building the case for new technology have inspiration, will travel
DESCRIPTION
Presented by: Phyllis DoigTRANSCRIPT
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Building the Case for New Technology Projects
… Invest … Innovate … and Inspire!!!
Phyllis Doig EMC Corporation Office of Architecture and Innovation WE12 Conference Presentation November 8th, 2012
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Session Description
To build an effective business case for investing in new technology projects within IT Goal
The Solution Desk team will guide you through the business case delivery process. Process
Equip yourself with the tools to build a better business case! Tools
The benefits extend well beyond individual IT projects. Benefits
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What is a Business Case?
Components of the Business Case Include: Problem Statement Business Vision Benefits and Measures of Success Summary of Solution Options, Recommendation Environment: As-Is, Target Financial Summary Resource Plan for IT Assumptions Timeline Overall Project Risks Next Steps
The EMC IT Business Case defines the benefits and costs of an IT project for the purpose of making a business investment decision
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Agenda
About EMC and the Solution Desk
Our Guiding Principles
A Look Back: Pre-Solution Desk Example
A Look Ahead: Solution Desk Process & Tools
Continuous Improvement
Diversity of Experiences
Benefits
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About EMC 53,500 Employees Worldwide
$20 Billion Revenue in 2011
400 Sales Offices
85 Countries
#152 within the
Fortune 500
Through innovative products and services EMC accelerates the journey to cloud computing helping IT departments to store, manage, protect and analyze their most valuable asset — information — in a more agile, trusted and cost-efficient way.
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2012+ 2002 1979
About EMC
Innovation In Enterprise Storage Systems and Information Management
60+ Strategic Acquisitions
Authentica, Network Intelligence, RSA, Valyd, Tablus, Verid, Archer, Documentum, Ask Once,
Acartus, Captiva, ProActivity, Document Sciences, X-Hive, Kazeon, Vmware, Rainfinity,
Akimbi, FastScale, Dolphin, Interlink, Internosis, BusinessEdge, Geniant, Conchango, Astrum,
Smarts, nLayers, Voyence, Infra, ConfigureSoft, Legato, Avamar, Kashya, Illuminator, Indigo
Stone, WysDM, Data Domain, Pi, Dantz, Mozy, Iomega, Greenplum, Isilon, Netwitness ,
Watch4Net, Pivotal Labs, XtremIO, Syncplicity
Diversity Through Strategic
Acquisition
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Physical IT Infrastructure
Cloud Technology
Virtual IT Infrastructure
Solutions Provider
1 2
3
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About the Solution Desk
The Solution Desk is a global team within IT whose charter is to provide to the business case delivery process:
• Speed
• Objectivity
• Consistency
• Multiple IT Technology Options
Typical Projects That We Estimate:
• Business-sponsored IT initiatives • Fast estimation cycle • Within +/- 30% • Involves multiple options to evaluate
Solution Desk Involvement By Type of Initiative:
• Mission Critical 23 Infrequent • Business Critical 346 Most Often • Business Supporting 000’s Occasional
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The Importance of Guiding Principles
The Guiding Principles of IT
• Efficiency
• Total Customer Experience
• Architect for the Future
• Workforce Productivity
• EMC IT Proven – Being Our Own Best Customer
… can help to:
• guide investment decisions
• shape IT technology roadmaps
• bring groups with similar objectives to the table for discussion
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A Look Back: Business Case Preparation Before Solution Desk
Example: To facilitate business reporting by introducing a new database and reporting tool and by eliminating many business-maintained systems
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Experienced Team to Guide Others
New Virtual Team for Each Initiative
Standard Templates, Constantly Being Honed
Sharing Knowledge Across Business Units
Repeatable Process
Now
✗High Learning Curve
✗Resource Constraints
✗Few Standard Tools or Templates
✗Little Cross-Pollination
✗Unique Process Per Initiative
Then
A Look Back A Look Ahead
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The Solution Desk Process
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Key Takeaways of the Solution Desk Process
Consistent, Repeatable – Firm Criteria for Standard or Extended
– Even ―Exceptions‖ follow a consistent process: engaging vendors for demos, initiating POC’s (Proof of Concept)
Time Limited
Deliverable Focused
Involves a Cross-Functional, ―Virtual‖ Team
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Common Tools Used by the Solution Desk
Input Presentation
Requirements Sheet
Output Presentation
Solution Variants
Resource Plan
Financial Summary
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Introduction to the Input Presentation
The Input Presentation is a standardized template that is used for gathering and communicating the high level business requirements for a new IT proposal.
• Problem Statement
• Business Vision
• Benefits & Measures of Success
• As-Is, Target Environments
Business Requirements – Functionality / Processes
– Integration Points
– Content / Data Required & Refresh Rates
– Geography and Scale
– User Profile
• Overall Project Risks
• Application & Security Classification
• Groups Contacted in This Initiative
• Solution Options Being Considered
• Next Steps
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Challenges
Don’t know where to start
Too many / too few
Incomplete in scope; not organized in a useful way
Not described well
Favor the way things are done today
Considerations
Industry Research (Gartner, Forrester…) & Company Product
Data Sheets
Match level of detail with your level of estimate (ROM = Rough
Order of Magnitude)
Develop templates as you gain experience, by type of project
Avoid acronyms
Be open to new approaches
Preparing Business Requirements for the Input Presentation
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Sample Requirements Template
Business Application Requirements
Transactional
• Create, alter, reverse the transaction • Import & export capability • Archiving
Data Entities
• Create, alter, delete master data • Maintain hierarchies, categorizations • Conversion capability
Inquiry & Reporting
• Inquiry and search • Report – ad hoc, standard, dashboard
level
User Security & Access
• User setup & classification • Access Control Levels, Security • Methods of Access (ex. Mobile Devices) • Collaboration Features • Language, Geo Considerations • Organization, Hierarchy, Approvals
… continued
Implementation Considerations
• Scalability for future growth • Integrations with existing systems; availability
for dev, test, other environments • Staging of data (dev, test, production) • Conversion of History • Exiting (if SaaS or Cloud – how to get out)
Architecture
• Specific to the Project… • Consider all levels of the technology stack • Consider localizations, language • Consider industry volatility & future needs
Product & Vendor
• Product Lifecycle (Stability, Maturity) • Pricing (Purchase, Services, Support) • Customer References, Awards • Company Relationship to Yours • Availability, Access to Development • Availability, Access to Support
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Capturing Requirements of All Types Beyond functional capabilities, consider additional requirements including the following:
Requirement Type Description Comments
Functional Requirements
Describes user or system generated capabilities to perform an action.
Include priority ranking of each
Integration Points Lists to/from integrations and a one-sentence description of the information flowing between them.
Include priority ranking of each
Content / Data Required & Refresh Rates
What data is needed, and how often should it be refreshed? What data needs to be converted?
Include priority ranking of each
Geography and Scale
Note the geographical or business unit entities that will be affected by this initiative; provide some quantification / count of the transactions that they perform (for system sizing).
Include priority ranking; this will determine rollout strategy.
User Profile Note the type and number of users including count.
Include priority ranking; this will determine rollout strategy.
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Key Takeaways When Preparing Requirements
Requirements should be comprehensive in scope; establish a template to ensure completeness
Reflects the needs of all involved parties – Business Users of the New System
– ―Super Users‖
– Administrators
– Support, Security, Infrastructure
– External Customers
Can be used to rate the solution options or vendors being considered (on features and cost)
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Introduction to the Output Presentation
The Output Presentation is a standardized template that is used for documenting solution options, costing them out, and making a recommendation.
• Problem Statement
• Business Vision
• As-Is, Target Environments
• Approach and Options Considered
• Variants - Solution Options
• The Recommendation
• High Level Architecture
Resource Plan
Financial Summary
• Assumptions & Factors Increasing Cost, Time, Resources
• Project Risks
• Next Steps
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Business Application Requirements Vendor 1 Vendor 2 Vendor 3
Transactional
•Create, alter, reverse the transaction 3 Comments… 3 Comments… 2 Comments…
•Inquiry & reporting capability 3 Comments… 3 Comments… 2 Comments…
•Import & export capability 2 Comments… 3 Comments… 2 Comments…
•Archiving 2 Comments… 3 Comments… 2 Comments…
Data Entities
•Create, alter, delete master data 3 Comments… 3 Comments… 2 Comments…
•Maintain hierarchies, categorizations 2 Comments… 2 Comments… 2 Comments…
•Inquiry & reporting capability 1 Comments… 3 Comments… 3 Comments…
•Conversion capability 2 Comments… 3 Comments… 1 Comments…
User Security & Access
•User setup & classification 3 Comments… 3 Comments… 3 Comments…
•Access Control Levels, Security 3 Comments… 3 Comments… 3 Comments…
•Methods of Access (ex. Mobile Devices) 1 Comments… 2 Comments… 1 Comments…
•Collaboration Features 1 Comments… 2 Comments… 1 Comments…
•Language, Geo Considerations 3 Comments… 3 Comments… 1 Comments…
[... and more not shown here…]
SCORE: 29 36 25
Variants Analysis A side-by-side comparison of solution options, and how well they are expected to meet the stated requirements
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Business Application Requirements Vendor 1 Vendor 2 Vendor 3 Transactional
•Create, alter, reverse the transaction 3 Comments… 3 Comments… 2 Comments…
•Inquiry & reporting capability 3 Comments… 3 Comments… 2 Comments…
•Import & export capability 2 Comments… 3 Comments… 2 Comments…
•Archiving 2 Comments… 3 Comments… 2 Comments…
Data Entities •Create, alter, delete master data 3 Comments… 3 Comments… 2 Comments…
•Maintain hierarchies, categorizations 2 Comments… 2 Comments… 2 Comments…
•Inquiry & reporting capability 1 Comments… 3 Comments… 3 Comments…
•Conversion capability 2 Comments… 3 Comments… 1 Comments…
User Security & Access •User setup & classification 3 Comments… 3 Comments… 3 Comments…
•Access Control Levels, Security 3 Comments… 3 Comments… 3 Comments…
•Methods of Access (ex. Mobile Devices) 1 Comments… 2 Comments… 1 Comments…
•Collaboration Features 1 Comments… 2 Comments… 1 Comments…
•Language, Geo Considerations 3 Comments… 3 Comments… 1 Comments…
[... and more not shown here…] SCORE: 29 36 25
(1) Start With
The Original Requirements
(2) Use Color Coding To Quickly See Where Requirements Are /
Are Not Being Met
(3) Calculate Total Scores For Objective Results
Variants Analysis A side-by-side comparison of solution options, and how well they meet the stated requirements.
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Preparing Solution Variants Analysis for the Output Presentation
Considerations
Use your requirements template as a basis for variants analysis
Have a visual coding to help you see the hot spots (ex. Green-Yellow-Red
ratings)
Tabulate an objective score, but
also listen to the subjective voice
Keep it simple! Be able to state:
- top 3 good features - top 3 areas of concern
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Resource Plan Onshore/ Offshore
Staff or Contractor M1 M2 M3 M4 M5 M6 Rate
Total K$
Description of Responsibilities
Management
•Project Manager On Staff 0.5 0.5 0.5 0.5 0.5 0.5 160 84 Describe…
•Functional Team Lead On Staff 1 1 1 1 1 1 100 106 Describe…
•Configuration Lead On Staff 0.5 1 1 100 44 Describe…
•Development Manager Off Contractor 0.5 1 1 1 1 15 12 Describe…
•Environment Manager On Contractor 0.5 0.5 0.5 0.5 0.5 0.5 100 53 Describe…
Business Analysts
•Senior BA On Contractor 1 1 1 1 1 1 90 95 Describe…
•BA for Functional Area 1 Off Contractor 1 1 1 1 1 1 8 8 Describe…
•BA for Functional Area 2 Off Contractor 1 1 1 1 1 1 8 8 Describe…
Development Team
•DEV Senior for Technology Area 1 On Contractor 0.5 1 1 1 1 90 71 Describe…
•DEV for Technology Area 1 Off Contractor 1 1 1 6 3 Describe…
•DEV Senior for Technology Area 2 On Contractor 0.5 1 1 1 1 90 71 Describe…
•DEV for Technology Area 2 Off Contractor 1 1 6 2 Describe…
Testing Staff
•Test Lead On Staff 0.5 1 1 0.5 80 42 Describe…
•Testers… Off Contractor 0.5 1 1 0.5 8 4 Describe…
Architects
•Infrastructure, Security…. (Multiple) (Multiple) 0.5 0.5 0.5 (Mult) (Mult) Describe…
TOTALS: 5.5 8 11.5 12.5 12 9 $
618
Resource Plan A spreadsheet tool that lets you build out the staffing plan and easily see the impact to project timeline and costs.
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Resource Plan Onshore / Offshore
Staff or Contractor M1 M2 M3 M4 M5 M6 Rate
Total K$
Description of Responsibilities
Management
•Project Manager On Staff 0.5 0.5 0.5 0.5 0.5 0.5 160 84 Describe…
•Functional Team Lead On Staff 1 1 1 1 1 1 100 106 Describe…
•Configuration Lead On Staff 0.5 1 1 100 44 Describe…
•Development Manager Off Contractor 0.5 1 1 1 1 15 12 Describe…
•Environment Manager On Contractor 0.5 0.5 0.5 0.5 0.5 0.5 100 53 Describe…
Business Analysts
•Senior BA On Contractor 1 1 1 1 1 1 90 95 Describe…
•BA for Functional Area 1 Off Contractor 1 1 1 1 1 1 8 8 Describe…
•BA for Functional Area 2 Off Contractor 1 1 1 1 1 1 8 8 Describe…
Development Team
•DEV Senior for Technology Area 1 On Contractor 0.5 1 1 1 1 90 71 Describe…
•DEV for Technology Area 1 Off Contractor 1 1 1 6 3 Describe…
•DEV Senior for Technology Area 2 On Contractor 0.5 1 1 1 1 90 71 Describe…
•DEV for Technology Area 2 Off Contractor 1 1 6 2 Describe…
Testing Staff
•Test Lead On Staff 0.5 1 1 0.5 80 42 Describe…
•Testers… Off Contractor 0.5 1 1 0.5 8 4 Describe…
Architects
•Infrastructure, Security…. (Multiple) (Multiple) 0.5 0.5 0.5 (Mult) (Mult) Describe…
TOTALS: 5.5 8 11.5 12.5 12 9 $
618
(1) Start With Core Dev Team;
Layer On The Rest
(2) Document Responsibilities &
Assumptions
(3) Change Sourcing
Assumptions & Note the Impact to
Total Cost
Resource Plan A spreadsheet tool that lets you build out the staffing plan and easily see the impact to project timeline and costs.
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Preparing a Resource Plan for the Output Presentation
Considerations
Start with core development, and estimate the effort for Tech Design / Build / Unit Test. Have a rationale behind the determination of person-hours, but remember this is a ―ROM‖! —Rough Order of Magnitude
Build out the rest of the plan:
• Business Analysts for Functional Design, Training, and User Acceptance Testing
• Testers for Integration, End-to-End, Performance Testing
• Management and Leads, Architects, Security, Others…
Keep comments on what those resources will be expected to do.
Document assumptions as you discuss the plan with others.
Change sourcing (on/offshore, contracted) to see overall cost impact (―what if‖analysis).
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Financial Template A spreadsheet tool that captures the financial details of your solution options, and identifies key budgeting metrics.
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Financial Summary Be able to summarize the cost in a meaningful way, in order to identify the key cost drivers and points for negotiation.
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Preparing a Financial Summary for the Output Presentation
Considerations
Have a tool or a systematic method to capture financial details for your solution options, including:
– Staffing Costs (In-House and Contracted)
– Hardware, Software / Licenses, and Maintenance
– Travel, Training, Contingency
– Capital & Expense, Depreciation, Year-over-Year Budget Breakouts
Identify ―Build‖ (Yr 0) and ―Run Support‖ (Yrs 1+) costs and resources.
Be able to translate the results into a common-sense summary
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Key Takeaways from the Output
• Problem Statement • Business Vision • As-Is, Target Environments • Approach and Options Considered Variants (Solution Options) • Summary of Solutions with
Recommendation • High Level Architecture Resource Plan Financial Summary • Key Assumptions and Factors
Increasing Costs • Overall Project Risks • Next Steps
• Tool should easily show cost, timing of each resource
• Allow changes --―What If‖-ing
• Document Roles, Deliverables, and Assumptions
• Easily track elements impacting cost
• Identify both build and run costs
• Have a common sense summary
• How well are requirements being met?
• Develop scoring (numeric, visual)
• Have an ―elevator pitch‖ summary
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Continuous Improvement & Innovation
The Solution Desk is
Constantly Updating Its Processes
Leading to innovative new tools and techniques including:
• Confidence Scorecard for Project Estimations
• Process Checklists to Guide Virtual Team Members
• Metrics Tracking Tools
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Diversity Leading to Inspiration
The Solution Desk accepts IT projects from any department, any business unit, any region.
The diversity of experience helps us to find commonalities and drive efficiencies:
Examples include:
• Consolidation of individual projects into a single program to reduce the number of business-managed IT systems
• Using a single framework for all New Product Introductions
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Benefits of the Solution Desk
Core Competency in Developing the Business Case
Faster Estimates
Consistent Format
Efficiencies Across Business Groups
Building a Case History
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Thank You
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Appendix
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Components of the Input Presentation (1)
Problem Statement
A problem can be described in terms of a process or an output (physical or informational) that is different from the desired state; this implies that the desired state (a process or an output) can be described along with an explicit context. For the impact, include who or what is experiencing the problem, when the problem occurs, how it manifests itself, where (business units, locations, systems) it occurs, and why. Given this context, state the impact to time, cost, resources, &etc.
Business Vision Describe how the business will change in the future as a result of this project in terms of additional capabilities, performance or effectiveness.
Benefits & Measures of Success
• Strategic Benefits are associated with supporting overall corporate strategy (at CEO or CEO Staff), or achieving mandatory regulatory compliance.
• Hard Benefits are quantifiable and the business unit commits to reduce spend or increase margin in future budgets. Hard Benefits should be expressed in dollars.
Soft Benefits are qualitative (i.e. improved decision making, greater process efficiency, increased visibility, or improved morale) or they are quantifiable and the business unit cannot commit to reduce spend or increase margin in future budgets
• Metrics: For each of the above, identify metrics to determine that benefits were achieved and recognized.
As-Is, To-Be Use Process Flows or Design Diagrams to illustrate As-Is and Target (To-Be) processes, systems, people, and how they interact today vs in the future.
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Components of the Input Presentation (2)
Requirements: (1) Functional
Typical initiatives for a single item may have 10-20 high level requirements; initiatives involving multiple applications, databases, business groups may have 20-50 high level requirements. More detailed requirements lists can be put into the appendix if they are available and may influence the solution options that will be investigated. Include priority rankings.
• High level example: the ability to create invoices. • Detailed example: the ability to create specific kinds of invoices (list them)
with particular data requirements (identify) for certain conditions (describe).
(2) Integration Points
Consider source and destination applications, databases, or infrastructure elements. Provide specific application, interface, database, or object name where possible.
(3) Content/ Data • List master data entities that will need to be created / maintained to support the initiative.
• Consider transactional data that needs to be passed from one system to another. • Identify approximate volumes for each, frequency of refresh. • Consider conversion volumes and amount of history needed.
(4) Geography • Consider countries, regions, business units, operating units which may utilize your application, reporting system or infrastructure elements.
• Business analysts may use this information to prepare a high-level rollout strategy (especially if using a phased approach), to consider geo-specific requirements (language, regulatory, localization issues for example), and to investigate pre-existing or future-planned overlapping solutions.
• Solution architects may use this information to evaluate language implications, performance-over-a-distance implications, and globalization or localization issues.
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Components of the Input Presentation (3)
Requirements: (5) User
• Identify the types of users to ensure that the correct capabilities and constraints can be designed. Ex – standard users, ―super users‖, restricted or inquiry-only users, executives, administrators, external parties.
• Describe how this basic profile may vary by business unit or geography. • Include counts of users and priority for rollout, if you create a phased rollout strategy. • This information will provide business and security analysts with information needed to
properly configure the system for usage; it will also provide solution architects with information needed to design for performance and for security/access.
• You might consider adding a column for ―geography‖ or ―business unit‖ or other criteria if this affects your rollout strategy – i.e. a combination of user role and one of these factors.
Overall Project Risks
• For the input document, overall project risks typically impact scope, timeline, budget, resources.
• For the output document, risks may be based on more specific functionality or capabilities.
Application & Security Classification
A standardized questionnaire which drives the application support level and security treatment. For example, will the solution be mission critical and require 24x7 support? If so, this will impact run rate cost projections, to ensure that you have the staffing required to provide that level of support.
Groups Contacted Identify all business teams that need to be consulted when assessing the ―as is‖ situation and documenting requirements. Identify all technology teams that need to be consulted when determining solution options, estimates, architecture, security, infrastructure and support.
Solution Options Being Considered
• Describe each candidate solution being considered, advantages, disadvantages.
Next Steps Identify all of the working sessions that your team will need to get to output.
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Components of the Output Presentation (1)
Problem Statement, Business Vision, As-Is & To-Be
(Repeated from the Input Presentation)
Approach & Options Considered
Describe the process that the team used in order to identify and assess any options that were considered for output.
Variants – Solution Options
A side-by-side comparison of solution options, showing how well they meet the stated requirements.
Summary of Solutions & Recommendation
A list of solution options which provides their description, costs and key financial metrics, and a list of their advantages and disadvantages.
High Level Architecture A diagram illustrating all components of the IT technology stack as needed for the solution. Security/access elements are addressed as well. Each environment is represented (Development, Test, Production, DR [Disaster Recovery]).
Resource Plan A spreadsheet tool that lets you build out the staffing plan and easily see the impact to project timeline and costs.
Financial Summary A spreadsheet tool that captures the financial details of your solution options, and identifies key budgeting metrics.
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Components of the Output Presentation (2)
Project Risks We begin with risks identified at input (which may impact scope, timeframe, resources, cost) and add solution-specific risks that were uncovered during the output working sessions. For each risk we provide the following: (1) ―Risk Impact‖ Score (which is a measure of a potential cost increase, time increase, scope change, or quality degradation) (2) Realization Probability Score (which indicates the likelihood of realization) (3) Response (to Accept, Mitigate, Transfer, or Avoid) (4) Response Plan and Plan Owner
Next Steps Beyond output, these are the steps needed to secure approval by the architectural review board and ultimately the business sponsors.
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Learning Objectives for SWE 2012
How to document requirements for technology initiatives in a consistent and comprehensive manner, making it easier to evaluate solution options.
How to prepare resource and financial plans, and express the results in a clear and understandable manner.
How continuous process improvement leads to innovation within your own team and also extends to the teams you work with.
Creating a culture of inspiration when working with diverse teams and technologies.