CIO Business Case Template

CEB CIO Leadership Council
Business Case Template
Table of Contents
I. Executive Summary
Case-on-a-Page.........................................................................
Project Background..............
Value Assessment.......
Risk Assessment............................
4
5
6-7
8-9
II. Appendix
Scope & Constraints...........
Key Stakeholders.........
Alternative Investment Analysis......
Objectives, Outcomes, and KPIs ....
Benefits Worksheet.....
Cost Worksheet.......
Risk Assessment ........
15
Five-Year Financial Outlook......
16
11
12
13
14
17
18
cio.executiveboard.com
2015 CEB. All Rights Reserved.
I. EXECUTIVE SUMMARY

Business Case-on-a-Page
PROJECT AT-A-GLANCE
Name: Mobile CRM Application Development
Summary: Develop an internal customer relationship mobile application to enable employees to access client data profiles from remote locations using cell
phones and tablets.
PROJECT SNAPSHOT
KEY OBJECTIVES
NPV:
Total Cost:
$6 million
$3.2 million
Value Score:
37
Risk Score
20
ASSET CLASS
Provide account executives with ability to access and edit enterprise data on the
road
Increase overall sales team productivity from dynamic locations
Allow for better work-life balance
Reduce costs for provisioning and supporting devices
Provide for a better customer experience
KEY ASSUMPTIONS
Up-to-date client information is critical to improving the sales process.
Lack of mobile access to data is a major roadblock.
Mobile applications are more value-add than comparable web applications.
Build vs. Buy due diligence was performed to a satisfactory level.
Executive buy-in will be obtained by sponsor (Susan).
KEY STAKEHOLDERS
KEY PERFORMANCE INDICATORS

Business Case-on-a-Page [ Blank ]

PROJECT AT-A-GLANCE
Name: [ Text ]
Summary: [ Text ]
PROJECT SNAPSHOT
NPV:
Total Cost:
KEY OBJECTIVES
[ metric ]
[ metric ]
Value Score:
[#]
Risk Score
[ Text ]
[ Text ]
[ Text ]
[ Text ]
[ Text ]
[#]
ASSET CLASS
KEY ASSUMPTIONS
[ Text ]
[ Text ]
[ Text ]
[ Text]
KEY STAKEHOLDERS
KEY PERFORMANCE INDICATORS

Provide critical context around the project

description to help the reviewer understand
why the project is being proposed and the
problem or opportunity it aims to address.
Project Background
Project
Description
Implement a mobile line-of-business (LOB) application for smartphones to

improve the CRM process for account executives.
Extension of the workforce is currently bound by the four walls of the

office.
Mobile computing has become more powerful and affordable with
increased popularity over the past year.
Project
Background
Account executives are operating with outdated information and need to

be more responsive to customers. Mobility provides that real-time
information to end users.
Most of our competitors in North America have already deployed 1st
generation mobility applications such as mobile email, calendaring and
messaging.
Some companies have mobilized existing LOB applications to deliver
business benefits to specific groups targeted user segments within an
organization.

Value Assessment (1 of 2)
Use this upfront value
assessment to score
project value.
Note: Project value
criteria are illustrative and
may be tailored to fit
different specifications at
your organization.
Criteria
Value Score = 1
Value Score = 2
Value Score = 3
Score
Business and/or
Manufacturing Customer
Pull
None/Resistance
Single Group,
Multigroup or
Department
Multidepartment,
Multisite, or
Companywide
Alignment with Strategic

Goals
Low, N/A
Medium
High
Business Productivity
Improvement
None or Decrease
< 10%
> 10%
Revenue Impact
Decreases, None, or
Minimal
.25.5%
> .5%
Criticality of Delivering
Project on Time
N/A/None or Low
Medium
High
End-User Satisfaction
and/or Usability
Decrease/No Change
Improvement
Significant
Improvement
Internal IT Demand
None/Resistance
Single Group,
Multigroup or
Department
Multidepartment,
Multisite, or
Companywide
Alignment with
Technology and
Application Roadmaps
Against
Approved Exception
or New Roadmap
New Item to Existing

Roadmap
Continued on next page

Value Assessment (2 of 2)
After completing the scorecard,
calculate your overall score and assign
a value color using the scale below.
Score = 15-20
Score = 21-39
Score = 40-45
XX
Criteria
Value Score = 1
Value Score = 2
Value Score = 3
Score
Legacy (Almost EOL), or

Pilot Adopter (First Time
Use in IT)
Early Adopter
Minimal Support
Environment
Stable/Preferred
Mature Support
Environment
Product/Technology
Maturity Within IT
10
Level of Learning
Required
High or Low Training, High

Number of Users
High Training, Low

Number of Users
Low Training, Low

Number of Users
11
IT Service Quality
Improvement
None/Reduces
Slight Improvement
Significant
Improvement
12
IT Employee Productivity
Improvement
No Change/Reduces
Slight Improvement
Significant
Improvement
13
Time-to-Market
Improvement
No Change/Lengthens
< 10%
> 10%
14
Promotes Reuse of IT
Environment
None
Slight Reuse of Tools

and/or Processes
Significant Reuse of
Tools and/or
Processes
15
Improvement to Service
Stability and/or
Recoverability
None/Hinders
Slight Improvement
Significant
Improvement
XX
XX
Total Value Score:
37

Risk Assessment (1 of 2)
Use this upfront risk
assessment to score
project risks.
Note: The Risk Score
inputs for each risk are
for demonstration
purposes only. Tailor
each scorecard for
individual projects in your
portfolio.
Criteria
Risk Score = 2
Risk Score = 3
Score
Estimated profit
contribution
Less than $100,000
$100,000 to
$300,000
More than $300,000
Estimated project cost
Less than $50,000
$50,000-$100,000
More than $100,000
Estimated total calendar

months before
completion
4 or less
5 to 12
More than 12
Number of project team

members
2 or less
3 to 5
More than 5
Estimated total effort

hours
Fewer than 100
100 to 500
More than 500
Number of sites impacted

as a result of this
project
2 or 3
More than 3
Geographic span of
impacted sites
Local
Regional
Global
Uniqueness of projects
technical requirements
Similar to others in the

company
Similar to others, but

complex
New and complex
All key planning,

estimation, or scheduling
assumptions are realistic
One or more key

planning, estimation,
or scheduling
assumptions are
debatable
One or more key

planning, estimation,
or scheduling
assumptions are not
realistic

Risk Score = 1
Credibility of estimation or
scheduling assumptions
Continued on next page
Risk Assessment (2 of 2)
After completing the scorecard,
calculate your overall score and
assign a risk color using the
scale below.
Score = 15-20
Score = 21-39
Score = 40-45
Criteria
XX
Risk Score = 2
Risk Score = 3
Score
2 or less
3 or 4
5 or more
None or minimal
Moderate
Significant
10
Number of subject
matter experts required
to execute the project
11
Impact of
noncompliance with
applicable laws and
regulations
12
Contribution to
stated company goals
Operational efficiency
improvement
Prerequisite to stated
goal
Achieves or partially
achieves stated goal
13
Impact on companys
competitive position
Slightly improvement
Moderate
improvement
Significant
improvement
14
Impact of 12-month
project postponement
on existing systems
Existing systems can

compensate with minimal
costs
Existing or new
systems can
compensate with
substantial costs
Existing systems must

be curtailed because
of the lack of proposed
project
15
Clarity of benefits
Well-defined and
quantified or of strategic
importance
Defined in general,
not quantified
Not well-defined or
unclear
XX
XX
Risk Score = 1
Total Risk Score:
20

10
II. APPENDIX

Determine elements of
the project which are in
and out of scope to
manage trade-offs
during execution.
By outlining scope and
constraints in advance, IT
is better positioned to
negotiate with stakeholders
in the event of scope creep.
Scope & Constraints

In-Scope
Out-of-Scope
Reason Why
Timeframe
June 201X- October

201X
Windows 8
compatibility
No plans to deploy
Department(s) and
function(s)
IT
HR
Sales
External-facing
interface
High enterprise risk

High process
complexity
Technology
Smartphones (e.g.
iPhone)
Mobile Device
Management (MDM)
software
Global Launch
Security and
regulatory
constraints
Constraints
Category
Description
Resource bottlenecks
Other high-profile projects occupying top talent
Regulatory requirements
Legal considerations for mobile signatures and paperless contracts
Speed-to-market needs
Full project value only achieved if brought to market before

Competitors release expected within 6 months
Subject matter expertise
SMEs from IT (e.g. Mobile Apps, Network, Security), Legal, Sales, HR
Critical dependencies
Network and database communication

12
What are the viable alternatives to

the project, and why have you
decided to eliminate those options in
favor of the project being proposed?
Alternative Investment Analysis

JUSTIFICATION FOR PROJECT SELECTION: The status quo CRM interface for desktops is
insufficient, as account executives increasingly need a way of accessing client data on the
road. An internally developed CRM mobile app provides the functionality they need while
reducing risk and cost compared to alternative investments.
Description
Reason Eliminated
Cost Summary
Continue legacy CRM process
Lack of compatibility with

newer applications
Expired maintenance/support
from vendor
$X
Leverage third-part development

support or custom off-the-shelf
mobile app
Cost prohibitive compared with

existing systems
$X
Implement VPN (Virtual Private

Network) technology
implementation
Not optimized for mobile
$X
[Alternative 4]
[Reason eliminated]
$X

13
Identify key stakeholders inside

and outside your organization
using the rating scale below.
Key Stakeholders
Internal
Stakeholders
Project Impact Scale:
Department
Project
Responsibilities
Project Impact (1-3)
HR
Manage Account
Executives
Ashish Gupta
IT
Manage the CRM

Mobile Application
Development
[Stakeholder 3]
[Department]
[Responsibilities]
[Project Impact]
[Stakeholder 4]
[Department]
[Responsibilities]
[Project Impact]
[Stakeholder 5]
[Department]
[Responsibilities]
[Project Impact]
External
Stakeholders
Company
Project
Responsibilities
Project Impact (1-3)
Jonathan Saddleback
Vendor 1
Advisory and
development support
Kevin Chen
Vendor 2
QA & Testing
[Stakeholder 3]
[Organization]
[Responsibilities]
[Project Impact]
[Stakeholder 4]
[Department]
[Responsibilities]
[Project Impact]
[Stakeholder 5]
[Department]
[Responsibilities]
[Project Impact]
Susan Cohen
1 = Low Impact
2 = Medium Impact
3 = High Impact

14
Determine key project objectives

and tie them to deliverable
outcomes with quantifiable KPIs.
Objectives Outcomes KPIs

Objectives
Outcomes/Deliverables
Key Performance Indicators

(KPIs)
Minimize up-front requirements

to reduce development time and
speed to market
A more productive end-user

experience
>50% feature requirements

reduction
Schedule
Project completed on time
Planned versus actual

completion date
Cost
Project completed on budget
Planned versus actual cost
Project Quality
Post-release patches 90 days

after deployment
Number of post-release patches
[Objective]
[Outcome/Deliverable]
[KPI]

15
Consider both quantitative

and qualitative benefits of
the project.
Benefits Worksheet
Hard Benefits
NPV
$X
ROI
$X
IRR
$X
Payback Period
X months/yrs.
Soft Benefits
Metrics
Sales productivity improvement
Sales conversion ratio ; reduced sales cycle
Increased client satisfaction
Customer renewal rate
Greater competitive advantage
% Change in market share
Improved regulatory compliance
Data error rate
[Benefit]
[Metric]

16
Consider the cost for software,

hardware, professional services,
and other one-time, up-front
expenses.
Cost Worksheet
Annual Capital Expenditure
Description
Cost (in $1,000s)
Hardware
Line-of-Business (LOB)
application and wireless
$X
Software
Back-end server and mobile

devices
$X
IT labor
Installation and annual

management
$X
Services
Mobile data and telephone;

consulting
$X
Training
User and IT Staff
$X
Total Capital Expenditure

$X
Annual Operating Expenditure
Description
Cost (in $1,000s)
Product Development
Patch and upgrade release
$X
Testing
Quality assurance testing
$X
Ongoing Training/Adoption
End-user adoption management;

Administrative training
$X
Compliance and Security
Network access monitoring; data

security monitoring
$X
On-demand Software Service
Customization & Configuration
$X
Enterprise upgrades
Integration-related upgrades
$X
Total Annual Operating

Expenditure
$X
Total Cost (Total Annual Capital Expenditure + Total Annual

Operating Expenditure)
$X
17
Five-Year Financial Outlook

P&L and Cash Flow
FYXX
FYXX
FYXX
FYXX
FYXX
N/A
N/A
N/A
N/A
N/A
Total
Revenues
Cost of Goods Sold
Gross Margin
Margin (Percentage)
Operating Expenses
Cost Reduction/Benefit
EBIT
Other Income/Expenses
Taxes
Net Income
Margin (Percentage)
Cumulative Income
Net Cash Flow
NPV of Cash Flow

Total Funding Request

18

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CEB CIO Leadership Council

Business Case Template

Scope & Constraints...........

Alternative Investment Analysis......

Objectives, Outcomes, and KPIs ....

Risk Assessment ........

Five-Year Financial Outlook......

CEB CIO Leadership Council

Increase overall sales team productivity from dynamic locations

Allow for better work-life balance

Reduce costs for provisioning and supporting devices

Provide for a better customer experience

KEY PERFORMANCE INDICATORS

CEB CIO Leadership Council

Business Case-on-a-Page [ Blank ]

KEY PERFORMANCE INDICATORS

CEB CIO Leadership Council

Provide critical context around the project

Implement a mobile line-of-business (LOB) application for smartphones to

Extension of the workforce is currently bound by the four walls of the

Account executives are operating with outdated information and need to

CEB CIO Leadership Council

Alignment with Strategic

New Item to Existing

Continued on next page

CEB CIO Leadership Council

Legacy (Almost EOL), or

High or Low Training, High

High Training, Low

Low Training, Low

Slight Reuse of Tools

Total Value Score:

CEB CIO Leadership Council

2015 CEB. All Rights Reserved.

Less than $100,000

More than $300,000

Estimated project cost

Less than $50,000

More than $100,000

Estimated total calendar

Number of project team

Estimated total effort

Fewer than 100

More than 500

Number of sites impacted

Similar to others in the

Similar to others, but

New and complex

All key planning,

One or more key

One or more key

CEB CIO Leadership Council

Continued on next page

Existing systems can

Existing systems must

Total Risk Score:

CEB CIO Leadership Council

CEB CIO Leadership Council

Scope & Constraints

June 201X- October

High enterprise risk

Other high-profile projects occupying top talent

Legal considerations for mobile signatures and paperless contracts

Full project value only achieved if brought to market before