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Webinar
on
Requirement Prioritization Process
By Saket Bansal

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Agenda
Requirement
Prioritization Process
Tools and Techniques
Quick Overview of PMI-PBA(SM)

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A condition or capability that is required to be
present in a product, service, or result to satisfy
a contract or other formally imposed
specification. – PMBOK® Guide 5th Edition
What is Requirement ?

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Requirement
• Met by product or service
• Address need of Business
• Address Need of Stakeholders
• Features to be met by product
or service

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Requirement Types
Business
Stakeholder
Solution

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Prioritization Process

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Prioritization Process
Process of assigning a precedence that orders
or ranks one requirement over another

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Why Prioritization?
There is rarely enough time and money
to implement all requirements

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Prioritization Process
Prioritization
What
Criteria /
Weight
When
Frequency /
Stage
Who
Stakeholders
(RASCI)
How
Techniques /
Survey /
Meeting etc.

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Project Life Cycle
Life Cycle
Adaptive
Each Iteration
/ Release
Predictive
Up-front
Prioritization

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Factors in Prioritization
• Value / Cost of Delay
• Cost
• Risk / Opportunity
• Learning
• Regulatory

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Requirement type and Prioritization
Requirements
Business
Business Case
(NPV, IRR , Payback
period etc.)
Stakeholders
Stakeholder
Influence, alignment
with Business Need
and Filters
Solution Value, Cost, Risk,
Learning etc.

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Prioritization
Tools and Techniques

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Business Requirement: Financial Values
Value
More
Revenue
New
Revenue
Incremental
Revenue
Retain
Revenue
Cut Cost
Operational
efficiency

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Financial Value
$
How to get
the
forecast?
How to
compare
present
money with
future
money
What is a
rate of
return?
How to
compare
two options

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Time Value of Money
Present
Value (PV)
Year 1
Year 2
Year 3
Future
Value (FV)
A theme
returns
5000 USD
after 4 Years
PV = FV / (1 + i)^ n
i = interest rate / discount rate say 10%
n = period
PV = 5000 /(1+10/100)^4
PV = 3424 USD

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Net Present Value
Outflow
1000 USD
Outflow
1000 USD
Inflow
4000 USD
Outflow
2000 USD
Inflow =
5000 USD
NPV = Sum(FV / (1 + i)^ n)
i = interest rate / dsicount rate say 10%
n = period
NPV = -1000-1000 /((1+10/100)^1) +4000/((1+10/100)^2) -
2000/((1+10/100)^3) + 5000 /(1+10/100)^4
= -1000-1000/(1.1) + 4000 / (1.1*1.1) -
2000/(1.1*1.1*1.1)+5000/(1.1*1.1*1.1*1.1)
NPV = 3309 USD

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Internal Rate of Return (IRR)
Outflow
1000 USD
Outflow
1000 USD
Inflow
4000 USD
Outflow
2000 USD
Inflow =
5000 USD
0 = Sum(FV / (1 + i)^ n)
i = interest rate / discount rate say , this is what we calculate
n = period
0 = -1000-1000 /((1+i/100)^1) + 4000 /((1+i/100)^2) – 2000 /((1+i/100)^3 + 5000
/(1+i/100)^4
i = 69%

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Payback Period
The “payback period” is the amount of
time it will take to recoup, in the form of
net cash inflows, the net dollars invested
in a project

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Financial Prioritization
Value
NPV
The higher the
NPV the better
IRR
The higher the
IRR the better
Payback
The shorter the
payback period
the better

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Requirement Filters
Requirements
Filters
(Scope, Testability,
Priority, etc.)

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Kano Model of Customer Satisfaction
Feature Presence
CustomerSatisfaction
Fully Implemented
High
Absent
Low

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MoSCoW
MoSCoW
Must Have
Must be included
before the product
can be launched
Should Have
Features not critical
to launch, but
considered
important
Could Have
Nice to have and
could potentially be
included
Won’t Have
Features requested
but explicitly
excluded from
release

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Multi-voting

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Summary
• Define prioritization process
• Prioritization tools varies based
on type of requirement and life
cycle
• Prioritization is an Iterative
Process
• Engaging stakeholders results in
long term benefits

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PMI-PBA(SM) Overview

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PMI-PBA(SM)
The PMI-PBA credential recognizes an individual's
expertise in business analysis, and using these
tools and techniques to improve the overall
success of projects.
- PMI-PBA(SM) Handbook

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PMI – PBA(SM) Eligibility Requirements
Secondary
Degree
Bachelor's
Degree
7500 Hrs BA
Exp
4500 Hrs BA
Exp
2000 Hrs
Project Team
35 PDUs in BA

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PMI-PBA(SM)
Cost $ 405 PMI Members
$ 555 Non PMI Members
Exam 200 Questions
4 Hours
Prometric Center
Preparation PMI Business Analysis Practice Guide
Part of PMBOK® Guide fifth Edition
Sections for PMI Recommended
Reference Books
We do Provide 35 Contact
Hours Program for PMI-PBA(SM)

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Our Training Offerings
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