Evaluate Solution Performance
Definition
Evaluate Solution Performance refers to the process of assessing whether an implemented solution or its components are delivering the anticipated business value. This process holds importance because it provides empirical data that helps in determining if the solution in which the business has invested is meeting the expected business outcomes. It also aids in making decisions about future projects or initiatives.
Objective
The main aim is to ascertain if a solution or its part, after being operationalized, is producing the desired business value. This value is usually gauged in reference to the business goals or objectives. Moreover, business analysis delves into understanding the underlying reasons for the obtained results.
When is it Conducted?
Although the evaluation of solution performance typically takes place post the release of a solution, it isn't limited to that timeframe. It is more probable for this evaluation to happen during portfolio or program phases as opposed to during project phases. The magnitude of achieved business value and the reasons for such an accomplishment play a crucial role when making product-related decisions within a portfolio or program. However, this evaluation process can also be utilized during a project whenever it can offer insights.
Data Collection
The data required to assess business value is mostly procured from the business sector responsible for the solution or through instrumentation integrated into the product itself. Business analysis methods play a pivotal role in analyzing the discrepancies between anticipated and actual outcomes, crucial for determining the business value of the solution. Since many business value measurements are required post the release of a solution and often span over an extended period to identify patterns, there's a necessity for organizational dedication towards both these measurements and investing in tools required for these measurements. If such investments aren't feasible, organizations might opt for alternative, cost-effective methods to measure business value. In some cases, substitutes or proxies for business value can be utilized.
Analysis
To ascertain if value has been delivered, various elements like relevant business goals and objectives, evaluated acceptance results from prior releases, performance data, and available baseline data are analyzed. Furthermore, the reasons behind exceeding expectations or understanding the core issues are also assessed. Typical reasons for not achieving anticipated business value encompass:
- Technical reasons.
- Business protocols or restrictions.
- Aversion to the product or its intended usage.
- Opportunistic workarounds created by users to bypass actual or assumed solution constraints.
Outcome
The evaluation of a product's performance acts as a recommendation for ameliorating the long-term efficacy of the solutions. It is also vital for portfolio and program management choices regarding further enhancements to the product, decisions pertaining to the introduction of new products, and decisions on replacing or discontinuing existing products.
Inputs
Business Case
The Business Case provides a rationale for the proposed solution, showcasing the benefits, costs, and potential risks. It acts as a foundation for assessing the performance of the implemented solution, ensuring alignment with the initial justification for the solution.
Business Goals and Objectives
Business Goals and Objectives delineate what the organization intends to achieve through the solution. Evaluating the solution's performance is inherently linked to determining how effectively it meets these predefined goals and objectives.
Evaluated Acceptance Results
Evaluated Acceptance Results include the documented outcomes of solution testing and user acceptance. These results provide crucial feedback on the solution's functionality, quality, and effectiveness, directly influencing the assessment of its performance.
Performance Data
Performance Data encompasses quantifiable metrics and indicators collected during the solution's operation. This data is pivotal in assessing how well the solution performs in real-time environments, shedding light on any discrepancies or potential areas of improvement.
Solution Evaluation Approach
The Solution Evaluation Approach outlines the methods and criteria used to gauge the solution's performance. It establishes a structured pathway to ensure a comprehensive and objective assessment, capturing both qualitative and quantitative facets of solution performance.
Tools and Techniques
Cost-Benefit Analysis
Cost-Benefit Analysis is a methodical process used to weigh the financial advantages of a solution against its costs. By comparing potential benefits to the associated expenses, this technique facilitates informed decisions regarding solution viability and effectiveness.
Elicitation Techniques
Elicitation Techniques encompass various methods to gather information from stakeholders, helping understand their feedback and perception regarding the solution's performance. These techniques aid in collecting nuanced insights, ensuring a holistic evaluation.
Product Portfolio Matrix
The Product Portfolio Matrix is a strategic tool used to categorize and analyze products based on their market growth and relative market share. It assists in determining where the solution stands in the competitive landscape, informing decisions about its future direction.
Prioritization Schemes
Prioritization Schemes are frameworks that help rank different aspects of solution performance. They ensure that critical areas of concern receive immediate attention, enabling a focused and efficient assessment process.
Root Cause and Opportunity Analysis
Root Cause and Opportunity Analysis delves deep into the reasons behind the observed performance outcomes. By identifying underlying causes, this technique ensures that evaluations are thorough and lead to actionable insights for future improvements.
Outputs
Assessment of Business Value
The Assessment of Business Value offers a summarized evaluation of the solution's contribution to the organization's objectives and bottom line. This assessment encapsulates the value derived from the solution, weighing its benefits against costs and potential risks.