Evaluate Potential Solutions

   
Evaluate Potential Solutions  
   
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Evaluating potential design solutions is the process which leads to the selection of the best of several alternatives. It requires that you identify alternatives and determine how to compare them. The selected solution may contain components that can be implemented quickly, changes to business processes, or modifications to your information systems.
     
Potential solution evaluation
  ensures that options are considered and not rejected out of hand
  creates a paper trail documenting the decision-making process as a natural by-product
  deemphasizes project politics
  focuses the discussion on a specific set of alternate solutions
  improves the quality of the selected solution
  makes advantages of various alternatives visible
  encourages a solution that implements the best of breed features
 
         
 
 

When should you evaluate potential solutions?

   
The evaluation of potential solutions requires that you have defined each alternative in sufficient detail to recognize pros and cons. You also have to know what constitutes acceptable solutions to the problems you are trying to solve. When these 2 conditions are met, you can select the solution that best meets your needs.  
 
 

Who should evaluate potential solutions?

   
Business analysts, system analysts, IT management, project leaders and managers from impacted business areas need to understand the problems and implications of each potential solution. The decision should be made by consensus.  
       
 
 

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Cost/Benefit Analysis

Cost/Benefit analysis compares the estimated cost of delivering a specific solution to the estimated value of the expected tangible and intangible benefits.  
Step 1: List the benefits of each solution.

Solutions and Benefits

Solution Benefit
SOL1: ....... 1.1  Benefit 1 of solution 1
1.2  Benefit 2 of solution 1
1.3  .........
SOL2: ....... 2.1  Benefit 1 of solution 2
2.2  .........


Step 2: Estimate the value of the benefit. Try to base the value on the smallest possible unit of measure (dollars per day versus dollars per year, or cents per item versus total manufacturing cost) and then calculate the total.

If you cannot assign a value to the benefit, list it under "intangible benefits".

Benefits and Values

Solution 1
Benefit ID Value
1.1 Benefit 1 of SOL1 a) $0.30 per case
b) $700.00 per week
1.2 ...... a) intangible benefit

Total Estimated Savings

$ ........


Step 3: Estimate the cost of the solution. The estimate should include implementation costs and maintenance costs for a specified time frame.

Cost per Solution

Solution Cost
SOL1: ....... $250,000.00
SOL2: ....... $120,000.00


Step 4: Determine how long it will take for the savings from all benefits to pay for the solution.

Break-even Point

Solution Cost Break-even
SOL1: ....... $250,000.00 5 years
SOL2: ....... $120,000.00 2.4 years


Step 5: Present the alternatives with estimated costs, expected tangible and intangible benefits to the decision makers. Document the decision, qualifying statements, concerns and all assumptions.

 

 

Additional Documentation

 

Requirement Statement / Problem Statement Matrix

This technique compares the impact that meeting requirements will have on identified problems. It can be used to compare which set of requirements best solves the identified problems.
Step 1: List all identified problems as rows in a table.

Problems

Problems  
PRB1  
PRB2  
PRB3  


Step 2: List each requirement that this solution satisfies as a column in the table.

Requirements

Requirements
REQ1 REQ2 REQ3
Problems
PRB1      
PRB2      
PRB3      


Step 3: For each requirement and problem, ask, "if this requirement were met, would this problem be solved?" There are only three acceptable answers:

 A "yes" response indicates that the problem would be solved in its entirety. In that event, evaluate the requirement to make sure that it is a valid requirement and not simply a rephrasing of the problem.
 A "no" response indicates that meeting this requirement would not solve this problem at all.
 A "partial" response indicates that meeting this requirement would have a beneficial impact on the problem but would leave remnants of the problem unsolved.

Requirement Addresses Problem

Requirements
REQ1 REQ2 REQ3
Problems
PRB1 Yes No No
PRB2 No No No
PRB3 Partial No Partial
PRB4 Yes No No
PRB5 No No Partial

 



Step 4: Evaluate any problem that is not completely solved by the existing set of requirements (No "Yes" response in any column).

If there are no "partial" responses, determine if the problem can be solved within the scope of the project. If yes, add new requirements.

If there is only one "partial" response, formulate a requirement that will solve the remaining aspects of the problem.

If there are multiple "partial" responses, evaluate whether those requirements solve the entire problem. If not, identify one or more requirements that would solve the rest.

Matrix Evaluation Results (Problems)

Problem Evaluation Result
PRB2 is not addressed by any requirement. Is it out of scope or are additional requirements needed?
PRB3 has 2 partial solutions (requirements). Are they sufficient or do we need additional requirements?
PRB5 has only one partial solution. What additional requirements are needed?


Step 5: Evaluate each requirement that does not solve any problems. Determine whether that requirement is needed for other purposes.

Matrix Evaluation Results (Requirements)

Requirements Evaluation Result
REQ2 does not solve any problems. Do we want to implement it anyway?