Seminar Agenda - Day 1
Day 1 Morning (0900 - 1200)
Introductions and Overview
• Introductions, participants and
instructors
• Business case overview (the view from
39,000 feet)
• 5 keys to a successful case (overview
from 2,000 feet)
• Review essential financial concepts Part
I
– Measuring
business performance
– Income statement
(Statement of operations)
– Balance sheet
(Statement of financial position)
– Planning and
budgeting concepts
– The time value
of money
Designing the Case
• The business case introduction
• The subject statement:
– What is the case
is about?
– Which business
objectives does the subject addressed?
– Which business
problems does the subject solve?
• The purpose statement:
– Why the case is
being built?
– Who will use it?
For what purpose? When?
– What information
do they need?
• Case scope and boundaries:
– Whose costs and
whose benefits will be included?
– What time period
will the analysis cover?
• Case studies (Other case studies added at
participant request)
– Justifying a
major software system (ERP system)
– Estimating
marketing program ROI
– Deciding whether
or not to launch an e-business venture
Workshop Practical Exercise 1: Subject, Purpose,
and Scope
– Writing the
business case subject statement
– Determining the
case purpose
– Setting the case
scope and boundaries
Lunch (1200 - 1300)
Day 1 Afternoon (1300 - 1700)
• Essential financial concepts Part
II
– Financial
decision criteria
– Financial
metrics in the business case
– Net present
value (NPV) and discounted cash flow (DCF)
– Return on
Investment (ROI)
– Payback
period
– Internal rate of
return (IRR)
– Other financial
metrics to meet the case purpose
Designing the Case (Continued)
• Methods and assumptions
• Scenario design
• Data sources
• Precisely what do 'cost' and 'benefit''
mean?
• The cost model Introduction
– Rules for
deciding which cost items belong in the case
– Ensuring that
different scenarios are compared fairly
– A tool for cost
analysis
– Showing that all
relevant costs are included
• An activity-based cost model
• A resource-based cost model
• Identifying assumptions / Making
assumptions
Workshop Practical Exercise 2: The Cost
Model
– Choosing the
approach: Activity-based or resource- based model?
– Designing the
cost model structure
– Identifying cost
impacts
– Turning cost
impacts into projected cash flow
Building the Case
• Analysing costs and benefits
• Cost models for the case studies
• The road ahead: Benefits rationale and
cash flow projections
Day I Summary and Wrap Up
Seminar Agenda - Day 2
Day 2 Morning (0900 - 1200)
• Review of Day 1, overview of Day 2
Building the Business Case (Continued)
• Analysing costs and benefits
(continued)
• The full range of business benefits
• Building the benefits rationale:
– Benefits begin
with business objectives
– Common
conceptions about hard and soft benefits
– Problems with
so-called intangible benefits
– Legitimising
benefits for the business case
– Measuring value
in financial terms
• The benefits rationale for case
studies
Workshop practical exercise 3: Benefits
– Identifying
business objectives for action
– Determining
benefits (contributions to objectives)
– Making
objectives and benefits tangible
– The value of
reaching objectives
– Assigning value
to benefits
Lunch (1200 - 1300)
Day 2 Afternoon (1300 - 17.00)
Building the Case (Continued)
• The Financial model
• Cash flow statements
– Full-value cash
flow statement for each scenario
– The incremental
cash flow statement
– The baseline for
measuring savings, increases, and improvements
• Building the financial model
– Static vs.
dynamic models
– Assumptions and
the dynamic model
– 'Costing' and
'valuing' from the assumptions
• Analysing results
Workshop Practical Exercise 4: The Financial
Model
– Designing the
financial model
– Spreadsheet
implementation
– Testing the
model
Packaging and Presenting the Case
• Asking 'What if?' questions ·
Sensitivity, risks, and contingencies
– Sensitivity
analysis: Which assumptions are most important?
– Simple
sensitivity analysis
– Sensitivity
analysis: rigorous
– Risk analysis:
How likely are projected results? Other results?
• Risk and sensitivity analysis with Monte
Carlo simulation
– Reducing
uncertainty in projected results
– Measuring and
reporting uncertainty
– Confidence
intervals for projected results
– Implementing
your own Monte Carlo simulation
• Non financial results in the business
case
– The difference
between 'intangible' and 'non financial' results
– Linking non
financial results to business objectives
– Comparing
financial and non financial results
Workshop Practical Exercise 5: Non Financial
Results
– Non financial
contributions to business objectives
– Comparing
financial and non-financial results on the same basis
Recommendations and conclusions
• Meeting business objectives: What it's
all about
• Contingencies: What must we mange, to
bring in the predicted results?
• Risks: Which risk factors must we
watch?
• Practical guidance for management
Your next steps
Course summary and wrap up
