An organization seeks to create value by balancing growth, profitability and efficiency. Its main objective is to generate profits, while optimizing costs and improving productivity. But this quest is not limited to profitability.
A company must also satisfy its stakeholders: customers, employees, investors, and meet external requirements such as regulatory compliance and responsible practices.
To ensure its long-term survival, a company must innovate, differentiate and adapt to market changes. Sound governance is essential to avoid drift and ensure a structured framework that supports strategic objectives.
The fundamental aim of any organization is to generate long-term, sustainable profit. Three key financial indicators are used to measure the achievement of this goal:
- Throughput (cash flow generated) The speed with which an organization transforms its sales into cash.
- The inventory The money invested in goods that the organization plans to sell.
- Operating expenses Money spent to transform inventory into throughput.
IT projects must be strategic levers for achieving this goal. They are not isolated initiatives, but respond to a specific business need - solving a problem or generating a gain. For example, optimizing processes, increasing revenues, or improving the employee and customer experience can directly support these key indicators.
This is where the business case comes in, to ensure that each IT project is aligned with the organization's strategy, demonstrating its value and impact on long-term objectives.
Aligning IT projects with business objectives: Leadership required!
Company managers or project sponsors play a key role in developing the business case, an essential foundation for future IT projects.
A project should never be an isolated initiative: it must be aligned with business objectives to improve efficiency, reduce costs or stimulate growth.
Understanding the strategic reasons behind an IT project is key to aligning it with business objectives, ensuring that each initiative supports value creation and fosters stakeholder engagement.
A solid business case is essential to justify strategic decisions.
Here are his major roles:
- Decision-making tool It helps determine which projects will be funded and which will be postponed or cancelled.
- Communicating value It highlights the value of the project by detailing the expected costs and benefits.
- Requirements gathering and change management It clarifies the link between project components, business benefits and associated costs.
- Decision-making guidance It guides management through the project, illustrating the potential impact of variations.
- Risk management It helps identify risks and define actions to control them.
The business case evolves gradually, from an approximate vision to a detailed analysis of costs and benefits, enabling us to assess the viability of the project before allocating resources.
Financial indicators such as net present value (NPV), payback period (" payback period ") and internal rate of return (IRR) guide decision-making. A regular review of the business case throughout the project enables performance and strategic decisions to be measured and adjusted.
Business Case: Pillar of sustainable change
Smooth collaboration and clear communication between departments are essential for a successful digital, Lean or agile transformation.
This makes it possible to manage risks effectively and overcome obstacles proactively. These transformations require thoughtful change management, often underestimated by leadership.
Corporate culture and lack of management support are frequently cited as causes of failure. Managers must constantly initiate and support change.
The business case then becomes a strategic lever for achieving this transformation.
It provides a shared vision and clear objectives, while justifying the need for change and its integration into the company's long-term strategy.
By investing in the creation of a solid business case, managers reinforce their role as champions of change.
The crucial importance of a business case in AI projects
Artificial intelligence (AI) projects are more complex than traditional ones. Their progress is often measured by performance indicators, such as model accuracy, rather than "tangible" deliverables.
The business case becomes essential to justify investments and define clear objectives. It helps validate the expected benefits while taking into account the unique risks of AI, such as data biases or ethical challenges.
Relationship between use cases, business cases and data mining
In AI projects, the production and selection of use cases depends directly on the business case. The business case ensures that each use case is relevant and aligned with strategic objectives.
The process includes :
- Use case production The business case identifies strategic objectives and expected benefits, enabling the definition of use cases aligned with these objectives.
- Prioritizing use cases The business case helps prioritize use cases according to their impact and feasibility.
- Use case selection : During the selection process, the business case guides decisions, taking into account costs, benefits and risks.
Practical recommendations for maximizing the success of AI projects
- Extended collaboration : Impliquez dès le début un professionnel en gestion de projet et au moins une ressource technique qualifiée du genre : Architecte de Solution, Ingénieur de Données, Scientifique des données, etc. pour la partie « faisabilité » du business case.
- Profitability analysis : Include a business case to justify each use case.
- Iteration and adjustment Be ready to adjust the business case and use cases as new information emerges.
- Ongoing documentation Make sure that discoveries from data mining are used to fine-tune the business case and use cases.
- Structured models Use templates to ensure a consistent structure and optimize prioritization of use cases.
In short, a well-designed business case helps to define, prioritize and select the most strategic use cases, while ensuring optimal data management. This approach reduces risks, optimizes benefits and ensures that the AI project is well aligned with the company's long-term objectives.
In conclusion, the importance of a solid business case in managing IT projects, especially those involving cutting-edge technologies such as Artificial Intelligence, cannot be underestimated.
This strategic document defines the project's objectives, deliverables and success criteria, ensuring that all players, whether internal or external, are aligned with the same vision.
The business case also becomes a guide throughout the project lifecycle, enabling the performance of use cases to be measured and adjusted during the various iterations of the solution developed by the supplier. This ensures that each phase of the project remains aligned with the set objectives, generates real value and ensures the quality of deliverables as progress is made.
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About the author
With over 20 years of experience management Information Technology, Éric Auger helps companies accelerate their value delivery and optimize their organizational performance. IT consultant specializing in project management, Lean Six Sigma Green Belt Practitioner, Kanban management expert and Agility coachI combine strategy, tactics and operations to maximize your competitiveness in the digital age.
Passionate about digital transformationI work with organizations to optimize their value flowguaranteeing sustainable competitive advantage. I also like share my expertise and help professionals strengthen their skills in project management and agility.
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