The business case is first developed during an initial investigation. It should provide an outline and be reviewed by the key internal and external sponsor(s) and stakeholders before being accepted, revised, or refused. The business case should provide the why, what, how, and who necessary for the sponsors and stakeholders to decide if it is worthwhile to continue.
Given below are some general guideline to developing a business case:
Formal Summary of all the Value Propositions
Value propositions summarize the business case. Value propositions establish the quantified value basis for the business relationship. Executives, users, and technical buyers have different issues and values. Prepare different value propositions for each type of buyer and work them into your presentations and meetings, based on the customer participants, and into your proposals and other customer-targeted documents.
Preparing the Business Case.
The business cases should express the problems with the current situation and demonstrate the benefits of the new business vision. It brings together the benefits, disadvantages, costs, and risks of the current situation and future vision so that executive management can decide if the project should go ahead.
When to use a Business Case.
A business case is needed when resources or expenditure on a project or opportunity has to be justified. The purpose of the business case is communication. Therefore, each section should be written with the intended audience in mind. It should contain only enough information to help with decision making.
Those writing the business case should have a thorough understanding of the customer’s aims and be able to merge the varied and potentially complex solution elements into one document.
A complete business case outline includes the following four sections:
- Executive Summary
- Solution Definition
- Delivery and Organization
Managing the Business Case
The completed business case provides a structure for the project and project organization throughout the project lifecycle. The project sponsor and project board should review and update the business case at key stages to check that the project remains viable and the reasons for doing it are still valid. Ideally, the review should take place before the beginning of a new stage to avoid unnecessary investment in time and money.
A business case built collaboratively with the customer evolves over time. A business case should be concise and to the point. The purpose of a business case is to outline the business rationale for undertaking a project and to provide a means to continually assess and evaluate project progress.