A business case is a project management document that justifies the initiation of a project by presenting a current business problem and suggesting ways to solve it through a certain initiative. It is developed during the early stages of a project and outlines the why, what, how, and who necessary to decide if it is worthwhile continuing a project. The purpose of a business case is to convince stakeholders, customers, or clients that the project is a sound investment and to set clear expectations of project outcomes.
A business case typically includes the following elements:
- Strategic context: The compelling case for change.
- Economic analysis: Return on investment, payback period, net present value, internal rate of return, and other financial metrics.
- Options appraisal: A comparison of alternative options, including the "do-nothing" option.
- Commercial aspects: Procurement strategy, contract type, and supplier selection.
- Management summary: A summary of the key points of the business case.
A business case is a dynamic document that has to be reviewed and updated regularly. It is used as a reference point throughout the whole project lifecycle, from justifying the initiation of a project to showing the direction of project work and providing justification for project outcomes.
The need for a business case is that it collects the financial appraisal, proposal, strategy, and marketing plan in one document and offers a full look at how the project will benefit the organization. It allows stakeholders to set clear expectations of project outcomes and increases the chances of meeting their requirements.
To write a business case, one needs to identify the problem, describe it, discover where it comes from, and then set a time frame to deal with it. The research should address the why, what, how, and who of the project and must be clearly communicated. The business case structure typically includes the following sections:
- Identify the problem
- Describe the solution
- Analyze the benefits
- Analyze the costs
- Analyze the risks
- Analyze the feasibility
- Analyze the impact
- Make a recommendation
In summary, a business case is a project management document that justifies the initiation of a project by presenting a current business problem and suggesting ways to solve it through a certain initiative. It is a dynamic document that is reviewed and updated regularly and is used as a reference point throughout the whole project lifecycle. A business case typically includes elements such as strategic context, economic analysis, options appraisal, commercial aspects, and management summary. To write a business case, one needs to identify the problem, describe the solution, analyze the benefits, costs, risks, feasibility, and impact, and make a recommendation.
