Core Systems Framework
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Business Justification Outline

Download Business Justification Outline in Word Format

Predecessor to this tool?
Alternatives

Intended audience: Agencies (for potential discussions with MOSTD Consultant and ISB Core Systems Sub-Committee)

Who fills this out? Agency Executives with I.T and Business Managers

Purpose of this tool
The intent of this outline to help organize material for discussions between the agency owners, MOSTD staff and the ISB Core Systems Sub-Committee about business justification of a proposal. The content from this tool has been extracted from the Feasibility Study Guidelines for Information Technology Investments. It deals with the business problem components that system owners should develop before conducting a full feasibility study.

The following considerations are representative of those that are normally asked by the DIS MOST Consultants and by the ISB during past presentations. The questions listed below are to be used as a guide to agencies and are not meant to be exhaustive.

I. Executive Summary
Provide a brief summary of the business needs that the project addresses, and objectives, approach and high level cost estimate.

II. Background and Needs Assessment
(Source: System Trends & Alerts, New Requirements, Enterprise Opportunity Assessment & Impact Analysis)
Discuss the reasons for the project including items such as:
  • Business environment
    Describe current services and how they are delivered
  • Business needs
    Describe the business initiatives to be addressed
  • Business opportunities
    Describe situations, technologies, synergies, etc, that the project can turn to the agency's advantage
  • Business service goals
  • Statutory requirements
    Describe any legal requirements that mandate this project
  • Other

III. Objectives
(Source: System Trends & Alerts, New Requirements, Enterprise Opportunity Assessment & Impact Analysis)
Explicitly state the objectives of the project in measurable and achievable terms including items such as:
  • Problems to be solved
    (e.g., Eliminates referrals to other state office locations)
  • Expected tangible and intangible benefits
  • Service delivery/customer satisfaction enhancements
    (e.g., Reduces job application time by 20 percent)
  • Response to statutory requirements
    (e.g., Reduces error rate to 2% of federal standard)
  • Other


IV. Organizational Impacts (as applicable)
(Source: Enterprise Opportunity Assessment & Impact Analysis)
Identify the entities that will be impacted by the proposed project:
  • Inter-agency
  • Intra-agency
  • Program(s)
  • Subprogram(s)
  • Customers of agency activities (i.e., clients, constituents, taxpayers, etc.)
  • Other

V. Process / Procedural Impacts (as applicable)
(Source: Impact Analysis)
Discuss how the implementation of the proposed project may affect the following:
  • Impact on work progress
  • Training needs
  • Job content
  • Impact on organizational structure
  • Other

VI. Project Management and Organization
(Source: Enterprise Opportunity Assessment & Impact Analysis)
Identify the entities that will be impacted (if known) by the proposed project as follows:
  • Project Organization
    Describe the relationships your agency has with collateral organizations. (Potential steering committees, policy committees, etc.)
  • Other

VII. Estimated Financial Plan
Describe funding sources and general spending plan (if available)

VIII. Estimated Workplan
(Source: Impact Analysis, Alternatives)
Discuss an estimated timeframe and high level approach for the project. Estimate resources (if known).

NOTES: An agency has the option and opportunity of doing this "mini feasibility" without as much rigor, precision, detail or costs as a full feasibility study. This serves as a basis for discussion with the ISB Sub-Committee on Core Systems.

By having this early discussion, some alternatives may be included or excluded and certain business justification areas firmed up before going further with the project.

Next Steps?
  • Discuss elements from this "Business Justification Outline" tool along with other completed predecessor tools, with your DIS MOSTD Consultant and prepare to discuss them with the ISB Core Systems Subcommittee.
  • The next step of the process involves a decision point on whether to proceed with a Feasibility Study.



Business Justification Outline Considerations
  • Business Strategy (Support for Business Needs)
    The following questions and issues related to the relationship of the system to the business strategy of the agency should be considered:
    1. Are the goals of the system aligned with the agency goals?
    2. Are there measurable criteria for the successful accomplishment of the goals?
    3. Is there a documented corporate information technology strategy?
    4. How well does the system support efforts to increase agency efficiency? Does it support changes in business processes?

  • Business Opportunities and Service Goals
    The following questions and issues relate to the relationship of an investment in modifications, enhancements or replacement of the system to agency business opportunities and service goals:
    1. Is the investment directly associated with a high priority business goal identified by the Legislature, Governor, Federal Government, or the agency?
    2. Is the investment consistent with existing RCW's, WAC's agency policy, procedures, and workflows? If an investment requires significant agency policy change, have they been documented and distributed?
    3. Is this investment mandated in federal or state legislation?
    4. Do agency stakeholders support this investment?
    5. Does this investment support the objectives of the Digital Government Plan?
    6. Does this investment support the strategic use of the Internet in the delivery of government services? (Can the service be delivered over the Internet or intranet?)
    7. Will the investment change the public's experience in dealing the agency in a positive manner?
    8. How does this investment support electronic access of government information or services to citizens? (RCW 43.105.170)
    9. Will the investment allow the agency to decrease operational expenses?

  • Problems to be Solved
    As part of the system monitoring and problem analysis, the following questions and issues related to the health of the system should be considered:

    Functionality (Support of Business Needs, Customer Satisfaction, Data Quality)
    1. How costly (dollars, time, effort, complexity) is it to implement new requirements? How does the cost compare for similar agency and/or state systems?
    2. How satisfied are system customers with its functionality and performance?
    3. How well does the system enable the agency to meet its mission?
    4. How easy it for customers to learn and use the system?
    5. How well does the system match or support the current agency business processes?
    6. Are customers developing workarounds, shadow systems, or auxiliary systems due to system functional deficiencies?
    7. How does the accuracy of data affect decision making or the business processes that the system supports?

    System Performance
    1. Have the performance characteristics of the system been assessed? Have benchmarks been run?
    2. Are response times increasing beyond an acceptable rate?
    3. Is transaction throughput processing at an acceptable rate?
    4. Are batch processing times increasing beyond the batch-processing window?

    System Maintenance (Backlog and Costs)
    1. Are maintenance costs and effort increasing?
    2. Is the maintenance backlog increasing?
    3. Is the system documentation incomplete and/or out-of-date?
    4. Is the complexity of the application code increasing (i.e., too many code patches on top of patches)?
    5. Does the attrition of knowledgeable staff threaten the sustained maintenance and operations? [voluntary turnover per month]
    6. Has a vendor withdrawn support for critical hardware or software or has the vendor who developed or maintained the application withdrawn support?
    7. Is the rate of Help Desk calls increasing? How does the volume compare for similar agency and/or state systems?

    System Operation Cost
    1. Have all of the staffing costs required to operate and support the system been documented? Include overtime, benefits, travel and overhead for such costs as management, programming and technical support.
    2. Have contractor costs for maintenance and support of the system been documented?
    3. Have all hardware, software and telecommunication costs associated with the system been documented?
    4. Have all processing costs (from DIS and/or third party), if applicable, been documented?
    5. Have all training costs been documented?
    6. Have all supply-related costs been documented?

    Technical Architecture (Technology and System Documentation)
    1. How well does the system architecture (H/W, S/W, data, etc.) support essential enhancements (such as security or mandated business rule changes)?
    2. Does the technology have viability for the next five years? Is it compatible with the state technology strategic plan?
    3. Is there an accurate, up-to-date network configuration diagram that specifies the subsystems and their interfaces?
    4. Are all of the external system interfaces identifiable and documented?
    5. Is the functionality and operation of the system described adequately in user and system documentation?
    6. Have all the user interfaces been identified?
    7. Have the software applications and critical algorithms been identified? Have they been analyzed?
    8. Are the software interfaces and message and data formats documented?
    9. Is the source code, library elements, and build scripts available? Are they current?
    10. Is there documentation on the logical and physical data dictionaries?
    11. Have dependencies on undocumented features been identified?
    12. Have the complexity and brittleness of the system been assessed?

    Risk
    1. Is the agency incurring high costs to modify the system in order to maintain legal compliance?
    2. Is the vendor financially viable?
    3. Is the agency incurring legal or financial liabilities due to service failures, errors or limitations related to the system?
    4. Is the system operation causing a credibility loss for the agency or Washington State?

  • Business Impacts
    The following questions and issues related to the business impacts of the system should be considered:
    1. Has the agency identified all stakeholders in the system? Who are they? (i.e.)
      1. Other agencies, including those with oversight functions
      2. Other organizations within the agency
      3. Federal government
      4. Local government
      5. General public
      6. Special interest groups
      7. Unions
    2. Have the impacts to each of these groups been identified and documented?
    3. Does the project avoid jeopardizing the agency's relationship in any way with major stakeholders?
    4. Does the agency's user community support this project?

  • Organizational Effects
    The following questions and issues related to the organizational effects of the system should be considered:
    1. How does the proposed project impact other projects or agency business initiatives?
    2. Does it require new training or modifications to existing training curriculum?
    3. Will there need to be changes in business processes and/or job descriptions?
    4. Will there need to be changes to the organizational structure?

  • Project Management and Organization
    The following questions and issues related to the management and organization of the project should be considered:

    Has an executive project sponsor, steering committee and project manager been identified?
    1. Have project roles and responsibilities been defined?
    2. Is the planning methodology used for the project consistent with agency planning efforts? What are the project's critical success factors?

  • Estimated Financial Plan
    The following questions and issues related to the budget and spending plan for the project should be considered:
    1. Has a budget been developed for the feasibility study?
    2. Have funds been secured for the feasibility study?
    3. Has a plan been developed for how funds will be secured for the project?

  • Estimated Workplan
    The following questions and issues related to the high level workplan for the project should be considered:
    1. Has a high level plan been developed for the project?
    2. Does the project plan include all major phases such as the feasibility study, development and implementation?
    3. How realistic is the project plan? Does it include undocumented assumptions about the acquisition or approval processes?

 

 

 

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