webinar on requirement prioritization process - izenbridge
TRANSCRIPT
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Agenda
Requirement
Prioritization Process
Tools and Techniques
Quick Overview of PMI-PBA(SM)
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A condition or capability that is required to be present in a product, service, or result to satisfy a contract or other formally imposed specification. – PMBOK® Guide 5th Edition
What is Requirement ?
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Requirement
• Met by product or service
• Address need of Business
• Address Need of Stakeholders
• Features to be met by product or service
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Prioritization Process
Process of assigning a precedence that orders or ranks one requirement over another
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Why Prioritization?
There is rarely enough time and money to implement all requirements
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Prioritization Process
Prioritization
What Criteria / Weight
When Frequency /
Stage
Who Stakeholders
(RASCI)
How Techniques /
Survey / Meeting etc.
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Project Life Cycle
Life Cycle
Adaptive Each Iteration
/ Release
Predictive Up-front
Prioritization
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Factors in Prioritization
• Value / Cost of Delay
• Cost
• Risk / Opportunity
• Learning
• Regulatory
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Requirement type and Prioritization
Requirements
Business Business Case
(NPV, IRR , Payback period etc.)
Stakeholders
Stakeholder Influence, alignment with Business Need
and Filters
Solution Value, Cost, Risk, Learning etc.
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Business Requirement: Financial Values
Value
More Revenue
New Revenue
Incremental Revenue
Retain Revenue
Cut Cost Operational
efficiency
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Financial Value
$
How to get the
forecast?
How to compare present
money with future money
What is a rate of return?
How to compare
two options
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Time Value of Money
Present Value (PV)
Year 1
Year 2
Year 3
Future Value (FV)
A theme
returns
5000 USD
after 4 Years
PV = FV / (1 + i)^ n i = interest rate / discount rate say 10% n = period PV = 5000 /(1+10/100)^4 PV = 3424 USD
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Net Present Value
Outflow 1000 USD
Outflow 1000 USD
Inflow 4000 USD
Outflow 2000 USD
Inflow = 5000 USD
NPV = Sum(FV / (1 + i)^ n) i = interest rate / dsicount rate say 10% n = period NPV = -1000-1000 /((1+10/100)^1) +4000/((1+10/100)^2) - 2000/((1+10/100)^3) + 5000 /(1+10/100)^4 = -1000-1000/(1.1) + 4000 / (1.1*1.1) - 2000/(1.1*1.1*1.1)+5000/(1.1*1.1*1.1*1.1) NPV = 3309 USD
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Internal Rate of Return (IRR)
Outflow 1000 USD
Outflow 1000 USD
Inflow 4000 USD
Outflow 2000 USD
Inflow = 5000 USD
0 = Sum(FV / (1 + i)^ n) i = interest rate / discount rate say , this is what we calculate n = period 0 = -1000-1000 /((1+i/100)^1) + 4000 /((1+i/100)^2) – 2000 /((1+i/100)^3 + 5000 /(1+i/100)^4 i = 69%
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Payback Period
The “payback period” is the amount of time it will take to recoup, in the form of net cash inflows, the net dollars invested in a project
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Financial Prioritization
Value
NPV The higher the NPV the better
IRR The higher the IRR the better
Payback The shorter the payback period
the better
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Requirement Filters
Requirements
Filters (Scope, Testability,
Priority, etc.)
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Kano Model of Customer Satisfaction
Feature Presence
Cu
sto
me
r Sa
tisf
acti
on
Fully Implemented
Hig
h
Absent
Low
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MoSCoW
MoSCoW
Must Have Must be included
before the product can be launched
Should Have Features not critical
to launch, but considered important
Could Have Nice to have and
could potentially be included
Won’t Have Features requested
but explicitly excluded from
release
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Summary
• Define prioritization process
• Prioritization tools varies based on type of requirement and life cycle
• Prioritization is an Iterative Process
• Engaging stakeholders results in long term benefits
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PMI-PBA(SM)
The PMI-PBA credential recognizes an individual's expertise in business analysis, and using these
tools and techniques to improve the overall success of projects.
- PMI-PBA(SM) Handbook
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PMI – PBA(SM) Eligibility Requirements
Secondary Degree
Bachelor's Degree
7500 Hrs BA Exp
4500 Hrs BA Exp
2000 Hrs Project Team
35 PDUs in BA
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PMI-PBA(SM)
Cost $ 405 PMI Members $ 555 Non PMI Members
Exam 200 Questions 4 Hours Prometric Center
Preparation PMI Business Analysis Practice Guide Part of PMBOK® Guide fifth Edition Sections for PMI Recommended Reference Books
We do Provide 35 Contact Hours Program for PMI-PBA(SM)
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