A business case is created before a project is ever initiated. It provides the information necessary to determine whether a project is worth the required investment. It does so by presenting the business need and a cost-benefit analysis. Assume a managed services company regularly receives requests to provide custom software development.
Employee loyalty and recruitment A business case generally includes the following components: Executive summary highlights the key points in the business case.
These include important benefits and the return on investment. Project background provides relevant information so that the people who must approve the business case can decide whether the project is both viable and worth doing.
If a project involves complicated technologies, the audience may not believe the financial analysis until it understands how the technologies enable the benefits.
Business opportunity describes the motivation for the project that the business case will propose. The business opportunity includes a definition, a statement of scope, and a discussion of objectives that the project will help the organization achieve.
Alternatives are analyzed for the proposed project. For example, an online learning business case might compare the benefits and costs of classroom learning. All business cases involve at least two alternatives: Costs describe the resources for undertaking the project and their monetary value.
The costs should include the cost of development, implementation, training, change management, and operations. Benefits describe the projected financial benefits from undertaking the project. Benefits are usually presented in terms of revenue generation and cost reductions.
Financial analysis compares benefits to costs and analyzes the value of a project as an investment. The analysis may include a cash flow statement, return on investment, net present value, internal rate of return, and payback period. Other benefits describe other expected benefits that cannot be quantified in terms of dollars and cents.
Assumptions are events that a business case anticipates will happen.
For example, a business case might assume approval from a regulatory agency. Critical assumptions must occur for a project to succeed.
Constraints are schedule, resource, budget, staffing, technical, and other limitations that may impact the success of a project. For example, a project might require that all employees have access to a central database.
Organizational considerations examine how a project impacts an organization.Justifying the cost of new hardware and software purchases can be difficult when budgets are tight. If your organization believes a major purchase is. The Business Case is usually presented by Senior Management within the business to an identified Business Sponsor.
It is the first document used in the Project Lifecycle and, once approved, allows the project to be formally defined.
A good business case report, which brings confidence and accountability into the field of making investment decisions, is a compilation of all information collected during enterprise analysis and the business case process. How to Build a Business Case WIN MANAGEMENT APPROVAL FOR YOUR NEXT PURCHASE REQUEST 4 Kutay Tanir/Getty Images cover BY JAC K MO LS I A N I, Associate Fellow, A N D BO N N I GR A H A M, Senior Member.
There are eight key differences that I’ve picked up in writing a business case for an Agile project.
This post discusses those 8 differences and what you need to consider when creating your business case using this method. The downloadable tools and templates provide examples of two well-wrought business cases and their ROI worksheets.
Each example provides detailed annotations which explain what each case needs to.