You have a brilliant idea for a new initiative that can improve your business performance, but you need to convince your stakeholders to support it. How can you create a data-driven business case that showcases the value and feasibility of your proposal? Here are some steps you can follow to craft a compelling story with data.
The first step is to clearly define the problem you are trying to solve and the opportunity you are pursuing with your initiative. You need to explain why the current situation is unsatisfactory and what benefits your solution can bring. You also need to identify your target audience, their pain points, and their expectations. You can use data to quantify the problem and the opportunity, such as the size of the market, the gap between the current and desired state, and the potential impact of your initiative.
A business case approach has to be created for data-driven new initiatives Let me quote an example, we wanted to know with an APP launch, how will the business get impacted So, internally along with Product, Tech and Marketing we created a business case to onboard say 15%, 25% and 50% of the user base with first 12 months Now these were out 3 month, 6 month and 1 year target Next we assumed a higher Conversion rate (based on our Mobile Conversion rate) since the App users will be more loyal and can be targeted through Notification etc. Also, we reduced the Marketing cost since these customers can be targeted through notifications, better product, pricing, discounts etc and thus Cost to acquisition will decline over the period.
If you want to generate a successful business case, the case itself has to be expressed in terms of (i) clear and obvious benefits to ..or (ii) removal of significant disadvantage or inconvenience to ….those who will approve/decline it. No matter how impactful the issue is to you’re and other parts of the organisation - if there is no material gain/pain avoidance for your decision- makers , then at times of budget contention you won’t get it approved.
The most critical point to consider when creating a data-driven business case, the most important, is clearly defining the problem and the opportunity. This is because it sets the stage for the entire initiative and ensures that everyone is aligned on the goals and objectives. Without a clear understanding of the problem and the opportunity, it's impossible to gather the right data, quantify the impact, or address challenges and risks effectively. It's also difficult to tailor your message to your audience or get buy-in from stakeholders if you can't articulate what you're trying to achieve. In short, clearly defining the problem and the opportunity is the foundation for a successful data-driven business case.
The next step is to gather and analyze relevant data that can support your business case. You need to select the data sources, methods, and tools that can provide reliable and accurate information. You also need to define the key metrics and indicators that can measure the performance and outcomes of your initiative. You can use data analysis techniques such as descriptive, predictive, and prescriptive analytics to generate insights and recommendations. You can also use data visualization tools such as charts, graphs, and dashboards to present your data in a clear and engaging way.
I believe a comparative analysis of current state and to-be state would help 1) Ensure selection relevant & reliable data sources 2) Streamline accurate metrics to measure success
The third step is to evaluate the costs and risks associated with your initiative. You need to estimate the resources, time, and budget required to implement your solution. You also need to identify the potential challenges, uncertainties, and trade-offs that may affect your success. You can use data to calculate the return on investment (ROI) and the break-even point of your initiative. You can also use data to assess the probability and impact of various scenarios and contingencies. You can use data models, simulations, and sensitivity analysis to test your assumptions and mitigate your risks.
The final step is to communicate your value proposition to your stakeholders. You need to tailor your message and format to your audience, their goals, and their concerns. You also need to use data storytelling techniques to convey your main points, arguments, and evidence. You can use data stories to highlight the problem, the solution, and the results of your initiative. You can also use data stories to appeal to the emotions, logic, and credibility of your stakeholders. You can use narratives, visuals, and interactive elements to make your data stories memorable and persuasive.
In my opinion a detailed implementation plan would also address the following areas 1) Timelines, various milestones and persons responsible 2) Technology and Infrastructure requirements to fulfill the objectives laid out 3) Potential change management strategies