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Making a Business Case (Usually included... (Introduction (Set the scene,…

- - - - All options considered, including doing nothing at all
      - Reasons why it's not a good idea
      - In practice, range of options may be limited
    - - Shorten long list to 3 or 4 - including doing nothing
    - - Evaluate using criteria of feasibility assessment
        
        Ball-park costs and benefits
        
        Detailed costs/benefits for preferred option
    - - Assessed options taken forward to business case
  - - - Provable in advance
        
        Savings from decommissioning old system / reduced headcount
    - - Cannot be proven in advance
        
        Depends on research available - market research on web based shopping
    - - Enjoyed or incurred at the start
    - - Later, longer timescale
  - - - Project risk
        
        Delay or adversely affect the project itself
    - - Reputation damage
    - - Assess
        
        Description - situation or circumstance that may give rise to risk
        
        Impact - if risk occurs, could be multiple impacts
        
        Scale of impact - how badly would the risk affect the organisation (small, moderate, large... catastrophic?)
        
        Probability - how like is it? Low, medium, high
        
        Avoidance - how can the probability be lowered?
        
        Mitigation - how can the scale of the impact be reduced?
        
        Owner - who is responsible for managing the risk?
  - - - Doesn't take into account "time value for money" e.g. interest on a loan
      - simple, straight forward, good assessment of project in low times of low interest
    - - Takes into account interest, and adjusts future cash flows to factor in cost of capital
      - Difficult to work out correct discount rates
      - Some subjective judgment from management accountants
    - - Single headline number to represent the return on investment, to compare with cost of capital
      - Doesn't take into account sheer size of project
- - - - Design
        
        Business case: confirmed once dev costs estimated
        
        Development
        
        Business case: revisited before deployment
        
        Operational
        
        Benefits realisation checked
        
        2 more items...
        
        Check business circumstances haven't changed, assure system is still needed
        
        if in house developed, revisit after design as better idea of costs
      - Check costs are still justified give benefits (more detail on benefits)
        
        Develop in house
        
        Commercial off the shelf solution (COTS)