Gaining executive commitment to business technology
Many Executives see IT as a support mechanism in a business. It’s no wonder then that they don’t realise how powerful it could be in terms of meeting business objectives such as increased EBITDA, productivity, valuable Human Capital retention etc.
Companies are migrating to the cloud to enhance performance and communication in the new hybrid working organisation.
The challenge now is to get the full potential of modern technology and software investment onto the executive agenda.
We have found the business case an effective way to get executive attention.
A business case clarifies the value of any opportunity. It is the single-most important document in gaining commitment to the strategic software investment or any other opportunity.
A business case is part sales and part marketing. It represents the opportunity to present a compelling justification for funding an investment to achieve the organisations mission, goals and objectives. An effective business case generates the support, participation and leadership commitment required to transform an idea into reality. A business case identifies an opportunity. It provides context and content and describes the desired objectives and outcomes in terms of the business. It describes how and who will be affected, these typically evolve around individual or organisation behavioural changes.
The business case breaks out specific alternatives and their associated impacts. A strong business case for a platform investment puts that investment decision into the strategic context and provides the executives with the necessary information to make an educated decision.
Putting a business case together
Interaction between employees is going to have a significant effect on the way we do business. In the same way as email changed the speed at which business is conducted modern technology is going to become he strategic backbone of the organisation and significantly impact on our effectiveness efficiency and the way we do business.
Traditionally, innovation occurs in products, processes or business models. The latest thinking has been well researched by Gary Hamel in his work The Future of Management. The technology is not only a tool, but it also enables new ways to manage people. For this reason, we cannot use the past to forecast the future. Our best attempts to make a case for an interactive Intranet are going to have to be around describing the intangible business “steroids” on the Balanced Scorecard as defined by Kaplan and Norton, which lead to business improvements.
You need to put a business case together in order to justify the resources and capital investment necessary. This pertains not only the software, but more importantly the design, structure, configuration, workflow mapping, measurement mechanisms and change management.
The Business Case is usually primarily a financial document, however in the case of using s specific technology platform in order to create a robust solution, the concept is new and because it is an internal tool, companies who are realising the benefits are reluctant to provide evidence of what differences these new tools can make and there are so many hard and soft permutations that it is difficult to quantify the financial implications.
Approaching the business case
We have to modify our approach to developing the business case from what we were taught in business school to looking at those variables which, if enhanced using software capabilities, will deliver on the business objectives.
We find that the best approach is to:
- Understand the organisational objectives and identify where the software could support delivery;
- Analyse the internal variables (culture, competence and processes) at a high level, which could influence the successful attainment for the business objectives;
- Look at what is happening in the competitive landscape;
- Identify relevant best practice which can significantly enhance competitive advantage, such as Collaboration, Document Management and Innovation etc;
- Identify bottle necks to productivity such as self-service and possibility for efficiency gain with workflow
- Make recommendations for the prioritisation and roll out of the Intranet optimisation strategy.
- Document all the relevant facts and link them together into a cohesive story. This story tells the executives about the what, when, where, how and why.
- Why is the project needed?
- How it will solve the issues or opportunities facing the organisation;
- How the solution addresses the issues or opportunities (benefits);
- What will happen to the business if the project is not undertaken (the do-nothing scenario)?
- What is happening on the competitive landscape?
- What Change Management initiatives must be put into place?
- How we will increase adoption.
- Priorities and timing;
- An indication of how much money, people and time will be needed to deliver the solution and realise the benefits: and
- Measurement
Suggested Metrics for quantifying success
By documenting everything together in one story, it is easy to link the issues to the solution and the benefits and identify where the organisation would be without the project.
The development of the overall business case also identifies holes or problems with the solution. Moreover, the organisation will have a way to measure its success. This analysis is also be useful for the leadership team to prioritise this project against the many other initiatives that require capital investment.
The business case provides a consistent message to many different audiences. As a high-level view of the entire project the business case manages the expectations of all the stakeholder divisions affected by the project (customers, management, operations, research & development, service, sales, accounting, finance, etc.).
The length of the business case should be kept to a minimum, ensuring it stays on topic, presents relevant information in a clear and concise manner and it be focused on supporting management in making decisions.
Digital Bridges enhances the Return on Technology Investment by approaching IT from a Strategy, Business and People perspective. For assistance with your Digital Strategy, Business Analysis and Change Management, please contact Kate@Digital-Bridges.co.za
