Show me the business case!

For years it hasn’t been much of a secret in Denmark that if the public authorities entered into any kind of IT project, there was every chance of it ending in a big scandal.

Usually it was reserved for large backend systems, but there are signs that it might spill over to internet related projects as well. And when you take a look at the basis on which decisions to invest are apparently made, you stop wondering why it is so.

The other week it was Sundhed.dk, the public portal for health related information and services, that got a bashing for being too expensive per user session. Today it’s Borger.dk, which is kind of a broad citizen portal, that gets to feel the love of the outraged.

The issue with Borger.dk is that it apparently cost 6 DKK (approx 1,1 USD) per user session to develop and operate it. And people are now questioning whether that is too much. But nobody really knows, because apparently a business plan for the project was never done.

This really amazes me. I have difficulty to grasp how you can make a decision to invest 25-30 million USD in a project without making sure that you have the numbers to back up your decision, ie a business plan? How can politicians operate like that?

In this case doing an exact business plan may be tricky, since part of the exercise is to look at how much you can save by people servicing themselves, but last time I checked there was a lot of ways you could go about it, if you wanted to.

I think politicians and people involved in these projects should insist on there being a business plan. It is always good to check the rationale behind your decision and make same on informed ground. And furthermore you have a better chance of making yourself immune to criticism such as this.

Vad NU! is a consultancy company owned by Mads Kristensen and specialized in helping clients take advantage of the business opportunities created by new media. Click to learn how I can help you and your company.