These are the basics you will need to know to educate your customer. It’s worth the time if you need this.
As Is & To Be
Understanding the Context
In any business case, we’re looking at how an investment will transform the customer’s business from its current state (As-Is) to its future state (To-Be). The solution you’re offering is what drives this transformation.
The Equation Simplified
The value of your solution is the cost reduction from the As-Is to the To-Be state.
Formula
As-Is Cost ($) – Improvement Value-Add ($) = To-Be Cost ($)
Example
If your customer’s current cost is $100, and your solution reduces that by $30, the To-Be cost is $70.
Events
What is an Event?
An event is anything that creates business impact. It can be something that happens—like a system failure—or an ongoing situation, such as outdated processes affecting competitiveness.
Why Events Matter
Events lead to impacts, which are the measurable consequences that drive costs into the business.
Example Impacts of an Event (e.g., Assembly Line Breakdown)
The more impacts you identify, the stronger and more defensible your business case will be. Remember, it’s common to have multiple connected events.
Impact Types
What is an Impact?
An impact is a measurable cost resulting from an event. Multiple impacts typically arise from one event.
Key Point
The more impacts identified and quantified, the stronger the business case.
Why Impacts Matter
Without measurable impacts, there’s no clear cost to justify investment.
Example
Value
Defining Value
Value is the reduction in a customer’s business impact due to the benefits provided by your solution.
Formula
As-Is Impact – To-Be Impact = Value
Example
If the As-Is impact is $350/year, and the solution reduces it by $45/year, the value is $45 per year. Over three years, that’s $135 in value.
Why It Matters
Clear, quantifiable value makes a business case credible and compelling.
Scenarios
As-Is Impact = Current cost due to the event.
To-Be Impact = Future cost after the solution’s benefits.
Improvement = Total reduction in cost due to the solution.
Solution Cost = Total investment required.
ROI % = (Improvement / Solution Cost) x 100
Weighting - Not All Value is Created Equal
Understanding Weighting Different impacts have different real-world effects. Weightings adjust these to reflect conservative, realistic outcomes.
Weighting Matters because it ensures business cases are not overstated, making them more defensible and credible.
Impact versus Benefits
Why Hard Numbers Matter Hard numbers are measurable, defensible, and transparent. They build trust and credibility with the customer.
Key Advantages of BizKase:
Gating - Managing Risk
Why Gating is Critical It adds realism to business cases, ensuring conservative and credible outcomes.
The factors are:
Processing State
Processing states identify the selling stage a scenario or solution is in and are important in quantifying pipeline. The stages are:
Consistent & Scalable Qualification
Why it Matters Accurate, scalable data collection ensures strong, defensible business cases enabling users to move from complex spreadsheets to a structured, repeatable system that scales with business needs.
ROI / ROI% Calculation
Formula: (Improvement / Solution Cost) x 100
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