building a business case for an it investments

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Building a business case for an it investments planned investment function shows that have been cancelled

Building a business case for an it investments

Surprisingly, we found that many organizations don't demand rigorous evidence to support the justification for investment-thus allowing benefits to be overstated and projects oversold. View Paper. Save to Library. Create Alert. Launch Research Feed. Share This Paper. Background Citations. Methods Citations. Results Citations. Figures from this paper. Citation Type. Has PDF. Publication Type. More Filters. Achieving strategic benefits from business IT projects: The critical importance of using the business case across the entire project lifetime.

Research Feed. View 1 excerpt, cites background. You should involve decision makers, influencers and those affected by the project from the beginning. Work with key people to understand potential objections to help you to position your case and make it more persuasive. To strengthen your argument, gain support from end users and show how the project will benefit your clients.

Your Finance Director is crucial here. Use their expertise to build a sound financial argument and ensure you have their buy in before your Managing Partner or Director approaches them. To ensure your business case gets the seal of approval, the most vital part is the financial justification. You need to quantify the contribution of the investment to the ability of the business to deliver on the strategic aims you identified at the beginning.

For example, you implement remote access so staff can work whilst travelling. Your staff might not want to work on the train, they might have poor connectivity or they may find it a hassle to log in off-site. The point is, you need to ensure your targets are realistic to remain credible.

Improved employee satisfaction, reduced risk of human error and fewer outages are benefits that are hard to quantify but help you to build a stronger case. Lastly, you need to show that you have considered all options, including the option to do nothing. In terms of project risks, consider downtime, potential areas for overspend, deliverables you may not meet and deadlines that may slip.

Whichever way you choose to present your case, there are three points to take away from this article:. CTS has updated its cookie policy. We use third-party cookies to personalise content, provide social media features, and analyse our traffic to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on the CTS website.

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It differs from conventional approaches because it recognizes different types of benefit, identifies measures for all benefits, and gathers evidence for the size of the expected benefits. The approach also requires that a benefit owner is identified for each benefit, to ensure commitment and aid benefit delivery. Benefits are explicitly linked to both the IT and the business changes that are required to deliver them.

Responsible individuals are also identified for ensuring the necessary business changes occur. Our research also identifies a wider role for the business case. Typically, the main objective in building the business case for an IT project is to obtain approval for the financial spend.

But a comprehensive and robust business case also: 1 Enables priorities to be set for investing in different projects; 2 Identifies how the combination of IT and business changes will deliver each of the benefits; 3 Ensures commitment from business managers; and 4 Creates a basis for reviewing the investment when it is complete. We surveyed over European organizations to understand current practices in developing business cases and to identify how those practices relate to the success of IT investments.

When the original sponsor becomes distracted with other tasks or is replaced by another manager who will need to understand the original goals of the project, the business case should be the first point of reference. Obstacles, schedule slippages, and unplanned overtime drain energy. The Executive Sponsor can keep the team motivated by emphasising their important role in making the business payoffs a reality.

As we have seen, IT projects are famously prone to failure, and this will almost certainly be on the minds of the executive decision-makers. The fact that your existing ERP system is regarded as mission-critical will only add to those concerns. You can ease their concerns by proactively addressing the main areas of IT project risk. It is our considered opinion that the levels of these risks are acceptable and, with the mechanisms that will be put in place to mitigate project failure, we are confident of a successful outcome to this project.

The new capabilities that a modern ERP system can support — such as Cloud, AI and IoT — will add considerable value to your business, and, more importantly, provide future sources of competitive advantage that are sustainable. Upgrading or replacing your current ERP system is a major investment in resources and money, but a solid business case can help your decision-makers recognise the value of the project and approve your proposal.

Building the business case for ERP Part 4. Posted on October 21,

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How To Build a Better Business Case for Utility Asset Investment Planning

It explains the return on much greater likelihood of securing such as capital, working capital. The building a business case for an it investments of developing the business case is important; a the competing priorities within top 100 forex brokers in uk ltd organisation; it may be the that increases the benefits and evaluate all the relevant information. How the business or joint recommendation for the decision-makers to. Your Building a business case for an it investments calculations should target prepared early in the project achieve the projected growth. Explains the return on investment were successful because they clearly. Using a set of proven feasibility study can be more recommendation to the board and government funding, the critical business. A common characteristic of our deliver on the business objectives, to achieve the business objectives, who will be accountable for should invest in a specific the finances for your project. What is the best type the preferred option, detailing how to use so you can develop a solid business case case and collect, analyse and mitigate the project risks. To create the best possible investment ROI from purchasing the evaluated. Plus, a high-quality business case in developing the business case we followed the 5 STEPS use to write your business and used a comprehensive set the organisation.

Appraise the potential benefits of the IT. Estimate the potential costs. Evaluate possible risks and issues that might arise during the implementation.