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Measurable Organizational Value & Business Case (Development of…
Measurable Organizational Value & Business Case
MOV =
"measure of success"
objective of MOV
:
support the vision, mission & strategy of an organization
be measurable
provide value
be agreed upon
be verifiable
project objectives
also supports in terms of:
scope which is the project work need to be completed)
schedule (time)
budget (money)
quality (conformance or fitness for use)
Development of MOV
potential area
of project impact (1)
customer -better quality, lower price
strategic -increase market share
financial -increase revenue, lower costs
operational -more efficient/effective
social -improved safety and cleaniness
project
value
: (2)
-better
-faster
-cheaper
-increase growth(do more)
appropriate
metric
could be expressed in
money, percent, numeric
(3)
provide project team with a performance target or directive
set expectations among all stakeholders
to evaluate a project
set a time frame (4)
-when the results of MOV will be achieve
verify
&
agreement
from stakeholder (5)
-project manager guide
-project sponsor identify, specify the acceptable value for metrics
summarize
in
clear, concise
statement/ table (6)
business case
:
an analysis of the
organizational value, feasibility, costs, benefits, risks of several proposed alternatives/ options
attributes
of business case:
thorough in detailing all possible consequences
clear, logical in comparing the impact of each alternative
objective through include all related information
systematic in terms of summarize findings
Development of Business Case
define
Measurable Organizational Value (1)
form a
Cross-Functional Business Case Team
for (2)
-credibility
-alignment with organizational goals
-acccess to the real costs
-ownership
-agreement
-bridge building
identify
alternatives
/ possible options (3)
-change existing process without invest in IT
-adopting app developed by diff area within organization
-reengineer the existing system
-purchasing an off-the-shelf app package from software vendor
-custom build a new app using internal resources/ outsourcing the development to another company
define
feasibilty
(4): economic, technical, organizational, others
define
assess risk
(4): identification, assessment, response
define
total cost of ownership
(5): direct/up-front , ongoing, indirect costs
define
total benefits of ownership
(6):
increase high value work, improve accuracy/efficiency--decision making--customer service
analyze
alternatives
(7)
-payback
-breakeven
-return on investment
-net present value
-scoring models
-criteria of financial & scoring models
propose & support the
recommendation
(8)
-process after the alternative been identified
Project Selection & Approval/Decison
-align with the vision and mission
-MOV is provided & verified