Process Step 5: Author the Modernization Blueprint    (3ZTQ)

Activity 5.1: Perform cost / value / risk analysis to develop implementation recommendations    (3ZTR)

Activity Description:    (3ZTS)

This activity will produce findings and transition options that business owners can use to develop a prioritized strategy to drive business improvements. These business improvement activities ultimately will take the form of a formal business case submission(s) and may include specific project or activities to conduct business process re-engineering, systems integration, establishment of formal partnerships, policy development or other transformational approaches.    (3ZTT)

Findings can represent almost any issue, from outdated technologies, to poor business process fit, to redundancies, etc. Findings are developed using the relevant artifacts from process steps 2, 3 and 4. Findings should be categorized according to the associated business products and services. Transition options are then developed for each of the findings. Transition options are a set of one or more alternatives for transitioning from the as-is to the target state. The transition options may be categorized further according to the service components, business processes or capability areas that are impacted.    (3ZTU)

For each set of transition options, analysis is performed to determine the associated cost, benefit and risk. This requires a balance between the depth of analysis (e.g., high-level cost breakdown), available data (e.g., risk analysis assumptions), and the type of recommendations under consideration (strategic vs. tactical). The results of this analysis are a key input to finalizing the sequencing for implementation of the transition options.    (3ZTV)

The implementation recommendations are reviewed with key stakeholders and other governance teams as needed to achieve consensus. This review should also include a validation that the segment architecture as developed in process steps 2, 3, and 4 provides the necessary context and level of detail to inform downstream solution-level implementation activities. Any changes to the implementation recommendations resulting from these reviews must also be reviewed and approved by the core team.    (3ZTW)    (3ZTX)

Activity Inputs:    (3ZTY)

Tasks:    (3ZU3)

5.1.1 Identify findings    (3ZU4)

Findings are developed by analyzing the conceptual solution architecture for systems, capabilities, processes, data and best practices and capturing the salient issues or gaps that have been identified in prior steps.    (3ZU5)

The findings are aligned with and categorized according to the segment strategic, business, and investment improvement opportunities. This alignment will be extended to the subsequent transition options and implementation recommendations to be defined later in this process step.    (3ZU6)

Note: This step should focus on synthesizing and summarizing information generated during prior steps and not on the detailed analysis. If detailed analysis is required, then it may be necessary to repeat some of the prior analysis steps.    (3ZU7)

5.1.2 Develop transition options    (3ZU8)

Transition options may be modular (i.e., stand-alone), in that they may be implemented independent of other transition options. Transition options may also share dependencies with each other. Such dependencies are likely to be identified as a consequence of the overall architectural analysis performed in process steps 2, 3, and 4. In practice, it is a good idea to attempt to consolidate and de-couple transition options as much as possible in order to reduce the complexity of subsequent cost / value / risk analysis.    (3ZU9)

As with the alignment of findings in the previous task, transition options are also aligned with and categorized according to the segment strategic, business, and investment improvement opportunities. This provides line-of-sight of the recommendations and presents the transition option in a more actionable context for business owners to evaluate and prioritize.    (3ZUA)

Note: Throughout this activity, transition options that share dependencies with each other should be grouped into a higher-level transition option. This may especially be the case where there are dependencies between transition options that are derived based on different findings. In such cases, the opportunity to generalize the findings to encompass both sets of transition options may need to be considered.    (3ZUB)

Transition options are grouped and summarized as a set derived from the findings. Typically, this will take form such as the following:    (3ZUC)

5.1.3 Perform cost / value / risk analysis to compare transition options    (3ZUK)

For each transition option, a value estimate is derived for each strategic focus area. This may require additional input from key stakeholders. An aggregate cost estimate is prepared that includes the appropriate level of detail. Some more significant and strategic transition options may require more detailed lifecycle cost estimates based upon the requirements for funding review and approval. Cost may also include decommissioning costs associated with transition options that eliminate a service or that result in system retirement. This should rely on cost estimates developed in step 4 that are reviewed, finalized, and rolled-up to the associated transition options.    (3ZUL)

Risk analysis is performed for each transition option that includes the identification of the top risks in terms of overall impact. This involves assessing the likelihood of the occurrence of the risk, along with assessing the impact on both the cost and value of the transition option. Risks are then rolled up to obtain an overall likelihood and cost / value impact.    (3ZUM)

Cost, value and risk estimates for each transition option are analyzed ideally using a quantitative approach such as the value measuring methodology (VMM). Results of the analysis are used to inform the prioritization (selection and sequencing) of transition options to formulate a set of implementation recommendations in the subsequent task.    (3ZUN)

5.1.4 Develop prioritized implementation recommendations    (3ZUO)

Results of the cost / value / risk analysis are reviewed with the key stakeholders to gain buy-in to the proposed implementation recommendations. This review should include the value-to-cost comparison, together with the updated draft of the implementation recommendation overview and the draft system migration diagram. This is a critical step to ensure buy-in to the implementation recommendation proposals that are to be formalized in the segment blueprint and sequencing plan in the subsequent activity.    (3ZUP)

Review the results of the cost / value / risk analysis with the core team members to select and sequence the transition options. The finalized list of prioritized transition options comprises a set of implementation recommendations that are used to develop a proposal for the high-level recommendation implementation plan.    (3ZUQ)

The set of prioritized transition options are organized and presented using a high-level recommendation implementation overview visual that includes a summary of each implementation recommendation and the proposed high-level recommendation implementation activities.    (3ZUR)

Rough order of magnitude cost estimates developed in prior steps are refined to account for the actual sequencing of implementation recommendations.    (3ZUS)

5.1.5 Develop lessons learned    (3ZUT)

Lessons learned are captured in collaboration with the core team for the segment architecture development to provide historical information that can be used to inform and guide future segment architecture initiatives and identify ways to improve on the overall segment architecture development methodology.    (3ZUU)

Communications Considerations:    (3ZUV)

Consult with the business and data architecture teams to identify issues relative to business processes and data. Transition options need to be shared across the organization to determine if there are any external dependencies or existing efforts. Certain sensitive transition options may need to be vetted with key business experts (e.g., general counsel, HR, etc.) before such transition options can be formalized.    (3ZUW)

It may be necessary to consult with key stakeholders when performing value analysis. Cost and risk analysis may also require additional input from business experts.    (3ZUX)

Where external dependencies are known to exist, the implementation recommendations need to be shared across organization(s). The executive sponsor and core team should be informed of any proposed changes to the implementation recommendations. This is especially critical when consensus is difficult and external dependencies exist that cannot be managed entirely within the scope of authority of the core team (e.g., inter-agency initiative).    (3ZUY)

Activity Outputs:    (3ZUZ)

Suggested Analytical Techniques:    (3ZV2)    (3ZV5)

Next Activity: 5.2 /Develop_draft_blueprint_and_sequencing_plan    (3ZV6)