A business case has two main functions:
1. To provide justification for a project that aligns with an organization’s business objectives
2. To ensure that the project is delivered on time; that is it within budget; and to the agreed quality standards.
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The business case is an evolving document with four main stages:
1. It begins as a high-level summary of possible options to meet the business need(s).
2. It then serves as a Strategic Outline Case, after completing the high-level investigation.
3. As an Outline Business Case, it includes details such as indicative costs.
4. The Full Business Case contains the confirmation of the indicative information.
The Business Case is continuously reviewed and provides the basis for the project implementation review and beyond.
You need to address the following areas during the development of the business case:
1. Strategic fit – this discusses how the proposed solution meets the company’s business objectives.
2. Options – explore the various options available, including innovation and/or collaborative opportunities.
3. Achievability – explain to achieve the main project goals with the existing capabilities.
4. Value for money – outline how VFM can be obtained.
5. Affordability – details of whether the current budget will deliver what is required. Alternately, if funds are not available, how to adjust the project scope and/or timelines.
The high-level Business Case is a summary statement outlining the five questions above, which is generally sufficient to enable the stakeholders to make a decision on the best way forward.
The Strategic Outline Business Case has addition details to support an informed decision on whether to proceed or to revisit the project scope. It includes an options appraisal, together with an initial view of the costs, benefits and risks.
The Outline Business Case includes a more detailed options appraisal, which is undertaken when development the procurement strategy. These options are based on assessment of strategic fit, achievability, Value For Money and affordability.
The Full Business Case contains the same level of detail as the Outline Business Case, but will contains confirmation of the supplier’s details, such as fixed-prices, daily rates, track record, key personnel etc.
This provides all the information needed to support a contract award and commit funding.
During the project lifecycle, the business case is frequently revisited to confirm that it meets the agreed business needs and to ensure that the business benefits are being achieved.
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