【正文】 ategories (Acquisition, Operation, and Growth and Change). Every it cost item in the case fits into one of these categories. The scheme makes sense, because acquisition costs are planned and managed differently from continuing operational costs, which are planned and managed differently from growth and change costs. The vertical dimension divides all costs into five different ―it Resource‖ categories (Hardware, Software, Personnel, Networking and Communications, and ―Other‖ costs). This scheme also makes sense, because each resource category is planned and managed differently from the others. Organizing cost items by categories in this way creates a surprisingly powerful tool for of identifying, analyzing, and municating the ―cost‖ side of the business case. With a cost model, case builders and case recipients have a simple, visual ―rule‖ that shows which cost items belong in the case. If a cost item does not fit in one of the cells, the item does not belong in the case. When there are two or more scenarios in the case, we ensure parability of scenarios by applying the same cost model to each scenario. Individual scenarios may turn up different line items within cells, but the scenarios are parable because all have applied the same cost model structure. ________________________________________________________________________________________________________________ Contents of this box Copyright 169。 1998 – 2021, Solution Matrix Ltd. All Rights Reserved. For more detailed coverage, see the whitepaper Business Case Essentials or the Business Case Guide, ISBN 1929500017. Business Case Analysis 1 December 2021 Solution Matrix Ltd. Slide 14 Benefits Analyzed ? Objective: Reduce costs – Lower cost of design collaboration – More efficient variation/change management – Increased personnel productivity ? Objective: Meet the more plex needs of aerospace industry customers – New design customization possible – Faster response to customer change requests – Better support of customer certification requirements ? Objective: Reduce product development time – Fewer changes, earlier changes – Simultaneous design phases – Earlier manufacturing set up B. Methods DELETE THIS BOX BEFORE PRESENTING Rationale for Benefits There is more to business than costs and cost savings. Businesses and other anizations usually exist in order to meet certain objectives. Yet that simple and obvious fact often gets lost in business case building, when people do not know how to bring other business impacts into the case—especially different kinds of benefits. Cases may be built to determine how one or another proposed action contributes to business objectives, and the business case benefits rationale provides a basis for bringing these contributions into the business case. Here, for instance, are just a few kinds of objectives and contributions that may belong in the business case: ? Sales and Marketing Objective 176。 To increase sales revenues 176。 To improve market share ? Financial/Business Performance Objectives 176。 To increase cash flow, margins, or profits 176。 To improve earnings per share ? Operational/Functional Objectives 176。 To shorten new product development time 176。 To increase orderprocessing capacity ? Product/Service Objectives 176。 To improve customer satisfaction 176。 To update the product line ? Image Enhancement Objectives 176。 To be recognized as a provider of leadingedge technology 176。 To be known as leader in environmental protection ? Internal Objectives 176。 To improve employee morale 176。 To provide a challenging career path for employees ? Other Business Objectives 176。 To establish strategic alliances 176。 To bee a ―total solution‖ supplier When a proposed action contributes to such objectives, the impact may be recognized and measured immediately in financial terms (increased sales) or it may be recognized and measured in some other terms (tangible evidence of improved customer satisfaction, for instance might appear as fewer plaints, or in the results of customer surveys). In order to bring any such impacts into the business case as benefits, however, the case builder develops a benefits rationale that establishes their validity and the basis for assigning financial value to them. The rationale for benefits such as ―Improved customer satisfaction‖ can be built simply and directly by answering a questions like these: A. Is improved customer satisfaction recognized as an important business objective for this anization? If ―yes,‖ then… B. Does improving customer satisfaction have value? If ―yes,‖ then… C. By what tangible evidence (by what measure) do we know that customer satisfaction improves? D. What is the target level for improvement (in that measure)? E. What is the overall value to the anization of achieving the target? F. Will the proposed action impact the measure of customer satisfaction? If ―yes,‖ by how much? G. What is the value of that contribution (this may be 100% of the value in ―E‖ or, if many other factors also contribute to reaching the target, the benefit value may be some smaller percentage of that figure). When building your own business cases, by the way, remember that it is important to establish and agree on the benefits rationale with your case audience or readers as early as possible in the case building process—well before the final case report is delivered. This is the best possible way to avoid later disagreements about socalled ―soft benefits.‖ If your audience has already agreed to rationale steps A through E above, then there is no question that the benefits belong in the case. The only possible room left for discussion is just how much they should be valued. Business