Showing the value you bring to your organisation

BECAUSE

WE’RE WORTH

IT

Showing the value you bring to your organisation.

HOW DO YOU PROVE

YOUR VALUE TO YOUR

ORGANISATION?

You may have to…

IT spend is at its lowest in 20 years (HBR)

PROJECTS

TYPICALLY

START BY

ASKING:

What’s broken?

When do we need it?

How do we fix it?

WHY?

BEFORE

ASKING

WHAT, HOW

OR WHEN,

ASK:

WE CAN’T

ANSWER

WHY ON

OUR OWN

COUNT YOUR PIGS NOT YOUR CHICKENS.

YOU’LL NEED

STAKEHOLDERS

WHO ARE FULLY

COMMITTED.

You’re involved, but I’m fully committed.

Let’s open a shop called

Bacon & Eggs!

WE WANT TO INCREASE TOP-LINE REVENUE

• Sell more products.

• Increase the range of services.

• Challenge in new markets.

• Make products more accessible.

WE WANT TO BE MORE PRODUCTIVE

• Reduce costs.

• Speed up time to market.

• Mitigate risk.

• Make better use of people’s

time.

TIME IS NOT MONEY

If a manager of 10 people tells

you a new system will save 10%

of their time, ask which one will

be fired.

Measurable benefits directly attributable to

your work.

e.g. reduced software licence costs.

Measurable benefits your work supports.

e.g. increased sales to existing

customers post introduction of CRM.

Non-measurable benefits your work

supports.

e.g. reduced staff “churn” post new HR system.

Non-measurable benefits your work

creates.

e.g. consistent product information in single catalogue.

EVERY ANALYST NEEDS A 2X2 GRID

<100% SYSTEM-

ATTRIBUTABLE

100% SYSTEM-

ATTRIBUTABLE

ME

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NO

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WHEN YOU CAN’T MEASURE BENEFITS

KPIs

ADOPTION RATES

SURVEYS

INTERIM DELIVERABLES

Key Performance Indicators show if you’re on track

But these are NOT benefits!

SOFTWARE AS A SERVICE REDUCES

THE WAIT FOR RETURNS

e.g. If new software returns €10k a month additional revenue:

It would take 6 months to break even on €60k upfront software licences.

But if you pay €5k a month for SaaS you’ll make money in your first month.

WHEN’S MY PAYBACK?

Year 1 Year 2 Year 3 Total

Total costs: -€100,000 -€25,000 -€15,000 -€140,000

Total benefits: €0 €125,000 €150,000 €275,000

Annual total: -€100,000 €100,000 €135,000 €135,000

Running total: -€100,000 €0 €135,000 €135,000

Breakeven (payback) after 2 years

RETURN ON INVESTMENT

• ALWAYS

MEASURABLE

• ALWAYS

FINANCIAL

• ALWAYS

ACHIEVABLE

(TOTAL BENEFIT) – (TOTAL COST)

ROI =

TOTAL COST

e.g.

€275,000 - €140,000

= 96% ROI

€140,000

ESTABLISHED ROI SUITS

ESTABLISHED BUSINESS MODELS

• KNOWN

PROCESSES

• KNOWN DATA

• KNOWN

CUSTOMERS

BUT WHAT IF YOU’RE TRYING

SOMETHING NEW?

NO STAKEHOLDERS +

NO MEASURABLE

BENEFITS = NO

BUSINESS CASE

WE NEED TO ENTER STARTUP MODE

STARTUPS & DISRUPTION

ERIC RIES CLAYTON CHRISTENSEN

Established business models

won’t work forever…

By 2016, 70% of successful

digital business models will rely

on deliberately unstable

processes. (Gartner)

INNOVATE TO SURVIVE

If start-ups can innovate and you can’t, what will happen your organisation?

What will happen to you?

VALUE PROPOSITION

WHAT

PROBLEM CAN

WE SOLVE?

WHO WILL

NEED OUR

SOLUTION?

HYPOTHESIS

+ DATA =

INSIGHT

AN UNINFORMED IDEA IS FANTASY

DATA WITHOUT IDEAS IS MEANINGLESS

VALIDATED LEARNING

BUILD

MEASURE LEARN

WE KNOW HOW TO DO THIS

DIGITAL IS

BASED ON

ITERATION

• Scrum tests development iterations.

• User experience design tests variations.

• Lean startup tests business models.

INNOVATION ISN’T A TEAM

GOOD IDEAS

AREN’T CUT

OFF FROM THE

REST OF THE

WORLD

WE WANT TO

MAKE THE

SMALLEST

POSSIBLE

INVESTMENT

TO TEST

VIABILITY

BUSINESS MODEL CANVASS

STEVE BLANK

BUSINESS

MODEL

GENERATION

steveblank.com

KEY PARTNERS KEY ACTIVITIES VALUE

PROPOSITIONS

CUSTOMER

RELATIONSHIPS

CUSTOMER

SEGMENTS

KEY

RESOURCES

CHANNELS

COST STRUCTURE REVENUE STREAMS

What value do we deliver to customers?

Which of their problems are we solving?

What products & services are we offering?

Which customer needs are we satisfying?

KEY PARTNERS KEY ACTIVITIES VALUE

PROPOSITIONS

CUSTOMER

RELATIONSHIPS

CUSTOMER

SEGMENTS

KEY

RESOURCES

CHANNELS

COST STRUCTURE REVENUE STREAMS

For whom are we creating value?

Who are our most important customers?

KEY PARTNERS KEY ACTIVITIES VALUE

PROPOSITIONS

CUSTOMER

RELATIONSHIPS

CUSTOMER

SEGMENTS

KEY

RESOURCES

CHANNELS

COST STRUCTURE REVENUE STREAMS

What kind of relationship do we have

with our customers?

Which are established and which do

we need to create?

KEY PARTNERS KEY ACTIVITIES VALUE

PROPOSITIONS

CUSTOMER

RELATIONSHIPS

CUSTOMER

SEGMENTS

KEY

RESOURCES

CHANNELS

COST STRUCTURE REVENUE STREAMS

Through which channels will we

reach our customers?

How is that different from what

we're doing already?

Which are most cost-efficient?

KEY PARTNERS KEY ACTIVITIES VALUE

PROPOSITIONS

CUSTOMER

RELATIONSHIPS

CUSTOMER

SEGMENTS

KEY

RESOURCES

CHANNELS

COST STRUCTURE REVENUE STREAMS

Who are our key partners and suppliers?

What are we using them for?

KEY PARTNERS KEY ACTIVITIES VALUE

PROPOSITIONS

CUSTOMER

RELATIONSHIPS

CUSTOMER

SEGMENTS

KEY

RESOURCES

CHANNELS

COST STRUCTURE REVENUE STREAMS

Which activities does our value

proposition require?

How do we create the right distribution

channels, customer relationships and

revenue streams?

KEY PARTNERS KEY ACTIVITIES VALUE

PROPOSITIONS

CUSTOMER

RELATIONSHIPS

CUSTOMER

SEGMENTS

KEY

RESOURCES

CHANNELS

COST STRUCTURE REVENUE STREAMS

Which resources will our value

proposition require?

Which resources are needed to

support our activities?

KEY PARTNERS KEY ACTIVITIES VALUE

PROPOSITIONS

CUSTOMER

RELATIONSHIPS

CUSTOMER

SEGMENTS

KEY

RESOURCES

CHANNELS

COST STRUCTURE REVENUE STREAMS

Which are the most significant

costs to this business model?

Which resources and activities are

most expensive?

KEY PARTNERS KEY ACTIVITIES VALUE

PROPOSITIONS

CUSTOMER

RELATIONSHIPS

CUSTOMER

SEGMENTS

KEY

RESOURCES

CHANNELS

COST STRUCTURE REVENUE STREAMS

What are our customers willing to pay?

How would they prefer to pay?

How do these differ from what they do already?

KEY DIFFERENCES BETWEEN

TRADITIONAL & STARTUP

TRADITIONAL

• There’s a problem to solve.

• If we don’t do this work,

we’re creating a problem.

• We’ve some data to work

with.

STARTUP

• Let’s find a problem to solve.

• If we do this work, we’re

creating an opportunity.

• We need to gather some data.

KEY SIMILARITIES BETWEEN

TRADITIONAL & STARTUP

• Ideas can’t be gathered in isolation; you need stakeholders.

• Focus on the customer.

• Seek out revenue-led and productivity benefits.

• Benefits need to be financial.

• Decisions are based on data.

HOW ELSE

CAN WE USE

THIS DATA?

WE KNOW

WHERE THE

VALUE IS

EMPHASISE CALLS TO ACTION

Low value

Low value High value

High value

Where do we save the most money by doing this online

rather than face-to-face?

UNDERLINE THE IMPORTANCE OF

USER EXPERIENCE

• Benefits can only be

maximised by maximum

adoption.

• Early adoption leads to better

ROI.

• User experience testing

directly improves ROI.

DEVELOP YOUR BRAND’S ROI

• Setting and meeting

customer expectations.

• Reducing cost of sale to

existing customers.

• Improving market

penetration of new products

under same brand.

PAY AS YOU USE, NOT UPFRONT

• Software as a Service (SaaS).

• Browser-based applications

over client installs.

• Only future-proof where you

know what the future holds.

RELEASE LITTLE AND OFTEN

• Frequent releases provide

earlier ROI.

• You can measure impact

earlier.

• You can change your mind if

things aren’t working.

WE ALL WANT TO BE PART

OF THE NEXT BIG THING.

Internet of Things

Sharing economy

Wearable technology

Virtual personal

assistants 3D bio-printing

BUT LOSING MONEY

ISN’T CUTTING EDGE.

LET’S SHOW WE CAN MAKE

ROBUST DECISIONS.

CAN YOU PROVE YOUR WORTH?

1. BUILD CONFIDENCE BY DEMONSTRATING

MEASURABLE, FINANCIAL AND ACHIEVABLE

BENEFITS.

2. PROPOSE IDEAS, USE DATA TO TEST THEIR

VALUE.

3. USE VALUE-BASED METRICS TO IMPROVE

DECISIONS.

DIGITAL IS WHY

WE’RE SUCCESSFUL.

I AM DIGITAL.