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Business Case

• 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

  1. Recommendation
  2. Summary of Results
  3. Decision to be Taken

  d Introduction

  1. Business Drivers
  2. Scope
  3. Financial Metrics

  e Analysis

  1. Assumptions
  2. Cash Flow Statement (NPV)
  3. Costs
  4. Benefits
  5. Risk
  6. Strategic Options
  7. Opportunity Costs

  f Conclusion, Recommendation, and Next Steps

  g Appendix