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SXSW Business Case Workshop 2015
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SXSW Business Case Workshop 2015
1.
Proprietary & Confidential.
© 2014 R/GA All rights reserved. From Great Ideas to ROI How to Build a Business Case
2.
2Proprietary & Confidential.
© 2014 R/GA All rights reserved. / Meet your guides for today…
3.
/ Proprietary & Confidential.
© 2014 R/GA All rights reserved. 3/ 01What is a Business Case?
4.
4Proprietary & Confidential.
© 2014 R/GA All rights reserved. / What is a business case? When do I need one? Where do I start?
5.
5Proprietary & Confidential.
© 2014 R/GA All rights reserved. / What is a Business Case? A decision-making tool used to determine the effects a decision will have on sales or profitability. It typically shows ROI.
6.
6Proprietary & Confidential.
© 2014 R/GA All rights reserved. / Why a Business Case? To ensure you have thoroughly thought through ideas To add credibility to any idea To validate an idea (Is it a good idea for the business?) To help decide between good ideas (which will be better from a business perspective) To build consensus with people outside of your main department or function (procurement, finance, clients, etc.) To impress your colleagues by looking a little smarter
7.
7Proprietary & Confidential.
© 2014 R/GA All rights reserved. / Where Do I Start? Key Components of a Business Case • Sales • Costs • ROI=(Sales-Costs)/Costs EXAMPLE:
8.
8Proprietary & Confidential.
© 2014 R/GA All rights reserved. / The Process: Our Roadmap for Today Map framework to business model & ecosystem Base on core behaviors Identify component-level revenue & cost drivers Model various contribution assumptions by component Run multiple scenarios – including aggressive & conservative cases Evaluate break- even, ROI over 3-5 year horizon Pick best or most likely case Summarize incremental revenue, spend & ROI Summarize nonfinancial benefits Recommend phasing, funding & assumption validation Highlight requirements for success—including client staffing & infrastructure Collect assumption data from clients, primary and secondary research sources Establish Framework Build Model Create Scenarios Synthesize Results Make Recommendation Collect Data CREATE ITERATE FINALIZE
9.
/ Proprietary & Confidential.
© 2014 R/GA All rights reserved. 9/ 02Our Approach
10.
Proprietary & Confidential.
© 2014 R/GA All rights reserved. 10/ Creating the model
11.
11Proprietary & Confidential.
© 2014 R/GA All rights reserved. / Establishing the framework Collecting inputs Building the model
12.
Proprietary & Confidential.
© 2014 R/GA All rights reserved. 12/ Iterating the model
13.
13Proprietary & Confidential.
© 2014 R/GA All rights reserved. / Creating scenarios Determining most likely outcome
14.
Proprietary & Confidential.
© 2014 R/GA All rights reserved. 14/ Finalizing the model
15.
15Proprietary & Confidential.
© 2014 R/GA All rights reserved. / Synthesizing results Making a recommendation
16.
Proprietary & Confidential.
© 2014 R/GA All rights reserved. 16/ Presenting your case