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Agenda
What is business value?What is business value?What is business value?What is business value?
Conversations that consider valueConversations that consider valueConversations that consider valueConversations that consider value
Did we deliver value?Did we deliver value?Did we deliver value?Did we deliver value?
The Prime Directive:Deliver Business Value!
*The organizers
wish to apologize
for any gratuitous
trekkie references
that may appear
in this
presentation.
What is business value?
I’ll know it
when I see
it
Justice Potter Stewart, concurring opinion in Jacobellis v. Ohio 378 U.S. 184 (1964), regarding
possible obscenity in The Lovers.
How much should we build?
AlwaysAlwaysAlwaysAlways7%7%7%7%
OftenOftenOftenOften13%13%13%13%
SometimesSometimesSometimesSometimes16%16%16%16%
RarelyRarelyRarelyRarely19%19%19%19%
NeverNeverNeverNever45%45%45%45%
Rarely or Never used64%
Often orAlways used20%
Standish Group Study, Reported by CEO Jim Johnson, XP2002
I(a)
I(tp)
I(d) I(t)
The Missing Link!
Development
Test
Example
In Scope?
Test
Model
Taking it a step further…
Business Analysis feeding Examples into a Development Process (especially Agile)
Feature Injection
� Hunt the Value
� “Inject” only relevant features
� Communicate with examples
Devised by Chris Matts
Purpose Based Alignment Model
Innovate, Innovate, Innovate, Innovate, CreateCreateCreateCreate
Achieve and Achieve and Achieve and Achieve and maintain parity, maintain parity, maintain parity, maintain parity, Mimic, Mimic, Mimic, Mimic, SimplifySimplifySimplifySimplify
Do we take this Do we take this Do we take this Do we take this on?on?on?on?
Minimize/Minimize/Minimize/Minimize/EliminateEliminateEliminateEliminate
Decision Filters
� Simple rules to guide
decision making
� Disperse throughout
the organization
Used for (among others)
� Strategy alignment
� Scoping
� Design approach
Health Insurance Capabilities
AnalyticsAnalyticsAnalyticsAnalytics
Claim processingClaim processingClaim processingClaim processingAgent paymentAgent paymentAgent paymentAgent paymentEnrollmentEnrollmentEnrollmentEnrollmentEligibilityEligibilityEligibilityEligibility
Dental Dental Dental Dental insuranceinsuranceinsuranceinsurance
Life InsuranceLife InsuranceLife InsuranceLife Insurance
Do these indicate value?
� ROI
Return on Investment
� NPV
Net Present Value
� TCO
Total Cost of Ownership
� IRR
Internal Rate of Return
Sample Objectives
By Dec 2012 increase inventory turns from 5/year to 10/year
By Dec 2012 reduce paper apps from 1,000/month to 500/month
Measuring Your ObjectivesObjective 1 Objective 2
Measure Inventory Turns Paper Apps
Definition The number of times
inventory is sold in a year
Number of apps received
via mail or fax
Data Source Inventory Tracking System
What to Measure Cost of Goods Sold/ Average
Inventory
Count of applications
received via mail/fax
Frequency of Measure Yearly Monthly
Sample Size N/A N/A
Who will collect data Inventory Accounting Analyst Data entry specialists
How will data be collected Report created by Inventory
Tracking Systems
Count paper applications
when entered
Baseline 5 1000
Target 10 500
If you remember nothing else…
Business value is a conversation to help us decide:
� Is it worth it?
� How much should we build?
� How unique should it be?
Use business objectives to tell if you delivered value
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