Building Business Requirements ISM Florida Gulf Coast March 19,
2105
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What are business requirements? What business requirements
should be based on process Example of SMART business requirements
How to use business requirements in your RFx Case Study practical
application How to use business requirements in your supplier
scorecards Meri M. Stockwell, LLC 2015 WHAT YOU WILL LEARN
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They add value to your sourcing strategy Ensure that category
strategies are linked to the needs of the business Enable the
development and objective assessment of appropriate strategies
Provide objective criteria against which potential suppliers can be
assessed Setting the stage for effective, meaningful measurement of
supplier performance Meri M. Stockwell, LLC 2015 Benefits of
Building Business Requirements
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Extensive evaluation of current and future needs for a
particular category or categories - SMART Can be used to shape
current and future management of procurement and the supply base A
simple focused way to tie all the elements of Strategic Sourcing
together Links sourcing strategy execution and delivery to the
needs of the business to create VALUE Meri M. Stockwell, LLC 2015
What are Business Requirements? A/R Q S C - I
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Assurance of Supply Quality Service Cost Innovation Regulatory
Compliance Innovation Needs are stated as a Supplier supported need
for innovation of product line extensions, new products,
manufacturing techniques, or other support that drives BD
competitive advantage Service Needs are stated as a Suppliers
ability to communicate, in a timely manner, answers and meet
expectations in many areas, including lead times, delivery,
technical questions, billing issues, EDI capabilities, inventory
management and account management Assurance of Supply Needs are
stated in terms of - available capacity / resource requirements /
Ability to meet quantities required / Capacity / Resource
Flexibility / Contingency Cost Needs are stated as total cost of a
product or service as defined by the other business requirements,
and they also maybe stated to include current and future cost
reduction and continuous improvement objectives Quality Needs are
stated as business specifications and demonstrate documented
process to control the end product or service, on a repeatable
basis Regulatory Compliance Needs are considered a gatekeeper for a
supplier prior to consideration against the other business
requirements and are stated in legal, safety, regulatory,
environmental and ethical compliance terms. Business Requirements
Hierarchy MUST HAVE DIFFERENTIATORS Go / No Go Meri M. Stockwell,
LLC 2015
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Collaboration with stakeholders Active Listening - VOC
Meaningful questioning Assimilation Fine tuning Validation Meri M.
Stockwell, LLC 2015 Process of Building SMART Business
Requirements
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AttributesQuestions to Ask S Specific To the point; behavioral
in nature What will be visible when the business requirement is
achieved? What are you expecting to receive? M Measurable
Observable characteristics that will define success What
characteristics will indicate that needs have been fully met? Do
you clearly understand what the consequences are? A Attainable
Possible to obtain, but likely a stretch Just out of reach, but not
out of sight May relate to CI Aer the necessary specs, supplier
processes and other resources in position to meet the goal? Can
skills / knowledge be acquired to attain stretch R Results -
Oriented Truly worth taking on something of value Provides outcomes
that positively impacts processes What value does it provide? Has
support of impacted functions & processes been engaged/ How
does this help you and the supplier continue to improve? T
Timebound A clearly defined time element that can be mutually
agreed upon (with Stakeholders and Suppliers) Will the due dates be
clear to everyone involved? Does the time element allow /
facilitate measurement of ongoing progress? Meri M. Stockwell, LLC
2015 Business Requirements Attributes
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1 st Pass Business Requirements Not SMART SMART S Specific
(Quality) Meets specs Meets quality spec #xx-xxx, dated 3/19/15 M
Measurable (Service) High level of customer service Response time
within 2-hours, 24/7, 365 days per year A Attainable (Attainable)
100% server uptime Theoretically possiblebut feasible? At what cost
premium? Why? Server uptime 99.99% R Results - Oriented (Cost)
Committed to continuous improvement Tangible plans in place and
committed to taking costs down 4% per year for 3 years and passing
through 100% T Timebound (Innovation) Need access to innovation for
new materials Host quarterly Innovation Roundtables at least three
best practice examples for new material usage Meri M. Stockwell,
LLC 2015 SMART EXAMPLES
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Weight the Business Requirements by level of importance to this
case study by % A / R Q S C I Develop 2 SMART questions for each
hierarchy Meri M. Stockwell, LLC 2015 Case Study Practical
Application Assurance of Supply Quality Service Cost Innovation
Regulatory Compliance MUST HAVE DIFFERENTIATORS Go / No Go
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Meri M. Stockwell, LLC 2015
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Scorecard Example Meri M. Stockwell, LLC 2015
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Business Requirements Get them right! Involve Stakeholders
early & often Weight them by level of importance RFP Develop
SMART questions and Criteria Measure Performance Use supplier
scorecards Create Competitive Advantage DELIVER VALUE Meri M.
Stockwell, LLC 2015 Tying it all together
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How to Connect with Me Meri M. Stockwell, LLC 2015