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									Business Value - Soup to
         Nuts
        Andy Pols - andy@pols.co.uk
     Chris Matts - chris.matts@gmail.com



         Agile 2008
                Timetable
•   Short introduction (5 mins)
•   A real life case study (10 mins)
•   “That’s not Business Value!” (20 mins)
•   How it really works (10 mins)
•   Group discussions (20 mins)
•   Summary goldfish bowl (20 mins)
A short introduction
 to Business Value
     modelling
 An (IT) project creates
Business Value when it….

              Increases
                revenue
 An (IT) project creates
Business Value when it….


           Reduces
               cost
 An (IT) project creates
Business Value when it….


               Protects
                revenue
 An (IT) project creates
Business Value when it….

         in alignment with the
            strategy of the
             organisation
    …in alignment with the
 strategy of the organisation
    Two strategic models for IT
             investment




Market Maturity         The Grid
      The maturity of the market
  determines whether the focus is on
   revenue growth or cost reduction
                                                 For the mature
          For a middle aged market, there is a
                                                  market, the
           balance between revenue and cost
For a youthful market, the focus is on revenue
                                                   focus is on
       growth and gaining market share
                                                 cost reduction
                                                  and revenue
                                                   protection.
Market Growth




                Youth   Middle        Mature
                         Age



                                          Market Maturity
   The differentiation and criticality of
  the process determine our approach
              to investment.
   Market Differentiation


                            Find a        Excel and          Be the Best!
                            Partner       Innovate



                                                                Good
                                                               Enough!
                             Who       Seek & Maintain
                            Cares?          Parity

 KILL
THEM!!
                               Mission Critical
                                                      Niel Nickolaisen Model
Defer commitments to Excel and
          Innovate
It’s a Model, not a Value
Any Questions?
 Business Value Case Study
• Call centre staff dealing with
  customers 75% of the time
• Manager wants to get them to
  generate sales during the 25%
  idle time
• Create a business value
  statement
That’s not business value
     Example One

To be the number one
smart phone in all market
regions
      Example Two

                .
Project X social networking
website will attract 8 million
users in the first year
     Example Three

               .
Project X will generate
revenue of $11 million
     Example Four

               .
The regulator will shut us
down if we don’t do this.
     Example Five

              .
Project X will automate our
top five products
    Example Seven

               .
Project X will generate
savings of $1 million
      Example Six

               .
Project X provides a real-
time profit-and-loss
statement
    Example Seven

               .
Project X provides a real-
time profit and loss
statement.
Andy’s Case Study
Chris’ Case Study

								
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