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Benefits Dependency Network

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hannah smith

on 14 October 2016

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Transcript of Benefits Dependency Network

Saving You £££, Every Day
Recognised the following issues with their current approach......
ASDA - Saving You Money Every Day
BDN - Cranfield University
Discovered the Benefits Dependency Network
ASDA - Searching for a new way...
Building Up the BDN - 3 Workshop Approach
What is a benefit?
A Benefit
Benefits Dependency Network
What it is and how it could help us
A Visual Benefits Dependency Network
Example - CRM
Building up the BDN - 3 Workshop Approach
An advantageous change realised from the transformation of resource to deliver new or improved value adding activity
A benefit is a result that a stakeholder perceives to be of value.
Insufficient understanding of the business changes needed to achieve the benefits
Benefits are exaggerated in order to obtain funding
Focus was always on financial return, which;
Encouraged 'creative' calculations of benefit
Discouraged innovative uses of IT as the benefits are less certain
Visual tool that works backwards from the projects objectives
The BDN ensures that all necessary business changes are made as well as the necessary IT developments that are needed to support the change
It then shows the chain of causality between IT, Business Change and project objectives.
What system capability are we talking about?
One-off activities to support the longer term view
Something the business will have to do differently going forwards
These are the benefits to a given Department and will be what we measure against
These are the benefits to the entire organisation
The real aspiration goal. Often abstract and doesn't fit with the D2D. Visionary purpose and should align to the strategic objectives.
The right-to-left approach ensures that projects are driven by business demand and not IT supply and investments in IT are only made when they will provide explicit business benefits
Step 1:
Introduce the technique and objectives of workshop
Step 2:
Clarify the Project Scope so the group are aware of the benefit boundaries
Step 3:
Give people 10 mins to individually write down benefits / opportunities / drivers
Workshop 1 - The Drivers & Benefits
Step 4:
Facilitate the consolidation & categorisation of benefits into Drivers / Benefits / Business Benefits
Workshop 2 - The Means, The Ways, The Ends
Step 1:
Re-cap on Drivers, Inv Obj. & Business Benefits.
Give people 10 mins to note down the business changes required
Step 2:
Facilitate consolidation and categorisation of Business Changes & Enabling Activities
Step 3:
Facilitate group session to identify IT functionality required to enable the business changes and benefits realisation
Step 4:
Run through the network right to left, validate that you have the
and the
to deliver the
Step 5: Write Up the BDN, map the relationships and start to include in the Business Case
Building up the BDN - 3 Workshop Approach
Workshop 3 - Review & Business Case Development
Bring people back together again and re-cap
Start to have the difficult conversations around the business case
Categorise the Business Benefits - Financial / Quantifiable / Observable / Measurable
Doing it like this means the Business are essentially writing the Business Case themselves. We move away from the position of -

'Well, the requirements were wrong in the first place!!!'
Developing the BDN into the Business Case
Six-Step Process
Step 1 - Define the business drivers and investment objectives

Step 2 - Identify benefits, measures and owners

Step 3 - Structure the benefits (type of business change)

Step 4 - Identify organisational changes enabling benefits

Step 5 - Determine the explicit value of each benefit

Step 6 - Identify costs & risks
The BDN provides a framework

Explicitly links the overall investment objectives and the requisite benefits with the business changes which are necessary to deliver those benefits.

What you want
What you need to see
What you need to provide
What you have to do
What tools you need
Why it's worked for ASDA...
Ensures investment is driven by
business demand

types of benefit are recognised

benefits have measurements and owners identified

is sought for the expected benefits

Benefits are
explicitly linked
to both the IT and business changes that are needed to deliver the benefits

Which has led ASDA to...

Clearer planning

Improved relationship between IT and the Business

Better investment decisions being made

Increased benefit realisation
Full transcript