Information Technology Initiative Business Case Section I: Proposal
Date: Anticipated Completion Date: Agency Name: Project Name: Project Manager: Project Manager Phone: Project Manager Email: Agency/Executive Sponsor: Overview and Rationale: (Please provide a brief description of project)
A. Statutory or Other Requirements 1. What goal or objective will the project help to meet?
Education Economy Environment Better Government Healthcare Hometown Security
2. Is this project government mandated? No Yes (If yes, by whom?) Explanation:
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B. Business Significance Please check all boxes that apply.
Cost Reduction Increased Security and Privacy Additional State Revenue Collection Customer Service Improvement Legislatively Mandated Project or Initiative Improved Communication and coordination in and between State Agencies Inter-Operability Upgrade or Replacement of System or Application Other. Please explain:
C. Internal Improvements Identify the main project stakeholders and summarize the extent to which the project improves customer service within the state government. This includes providing enhanced services, reducing wait time for tasks, improving work processes, etc. Response:
D. Impact on Michigan’s Citizens Identify the project's s impact on citizens. If known, include the number of citizens affected by the project. Response:
E. Project Participants List the project participants (e.g. single agency, multiple agencies, State government enterprise, citizens, associations, businesses, other government entities, etc). Also, provide commentary concerning the nature of participant involvement. Response:
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F. Project Background 1. Is this project the first part of a future, larger project? No Yes (If ―yes‖, explain) Explanation:
2. Is this project a continuation of a previously started project? No Yes (If ―yes‖, explain) Explanation:
3. Can this project be facilitated by other DIT systems or processes? No Yes
G. Current Technology: If you answered yes to F2 or F3, provide a summary of the technology used by the current system. How does the proposed project impact or improve this system? Is this new or standard technology? Explanation:
H. Funding: Is funding for this project allocated? No Yes If yes, provide additional details regarding funding source.
Funding Source General Fund Federal Fund(s) Local Government Fund(s) Other Funds Total Project Cost IDG Non-IDG Total Project Cost Cost ($) $0 $0 $0 $0 $0 $0 $0 $0 % Total Cost #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
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Section II: Financial Analysis
A. State Project Benefits of Operations 1. Annual Existing Cost – Quantify all actual state government direct and indirect costs (e.g. personnel, support, equipment, etc.) associated with the activity, system, or process prior to project implementation. Quantify Annual Existing Cost:
State Total Number of Staff Software Hardware Training Facilities Professional Services DIT Services Support Cost (i.e. office supplies, telephone, pagers, travel, etc.) Other Cost (expense items other than staff & support costs) Total Annual Existing Cost: 0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Explanation of Annual Existing Cost (if necessary): Response:
2. Project Implementation Cost - Summarize all costs (labor, equipment, and materials) associated with the implementation of this project and its ongoing associated maintenance and/or transition costs. Include detailed costs in an attached separate spreadsheet.
Project Cost Table Annual Costs Annual Costs Annual Costs Annual Costs Annual Costs Initial (Year 1) (Year 2) (Year 3) (Year 4) (Year 5) Investment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Cost Line Items Staff Project Manager Software Hardware Training Facilities Professional Services DIT Services Supplies, Maintenance, etc. Other (specify) Totals
Explanation of Project Implementation Cost (if necessary): Response:
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3. Annual Post-Project Cost- Quantify all estimated state government direct and indirect costs associated with the activity, system or process after project implementation. Quantify Annual Post-Project Estimated Cost:
Year 1 Number of Staff Software Hardware Training Facilities Professional Services DIT Services Support Cost (i.e. office supplies, telephone, pagers, travel, etc.) Other Cost (expense items other than staff & support costs) Total Annual Post-Project Cost: 0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Year 2 0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Year 3 0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Year 4 0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Year 5 0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Explanation of Annual Post-Project Cost (if necessary)1: Response:
1
If FTE Savings, include additional information to answer the following questions: Will there be layoffs? Will the FTEs be reassigned? If reassigned, where will they be deployed? What is the funding source?
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B. Other State Government Benefits
1. Opportunity Value or Loss Avoidance Benefit--Quantify the estimated annual non-operating benefit to State
government. This could include such items as qualifying for additional matching funds, avoiding the loss of matching funds, avoiding program penalties, sanctions, or interest charges, avoiding risks to health or safety, avoiding the consequences of not complying with State or federal laws, providing enhanced services, avoiding the consequences of not complying with enterprise technology standards, etc.
Description of Opportunity Value and Risk or Loss Avoidance Benefit Amount of Benefit
Total:
$0 $0 $0 $0
2. Benefits Not Readily Quantifiable for State Government—List and summarize the overall non-quantifiable benefits (i.e. IT innovation, unique system application, utilization of new technology, hidden taxes, improving the quality of life, meeting a strategic goal, etc.) Response:
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C. Citizen Benefit 1. Quantifiable Citizen Benefit—Quantify the estimated annual value of the project to Michigan citizens. This includes the ‗hard cost‘ value of avoiding expenses (―hidden taxes‖) related to conducting business with State government. These avoidable expenses may be of a personal or business nature. For example, the avoidable expenses could be related to transportation, or the savings of time from eliminating governmental paperwork (such as licenses or applications). Normally, a value of $10 per hour is used for citizen time savings and $0.36 per mile for travel cost savings. The table below is designed particularly for a web-based project. Transaction Savings Number of annual online transactions: Hours saved per transaction: Value of Citizen Hour: Total Transaction Savings: Other Savings (Describe): Total Savings:
0.00 $10.00 $0 $0 $0
2. Benefits Not Readily Quantifiable for Citizens—List and summarize the overall non-quantifiable benefits (e.g. IT innovation, unique system application, utilization of new technology, hidden taxes, improving the quality of life, reducing the government hassle factor, meeting a strategic goal, etc.) Response:
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D. Calculation Tables The tables below take information from previous tables to show the Costs over Time - Table 1 and calculate the Return on Investment (ROI) - Table 2, Payback Period - Table 3, and the Total Cost of Ownership (TCO) - Table 4 for the proposed project.
Table 1 Costs Over Time Existing System Annual Existing Cost New System Initial Investment Annual Ongoing Project Costs Annual Post-Project Cost Total Year 0 $0 Year 1 Year 2 Year 3 Year 4 Year 5
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
Table 2 ROI Financial Worksheet A1 Total Annual Existing Cost B1 Total Annual Post-Project Cost State Government Benefit (=A1-B1) Opportunity Value and Risk or Loss Avoidance Benefit: C1 Total Annual Project Benefit: D1 Annual Ongoing Cost Initial Investment Return On Investment (ROI) %: (C1-D1)/Initial Investment) x100= Citizen Benefit #DIV/0! $0 $0 $0 $0 $0 $0 $0 $0
Table 3 Payback Period (years) A2 B2 C2 D2=B2-C2 E2=A2/D2 Initial Investment Incremental Revenues Ongoing Annual Costs Net Cash Savings Payback Period (years) $0 $0 $0 $0 #DIV/0!
Table 4
Total Cost of Ownership
A3 B3 C3 Initial Investment: Estimated useful life of the project: Ongoing annual costs: $0 0 $0 $0
D3=A3+(B3*C3) Total Cost of Ownership:
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Section III: Post Project Quantifiable Measures
For each of the following categories, list the quantifiable measures for success after implementation and identify how they will be measured. For example, a 10% reduction in FTEs, a 3% reduction in citizen wait time or a 10% reduction in paper processing. 1. Internal Improvements: 2. Citizen Impact: 3. Cost Savings: 4. Tangible/Intangible Benefits:
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