SOW clarification - for Saket/Indu

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manishpn
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SOW clarification - for Saket/Indu

Postby manishpn Mon Mar 31, 2014 10:51 am

Hi,

I have encountered couple of questions in Quampus tests and other mock tests.
Can you clarify if SOW should include Business case.
In case of outsourcing the work we use SOW as contract document and it should not include requesting organizations Business case, however one of the questions I attempted says it should include while other says it should not.
PMBOK page 69 says it should... !
Any comments if questions does not say if SOW is for internal or external consumption what should we assume by default?
Br,
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Re: SOW clarification - for Saket/Indu

Postby indusharma Mon Mar 31, 2014 2:16 pm

Manish,

SOW should include Business case, as you rightly referred the PMBOK5, pg # 68, 69

The SOW references the following:
- Business need. An organization’s business need may be based on a market demand, technological
advance, legal requirement, government regulation, or environmental consideration. Typically, the
business need and the cost-benefit analysis are contained in the business case to justify the project.


Now in the cases where we outsource the work, Project Manager creates PSOW , Procurement Statement of Work,
As per PMBOK5,
Procurement Statement of Work- Describes the procurement item in sufficient detail to allow prospective sellers
to determine if they are capable of providing the products, services, or results.


It also contains Business case, as PSOW which the project manager create will be required as input for seller's project to develop their Project's Charter.
SOW is a bid document which is provided to the seller with Contract or as a part of contract.
So in Procurement Knowledge area, you as a buyer will create it and give it to the seller

And in other knowledge areas, you as a seller will receive it from buyer.

In all the cases, SOW will have business case.

Regards

Regards
Indu Sharma
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manishpn
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Re: SOW clarification - for Saket/Indu

Postby manishpn Tue Apr 08, 2014 2:46 pm

Thanks Indu
Br,
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http://www.izenbridge.com/blog/7-effect ... ification/
harin4627
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Re: SOW clarification - for Saket/Indu

Postby harin4627 Fri May 30, 2014 7:35 pm

Is there a difference between business need and business case?
SOW as per PMBOK, should show only business need (Business need, product scope description, strategic plan). Business case is shown separately as another input in Create Charter Process. This gives me an impression that SOW does not contain the business case, but only the business need.
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Re: SOW clarification - for Saket/Indu

Postby saket Sat May 31, 2014 1:17 am

Business Need is top level requirement of the end customer, while business case is detailed feasibility analysis of the need which shows that catering to this business need make business sense.

Like company X may want to get into aviation business , so the CEO out this need to group of analyst, this group does the analysis and make the business case where they show expected cash inflow and outflow and provide financial case for doing or not doing the project.

I would recommend not to take the SOW contents as given in PMBOK as boundary that this can come rest not, rather take it as a typical example. I recommend this for all documents be it SOW, Project Charter or Business Case etc, usually the SOW which are done by the internal team has the business case referred . But the one which are done by external party the customer usually do not share the business case.
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