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1.11 What is a business case
A business case document is a formal, written argument intended to convince a decision maker to approve some kind of action.
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1.1.2 Identifying a problemi). Observation
changes to the business vision, strategy or objectives;
particular business processes or technologies that are not operating efficiently;
new competitor products or processes which have been identified;
opportunities resulting from new technologies introduced to the market place;
Operational trends which are driving changes in the business;
changes to statutory, legislative or other environmental requirements.
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1.1.2 Identifying a problemii). Crisis – This is where you meet a serious problem which leads to you to initiate a problemiii). Collecting views through user suggestion boxes
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1.1.3 Describing the business problem a full description of the problem; the reasons the problem exists; the elements that create the problem (such
as human, process, and technology factors); the impact the problem is having on the
business (such as financial, cultural or operational impact);
The timeframe for the project
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1.1.4 Alternative solutionsList all the alternative solutions:
Implementing new computer systemUpgrading computer systemMaintaining the current system
Compare each of the alternative solutions and recommend a preferred solution for implementation.
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1.1.5 ) Cost-benefit analysisIn large projects you may need to present
costs and benefits in form of a cost-benefit analysis (CBA) or investment appraisal
The purpose is to show that the:Problem and proposed solutionsBenefits outweigh the costPayback period is acceptableProject is worth doing
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c) Benefits Benefits may not all fall in the library
Library may need less staff if the electronic loan system is in place
UsersWill spend less time borrowing booksWill get an improved service
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b) CostsWhere are the main areas of cost?Cost of resources used by the projectOther costs incurred elsewhere – e.g time
spent
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CostsIn your case you should make allowance for
the unforeseen and include the elements for contingency
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Tolerance and Contingency The amount you allow within your agreed
budget for extra, unforeseen expensesTolerance and contingency are related to
risk.The greater the risk, the more likely the
project is to take longer and cost more.Tolerance of around 10% and contingency of
15% is usually about right – for projects taking not more than six months
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1.1.6 Identify RisksRisks are about:The project not going to plan
Resources or people not being available when you need them
Machines not working The outputs not being of the quality you were
expectingThink about :
What could go wrongWhat the impact might be it did
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Why do risks happen in a projectThis happens because of:
Unchecked assumptionsLack of realistic planning Poor organizationStarting a project that is new or complexDependence on resources or factors outside
your control
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Impact of Risks The impact is proportional to the importance of
the project to your main businessIf the online loans system fails: then will you be
able to serve your clientsDo you have a manual system in place? If not
then you are in trouble.
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1.1.7 List assumptions for projectTypes of assumptions
Conscious Unconscious
Reality proves our unconscious assumption wrong
Avoid making unconscious assumptions Get into a habit of checking Have regular meetings with minutesBe realistic
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What assumptions Are You making?Conscious assumptions (examples)
Inflation (exchange rate)Same, 10% higher or 10% lowerMake educated guessSupplier delivery of goods ordered
Make assumptions based on past experienceWrite assumptions in an area of uncertainty
(a risk)
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1.1.8 Summary of a business case a description of the problem or opportunity
that exists in the business; a list of the available options for delivering a
solution to resolve the problem; a list of the costs and benefits associated with
each solution option; a list of risks and assumptionsa recommended solution option for approval.
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2.0 Feasibility Study A feasibility study is a detailed assessment of
a current business problem by identifying the various solution options available and determining the likelihood of each alternative solution meeting a customer’s requirements.
A feasibility study can be done in house or by an external group.
It can be useful to visit other organizations that have tried similar projects and learn from their failures and successes.
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2.1 Feasibility study: decision making toolA feasibility study should provide management
with enough information to decide:whether the project can be donewhether the final product will benefit its
intended userswhat are the alternatives among which a
solution will be chosen (during subsequent phases)
- is there a preferred alternative which has been chosen
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2.2.0Types of feasibility studiesOperational
Define the urgency of the problem and the acceptability of any solution;
If the system is developed, will it be used? Includes people-oriented and social issues:
internal issues such as labour objections, manager resistance, organizational conflicts and policies;
also external issues, including legal aspects and government regulations.
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2.2.0 Types of feasibility studiesTechnical-- Is the project feasibility within the
limits of current technology? Does the technology exist at all? Is it available within given resource constraints (i.e., budget, schedule,...)?
Economic (Cost/Benefits Analysis ) -- Is the project possible, given resource constraints? Are the benefits that will accrue from the new system worth the costs?
What are the development and operational costs?Schedule--Constraints on the project schedule and
whether they could be reasonably metFinally, you prepare your report and you hand it in.
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2.3.0 Collecting views for the projectBegin with your customers
How will they be affected by the result?How they will benefitTalk to your colleagues
What do they think about your idea?What are their expectations from the projectTalk to the other people (with relevant
expertise) inside and outside your organisation
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3.0 Establishing terms of reference (TORs)After the business case and feasibility study have
been approved, a new project is formed (Project Charter).
At this point, terms of reference are created. The terms of reference define the goal, objectives,
scope and deliverables for the new project. They also describe the organization structure,
activities, resources and funding required to undertake the project.
Any risks, issues, planning assumptions and constraints are also identified.
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3.1.0. Develop a goal or project purpose
3.1.1 A goal is a direction that you want to take at the end of the project i.e
To install a new circulation system for the library
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3.2.1 Objective(s)Definition: is a statements of achievements,
attainable within the timeframe of the project, that will lead to the accomplishment of project goals
Examples:To develop circulation module for checking
out and checking in of library materialsTo enable online reservations of library
materialsTo implement automatic overdue fine charges
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3.2.2. Characteristics of objectives Specific. The objectives must be so clear and well defined that
anyone with a basic knowledge of the project area can understand them. They must precisely define what the project will and will not do.
Measurable. Objectives must be defined in measurable terms. If they cannot be measured, they are too ambiguous and you need to define them more clearly. To be successful, you must be able to measure and report on the progress.
Agreed-upon. The project manager, project sponsors, and customers must agree on the project objectives. All stakeholders must agree that the end result will solve the problem or respond to the opportunity defined.
Realistic. The project objectives must be achievable, given the available resources, knowledge, skills, and time. It might take some time and energy to negotiate project objectives that are realistic.
Time/cost-limited. The objectives need to be framed within clear time/cost goals. The amount of available time (budget) as well as any available flexibility, should be defined,
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3.2.1 Objectives: Importance Help to convince others Give you a point of reference for monitoring Help you decide between different courses of
actionLet you know when you have finished
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3.3 ScopeDefines what will be included in the project
and what will notWrite it downTo define scope refer back to your objectiveWhat do you need to do to achieve your
objective?
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3.1.3 Scope Everything which contributes directly to the
objective;Everything you must do to achieve the
objective is within the scopeEverything else is outside.Use project objectives to decide what the
scope will be
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Scope: components Essential – the project must deliver these;Desirable – included in the scope, but could
be dropped without destroying the project;Nice to have – if the project has a lot of
resources, these could be included
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3.1.4 DeliverablesChecking in and checking out circulation
modulesReservation moduleOverdue fines module
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3.2.0 Project organisationThis deals with who will be involved in the
project3.2.1 Customers: List the customers who
intend to use the deliverables produced by the project. Customers may be individuals or groups within or outside the company. The success of the project will be based primarily on whether or not the deliverables produced match the requirements of the customers identified
3.2.2 stakeholders: you list all people or groups who have interest in your project
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3.2.3 Develop structure, roles and reporting lines
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3.4.0) Initial plan - TasksIn this you come up with a number of
activities to and these activities can be arranged according to dates in you will perform them within the time frame
It is preferred that you must use the Gantt chart
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3.4.1 Initial plan: resources
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3.5.0 Listing project considerations Risks – summarise most apparent risks
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3.6 List of assumptionsList the major assumptions made while
defining the project. Examples include:Prices of hardware and software will not
increase during the course of the project. Additional human resources will be available
from the IT section to support the project.
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3.5.2 Project constraints List the major constraints identified while
defining the project. Examples include: If time is short, the resources (cost) must
increase or scope must decrease, or both. If funds are short, the time can be extended or
scope must decrease, or both. If the scope is large, the cost will be greater or
the time must be extended, or both.
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