financial: More Profit

Strategy : More market share

Customer: More satisfaction

By Vimukthi Randika
 Business Case – MOV
Nature of impact in Numerically
Financial: 30% profit increase

Strategy : 500 more customers

Customer:
1000 simultaneous orders
30 second order process time

By Vimukthi Randika
 Business Case – MOV
Time frame for MOV

By
1st Quarter ?
3rd Quarter ?
1st Year?
2nd Year?
10 Years?

By Vimukthi Randika
 Business Case – MOV
Final Agreement Stakeholders

By Vimukthi Randika
 Business Case – MOV
Finalize MOV

Year MOV

1 15% ROI and 100 new customers

2 20% ROI and 150 new customers

3 25% ROI and 250 new customers

By Vimukthi Randika
 Business Case – Alternatives

Option one: Create new web application by outsourcing

Option two: Extend the prevailing site as dynamic web application by Reengineering

Option three: Purchase CRM

By Vimukthi Randika
Business Case – Feasibility ,Risk Assessment
Feasibility

Alternative Economic Technical Organizational

Option 1 Moderate High moderate

Option 2 High Low moderate

Option 3 Low Moderate Low

By Vimukthi Randika
Business Case – Feasibility ,Risk Assessment
Risk

Alternative Identification Assessment Response

Option 1 Lack of quality + maintain ace moderate More client relationship

Option 2 Lack of technical knowledge High Recruitment relevant IT professionals

Option 3 May inquire more initial cost + High Research

maintaining cost

By Vimukthi Randika
 Business Case – TCO
Direct Ongoing Indirect

Base Contract cost Upgrades Product Support

Hardware Maintenance

Option 1 Software Salaries. Quality Assurance

Hardware Training.
Maintenance

Option 2 Purchase cost Upgrades Product Support

Hardware Maintenance

By Vimukthi Randika
Business Case – TCO

By Vimukthi Randika
 Business Case – TBO
Tangible Intangible

Option 1 Reduce Vast paper works. Draw attention on core

Reduce Order processing time. business rather than
Efficiency in fulfill customer queries. application development.

Option 2 Reduce Vast paper works. Investment for future

Reduce Order processing time. development
Efficiency in fulfill customer queries.

Option 3 Reduce Vast paper works. Draw attention on core

Reduce Order processing time. business rather than
Efficiency in fulfill customer queries. application development.

By Vimukthi Randika
 Business Case – Analyze Alternatives
Financial Models

Pay Back

Pay Back = Initial Investment

Net Cash Flow

Breakeven Point

BP= Initial Investment

Net Cash Flow

By Vimukthi Randika
 Business Case – Analyze Alternatives
Financial Models

ROI

ROI= Total Expected Benefits – Total Expected Cost

Total Expected Cost

Breakeven Point

NPV = Initial Cost +

Ʃ Net Cash Flow
(1+ discount period) period

By Vimukthi Randika
 Business Case – Analyze Alternatives
Scoring Models

Total Score =
Ʃ weight * score

By Vimukthi Randika
Business Case – Propose &Support Recommendations

Support One of the Options

By Vimukthi Randika
Business Case – Structure

By Vimukthi Randika
Business Case – Template

By Vimukthi Randika
 Project Selection
Project Portfolio

Balance Score Card

By Vimukthi Randika
 Project Planning - Project Charter
Summarized Project Plan
An agreement for Stakeholders

Project Identification Project Budget

Stakeholders Quality Issues

Project Description Resources

MOV Assumptions and Risks

Project Scope

Project Schedule

By Vimukthi Randika
 Project Charter
Assumptions and Risks

Key Situation & Events

Known Constrains

Dependencies to Other Projects

Impact on Organization Areas

Other

By Vimukthi Randika
 Project Charter
Summarized Project Plan
An agreement for Stakeholders

Project Identification Project Budget

Stakeholders Quality Issues

Project Description Resources

MOV Assumptions and Risks

Project Scope Project Administration

Project Schedule

By Vimukthi Randika
 Project Charter
Project Administration

Communication Plan

Scope Management Plan

Quality Management Plan

Change Management Plan + Implementation Plan

HR Management Plan

By Vimukthi Randika
 Project Charter
Summarized Project Plan
An agreement for Stakeholders

Project Identification Project Budget References

Stakeholders Quality Issues Terminology

Project Description Resources

MOV Assumptions and Risks

Project Scope Project Administration

Project Schedule Acceptance & Approval

By Vimukthi Randika
Project Charter - Structure
Project Charter - Template
Project Plan - Framework
 Project Plan - Framework
Project Scope

Initiation

Planning

Definition
 Project Plan - Framework
MOV Scope

Phase 2 Phase 3 Phase n

Phase 1 ………….
.

T1 T2 T3 …………. Tn
.

Schedule +
Budget
 Project Plan - Framework
Project Scope

Initiation

Planning
Base Line Plan
Definition

Verification + Change Control

Project Plan – Kick Of