Service Strategy Processes

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Time
3 hours 16 minutes
Difficulty
Beginner
CEU/CPE
3
Video Transcription
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>> All right my learners.
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We are on Lesson 2.4,
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which is service strategy processes. Let's get ready.
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Our Learning Objectives,
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>> so we will cover the purpose of
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>> service portfolio and financial management,
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basic needs to know concepts and
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components of service portfolio management,
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as well as important terms and concepts
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of building a business case structure.
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First thing first,
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Service Portfolio Management, which is SPM.
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It's purpose is to
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ensure that the services are defined clearly and they
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are linked to the business outcomes and objectives
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that enable and support.
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Information contained in the SP allows
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the service provider to manage the IT investments like
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an investment portfolio so ensuring
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that the right mix of services is
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provided and the services are
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generating the desired ROI of that business.
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The objectives of the SPM
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is more when you provide him the process and mechanisms
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to enable the organization to decide on
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which services to provide based on
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analysis of a potential ROI,
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or acceptable level of risk that they want to take.
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You maintain meaning that
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you're providing or articulating the business
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needs for each service
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it meets as well as the business outcomes is supports.
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So providing that mechanism of
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organizations evaluate how services enable
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it to achieve his strategy and respond
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to the changes in internal or external environment.
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When you do a controlling,
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the controlling is more of
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the services that are offered on
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whatever condition says set in
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place at that level of investment.
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We track the investment,
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it's more like the lifecycle.
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It's like enabling the organization to evaluate
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a strategy and its ability
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to execute against that strategy.
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Then of course, when you analyze it,
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you analyze the services,
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they are no longer viable and
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should be considered for retirement.
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Those are the objectives of the SPM.
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In the scope, so when you look into the scope,
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so scope is primary concern is
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realizing the ROI of the IT services.
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The scope of the process consists of
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the services that are being considered for delivery,
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the services that are currently being offered,
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as well as the services that had been
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withdrawn from the production environment
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because they are no longer necessary
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or they didn't deliver
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the necessary returns or
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the value distinctive for a particular business.
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The internal service providers will work
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with the stakeholders from the business units.
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Through their [inaudible] as appropriate,
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so to ensure that they understand the outcome,
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support it into real and potential
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>> value as that service
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>> so that they provide that contributes
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directly to their revenue and profitability.
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That is the scope of the service portfolio management.
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When we go into the basic concepts
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of service portfolio management,
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and as you can see,
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it contains information outlining the objectives
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and the values of propositions of all services,
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including being invested in,
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so as well as supporting information
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>> from those services.
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>> They're still on a conceptual stage,
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including the services within
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the improvements that are currently
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>> under consideration.
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>> The SP should also contain supporting information
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related to those services provided
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by third party service providers,
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as well as they are integrated into
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the overall of this service offered to those customers.
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When you look into service pipeline is more likely
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the service provider will
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identify more potential services to offer,
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then it will be for resources that actually deliver.
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Not every service in
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the service pipeline will ultimately
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>> be offered as one of
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>> the services with most is more
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of choosing which direct links to the objectives
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and outcomes of that business that can
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overall give them the best investment is chosen.
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Service catalog, as you can see,
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it just contains the information and
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the services that currently
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offered or available for deployment.
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When you look into the retires services is more so
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no longer necessary or is
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not generating any type of value.
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The resources are committed to the services are freed
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up and return as cost savings
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or reinvested into other opportunities.
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The SPM processes, it helps support
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sound governance practices as well as within
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the approving the funding plans and
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the financial plans but recovering costs
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of realizing like the ROI will be added to a catalog.
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Then we go into the financial management
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of the IT services.
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Now, that purpose is to secure
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the necessary funding required to design,
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build, or [inaudible] well,
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actually, and deploy the services that facilitate
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the business outcomes and
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achieve their goals of the organization.
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This process ensures that
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appropriate analysis is performed to prevent
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the service provider from committing to
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deliver a service that is not able to be funded.
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It's that Lippo in-between there.
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This require a persistent approach to
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evaluating cost and value of that service provided.
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It helps to maintain that balance
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in-between the demand and supply.
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That is the purpose of the financial management
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for IT services.
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Then we go into define it.
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It looks more of the objective.
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It's more of defining and maintain
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the framework and securing the funding.
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When you look into the financial management,
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as we mentioned in the previous slide.
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This just gives you that some of the objectives of it.
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You execute and you're here to
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the organization and management policies
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and you develop around
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those particular policies when you're planning and
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designing this particular business outcome,
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the call and you weigh the costs versus the benefits.
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Then we sit there and we look at
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the financial management of IT services, the scope.
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The financial management is
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well established discipline within most organizations,
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it's completely professional accountants,
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finance departments.
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Within the service provider,
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most of them bridge two disciplines.
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Where is direct or indirect relationships to
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both the Finance Department
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as well as the service providers.
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It's a specialized topic,
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requires understanding of both financial management
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in the world into the information technology services.
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You have three main processes,
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which is the accounting and budgeting,
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as well as the charging in this particular realm.
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When you look into the accounting,
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the budgeting, and the charging.
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The accounting is the process that
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enables the IT organization track,
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waits for the money to be spaced.
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Particularly the ability to identify
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the cost by the customer to serve as an activity.
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It's usually involves
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acting systems or including ledgers,
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a chart of accounts in journals, and in
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the budgeting is more of
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a periodical and negotiation cycle.
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To set budget usually annually
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or monthly monitoring to current budgets.
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Then you have your charging,
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whereas more optional process
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is used to recover cause from customers,
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from the services supplied to them.
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So you have accounting, budgeting, and charging.
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Some important terms when we go
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into the realm of the business case.
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You have the decision-making tool that helps
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the organization decide how to
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deploy their resources and capabilities,
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as well as the justification
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for a specific item of expenditure,
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which includes the costs, benefits, and risks.
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This is building into the business case structure.
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When you look into the business case,
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the basic concepts of business case,
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and when you look into the structure here,
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it presents the business objective.
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You have the introduction,
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then you have your methods and assumptions,
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as well as your business impacts.
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You're risking, your contingencies
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as well as your recommendation.
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Business cases of decision support and
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planning tool based on the financial case.
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Once you start getting your financial case and you go
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into your business case structure as see fit.
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In summary through Lesson 2.4,
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our introduction of concepts,
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we did a pipeline, the catalog,
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retired services,
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financial management, and business case.
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We will see you in the next lesson. All righty.
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