How to write a business case for cloud
If you’ve ever had a purchase request knocked back, it may have lacked some key elements that management evaluates when allocating funds. In this blog, I will address how to build a business case for spending your company’s money on a private cloud.
The Basics - A business case is a proposal that does the following:
• States the problem
• Describes a solution
• State the price of that solution
• Demonstrates the ROI
Normally you would build a documents that contains an exec summary, current situation, how your desired solution works, the financial proof a conclusion.
Don’t just state why a private cloud would decrease cost and increase revenue. Try and tie the strategy to how the current situation affects the corporate mission statement. In one case our client was able to demonstrate that new deployments were taking so long he was unable to deliver on their mission statement “Provide superior returns to our shareholders by tirelessly pursuing new growth opportunities while continually improving our profitability”.
Cost centre vs Profit centre
Your boss is concerned with two things increasing revenues and decreasing costs. So in this context technical communicators are considered either a profit centre or a cost centre.
A profit centre is part of a company that generates more revenue than it takes to operate. For example, a sales team that generates $1 million a year in sales but only costs the company $100,000 a year is clearly a profit centre. If it costs $5 per unit to manufacture a birdhouse (taking into consideration all the direct and indirect costs) and the company sells those birdhouses for $10 each, the manufacturing and sales teams would also be a profit centre. Another example would be a consulting division that charges its customers $250 per hour for its services when they cost the company an average of $108 per hour per consultant. In all three examples, the areas cited are directly involved in creating more income for the company than they require from the company.
Profit centres have an easier time getting purchases approved than cost centres. The issue of how management views technical communication and how to change that perception, although be-yond the scope of this article, is at the very core of the drive to advance our profession.
Your cloud business case should include the following:
1. Explain reasons for starting the project i.e increased efficiency, more engagement, more profits or anything else that the Cloud Platform will overcome list the members of the group and why each person was chosen.
2. Describe about the methods used to do it’s evaluate each of the cloud provides. Include your selection criteria.
3. Explain in detail how the Cloud Platform would addresses the problems include all of the possible uses of the platform i.e. e-learning, managed exchange etc.
4. Indicate what is needed to implement the platform, including items like a monetary budget and increased labour. Anything that is needed to complete this solution should be explained in this section.
5. Provide a timeline for implementation of the project. Start from the beginning and estimate implementation dates to the completion of the project.
6. Provide a migration plan to move from the non-cloud platform to the cloud platform
7. Identify what will happen if this cloud platform is not adopted. Explain the consequences and what the business may experience without implementing this plan.
8. Write about the next steps of the program. If migration is the next step, indicate this. If more research is necessary, explain why.