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The BCBOK® Framework: HOW DOES IT WORK?





             For  this  reason,  before  proceeding  to  a     Pareto Law based on the principle that 20% of
         cost-benefit  analysis,  the  solution  proposed       the causes justify 80% of the consequences.

         should be analyzed carefully on a qualitative         Following  this  approach,  we  recommend
         level. Several tools and techniques, such as the      determining up to three benefits on a business
         Strategic  Force  Analysis  and  the  Scoring         case  evaluation.  If  the  primary  (three)
         Model, assist in diagnosing the contribution of       expected  benefits  would  not  be  enough  to
         every benefit to each strategic goal (See page         justify and pursue the investment, it shouldn't
                      ®
         94 of BCBOK  V1.1).                                   go  ahead.  With  this  approach,  one  avoids
                                                               identifying  several  residual  benefits,  which
         TRIGER  | GO or NO GO                                 otherwise  could  lead  to  inaccurate  analysis.

             After  evaluating  the  initiative's  strategic       There are several techniques to collect the
         alignment  –  step  2,  one  must  decide  as  to     current  situation  and  evaluate  the  future

         whether the business case moves on to the next        scenario  when  estimating  the  benefits.
         step.  If  the  initiative  is  not  aligned  with  the   Identifying the suitable sources of information
         organization's  strategy,  this  should  follow  the   and the evaluation techniques will determine
         "No-Go"; as a result, it should not move forward.     the business case's accuracy and integrity. For
                                                               this reason, this step is highly critical to ensure
                                                               the estimation will be the closest to reality and
              STEP  3 | Benefits Estimation                     consequently with the lowest deviation.
                                           ®
                    Refer to page 102 of BCBOK  V1.1

                                                                      STEP  4 | Costs Estimation
                                                                                                 ®
                                                                         Refer to page 112 of BCBOK  V1.1





             If  the  initiative  meets  the  strategic
         requirements, the next step is to evaluate the
         benefits quantitatively. Considering that tight
         budgets  are  one  of  the  most  significant              After estimating the initiative benefits, it is

         barriers in current organizations, the estimated      necessary to estimate the costs involved. The
         benefits  should  be  the  primary  reference  for     costs  include  investment  costs  before  the
         the  budget  definition,  avoiding  excluding          exploitation  period  plus  the  new  operational
         projects  with  high  return  potential  due  to      expenditures (OPEX).
         budget constraints.                                       Considering  the  product/service

             The benefits quantification should follow a         components, the tasks involved, and also the
         well-known  principle  based  on  Pareto  Law         project uncertainty during the whole process is
         which  initially  explained  that  20%  of  the       essential to obtain a conservative estimation
         population generates 80% of the country PIB.          and  ensure  that  the  allocated  budget  is
         Nowadays, different fields of knowledge apply          enough.





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