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ZDNet Make the Case Series:

IT Business Case Template:


Wireless Security

All names and brands are property of their respective owners.


Copyright (c) 1995-2004 CNET Networks, Inc. All rights reserved.
General Introduction.........................................................................2
I. Need/Opportunity ......................................................................................................... 3
II. Stakeholders.................................................................................................................. 4
III. Alternatives ............................................................................................................... 4
IV. Business values for the alternatives ........................................................................ 14
V. Recommendation ........................................................................................................ 15
Product Description.........................................................................17
Glossary ............................................................................................18
I. Need Opportunity........................................................................................................ 18
II. Stakeholders................................................................................................................ 18
III. Alternatives ............................................................................................................. 18
IV. Business Values for the Alternatives ...................................................................... 21
V. Recommendation ........................................................................................................ 22

Copyright (c) 1995-2004 CNET Networks, Inc. All rights reserved. 1


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General Introduction
A wireless infrastructure can increase productivity by allowing your mobile staff more flexibility and
easier access to back-end data. However, these benefits must be weighed against some serious
security risks. So, before your implement a wireless infrastructure that supports a variety of devices—
from handheld computers and laptops to wireless-enabled PDAs—you need to ensure that the
organization has established clear access policy and procedures.

The threats
Wireless security concerns include:

• Rogue users
• Inadequate access policies and procedures
• Unauthorized access to bandwidth via public hotspots
• Stolen laptops and other wireless-enabled devices
• Poorly guarded access ports

Security measures
When the organization purchases mobile devices for field staff and telecommuters, you should
consider their security features and not only budget or convenience. Other security measures include:
• Change the default SSID (network name)
• Disable the SSID broadcast option
• Change the default password needed to access a wireless device
• Implement a point-to-point Virtual Private Network (VPN)
• Implement adequate encryption, user authentication, and administration tools
• Adhere to the latest standards, such as 802.11g
• Study emerging standards, such as 802.11i and 802.1x
• Turn off wireless cards on laptops or other PDAs unless you are near a trusted access point

Take advantage of the benefits


However, a secure wireless infrastructure can provide mobile employees with substantial benefits,
such as:

• Fast, secure access to back-end databases and knowledge repositories


• Rapid customer response time
• Flexibility when communicating from remote locations
• Better workflow

Other implementation considerations should include end-to-end testing of wireless hardware and
networking and interoperability of enterprise applications in a wireless environment. Technical staff
should monitor data throughput and database connectivity.

This business case will walk you through the opportunities, costs, associated risks, and alternatives
when making the case for wireless security. However, the template may need customization. Each
organization is likely to have unique challenges and opportunities that the business case should
address.

Copyright (c) 1995-2004 CNET Networks, Inc. All rights reserved. 2


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I. Need/Opportunity
Key technical and business objectives for consolidating wireless security:

A. Tangible goals or objectives

1. Hardware
• Allow for greater end-user efficiency and productivity
• Support Wi-Fi Protected Access (WPA)-endorsed access chips and
hardware
• WLAN supported switches
• Support for wireless cards for laptops and handheld devices
• Support for Advanced Encryption Standard (AES)
• Support for emerging security standards, such as 802.11i
• Secure access points

2. Software Applications
• Improve response time and performance and increase flexibility
• Extend knowledge repositories to field staff
• Extend mission critical applications to remote employees
• Support for access point development kits

3. Operating Systems
• Cost-effective deployment and maintenance
• Allow for more efficient management of wireless and other computer
hardware
• Improve security and reliability
• Support for emerging wireless technology

B. Scope
Impact and benefits from a secure wireless infrastructure:

Increased user productivity


• Increased access to mission-critical business information, such as downloading
purchase orders or access to an existing knowledge base
• Remote high-speed access from public places, such as airports or convention centers
• Remote access to existing back-end applications
• Faster workflow for field staff
• Lower upfront investments costs for new hardware issued to mobile/remote personnel

Types of wireless security threats


• Data easily intercepted
• Unauthorized access to bandwidth via public hotspots
• Stolen laptops and other wireless enabled devices
• Strong reliance on off-the-shelf security measures
• Rogue users
• Inadequate access policy and procedures

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• Lack of strong encryption, such as Advanced Encryption Standard
• Poor adherence to standards, such as 802.1x
• Inadequate protection of access ports
• Delinquent security for cell bases and access points

II. Stakeholders
A. Primary
• Executives and managers who must extend the corporate knowledge base to mobile
employees in a secure manner
• Executives and managers who must ensure the availability of servers and applications
• Executives and managers who must improve productivity for field employees

B. Secondary
• End users who need reliable access to up-to-the-minute, secure, remote back-end
information
• IT support staff who must maintain a secure wireless infrastructure for remote field
employees
• IT staff who must support non-PC wireless hardware, such as Pocket PCs and PDAs

III. Alternatives
A. No Change
If current wireless infrastructure can securely meet the business demands, no change
might be the right choice for the enterprise.

1. Hardware

a) Cost
Even if not considering wireless security measures, other costs may be
incurred under the status quo, including:
• Inability to adequately protect transmittal of data in a wireless
environment
• Sub-optimal performance and speed
• Business sensitive information at risk of being intercepted
• Future hardware upgrade requirements (wireless cards, access
points, switches)
• Possible increased cost if need to upgrade in the future
• Lack of backwards compatibility among devices
• Opportunity costs due to lost sales, an unresponsive customer
support team, slow decision-making process within the organization,
etc.
• Additional virtual private network security (VPN)

b) ROI
Savings from immediate expenditures must be weighed against the following
points:

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• Higher long-term costs of rolling out wireless connectivity across the
enterprise
• Diminished or no Return on Investment (ROI)

c) Risk
• Diminished residual value of existing assets
• Expiration of warranties and technical guarantees
• Inability to keep up with industry wireless security standards
• Existing wireless infrastructure fails to meet future security needs
• Loss of employee productivity due to an insecure wireless
infrastructure
• Inability to support and maintain new wireless-enabled hardware,
such as access points and cell bases
• Inability to keep pace with emerging technology and business
standards, such as 802.1x and Extensible Authentication Protocol
(EAP), the standard used for authentication
• Increased opportunity for network intrusion
• Inability to keep pace with industry standards
• Inability to adequately monitor network traffic

2. Software

a) Cost
• Software licensing/maintenance cost for additional wireless
applications
• Increased costs accommodate wireless security and upgrade
existing applications
• Loss of employee productivity
• Reduced remote access to existing back-end applications
• Inability to keep pace with industry standard wireless productivity
applications
• Firewall software for remote workers

b) ROI
Savings from immediate wireless security expenditures must be weighed
against the following points:
• Problems supporting applications on an insecure wireless
infrastructure

c) Risk
• Lowered productivity and efficiency
• Data intercepted because of insecure wireless applications
• Falling behind industry standards
• Inability to catch up with early adopters that have already realized a
competitive advantage

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3. Operating Systems

a) Cost
• Licensing/maintenance cost for existing software
• Inability to take advantage of new operating system security
features, such as Microsoft* Windows XP Encrypted File System
(EFS)
• Management costs associated with keeping the system current and
secure (patches, updates, etc.)
• Future operating system upgrade requirements

b) ROI
Savings from immediate expenditures must be weighed against the
following points.
• Costly upgrades
• Inefficient roll out of service packs and updates
• Loss of wireless security features offered in the latest release
• Loss of wireless productivity features offered in the latest release

c) Risk
• Lowered productivity and efficiency
• Adverse effect on productivity of employees
• Poor network security because of inadequately protected access
ports and wireless infrastructures

B. Delay Consolidation/Implementation

1. Hardware

a) Cost
• Postponing implementation of a secure wireless infrastructure will
have similar costs as the No Change option-although these costs will
diminish after proper security measures are taken

b) ROI
Savings from immediate expenditures must be weighed against the
following points:
• Delayed productivity gains from a secure wireless infrastructure

c) Risk
• Diminished residual value of old hardware assets
• Higher disposal/decommissioning costs in the future for old hardware
assets
• Higher security implementation costs in the future
• Exposure to sudden changes in macroeconomic conditions, such as
exchange rate fluctuations, new legislation, etc.
• Safeguarding supply/availability of hardware when purchased at a
later time

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• Managing/scheduling additional personnel to secure a wireless
infrastructure
• Other operational/financial considerations when a secure wireless
infrastructure is deferred to a later time (such as management
commitment, availability of funds, etc.)
• Lose ground to competitors that have a competitive advantage
because of a secure wireless infrastructure

2. Software

a) Cost
• Postponing implementation of a secure wireless infrastructure will
have similar costs as the No Change option—although these will
diminish once the secure wireless infrastructure is implemented

b) ROI
• Software licensing/maintenance costs for additional wireless
applications
• Increased upgrade costs
• Management costs associated with keeping the current wireless
infrastructure secure (patches, updates, etc.)
• Loss of employee productivity

c) Risk
• Higher implementation and support costs in the future
• Exposure to sudden changes in macroeconomic conditions such as
exchange rate fluctuations, new legislation, etc.
• Managing/scheduling availability of personnel to oversee deployment
over disparate platforms and dispersed servers
• Other operational/financial considerations when procurement is
deferred to a later time (such as management commitment,
availability of funds, etc.)
• Loss of competitive advantage to organizations that secured their
wireless infrastructure
• Inability to keep pace with industry standard wireless productivity
applications
• Competitor realize benefits of a secure wireless infrastructure

3. Operating Systems

a) Cost
• Postponing a secure wireless implementation will have similar costs
as the No Change option—although these will diminish once the
consolidation is complete

b) ROI
Savings from immediate expenditures must be weighed against the
following points:
• Licensing/maintenance cost for existing software

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• Inability to take advantage of new operating system security
features, such as Microsoft* Windows XP Encrypted File System
(EFS)
• Management costs associated with keeping the system current and
secure (patches, updates, etc.)
• Sub-optimal performance and speed
• Future operating system upgrade requirements
• Possible increased cost if need to upgrade in the future

c) Risk
• Reduced operating system performance
• Adverse effect on productivity of employees
• Delay in implementing security patches and updates

C. Outsourcing
List the possible vendors for outsourcing services. Solutions may be layered and come
from multiple vendors, or may be a single solution from one vendor. For each platform
and alternative, consider:

1. Hardware

a) Cost
• Initial and monthly/annual costs paid directly to vendor for hardware
procurement and maintenance
• Incremental fees for upgrades
• Charges for storing equipment at vendor's site
• Remote management costs (related hardware and software tools,
network connectivity/bandwidth, access ports)
• Cost of arranging and managing contracts/service agreements with
vendors
• Administrative, communication, and other related costs in
coordinating with vendors
• Additional wireless hardware that might be needed
• Conversion or changeover costs
• Monitoring network for security and potential threats

b) ROI
• Is the short-term savings over outsourcing adequate?
• Does the tradeoff in spending operational or capital funds make
sense for the organization?

c) Risk
• Risk of lock-in/dependency on vendor
• Service provider's failure to meet organization's
expectations/requirements
• Insufficient legal identity/capacity of vendor
• Deficient/questionable financial viability
• Inadequate technical capability, experience, dependability, reliability,
and flexibility of vendor
• Risk of physical compromise when moving technology off-site

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• Poor security/risk management policies and procedures on the part
of the vendor (physical security, hardware locks, environmental
controls, etc.)
• Limited control in implementation and security monitoring
• Limited options for recourse in case of problems
• Exposure to sudden changes in macroeconomic conditions such as
exchange rate fluctuations, new legislation, etc.
• Other unforeseen costs/risks that can lower ROI

2. Software

a) Cost
• Initial and monthly/annual costs paid directly to vendor for software
procurement and maintenance
• Incremental fees for upgrades
• Cost of arranging and managing contracts/service agreements with
vendors
• Administrative, communication, and other related costs in
coordinating with vendors
• Cost of devising remote/risk management strategies
• Conversion or changeover costs from status quo
• Purchase data migration tools if necessary

b) ROI
• Is the short-term savings over outsourcing adequate?
• Does the tradeoff in spending operation or capital funds make sense
for the organization?

c) Risk
• Risk of lock-in/dependency on vendor
• Service provider's failure to meet client's expectations/requirements
• Deficient legal identity/capacity of vendor
• Deficient/questionable financial viability of vendor
• Inadequate technical capability, experience, dependability, reliability,
and flexibility of vendor
• Loss of intellectual property
• Deficient security/risk management policies and procedures on the
part of the vendor (management of system vulnerabilities, virus
protection, application access controls, etc.)
• Limited control in implementation
• Limited options for recourse in case of problems
• Exposure to sudden changes in macroeconomic conditions such as
exchange rate fluctuations, new legislation, etc.
• Other unforeseen costs/risks that can lower ROI
• Patches and upgrades are not implemented in a timely fashion
• Wireless productivity applications are not maintained in a secure
fashion

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3. Operating System

a) Cost
• Initial and monthly/annual costs paid directly to vendor for O/S
procurement and maintenance
• Incremental fees for upgrades
• Remote management costs (related hardware and software tools,
network connectivity/bandwidth)
• Cost of arranging and managing contracts/service agreements with
vendors
• Administrative, communication, and other related costs in
coordinating with vendors
• Cost of devising remote/risk management strategies
• Cost to migrate operating systems if necessary
• Patches and upgrades are not implemented in a timely fashion
• Inability to take advantage of new operating system security
features, such as Microsoft* Windows XP Encrypted File System
(EFS)

b) ROI
• Is the short-term savings over outsourcing adequate?
• Does the tradeoff in spending operation or capital funds make sense
for the organization?

c) Risk
• Risk of lock-in/dependency on vendor
• Service provider's failure to meet client's expectations/requirements
• Deficient legal identity/capacity of vendor
• Deficient/questionable financial viability of vendor
• Inadequate technical capability, experience, dependability, reliability,
and flexibility of vendor
• Potential loss of intellectual property
• Deficient security/risk management policies and procedures on the
part of the vendor (management of system vulnerabilities, virus
protection, access controls, etc.)
• Limited control in implementation
• Limited options for recourse in case of problems
• Exposure to sudden changes in macroeconomic conditions such as
exchange rate fluctuations, new legislation, etc.
• Other unforeseen costs/risks that can lower ROI

D. Build

1. Software

a) Cost
• Cost of IT Staff to develop software (including hiring, salaries,
benefits, training, etc.)
• Key staff leaving in the middle of the project

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• Diverting additional staff to resolve emergency effects
• Cost of software reconfiguration/upgrades
• Total cost of ownership (TCO)
• Opportunity costs and other related costs when resources are
diverted to development projects
• Costs associated with resource and capacity planning
• Costs associated with budget and development planning
• Costs associated with change management and version control
• Costs associated with managing projects
• Costs of protecting intellectual property
• Frequency and cost of upgrades
• Ongoing software maintenance costs
• Additional third-party wireless networking security tools

b) ROI
The costs of using in-house resources to secure a wireless infrastructure
plus initial investments are weighed against the savings found in:
• No Change
• Waiting
• Outsourcing
• Buying

c) Risk
• Inability to meet expectations/requirements of shareholders (fitness
for purpose, ease of operation, quality assurance status, etc.)
• Risk of losing intellectual property
• Inability to interface with legacy applications
• Interoperability with other software platforms
• Conformity to standards
• Deficient technical capability, dependability, reliability, and flexibility
of developed software
• Deficient technical capability, dependability, reliability, and flexibility
of in-house IT personnel
• Deficient security/risk management policies and procedures built into
developed software
• Improper valuation/costing of investments in software
development/R&D in financial records
• Other operational/financial considerations when managing in-house
projects (such as management/stakeholder buy-in, availability of
funds, etc.)
• Unforeseen upgrades and maintenance costs will lower ROI

E. Buy
Ask prospective vendors about the following:

1. Hardware

a) Cost
• Insurance costs where applicable
• Freight, transport and delivery cost

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• Installation and commissioning costs
• Inventory-holding, maintenance and management costs
• Foreign-exchange costs
• Applicable duties and taxes
• Cost of end-user training
• Cost of administrative personnel
• Cost of current hardware reconfiguration
• Decommissioning and disposal costs for obsolete hardware
• Other related costs for changeover or conversion from existing
systems or platforms
• Costs associated with capital budget planning
• Cost of spares/backups
• Depreciation costs
• TCO
• Other upfront and monthly/annual costs paid directly to vendors
• Hiring external expertise to assist with installation
• Hardware vendor fails to meet service obligations

b) ROI
The cost of buying are weighed against the relative savings of the following
alternatives:
• No Change
• Waiting
• Outsourcing
• Building

c) Risk
• Firmness of price
• Pricing for associated or follow-on orders
• Provision for cost containment (including any formulas to contain or
reduce costs)
• Foreign-exchange risks
• Management of payment terms
• Length of the supply chain and its vulnerability to disruption
• Weaknesses of vendors’ individual hardware (in terms of
performance, scalability, functionality, etc.)
• Conformity with delivery, installation and commissioning
requirements
• Management of warranties, technical guarantees
• Product liability arrangements
• Compliance with health and safety requirements
• Maintenance and durability of purchased hardware
• Unforeseen upgrades and maintenance costs will lower ROI
• Interoperability with other hardware platforms
• Adverse impact on budgets allotted for non-IT capital spending over
the short-term

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2. Software

a) Cost
• Licensing/support and maintenance costs
• Other upfront and monthly/annual costs paid directly to vendors
• License management costs
• Cost of administrative personnel
• Cost of software reconfiguration/upgrades
• TCO
• Cost of end-user training

b) ROI
The cost of buying are weighed against the relative savings of the
following alternatives:
• No Change
• Waiting
• Outsourcing
• Building

c) Risk
• Onerous licensing terms
• Interoperability with other software platforms
• Software vulnerabilities, backdoors
• Firmness of price
• Pricing for associated or follow-on orders
• Provision for cost containment (including any formulas to contain or
reduce costs)
• Foreign-exchange risks
• Management of payment terms
• Weaknesses of vendors’ individual software (in terms of
performance, scalability, functionality, etc.)
• Conformity with installation and customization requirements
• Management of warranties, technical guarantees
• Product liability arrangements
• Unforeseen upgrades and maintenance costs will lower ROI
• Adverse impact on budgets allotted for non-IT capital spending over
the short-term

3. Operating System

a) Cost
• Licensing/support and maintenance costs
• Other upfront and monthly/annual costs paid directly to vendors
• License management costs
• Cost of administrative personnel
• Cost of reconfiguration/migration
• TCO
• Cost of training

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• Cost to migrate operating systems if necessary

b) ROI
The cost of buying are weighed against the relative savings of the
following alternatives:
• No Change
• Waiting
• Outsourcing
• Building

c) Risk
• Onerous licensing terms
• Inability to run legacy applications
• Interoperability with other operating system platforms
• Software vulnerabilities and backdoors
• Firmness of price
• Pricing for associated or follow-on orders
• Provision for cost containment (including any formulas to contain or
reduce costs)
• Foreign-exchange risks
• Management of payment terms
• Unforeseen upgrades and maintenance costs will lower ROI
• Adverse impact on budgets allotted for non-IT capital spending over
the short-term

IV. Business values for the alternatives


A. ROI
For each platform component (hardware, software, operating system), assess
costs/savings in terms of:

1. Tangible returns
• Weigh the wireless security alternatives to discover which best meets the
objectives specified in this business case
• Incremental revenue/cost savings
• The increase in revenue likely to be seen from each alternative
• The savings in cost likely to be seen from each alternative
• The actual time period for the company to receive the additional revenue or
cost savings stemming from alternatives.

2. Return on capital
Aside from the returns expected from the capital investment, other benefits may
be realized as well from securing a wireless infrastructure, such as an increase in
productivity, or streamlined maintenance and a reduction in operating costs.

3. Cost of capital
• Short-term costs may include:
o Hardware

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o Software
o Staffing requirements
• Long-term costs include
o Depreciation of capital investments
o Cost of maintenance including monthly/annual charges, if any
o Cost of management, upgrades and maintenance
o Costs associated with risks involved

B. Customer satisfaction
The criteria for customer satisfaction for the stakeholders include:
• Guaranteed business continuity and security
• Enhanced productivity
• Improved efficiency
• Increased business agility and flexibility
• Improved competitive advantage
• Lower management and maintenance costs
• General feedback of IT staff and other company employees

C. Resources and roles


• In-house resources involved in each solution, if applicable
• Outsourced resources involved in implementing each solution, if applicable

D. Timetable/Time to market
The timeline specified in the project implementation to fulfill the solutions in the company

V. Recommendation
Weigh recommendation against the business values of the alternatives based on:

A. ROI
Costs/Savings in terms of:

1. Tangible returns
• Weigh the wireless security alternatives to discover which best meets the
objectives specified in this business case
• Incremental revenue/cost savings
• The increase in revenue likely to be seen from each alternative
• The savings in cost likely to be seen from each alternative
• The actual time period for the company to receive the additional revenue or
cost savings stemming from alternatives.
• More revenue opportunities

2. Return on capital
• Aside from the returns expected from the capital investment, other benefits
may be realized as well from a secure wireless infrastructure, such as an
increase in productivity, or streamlined maintenance costs leading to a
reduction in operating costs

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3. Cost of capital
• Short-term costs may include:
o Hardware
o Software
o Staffing requirements
• Long-term costs include
o Depreciation of capital investments
o Cost of maintenance including monthly/annual charges, if any
o Cost of management, upgrades and maintenance
o Costs associated with risks involved

B. Customer satisfaction
The criteria for customer satisfaction for the stakeholders include:
• Guaranteed business continuity and security
• Increased business responsiveness
• Improved competitive advantage
• Lower management and maintenance costs
• General feedback of IT staff and other company employees

C. Resources and roles


• In-house resources involved in each solution, if applicable
• Outsourced resources involved in implementing each solution, if applicable

D. Timetable/Time to market
The timeline specified in the project implementation to fulfill the solutions in the company

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Product Description

[In this section include product information, performance specs, cost comparisons, charts,
graphs, etc., to support your business case for the product you’ve selected.]

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Glossary

Introductory paragraph
The introduction gives a brief background or overview of the product/service being evaluated.

I. Need Opportunity
This section explains why the product or service is needed, including productivity and cost issues.

A. Tangible goals or objectives


The purpose or desired end-result. In the business case this section identifies what company
and business needs, problems or issues the proposed product or service can address.

B. Scope
This defines the reach or extent of the topic or idea being discussed. In the business case,
this section identifies the potential impact of the proposed product or service on existing
systems and staff. Potential benefits and risks associated with project deployment are also
identified.

II. Stakeholders
Those individuals who have a share or interest in a particular endeavor or organization. In the
business case, this section identifies those individuals and departments within the organization that
will be directly and indirectly affected by the product or solution being discussed in the business case.

A. Primary
The stakeholders who directly realize efficiencies, revenues, and/or a competitive advantage
are considered Primary stakeholders. Those departments or individuals implementing the
new systems and services are also Primary stakeholders.

B. Secondary
The Secondary stakeholders are those who depend on, or will be affected by, the actions of
the Primary stakeholders.

III. Alternatives
The Alternatives section weighs the various routes to reaching the specified goals and fulfilling the
needs of the stakeholders

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A. No Change
This section observes the costs and benefits of not addressing the issue(s) outlined in the
Needs/Opportunity section.

1. Cost
The actual price to be paid or resources to be expended. Measured by identifying
and quantifying the price paid or resource expended (examples are time consumed
or money spent).

2. Return on Savings
Measure of income the company is able to earn from money not spent or expended.
In this particular section, the savings realized by not implementing the product or
service is weighed against:
• Whether the issue to be addressed is expected to become a larger or
smaller problem
• The length of time it would take to break even or to see a positive return
with the No Change alternative.

3. Risks
Expected loss. Risks may include issues detailed in the Cost section as well as
intangible risks, such as employee annoyance with current system or morale issues.

B. Delay Procurement/ Implementation


This option explores the costs and benefits of implementing a solution at a future date, rather
than as soon as possible.

1. Costs
While there are no direct purchasing costs in the short-term, deferring implementation
can potentially create similar issues found in the Cost section for the No Change
alternative.

2. ROI
Income earned from company assets. In this section, the short-term savings of not
implementing the product or service are weighed against the cost of waiting to
determine the break-even point and the length of time it takes to see a return on
investment.

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3. Risks
This section explores the likelihood that serious problems would arise while waiting to
implement the new product or service and the costs the firm would need to absorb if
problems did occur.

C. Outsourcing
Having the work done by an outside service provider or manufacturer usually to cut costs or
realize greater efficiencies.

1. Costs
For this section examples would include upfront and monthly/annual costs to be paid
to vendors, the cost of making existing systems and/or processes compatible with the
service provider’s solution, and the cost of the company’s implementation time.

2. ROI
To evaluate the ROI for this alternative, costs and benefits of the other alternatives
must be examined and compared with Outsourcing costs and benefits.

3. Risk
The potential weaknesses of the service provider/vendor’s solution and additional
costs that may be incurred because of those weaknesses are examined in this
section.

D. Build
Developing the product or service in-house.

1. Costs
The costs in developing include the organization’s time to evaluate, design, build,
and operate the product or service.

2. ROI
The ROI result weighs the cost of using in-house resources to build and maintain the
product/service plus the initial capital cost against the savings realized from the other
alternatives.

3. Risks
This includes the quantifiable likelihood of loss, the possibility that the project will go
unfinished or take extra time because of unforeseen or competing priorities.

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E. Buy
To purchase outright and have the company manage the product or service on their own.

1. Cost
The charges in buying a product/service, such as upfront monthly/ annual costs paid
to the vendor, the cost of implementation time, and other costs.

2. ROI
The ROI is the cost of buying weighed against the relative savings from other
alternatives.

3. Risks
Risks may include the possible losses that may be incurred from the purchased
product or service and unforeseen maintenance and upgrade costs.

IV. Business Values for the Alternatives


A. ROI

1. Tangible returns
These are the measurable or quantifiable benefits from each alternative.

2. Incremental revenue
The additional revenue or income that may be earned from each alternative is
discussed in this section.

3. Return on Capital
The income that may be earned or savings that may be realized from the investment
(in this case the proposed product or service).

4. Cost of Capital
The cost of the funds used to finance the company’s investment (such as interest).
The goal is to invest in assets that offer a higher return than the cost that may be
incurred to finance those assets.

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B. Customer Satisfaction
Measure of how the company is able to meet or exceed customer’s and/or stakeholders
needs and expectations.

C. Resources and Roles


Defines the in-house and/or outsourced resources needed for each alternative.

D. Timetable/Time-to-market
Based on each alternative, the time line to launch the product or service is planned.

V. Recommendation

A. ROI
This section includes the
• Costs and savings in terms of tangible returns
• Incremental revenue
• Return on Capital
• Short-term costs
• Long-term costs

B. Customer Satisfaction
Criteria to determine customer satisfaction may speak to the needs of the company’s internal
stakeholders as well as external customers. However, the criteria may be unique to each
business case.

C. Resources and Roles


This section designates the in-house and the outsourced resources needed for each
alternative, if applicable.

D. Timetable/Time-to-market
Based on each alternative, the time line to launch the product or service is outlined.

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About ZDNet Make the Case Series

The Make the Case Series is a collection of business case tools that
covers a broad range of enterprise IT technologies and topics. Many
of these tools are developed in a vendor-neutral fashion. However,
for sponsored business cases, IT vendors have the opportunity to
present the benefits and advantages of their technology solutions in
a specific IT category. For more information about ZDNet’s Make
the Case Series, email us at zdnetcustomers@cnet.com.

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