Webinar on Requirement Prioritization Process - iZenBridge

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Webinar on

Requirement Prioritization Process

By Saket Bansal


Agenda

Requirement

Prioritization Process

Tools and Techniques

Quick Overview of PMI-PBA(SM)


A condition or capability that is required to be present in a product, service, or result to satisfy a contract or other formally imposed specification. – PMBOK® Guide 5th Edition

What is Requirement ?


Requirement

• Met by product or service

• Address need of Business

• Address Need of Stakeholders

• Features to be met by product or service


Requirement Types

Business

Stakeholder

Solution





Process of assigning a precedence that orders or ranks one requirement over another


Why Prioritization?

There is rarely enough time and money to implement all requirements



Prioritization

What Criteria / Weight

When Frequency /

Stage

Who Stakeholders

(RASCI)

How Techniques /

Survey / Meeting etc.


Project Life Cycle

Life Cycle

Adaptive Each Iteration

/ Release

Predictive Up-front

Prioritization


Factors in Prioritization

• Value / Cost of Delay

• Cost

• Risk / Opportunity

• Learning

• Regulatory


Requirement type and Prioritization

Requirements

Business Business Case

(NPV, IRR , Payback period etc.)

Stakeholders

Stakeholder Influence, alignment with Business Need

and Filters

Solution Value, Cost, Risk, Learning etc.


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Prioritization

Tools and Techniques


Business Requirement: Financial Values

Value

More Revenue

New Revenue

Incremental Revenue

Retain Revenue

Cut Cost Operational

efficiency


Financial Value

$

How to get the

forecast?

How to compare present

money with future money

What is a rate of return?

How to compare

two options


Time Value of Money

Present Value (PV)

Year 1

Year 2

Year 3

Future Value (FV)

A theme

returns

5000 USD

after 4 Years

PV = FV / (1 + i)^ n i = interest rate / discount rate say 10% n = period PV = 5000 /(1+10/100)^4 PV = 3424 USD


Net Present Value

Outflow 1000 USD

Outflow 1000 USD

Inflow 4000 USD

Outflow 2000 USD

Inflow = 5000 USD

NPV = Sum(FV / (1 + i)^ n) i = interest rate / dsicount rate say 10% n = period NPV = -1000-1000 /((1+10/100)^1) +4000/((1+10/100)^2) - 2000/((1+10/100)^3) + 5000 /(1+10/100)^4 = -1000-1000/(1.1) + 4000 / (1.1*1.1) - 2000/(1.1*1.1*1.1)+5000/(1.1*1.1*1.1*1.1) NPV = 3309 USD


Internal Rate of Return (IRR)

Outflow 1000 USD

Outflow 1000 USD

Inflow 4000 USD

Outflow 2000 USD

Inflow = 5000 USD

0 = Sum(FV / (1 + i)^ n) i = interest rate / discount rate say , this is what we calculate n = period 0 = -1000-1000 /((1+i/100)^1) + 4000 /((1+i/100)^2) – 2000 /((1+i/100)^3 + 5000 /(1+i/100)^4 i = 69%


Payback Period

The “payback period” is the amount of time it will take to recoup, in the form of net cash inflows, the net dollars invested in a project


Financial Prioritization

Value

NPV The higher the NPV the better

IRR The higher the IRR the better

Payback The shorter the payback period

the better


Requirement Filters

Requirements

Filters (Scope, Testability,

Priority, etc.)


Kano Model of Customer Satisfaction

Feature Presence

Cu

sto

me

r Sa

tisf

acti

on

Fully Implemented

Hig

h

Absent

Low


MoSCoW

MoSCoW

Must Have Must be included

before the product can be launched

Should Have Features not critical

to launch, but considered important

Could Have Nice to have and

could potentially be included

Won’t Have Features requested

but explicitly excluded from

release


Multi-voting


Summary

• Define prioritization process

• Prioritization tools varies based on type of requirement and life cycle

• Prioritization is an Iterative Process

• Engaging stakeholders results in long term benefits


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PMI-PBA(SM) Overview


PMI-PBA(SM)

The PMI-PBA credential recognizes an individual's expertise in business analysis, and using these

tools and techniques to improve the overall success of projects.

- PMI-PBA(SM) Handbook


PMI – PBA(SM) Eligibility Requirements

Secondary Degree

Bachelor's Degree

7500 Hrs BA Exp

4500 Hrs BA Exp

2000 Hrs Project Team

35 PDUs in BA


PMI-PBA(SM)

Cost $ 405 PMI Members $ 555 Non PMI Members

Exam 200 Questions 4 Hours Prometric Center

Preparation PMI Business Analysis Practice Guide Part of PMBOK® Guide fifth Edition Sections for PMI Recommended Reference Books

We do Provide 35 Contact Hours Program for PMI-PBA(SM)


Our Training Offerings

PMI-ACP® • Online PMI-ACP® preparation program • Classroom sessions at Delhi , Bangalore , Pune and

Hyderabad

PMI-PBA(SM) • Online PMI-PBA(SM) preparation program • Classroom sessions at Delhi and Bangalore

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