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ITS BUSINESS CASE – VERSION: 0.1 (DRAFT)

Document Prepared by: Information Technology Services Printed (uncontrolled) -3:54:59 AM 30/01/2008 Page 1 of 7 BUSINESS CASE – 1. GUIDELINES FOR USE OF THIS TEMPLATE (PLEASE REMOVE THIS SECTON AFTER READING) This procedure is intended to assist ITS staff in the preparation of a business case. The business case is required for strategic operational expenditure and also for project initiation, leading to either a project plan or feasibility study. This document is intended to be simple to use. 1.1 HOW TO USE THIS DOCUMENT The ITS business case is divided up into two sections: 1. Overview: This section outlines the bare bones of the business case and is the compulsory minimum requirement for all proposals. For purchases under $10K a short one page submission of this section may be appropriate. 2. Detail: The detail section should be completed for all proposals with an expected cost of over $10,000 or proposals where senior management have requested it. For proposals with an expected cost of over $100,000 a fully detailed multi page submission is required. 1.2 PROCESS Complete the document according to the instructions within. Be sure to remove the guidelines section. Submit it to your associate director (via your immediate manager if appropriate) for approval. If necessary the associate director will take it to the senior management group for approval. 1.3 SUBSEQUENT PROCESSES Operational Work Project Work A business case is completed and submitted to an Associate Director. If Strategic Initiative funds are required an MIS strategic initiatives form is to accompany the business case. ITS Staff Member has an idea. AD or SMG assess proposal A. approve expenditure B. request feasibility study C. request a project charter A.D. writes a charter and assigns a project manager Project Plan is written. Feasibility Study carried out. Report Written SMG reviews results and decides whether to proceed. SMG rev iews results and decides whether to proceed. Proceed with purchase. Proceed with project. ITS BUSINESS CASE – VERSION: 0.1 (DRAFT)

Document Prepared by: Information Technology Services Printed (uncontrolled) -3:54:59 AM 30/01/2008 Page 2 of 7 1.4 WHY SHOULD ITS USE BUSINESS CASE DOCUMENTS? • Decision making: The business case provides a comprehensive documented argument for the expenditure /change. It provides senior management with all the information required to weigh up the pros and cons of a proposal and make a decision on whether to proceed. That decision is formalised through the signature. • Validity verification: To provide a documented justification of a proposed idea for review by stakeholders (to verify validity). It also helps the proposer document justification to identify genuine need. • Accountability: To act as a documented and signed account of the decision making process as evidence of due diligence. A compulsory business case ensure that decisions are not made without due diligence being carried out. • Prioritisation: To allow senior management to assess the merits of the proposal and set an appropriate priority to the work. 2. OVERVIEW – EXECUTIVE SUMMARY 2.1 SUMMARY OF REQUEST Outline the intention of this business case. 2.2 BUSINESS OPPORTUNITY Outline the problem or opportunity that this business case attempts to address. Need for change generally arises out of: • new initiatives aligned with the organisations strategic and/or operational plan, • damage/loss of products or services, and • change in strategic direction. 2.3 SOLUTION Outline how the proposed solution will address the business opportunity above. 2.4 COSTS /BENEFIT ANALYSIS (USE A TABLE FOR EACH OPTION, INCLUDING THE ONE TO ‘DO NOTHING’) • Under benefits include intangible side benefits (morale, better service, faster service etc) • Under costs include both setup and ongoing costs (project over 3-5 years). Include capital costs, consumables, staff labour to setup and staff labour to maintain the solution. • Include the proposed revenue stream including proposed customers and $, and/or cost saving benefits that will be realised. • Refer to the Expenditure checklist at the end of this document. • For each expenditure and revenue expressed in $ terms the expense line and revenue line must be identified. Please use the service and budget line information form at Q:\AAA ITS WIDE\issued\forms\MIS\Service and Budget Line Information for ITS.xls. Costs /Expenditure Benefits /Revenue ITS BUSINESS CASE – VERSION: 0.1 (DRAFT)

Document Prepared by: Information Technology Services Printed (uncontrolled) -3:54:59 AM 30/01/2008 Page 3 of 7 2.5 RISK ANALYSIS If anything were to go wrong with this proposal what would it most likely be? Risk Description Likelihood Impact Detail Solution may not be able to do XYZ Medium High 2.6 STAKE HOLDERS Name How affected by the proposition. 3. DEFINITIONS (IF REQUIRED) SMG: Senior Management Group A.D.: Associate Director <… for terms not generally used, known or for which there is special in-house meaning> 4. SUPPORTING DOCUMENTS FILE LOCATION DESCRIPTION Template – Basic Procedure 1 AAA Guidelines and Templates A standard template which can be used to develop policies, procedures etc Service Categories Q:\AAA ITS WIDE\issued\forms\MIS\Service and Budget Line Information for ITS.xls A list of all the service categories for budgetary use. 5. REVISION HISTORY VERSION DATE EDITOR SUMMARY OF CHANGES No 1C DD-MM-YY XXX Initial version ITS BUSINESS CASE – VERSION: 0.1 (DRAFT)

Document Prepared by: Information Technology Services Printed (uncontrolled) -3:54:59 AM 30/01/2008 Page 4 of 7 6. RECOMMENDATION What course of action is recommended? A business case can -Confirm the value of a proposition -Confirm the lack of value of a proposition -Surprise you with its outcome once all the information is collected. So be prepared, for the good of the organisation, to recommend a course of action you did not expect. 7. SIGN-OFF Declaration: I the undersigned associate director have read and understood the contents presented in this business case and agree that issues, costs and benefits are presented accurately. I accept that the business case is consistent with the Strategic Plans of the Organisational Unit and of The University of Queensland. I support the recommendation in this business case. Where options are presented I recommend ___________________ Funding of the case is approved. Associate Director Name: Associate Director signature: ……………………………………….. Dated: //. ITS BUSINESS CASE – VERSION: 0.1 (DRAFT)

Document Prepared by: Information Technology Services Printed (uncontrolled) -3:54:59 AM 30/01/2008 Page 5 of 7 8. DETAIL (REQUIRED IF EXPECTED COST WILL BE OVER $10,000 OR REQUESTED BY SMG) 8.1 OPTIONS ANALYSIS 8.1.1 OPTION 1 IN DEPTH ANALYSIS Provide an in depth explanation of the pros and cons of this option. 8.1.2 OPTION 2 IN DEPTH ANALYSIS Provide an in depth explanation of the pros and cons of this option. 8.1.3 OPTION 3 IN DEPTH ANALYSIS Provide an in depth explanation of the pros and cons of this option. 8.2 CONSIDERATIONS Does this proposal fit with the ITS strategic plan? What is the useful life of the proposed product? ITS BUSINESS CASE – VERSION: 0.1 (DRAFT)

Document Prepared by: Information Technology Services Printed (uncontrolled) -3:54:59 AM 30/01/2008 Page 6 of 7 9. EXPENDITURE CHECKLIST Ensure the new facility costs cover the following • ancillary costs, • buildings and cabling, • computer hardware and peripherals, • data recording media, • freight, duty, landing, insurance and installation charges, • plant, and • operating system software. Ensure development costs include the following • bedding in, including correction of “out of specification” functions, • bureau charges or development costs, • cost of package software, • costs of external services i.e. consultants, contractors, fixed price contracts, • cost of non-IT staff resources • data conversion, • data take-on, • packaged documentation, • documentation development, • ergonomic studies and furniture, • full costs including overheads of IT staff including, applications developers, system designers, operators, database administrator, audit • system monitoring, • parallel running, and • expenses for staff required to travel. ITS BUSINESS CASE – VERSION: 0.1 (DRAFT)

Document Prepared by: Information Technology Services Printed (uncontrolled) -3:54:59 AM 30/01/2008 Page 7 of 7 Ensure that recurrent costs covered include: • equipment location (power, water, rental), • charges and maintenance of data communications facilities, • consumables and other service costs (printing, stationary) • application software maintenance charges, • data recording media (back-up, archive), • license fees and maintenance for all proprietary software and packages, • maintenance of all computer hardware, peripheral and plant, • ongoing steering committee meetings, ongoing training of user and IT staff, and security equipment or services and disaster recovery strategies.