What Is A Business Case

What is a Business Case?
A business case is a project management document that explains how the

benefits of a project overweigh its costs and why it should be executed.
Business cases are prepared during the project initiation phase and their
purpose is to include all the project’s objectives, costs and benefits to convince
stakeholders of its value.
A good IT business case should be (1) Through in detailing all
possible impacts, costs, and benefits; (2) Clear and logical in
comparing the costs/ benefits impact of each alternative; (3)
Objective though including all pertinent information; and (4)
Systematic in terms of summarizing the findings.
Developing the Business Case
The purpose of a business case is to show how an IT solution can
create business value. For example, an IT project may be
undertaken to:
Reduce costs
Create a new product or service
Improve customer service
Improve communication
Improve decision making
Create or strengthen relationships with suppliers, customers, or
partners
Improve processes
Improve reporting capabilities
Support new legal requirements
5.2.3 Process For Developing A Business Case
Step 1: Identify the Business Problem
Step 2: Identify the Alternative Solutions
. Note the alternative solutions.
. For each solution, quantify its benefits.
. Also, forecast the costs involved in each solution.

. Then figure out its feasibility.
. Discern the risks and issues associated with each solution.
. Finally, document all this in your business case.
Step 3: Recommend a Preferred Solution
Step 4: Describe the Implementation Approach

5.3 PROJECT SELECTION AND APPROVAL
Financial and Non-Financial Criteria
 To capture larger market share

 To make it difficult for competitors to enter the market
 To develop core technology that will be used in next-generation
products
 To reduce dependency on unreliable suppliers
1. Benefit measurement methods
2. Benefit/cost ratio
3. Economic model
4. Scoring model
5. Payback period
6. Net present value
7. Discounted cash flow
8. Internal rate of return
9. Opportunity cost
10. Constrained optimization methods
11. Non-financial considerations
12. THE PROJECT CHARTER
13. (I) Documenting the project’s MOV
14. The Measurable Organizational Value (MOV)
15. (II) Defining the projects infrastructure :
16. (III) Summarizing the details of the project plan
17. (IV) Defining roles and responsibilities
18. V) Showing explicit commitment to the project

19. (VI) Setting out project control mechanisms :
5.5 PROJECT SCOPE DEFINITION
Different types of work breakdown

structures
WBS spreadsheet:
WBS flowchart:
WBS list:
WBS Gantt chart:
9 SOFTWARE PROJECT ESTIMATION
 Lines of Code
 Number of entities in ER diagram
 Total number of processes in detailed data flow diagram
 Function points
 KLOC- Thousand lines of code
 NLOC- Non-comment lines of code
 KDSI- Thousands of delivered source instruction
Number of entities in ER diagram: ER model provides a static view of the

project. It describes the entities and their relationships. The number of entities
in ER model can be used to measure the estimation of the size of the project.
The number of entities depends on the size of the project. This is because more
entities needed more classes/structures thus leading to more coding.
Total number of processes in detailed data flow diagram: Data Flow

Diagram(DFD) represents the functional view of software. The model depicts
the main processes/functions involved in software and the flow of data between
them. Utilization of the number of functions in DFD to predict software size.
Already existing processes of similar type are studied and used to estimate the
size of the process. Sum of the estimated size of each process gives the final
estimated size.
. Function Point Analysis: In this method, the number and type of functions
supported by the software are utilized to find FPC(function point count). The
steps in function point analysis are:
 Count the number of functions of each proposed type.

 Compute the Unadjusted Function Points(UFP).
 Find the Total Degree of Influence(TDI).
 Compute Value Adjustment Factor(VAF).
 Find the Function Point Count(FPC).
What is the Cocomo Model?

The Cocomo Model is a procedural cost estimate model for software projects
and is often used as a process of reliably predicting the various parameters
associated with making a project such as size, effort, cost, time, and quality.
he key parameters that define the quality of any software products, which are
also an outcome of the Cocomo are primarily Effort and schedule:
1. Effort: Amount of labor that will be required to complete a task. It is

measured in person-months units.
2. Schedule: Simply means the amount of time required for the completion
of the job, which is, of course, proportional to the effort put in. It is
measured in the units of time such as weeks, and months.
Types of COCOMO Model

1. Basic Model
E = a(KLOC)^b
Time = c(Effort)^d
Person required = Effort/ time
The above formula is used for the cost estimation of for the basic COCOMO
model, and also is used in the subsequent models. The constant values a, b, c,
and d for the Basic Model for the different categories of the system:
Software a b c d
Projects
Organic 2.4 1.05 2.5 0.38
Semi-
3.0 1.12 2.5 0.35
Detached
Embedded 3.6 1.20 2.5 0.32
2. Intermediate Model
The basic Cocomo model assumes that the effort is only a function of the
number of lines of code and some constants evaluated according to the
different software systems. However, in reality, no system’s effort and schedule
can be solely calculated on the basis of Lines of Code. For that, various other
factors such as reliability, experience, and Capability. These factors are known
as Cost Drivers and the Intermediate Model utilizes 15 such drivers for cost
estimation. Classification of Cost Drivers and their Attributes:
Product attributes:
1. Required software reliability extent

2. Size of the application database
3. The complexity of the product
4. Run-time performance constraints
5. Memory constraints
6. The volatility of the virtual machine environment
7. Required turnabout time
8. Analyst capability
9. Software engineering capability
10. Applications experience
11. Virtual machine experience
12. Programming language experience
13. Use of software tools
14. Application of software engineering methods
15. Required development schedule
. Detailed Model
Detailed COCOMO incorporates all characteristics of the intermediate version

with an assessment of the cost driver’s impact on each step of the software
engineering process. The detailed model uses different effort multipliers for
each cost driver attribute. In detailed cocomo, the whole software is divided
into different modules and then we apply COCOMO in different modules to
estimate effort and then sum the effort. The Six phases of detailed COCOMO
are:
1. Planning and requirements

2. System design
3. Detailed design
4. Module code and test
5. Integration and test
6. Cost Constructive model
PROJECT SCHEDULING AND PROCUREMENT MANAGEMENT
(CPM) are quantitative techniques that allow software planners to

identify the chain of dependent tasks in the project work breakdown
structure (WBS) that determine the project duration time. Timeline
(Gantt) charts enable software planners to determine what tasks will
be need to be conducted at a given point in time (based on estimates
for effort, start time, and duration for each task).
6.3.1 Tracking Project Schedules
6.3.2 Tracking Increment Progress for OO Projects
.3 Webapp Project Scheduling
6.3.4 Earned Value Analysis
6.4 PROJECT PROCUREMENT MANAGEMENT
Project procurement management is the creation of relationships with outside

vendors and suppliers for goods and services needed to complete a project.
This process is comprised of five steps, including initiating and planning,
selecting, contract writing, monitoring, and closing and completing.
Eight Steps for a Procurement Management Plan

ight Steps for a Procurement Management Plan
1. Define Terms. To begin, start by defining the procurement terms. ...

2. Outline Type of Agreement. ...
3. Identify and Mitigate Risks. ...
4. Define Costs. ...
5. Identify Constraints. ...
6. Get the Contract Approved. ...
7. Make a Decision Criteria. ...
8. Create a Vendor Management Plan.
Steps for CPM
SOFTWARE AND SYSTEM QUALITY MANAGEMENT
Question bank
1.Discuss the risk strategies?

2.Explain the benefits of the use of SQA standards
3.Compare COCOMO and COCZOMO-II
4. Write short note on Waterfall Mode
5. Write the Project Life Cycle (Phases)
6. Write short note on Waterfall Mode
7.Write the Project Life Cycle (Phases)
8. Explain Non-Functional Requirement
9. Hierarchy-Input-Process-Output (HIPO)
10. What is a Business Case?
11.Explain Warnier Orr Diagram with examp
12. Explain Software system requirements in detail
Explain Joint Application Development Model
What Is IT Project Management? Write responsibilities of an IT
Project Manager
What are data-flow diagrams? Explain different kinds (and levels) of

data-flow diagrams
Explain structural things which are available with UML give on
example
What are data-flow diagrams? Explain different kinds (and levels) of
data-flow diagrams
Explain structural things which are available with UML give on
example
What is a project’s scope? Describe the scope definition process.
Describe the scope change control process. What is a WBS? What
purpose does it serve?
Example of Activity Diagram1. Activity Diagram for overall ATM

Machine
Why should an organization develop a business case? 3. Describe the

balanced scorecard approach
Explain Project scheduling with the relationship between people and

efforts?
Describe the Tracking Project Schedules Explain the process of

project procurement Management
What is a WBS? What purpose does it serve?

efforts?
What types of risks are we likely to encounter as the software is

built??
What is the purpose of risk analysis and assessment?

efforts?
State the Technique for CPM with example

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What is a Business Case?

A business case is a project management document that explains how the

Step 2: Identify the Alternative Solutions

. Note the alternative solutions.

. For each solution, quantify its benefits.

. Also, forecast the costs involved in each solution.

. Discern the risks and issues associated with each solution.

. Finally, document all this in your business case.

Step 3: Recommend a Preferred Solution

Step 4: Describe the Implementation Approach

Financial and Non-Financial Criteria

 To capture larger market share

1. Benefit measurement methods

6. Net present value

7. Discounted cash flow

8. Internal rate of return

10. Constrained optimization methods

11. Non-financial considerations

12. THE PROJECT CHARTER

13. (I) Documenting the project’s MOV

14. The Measurable Organizational Value (MOV)

15. (II) Defining the projects infrastructure :

16. (III) Summarizing the details of the project plan

17. (IV) Defining roles and responsibilities

18. V) Showing explicit commitment to the project

5.5 PROJECT SCOPE DEFINITION

Different types of work breakdown

WBS Gantt chart:

9 SOFTWARE PROJECT ESTIMATION

Number of entities in ER diagram: ER model provides a static view of the

Total number of processes in detailed data flow diagram: Data Flow

 Count the number of functions of each proposed type.

What is the Cocomo Model?

1. Effort: Amount of labor that will be required to complete a task. It is

Types of COCOMO Model

Person required = Effort/ time

Organic 2.4 1.05 2.5 0.38

Embedded 3.6 1.20 2.5 0.32

1. Required software reliability extent

Detailed COCOMO incorporates all characteristics of the intermediate version

1. Planning and requirements

PROJECT SCHEDULING AND PROCUREMENT MANAGEMENT

(CPM) are quantitative techniques that allow software planners to

6.3.1 Tracking Project Schedules

6.3.2 Tracking Increment Progress for OO Projects

.3 Webapp Project Scheduling

6.3.4 Earned Value Analysis

6.4 PROJECT PROCUREMENT MANAGEMENT

Project procurement management is the creation of relationships with outside

Eight Steps for a Procurement Management Plan

1. Define Terms. To begin, start by defining the procurement terms. ...

Steps for CPM

SOFTWARE AND SYSTEM QUALITY MANAGEMENT

1.Discuss the risk strategies?

What are data-flow diagrams? Explain different kinds (and levels) of

Example of Activity Diagram1. Activity Diagram for overall ATM

Why should an organization develop a business case? 3. Describe the

Explain Project scheduling with the relationship between people and

Describe the Tracking Project Schedules Explain the process of