Building the Business Case for Your IT Transformation

By Norman Dee

IT transformation and positioning IT as a broker of cloud services can result in significant changes to service delivery and accountability. A new IT operating model and a new way of thinking are needed for leveraging new technologies, consolidating and standardizing hardware & applications, and migrating workloads to new platforms and/or service providers. Also required are new IT processes that are aligning business needs, new organizational structures and skill sets for IT staff.  All of these changes require funding. How do you build a business case to justify the transformation costs to the business?  Intuitively, we know it is more efficient.  How do we prove it?

Business Case Components

Independent of the goals of the IT transformation (e.g. technology change, process improvement, IT as a Service (ITaaS) journey, buy vs build) the components of the business case always include what the:

  • Cost would be without executing changes, or Business-as-Usual costs
  • Cost would be for executing the changes
  • Expected benefits of the changes are
  • Timeframe is needed
  • Risks are involved for both doing the changes, and not doing the changes

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