- A business case captures the reasoning for initiating a project or task. It is often presented in a well-structured written document, but may also sometimes come in the form of a short verbal argument or presentation.
- The logic of the business case is that, whenever resources such as money or effort are consumed, they should be in support of a specific business need.
- Business case depends on business attitude and business volume.
- Business cases can range from comprehensive and highly structured, as required by formal project management methodologies, to informal and brief.
- Information included in a formal business case could be the background of the project, the expected business benefits, the options considered, the expected costs of the project, a gap analysis and the expected risks.
Reasons for creating a business case:
Business cases are created to help decision-makers ensure that:
- The proposed initiative will have value and relative priority compared to alternative initiatives based on the objectives and expected benefits laid out in the business case
The performance indicators found in the business case are identified to be used for proactive realisation of the business and behavioural change.
a. Key elements of the Business Case report:
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. The key purpose is to provide evidence and justification for continuing with the investment proposition. Here is a recommended structure:
a Preface
b Table of Contents
c Executive Briefing
- Recommendation
- Summary of Results
- Decision to be Taken
d Introduction
- Business Drivers
- Scope
- Financial Metrics
e Analysis
- Assumptions
- Cash Flow Statement (NPV)
- Costs
- Benefits
- Risk
- Strategic Options
- Opportunity Costs
f Conclusion, Recommendation, and Next Steps
g Appendix
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