Difference between revisions of "Business Case"
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− | A | + | A business case captures the business justification for initiating a task or project. Clearly whenever an organisation plans to commit finance or resources to a task or project, it should be in support of a demonstrable business need. Organisations should make use of a business case to: |
*Demonstrate the business need for a given action; | *Demonstrate the business need for a given action; | ||
*Confirm that a project is feasible before expending significant funding; | *Confirm that a project is feasible before expending significant funding; | ||
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'''Developing a Business Case<ref>5 Steps to developing a solid business case [https://www.chasegroup.com.au/five-steps-to-develop-a-solid-business-case Chase Consulting Group]</ref>'''<br /> | '''Developing a Business Case<ref>5 Steps to developing a solid business case [https://www.chasegroup.com.au/five-steps-to-develop-a-solid-business-case Chase Consulting Group]</ref>'''<br /> | ||
− | The | + | The process of developing the business case is important; a well-executed process enables you to develop a solid business case that increases the benefits and value and reduces the risks. This also leads to a much greater likelihood of securing support to proceed with the investment. |
Here are the five key steps for creating the business case. | Here are the five key steps for creating the business case. | ||
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Step 3: Evaluate the options: Evaluate how the alternatives will deliver on the business objectives, then select the preferred option, taking into account the strategic and financial value created and the risks. | Step 3: Evaluate the options: Evaluate how the alternatives will deliver on the business objectives, then select the preferred option, taking into account the strategic and financial value created and the risks. | ||
− | Step 4: Implementation | + | Step 4: Implementation strategy: Create the implementation plan for the preferred option, detailing how to achieve the business objectives, who will be accountable for each milestone, and how to mitigate the project risks. |
− | Step 5: Recommendation: Confirm the recommended option. Create the business case documents and present the business case recommendation to the board and | + | Step 5: Recommendation: Confirm the recommended option. Create the business case documents and present the business case recommendation to the board and management team for approval to proceed. |
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== See Also == | == See Also == | ||
<div style="column-count:2;-moz-column-count:3;-webkit-column-count:3"> | <div style="column-count:2;-moz-column-count:3;-webkit-column-count:3"> | ||
+ | *[[Five Case Model]] | ||
+ | *[[Better Business Case (BBC)]] | ||
*[[IT Investment (Information Technology Investment)]] | *[[IT Investment (Information Technology Investment)]] | ||
*[[IT Investment Management (ITIM)]] | *[[IT Investment Management (ITIM)]] |
Latest revision as of 09:32, 17 January 2023
A business case captures the business justification for initiating a task or project. Clearly whenever an organisation plans to commit finance or resources to a task or project, it should be in support of a demonstrable business need. Organisations should make use of a business case to:
- Demonstrate the business need for a given action;
- Confirm that a project is feasible before expending significant funding;
- Consider the strategic internal and external drivers for the project; and
- Assess, compare and contrast the costs and benefits (both monetary and non-monetary) of choosing one course of action over another.[1]
Developing a Business Case[2]
The process of developing the business case is important; a well-executed process enables you to develop a solid business case that increases the benefits and value and reduces the risks. This also leads to a much greater likelihood of securing support to proceed with the investment.
Here are the five key steps for creating the business case.
source: Chase Consulting Group
Step 1: Confirm the opportunity: Describe the situation and the business opportunity that your proposal will impact. This will include the background of the project, the investment logic, and the high-level business requirements.
Step 2: Analyse and develop shortlisted options: Identify the alternative approaches and select three or four options to analyze. Gather information about each alternative, analyze the options and develop the shortlisted options.
Step 3: Evaluate the options: Evaluate how the alternatives will deliver on the business objectives, then select the preferred option, taking into account the strategic and financial value created and the risks.
Step 4: Implementation strategy: Create the implementation plan for the preferred option, detailing how to achieve the business objectives, who will be accountable for each milestone, and how to mitigate the project risks.
Step 5: Recommendation: Confirm the recommended option. Create the business case documents and present the business case recommendation to the board and management team for approval to proceed.
See Also
References
- ↑ Business Case Definition ANSEC IA
- ↑ 5 Steps to developing a solid business case Chase Consulting Group