What is a business case for investment in EA components? What are the roles of an Alternatives Analysis, Cost Benefit Analysis, and Return on Investment calculation in the business case?

Category: Enterprise Architecture Management

A Business Case shows the value and projected results of selecting an investment in a particular IT solution. Within a business case, one performs an Alternatives Analysis to determine if there are several viable alternatives for meeting the stated EA-related requirement(s). Identify how each alternative meets or does not meet the requirement(s). Perform a Cost-Benefit Analysis for each alternative and then determine what the Return on Investment will be (using a Net Present Value discount factor) during the lifecycle. Perform a risk analysis to identify areas of risk and mitigation strategies. Select the best alternative based on (1) strategic alignment, (2) architecture alignment, (3) ROI, (4) security solution, (5) level of risk, (7) total cost of ownership, and (7) available resources. Ensure that the rest of the PMP documentation focuses only on the selected alternative. \nDescribe roles and responsibilities in the capital planning governance process. \nGovernance processes, including CPIC, are those that provide policy and decision-making, and they should be overseen by some form of Executive Steering Committee that is comprised of the enterprise’s top executives. The CPIC process should be managed by the enterprise’s Chief Financial Officer (CFO) in collaboration with the Chief Information Officer (CIO) and LOB managers. Because CPIC is primarily a financial investment decision-making process, the CFO should lead it, but it is very important in information-centric enterprises that the CIO be a partner in the process and that these two executives effectively integrate CPIC and the EA Management process. CPIC decisions in each phase of the process should be made by an executive level Capital Planning Board (CPB) that is supported by a Capital Planning Working Group (CPWG) and an Enterprise Architecture Working Group (EAWG). In this way, CPIC decision-making has senior stakeholder involvement and the documentation and analysis activities are accomplished by subordinate groups of experts in business and technology.

Tag: EAM