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Chapter 8 “ Creating a Business Case”. A B C. lways. e. losing. By Drew Machleid. Milton Friedman “There is no free lunch”. A Lover A Fighter A pretty decent Economist. Problems With Building A Persuasive Business Case. Benefits must outweigh the costs

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Chapter 8 creating a business case

Chapter 8“Creating a Business Case”

A

B

C

lways

e

losing

By Drew Machleid


Milton friedman there is no free lunch
Milton Friedman“There is no free lunch”

  • A Lover

  • A Fighter

  • A pretty decent Economist


Problems with building a persuasive business case
Problems With Building A Persuasive Business Case

  • Benefits must outweigh the costs

  • Costs are tangible, most benefits are intangible

  • New territory for Sponsor/Executive


Cost benefit analysis
Cost Benefit Analysis

  • Use the project to drive issues of importance

  • Demonstrate business need

  • Massage your cap rate


Costs and benefits
Costs And Benefits

  • Costs

    • Hardware purchase/lease

    • Vendor software

    • In-house developed software

    • Installation and conversion

    • Ongoing support

    • Maintenance costs

  • Benefits

    • Cost reduction

    • Improved business decision making


New territory for executives
New Territory For Executives

  • Not knowing what to expect…and why



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