How to Build a Business Case for Implementing Enterprise Risk Management Software?
Enterprise risk management software can be a challenging sell when it comes to convincing company leadership, stakeholders, and other decision-makers to make an investment in this technology. You’re dealing with a threat or vulnerability that, to date, hasn’t caused any major issues and so, there is the hope that the status quo will prevail and no action will be required. Except the worst-case scenario doesn’t always happen to “the other guy” and ultimately, your business could find itself in a bad situation. That’s where enterprise risk management software comes into play, giving you the tools to identify risk factors and take action when problem areas are identified.
But how do you convince your organization’s leadership and decision-makers to invest in an ERM software platform? Building a business case for implementing enterprise risk management software can position you for success.
What is a Business Case for Enterprise Software Implementation and Deployment?
A business case — also called a business use case — is an anecdote of sorts that illustrates how a similar company, typically in the same or a comparable industry niche, implemented and deployed a software platform or other Digital Transformation solution. The business case explores a number of points, including the following.
- The challenge and circumstances that prompted the company to switch to a new software platform.
- The criteria and specs for choosing the software platform that was selected.
- The strategy for user training and platform implementation and deployment.
- What happened after the new software solution was deployed, including successes and any challenges or lessons learned from the process?
- A look at total costs and ROI for the Digital Transformation project.
- An overview of all positive gains from the deployment of the new enterprise software platform.
These aspects of a business use case for enterprise software implementation and deployment can be extremely effective in providing useful insights — insights that business leaders and stakeholders need to make a good decision for their own company and its interests.
Finding an Anecdote to Build a Business Case for Implementing Enterprise Risk Management Software
To build a business case for enterprise risk management (ERM) software implementation and deployment, you’ll need to begin by finding your actual use case or anecdote.
For maximum impact, you’ll need to select an analogous company within your industry. Ideally, this business should operate within the same niche and they should have the same or very similar specialties as your business. The closer the similarities and the more analogous the business in your use case, the more compelling your argument will be.
Finding the actual use case can be challenging. Discussions with colleagues within your industry at networking events, conventions, social media groups, and other similar events can lead you to some good use cases within your industry.
Prospective development partners for your ERM software project can also serve as a great resource for finding use case anecdotes. A reputable software development company will be happy to connect you with clients who’ve seen success with their enterprise risk management software platforms. This can prove to be a very effective strategy for finding a good analog for your ERM business case.
It’s important to note that while a hypothetical use case can be helpful in some cases, it’s really not suitable if your goal is to instill confidence in the profitability and good ROI potential for an enterprise risk management software deployment. In fact, decision-makers may erroneously conclude that the lack of a real (and positive) business case suggests that companies just aren’t seeing a good ROI from this type of project. This is an instance where it’s usually better to have a use case for a company in another industry versus a hypothetical use case.
Emphasizing Analogies and Key Concerns in Your Business Use Case for ERM Software
As you build your use case, you’ll be outlining the challenges and dynamics that led the business to seek out the development of an enterprise risk management software platform. Then, you’ll explore the process they used to implement and deploy the ERM software, followed by how this Digital Transformation project solved their challenges and addressed their pain points as a business.
As you explore these points in your business case, you’ll need to draw direct parallels to your own company and its own dynamics, challenges, and circumstances. Do not assume that your audience will “get it” and grasp the implications. Spell it out and make the parallels crystal clear. After all, you’ve taken the time to find a highly-analogous business use case; make the most of these efforts and put that business case to work for you!
Additionally, highlight the concerns and challenges that prompted your use case company to seek ERM software deployment. Focus on the issues that will resonate with decision-makers at your business. Usually, these are the issues that are most similar to their own challenges and the issues with the most severe consequences.
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ROI, Facts, Figures, and Statistics in Your Business Case for ERM Software Development and Deployment
The best business leaders, stakeholders, and other decision-makers are compelled by facts, figures, statistics, and other solid data points. Subjective opinion is great, but it only goes so far and only as a secondary source of information. Solid, objective data reigns supreme in the world of business decisions, especially when it relates to money and ROI.
Data-driven decision-making prevails in the most successful companies. Therefore, you should do the leg work so your business case presents data and stats in a clear, easy-to-digest manner. Key figures to highlight include the following.
- Cost of software development or software license (if you’re modifying an existing platform).
- Cost of integrations.
- Cost of implementation and deployment.
- Cost of employee training.
- Costs of maintenance and updates (short-term and long-term)
- Miscellaneous costs.
- ROI (original estimate and actual).
For the actual ROI, it’s best to provide the return on investment figure for several timeframes, depending on what data is available. An example would be:
- 8 weeks
- 3 months
- 6 months
- 9 months
- 1 year
- 2 years
- 3 years
- 5 years
Specific examples and anecdotes are also really useful for illustrating the operational impact of an ERM software platform or examining an aspect of the implementation and deployment process. Real-life examples will paint a picture with facts that help drive the decision-making process.
Additional Points for a Strong Business Use Case for ERM Software Implementation and Deployment
As you develop a strong business case for ERM software deployment, it is prudent to draw a clear parallel between your anecdote and your own challenges as a business.
For example, virtually every company saw profound operational impacts over the course of the COVID-19 pandemic. The pandemic unveiled countless vulnerabilities and risk factors that were either unrealized or underappreciated prior to this point. This prompted many business leaders to realize they were far more vulnerable than previously believed.
The COVID-19 pandemic led many to develop enterprise risk management strategies that included ERM software platform implementation. If this is the case for your business, a use case ought to highlight this point by driving home the importance of a proactive risk management strategy. Proactive risk management allows you to save money in the long term by avoiding challenges and adverse events. You can even improve existing processes in the course of deploying your risk management initiatives.
The Right Partner to Implement an Enterprise Risk Management Software Platform
The right development partner, with the right methodology, strategy, dynamics, and technical skills is essential for the success of your project. Take time to explore the available options and find a development company with the right expertise and process flows for your needs.
At iTech, risk management software and data governance platforms are among our areas of specialty. We strive to help clients make the most of their data, while simultaneously managing risks and vulnerabilities using the latest ERM technology. We invite you to contact the team at iTech today to discuss your enterprise risk management strategy and how our technology can help your business meet its objectives.