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What Is Business Case? How Does A Business Case Affect An I.T. Project?

Reviewer in Systems Analysis and Design

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FAYE ABIGAIL VILLALUNA
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10 views

What Is Business Case? How Does A Business Case Affect An I.T. Project?

Reviewer in Systems Analysis and Design

Uploaded by

FAYE ABIGAIL VILLALUNA
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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WHAT IS BUSINESS CASE?

HOW DOES A BUSINESS CASE AFFECT AN I.T. PROJECT?

WHAT IS BUSINESS CASE?

• It is a business plan that forecasts costs and revenues for a particular project over several
years, especially to attract financing. It affects because it would say whether the IT project is
good enough to go or should it be abandoned. So, for any company can save money.
• Is a tool for advocating and ensuring that an investment is justified in terms of the strategic
direction of the organization and the benefits it will deliver. It typically provides context,
benefits, costs and a set of options for key decision makers and funders.
• It evaluates the benefit, cost and risk of alternative options and provides a rationale for the
preferred solution.

5 ELEMENTS OF BUSINESS CASE

1. Strategic Context. The compelling case for change.


2. Economic Analysis. Return on investment based on investment appraisal of options.
3. Commercial Approach. Derived from the sourcing strategy and procurement strategy.
4. Financial Case. Affordability to the organization in the time frame.
5. Management Approach. Roles governance structure, life cycle choice.

WHAT ARE THE FIVE REASONS FOR SYSTEMS PROJECTS?

The five common factors are:


1. Technology and System feasibility
2. Economic feasibility
3. Legal feasibility
4. Operational feasibility
5. Schedule feasibility

WHAT ARE SOME FACTORS THAT AFFECT SYSTEM PROJECTS:

1. Strategic Plan
2. Top Managers
3. User Requests
4. Information Technology Department
5. Existing Systems and Data

EEF (ENTERPRISE ENVIRONMENT FACTORS):


A. Internal
a. Company infrastructure
b. Skill availability
c. Risk attitude
d. Government approach

B. External
a. Political and Financial climate

Advantages and Disadvantages of a System Review Committee?

If you see the end users for testing it is good. Using systems people to test systems may be
good for systems dept but not for end users.

WHAT IS FEASIBILITY
- Simply whether or not something can be done
-
The FOUR tests are:
1. Operational feasibility- is the proposal desirable from an operational point of view.
2. Technical feasibility- are the necessary resources available to do the project.
3. Economic feasibility- what will project cost, will it be acceptable from a financial point of view
4. Schedule feasibility- is the adequate time to do the work.

BENEFITS

Tangible Benefit
- It is a benefit to a person or organization which can be felt and touched. It is a real benefit
which is straightforward. Ex: Saving money.

Intangible Benefit
- It is and indirect benefit which can’t be felt or touched. Ex: Saving time.

STEPS IN PRELIMINARY INVESTIGATION


1. To understand the problem or opportunity.
2. Define the project scope and constraints.
3. To perform fact-finding
4. To analyze project usability, cost, benefit and schedule data.
5. To evaluate feasibility
6. To Present results and recommendations to management.

PROJECT SCOPE AND DELIMITATION

- Project Scope – Defines the boundaries or extent of the project in specific terms.
- Constraint – Is a condition that the system must satisfy or an outcome that the system must
achieve.
Example of constraint:
1. Present versus Future constraints
2. Internal versus External constraints
3. Mandatory versus desirable constraints

FISHBONE ANALYSIS
- A diagram is an analysis tool that represents the possible causes of a problem as a graphical
outline. When using fishbone diagram, an analyst first states the problem and draws a main
bone with sub-bones that represent possible causes of the problem and identifies four areas to
investigate: environment, workers, management and machines. In each area, the analyst
identifies possible causes and draws as horizontal sub-bones. For example, too hot is a
possible cause in the environmental bone.
- The analyst must dig deeper and ask the question, what could be causing this symptom to
occur? For example, why is it too hot? If the answer is insufficient air conditioning capacity, the
analyst indicates this as a sub-bone to the too hot cause. It this manner, the analyst adds
additional sub-bones to the diagram, until h or she uncovers root causes of a problem, rather
than just the symptoms

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