Inception Phase & Business Case

• INF2009F: Inception Phase and Building a Business Case
• The initiation phase involves recognizing an opportunity to enhance the business.

Business Cases

• Business cases involve more than systems and technology, requiring a clear understanding on how the system will benefit the business.
• You will learn how to develop a common vision with users, document the scope, identify alternative solutions, assess project risk, investigate solution feasibility, schedule, resource, and recommend a way forward in this course.

Classical Waterfall Lifecycle Deliverables

• Initiation phase deliverables include an initiation document, business case, or project definition report.
• The analysis phase produces a functional specification.
• The design phase results in a technical specification.
• The construction phase yields the solution, including both software and hardware.
• The testing phase delivers a test pack consisting of test plans, test cases, and test results.
• The implementation phase concludes with an implementation/change management plan and the implemented solution.

Initiation Phase Explained

• The initiation phase is the first step in new development projects where a manager, staff member, sales representative or systems analyst identifies an opportunity to improve the business.
• New systems originate from a business need or opportunity.
• Ideas for new systems arise through new technology, but the focus should primarily be on understanding the business and its objectives.

What is a Project

• A project is defined as activities with a starting and ending point to create a system that provides value to the business.
• Project initiation starts when someone in the organization (project sponsor) identifies potential business value from information technology.
• System request describes a proposed project and is submitted to an approval committee.
• The approval committee reviews the system request and decides whether to investigate the proposal based on preliminary information.

Project Identification

• A project is identified by the organization to address and fulfill a business need to build a system.
• Examples of business needs include supporting a new marketing campaign, reaching out to a new customer type, or improving interactions with suppliers.
• Business needs arise from pain points such as a drop in market share, poor customer service, or competition.

Initiation Phase Details

• During initiation, the project evolves from an idea into a broad proposal that defines the problem and evaluates its feasibility, including:
• Finding a Common Vision
• Identifying problems and opportunities
• Defining project objectives
• Determining the project's scope and clarifying functional requirements.
• Identifying candidate solution(s).
• Evaluating solution feasibility.
• Identifying risks associated with each solution.
• Planning the project schedule and resources.
• All are documented in a Business Case Document.

Qualities of a Good Business Case

• Accurate: Feasibility and risk assessments should be accurate.
• Quantitatively Measurable: All aspects must be quantified to be tracked and measured.
• Business Oriented: Focuses on business capabilities and impact rather than technical details.
• Comprehensive: Includes all information for a complete evaluation.
• Understandable: Content is presented in a relevant, practical, and logical manner.

Initiation Phase Deliverables

• Find Common Vision
• Interview, JAD sessions
• Vision Statement, Problem Background, Objectives
• Identify Scope and Key Functionality
• Package diagram
• Subsystems and dependecies, Scope Narrative
• Propose Candidate Solutions - Candidate Solutions
• Assess Risk
• Impact & Probability Matrix
• List of Prioritized Risks with Mitigation
• Assess Costs and Benefits
• Feasibility Analysis Cost Benefit Analysis
• Feasibility Study
• Project Plan
• Gantt Chart
• Phases and Iterations

Finding a Common Vision with Business Need

• Define the business need within the context of the solution.
• Define the business problem related to the solution.
• Define desired project objectives for the solution.
• Assess current business capabilities and identify required capabilities.

More on Finding a Common Vision

• A poorly identified business need leads to unsuccessful solutions.
• Business Need Emergence:
• Need to achieve a strategic goal (revenue, customer satisfaction).
• Problem with current state (inefficient tracking).
• Awareness of better technology (cloud technology).
• Need to perform different functions due to customer demand/competition.
• Can be identified using SWOT (Strength, Weaknesses, Opportunities & Threats) analysis.

Business Need vs Business Problem

• The business need leads to the problem.
• Define and document both need and problem in the business case.
• Business Objectives inform Project Objectives:
• Business objectives describes project's goal
• Project objectives describes project's benefits to the organization

Finding a Common Vision

• The CERISE model involves decreasing Costs and Errors, while increasing Revenue, Information, Service, and Efficiency.
• The equation for business needs is: Business Goals and Objectives + Business Requirements = Business Needs.
• Business Goals & Objectives: Things that an organisation wants to achieve or needs to achieve in order to stay alive.
• Business objectives are informed by project objectives, which allows to meet the objectives.

Problems, Opportunities, Objectives & Goals

• Objectives support the Goal.
• An objective statement is a statement which, when realised, will solve a problem, fill a need, or exploit an opportunity.
• Users must share this "vision" of the current problems - addressing problems.
• Every project has an overall goal (mission statement).
• Project success is measured by how well objectives are met.

SMART Objectives

• Good Objectives are SMART:
• Specific: well defined
• Measurable: know when achieved
• Agreed upon: consensus with stakeholders
• Realistic: can realistically achieve with resources.
• Time-related: realistic time frame.

Business vs Project Objectives

• Business objectives (benefits to the organization) are distinct from project objectives.
• A business problem of increasing product sales might require a sales management system and hiring more sales staff which are project objectives.
• After project completion, the business utilizes deliverables to realize benefits like better planning and sales performance tracking.

Business Value

• Both Tangible Value (quantifiable, e.g., 2% reduction in operating costs) and Intangible Value (hard to measure, e.g., improved customer service) can be gained.

List of Examples

• Where is my Shuttle and Inspire Foundation Group (IFG) Africa is examples where objectives were required.
• WherelsMyTransport has built a unified platform for transport officials, operators, and users, to realize 'first world' quality transportation networks in 'third world' cities.

Resources

• Related learning videos, you can follow the link: https://www.linkedin.com/learning/writing-a-business-case/how-to-structure-a-business-case?u=70295562.