Business Value Soup to Nuts

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Business Value - Soup to Nuts

• Andy Pols - andy_at_pols.co.uk
• Chris Matts - chris.matts_at_gmail.com

Agile 2008
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(No Transcript)
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Timetable

• Short introduction (5 mins)
• A real life case study (10 mins)
• Thats not Business Value! (20 mins)
• How it really works (10 mins)
• Group discussions (20 mins)
• Summary goldfish bowl (20 mins)

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A short introduction to Business Value modelling
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An (IT) project creates Business Value when it.

• Increases revenue

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An (IT) project creates Business Value when it.

• Reduces cost

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An (IT) project creates Business Value when it.

• Protects revenue

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An (IT) project creates Business Value when it.

• in alignment with the strategy of the organisation

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in alignment with the strategy of the
organisation

• Two strategic models for IT investment

Market Maturity
The Grid
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The maturity of the market determines whether the
focus is on revenue growth or cost reduction
For the mature market, the focus is on cost
reduction and revenue protection.
For a middle aged market, there is a balance
between revenue and cost
For a youthful market, the focus is on revenue
growth and gaining market share
Middle Age
Youth
Mature
Market Growth
Market Maturity
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The differentiation and criticality of the
process determine our approach to investment.
Be the Best!
Find a Partner
Excel and Innovate
Market Differentiation
Good Enough!
Seek Maintain Parity
Who Cares?
KILL THEM!!
Niel Nickolaisen Model
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Defer commitments to Excel and Innovate
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Its a Model, not a Value
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Any Questions?
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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

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Thats not business value
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Example One
To be the number one smart phone in all market
regions
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Example Two
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Project X social networking website will attract
8 million users in the first year
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Example Three
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Project X will generate revenue of 11 million
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Example Four
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The regulator will shut us down if we dont do
this.
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Example Five
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Project X will automate our top five products
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Example Seven
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Project X will generate savings of 1 million
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Example Six
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Project X provides a real-time profit-and-loss
statement
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Example Seven
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Project X provides a real-time profit and loss
statement.
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Andys Case Study
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Chris Case Study