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 It can be something that happens—like a system failure—or an ongoing situation, such as outdated processes affecting competitiveness.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)

• Idle machinery
• Idle employees
• Unfulfilled orders (leading to penalties)
• Wasted raw materials
• Repair costs
• Overtime to catch up
• Damage to brand reputation

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

• Event: System Downtime
  • Impacts: Lost productivity, repair costs, delayed deliveries.

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.

• Hard Costs: Direct and unavoidable (weighting: 1.0).
• People Productivity: Less direct (default weighting: 0.1).
• Future Costs: Potential costs (default weighting: 0.3).

Why Weighting Matters It ensures business cases aren’t 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

• Quantifies value in clear terms
• Provides transparency
• Enables ongoing measurement throughout the project lifecycle

Gating - Managing Risk

Gating Factors

• Frequency: How often does the impact occur?
• Working Year: Accounts for actual business days.
• Probability %: Likelihood the impact will occur.
• % Improvement: Conservative estimate of the solution’s value.

Why Gating is Critical It adds realism to business cases, ensuring conservative and credible outcomes.

Processing State

Identifies the stage a scenario or solution is in:

• Planning: Early development.
• Active: In progress with the customer.
• On-Hold: Temporarily paused.
• Soft Deleted: Removed but recoverable.
• Closed-Won: Deal secured.
• Closed-Lost: Deal not secured.

Consistent & Scalable Qualification

Why it Matters Accurate, scalable data collection ensures strong, defensible business cases.

Goal: Move from complex spreadsheets to a structured, repeatable system that scales with business needs.