Cloud Computing and SOA Convergence in Your Enterprise: A Step ...

78 Chapter 4 Making the Business Case for Clouds
Step 6: Define Hard Benefits
In this step, we define the hard benefits in terms of direct and visible cost reduction
and/or business efficiencies that are corrected. Refer to the list in
step 5 as a jumping-off point to itemize and place dollar values next to the
list of hard benefits, cost savings, or revenue-producing items that are easy to
understand and quantify. The amount of money you place next to each benefit
should have some detailed analysis around it.
For instance, when considering the value of preserving capital, you
should use the analysis and concepts outlined earlier in this chapter. However,
make sure to localize the analysis within your business to make the point:
What does this hard benefit mean to your business And list the numbers behind
the hard benefits.
Step 7: Define Soft Benefits
Soft benefits are those value points that are difficult to quantify but are benefits
nonetheless—for example, the value of better customer satisfaction (the
value that customers see from better IT support of business processes they
participate in) or the value of better employee moral (the value of being seen
in your space as using modern technologies and thereby attracting or retaining
better talent). We know the business benefits from these things, and here
is where you attempt to quantify those benefits.
For instance, the use of as SOA using a cloud computing approach to
provide better access to systems for key customers should result in X additional
sales with Y margins and therefore Z profits. In many instances, the
soft benefits are as valuable as, or more valuable than, the hard benefits when
considering the business.
Step 8: Create the Final Business Case
Creating the business case is something we have been doing throughout this
chapter, but here is where you write it down for the stakeholders. At a minimum,
the business case should include
1. A clear understanding of the current business and IT issues the business
is facing.
2. The amount of money these issues are costing the business.
3. The proposed improvements when leveraging SOA using cloud computing
to address the identified business issues.