What Is a Business Case?

<Project Name> Business Case

Template Guide

What is a Business Case?

A business case is your process. It is not just a document you throw together at the end of deciding to take something on. This is the stuff you are already doing but in a more organized laid out fashion. A business case resembles a research paper.

A Business Case is a document that outlines the justification for the start-up of a project. It includes:

•A description of the existing business need

•A listing of the available options for delivering a solution to resolve the problem

•The benefits and costs associated with each solution option

•A recommended solution option for approval.

When do I use a Business Case?

You want to develop a business case to sell a project and to receive buy in. It is the first document used in the Project Lifecycle and, once approved, allows you to formally define the project. Furthermore:

•During the development of a Business Case, it may be necessary to undertake a formal Feasibility Study. This process involves a more detailed assessment of the current business need, the various solution options available, the likelihood of a successful implementation for each solution option and the recommended solution option for implementation. The Feasibility Study simply provides the Business Case with more rigor for the solution options presented.

•The Business Case is frequently referred to during the project. At each Quality Review point, the Business Case is used to determine whether the benefits, costs, risks and issues prevalent match those outlined in the Business Case. At the end of the project, a Post Implementation Review (PIR) will determine whether the project delivered the Business Needs outlined in the Business Case. In this regard, the success of the project is measured against the ability of the project to deliver the criteria outlined in the Business Case.

•The next stage following approval of the Business Case is the identification of a Project Sponsor and Project Manager followed by the development of a formal Project Charter.

How to use this template

This document provides a guide on the topics usually included in a Business Case document. You may add, remove or redefine sections at your leisure to meet your particular business circumstance.Example tables, diagrams and charts have been added (where suitable) to provide further guidance on how to complete each relevant section.

(Delete this page, all instructions and update table of contents prior to finalizing document.)

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<Project Name> Business Case

<Institution Name>

<Project Name>

Business Case

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<Project Name> Business Case

Table of Contents

1Executive Summary

2Recommendation

3Business Need

3.1Organizational Fit

3.1.1Consistency/Fit with Organization’s Mission

3.1.2NDUS IT Goal(s) Alignment

3.1.3NDUS IT Strategy Objective(s) Alignment

3.2Environmental Analysis (include Business Process as applicable)

3.3Needs Analysis

4Solution Analysis –

4.1Description

4.2Benefits, Goals and Measurement Criteria

4.3Costs and Funding Plan

4.4Risks

4.5Constraints

4.6Assumptions

5Available Options

5.1Option 1 –

6Appendix

6.1Supporting Documentation

7Signature Page

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<Project Name> Business Case

1Executive Summary

Summarize each of the sections in this document concisely by outlining the:

•Business Need

•Solution alternatives

•Recommended Solution

•Implementation Approach.

2Recommendation

Provide a recommendation for solving the business need/problem in this section. More detail for the recommendation will be filled out in subsequent sections of this document.*Note* it may be beneficial to fill this section out last.

3Business Need

3.1Organizational Fit

3.1.1Consistency/Fit with Organization’s Mission

Describe how the project/ initiative is consistent with the Institution’s/System’s mission and the System’s strategic plan. Provide rationale if it is not.

3.1.2NDUS IT Goal(s) Alignment

Describe which NDUS IT Goal(s) (from the NDUS IT Plan) that is supported by this project/initiative. There may be more than one goal that is supported by this project/initiative. If so, please indicate alignment with each. For additional information on NDUS Goals contact Rich Lehn, .

3.1.3NDUS IT Strategy Objective(s) Alignment

Describe which NDUS IT Strategy Objective(s) (from the NDUS IT Plan) that is supported by this project/initiative. There may be more than one strategy objective that is supported by this project/initiative. If so, please indicate alignment with each. For information on NDUS IT Goals, Purpose, and Strategy Objectives contact Rich Lehn at .

3.2Environmental Analysis (include Business Process as applicable)

Outline the core aspects of the business environment that has derived the need for this project to take place. These may include:

•Business Vision, Strategy or Objectives

•Business processes or technologies which are not operating efficiently

•New Competitor products or processes which have been identified

•New technology trends (or opportunities resulting from new technologies introduced)

•Commercial or operational trends which are driving changes in the business

•Economic factors driving need for programs

•Changes to Statutory, legislative or other environmental requirements.

Provide any facts or evidence to support the conclusions drawn above.

3.3Needs Analysis

Outline the fundamental business need(s) that the resulting project will directly address. The business needs or problems defined in this section should identify those areas that impede the business from fully realizing a specific area of its mission, vision, and/or strategic goals as identified above.This section is directly tied to the business analysis section and must have the ability to be resolved by the proposed solution and validated by meeting SMART objectives (described in the chart below):

4Solution Analysis –

4.1Description

Provide a summarized description of the need solution. This will include the general approach to be taken and a summary of the core elements of the solution (e.g. people, process, organization, technology). Keep in mind that this section should not be the analysis of a specific product.

4.2Benefits, Goals and Measurement Criteria

Describe the tangible and intangible benefits to the company upon implementation of the solution. One of the obvious benefits described will be that the business problem / opportunity outlined above will be addressed. Complete the following table (delete provided examples):

• Reduction in operating costs
• ROI

• Improved operational efficiency
• Reduction in break/fix
• Enhanced quality of product / service

• Additional competitive advantage

• Improved customer satisfaction
• Increased customer retention
• Greater customer loyalty

• Increased staff satisfaction
• Improved organizational culture
• Longer staff retention

Note: The benefits listed above are working examples only. All quantifiable benefits listed must be supported by current performance figures.

4.3Costs and Funding Plan

Describe the tangible and intangible costs to NDUS upon implementation. The costs of the actual project should be included (e.g. equipment procured) as well as any negative impact to the business resulting from the delivery of the project (e.g. operational downtime). Complete the following table:

• Salaries of project staff
• Contractors / outsourced parties
• Training courses

• Building premises for project team
• Equipment and materials
• Tools (computers, phones…)

• Advertising / branding
• Promotional materials
• PR and communications

• Operational down-time
• Short-term loss in productivity
• Cultural change

Below are the potential funding sources.

4.4Risks

Summarize the most apparent risks associated with the adoption of this solution. Risks are defined as “any event that may adversely affect the ability of the solution to produce the required deliverables”. Risks may be Strategic, Environmental, Financial, Operational, Technical, Competitive or Customer related. To complete this section thoroughly, it may be necessary to undertake a formal Risk Assessment (by documenting a Risk Management Plan). To reduce the likelihood and impact of each risk's eventuating, clear ‘mitigating actions’ should be defined. Upon approval of the business case, you should formally record and track each issue, risk, action item, and change using the CTS Control Register template.

Utilizing the table above, below are the risks identified with this business case.

4.5Constraints

Constraints are defined as the state, quality, or sense of being restricted to a given course of action or inaction.An applicable restriction or limitation, either internal or external, to the project that will affect the performance of the project or a process. The project has the following constraints: Examples include:

•This project has a budget cap of $1,000,000.

•The latest this project can be completed is June 30, 2018.

•Resources are not available to begin work until August 1, 2016.

The following are constraints identified for this effort:

•

4.6Assumptions

List the major assumptions associated with the adoption of this option. Examples include:

•There will be no legislative, business strategy or policy changes during this project.

•Prices of raw materials will not increase during the course of this project.

•Additional human resource will be available from the business to support this project.

The following are assumptions identified for this effort:

•

5Available Options

This section provides a listing of solution options, their benefits, feasibility, risks and issues. Options suggested may include doing nothing, doing something that will achieve a similar result or doing something that will achieve a better result than current performance. Options may include COTS products as well as internal development. Try to minimize the number of options available by conducting a detailed Feasibility Study beforehand. For each solution option identified, the following information is required:

•Purchase/buy option – Have them provide analysis of the solutions in the market.

•Development/build Option. – Internal

•Study Option

5.1Option 1 –

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<Project Name> Business Case

6Appendix

6.1Supporting Documentation

Attach any documentation you believe is relevant to the Business Case. For example:

•Problem / Opportunity research materials

•Feasibility Study research materials

•External quotes or tenders

•Detailed cost / benefit spreadsheets

•System requirements (if known)

•Other relevant information or correspondence.

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<Project Name> Business Case

7Signature Page

Institution CIO Approval Signature and Date:

I have reviewed and approve this project/initiative.

NDUS CIO Approval Signature and Date: (use if necessary)

I have reviewed and approve this project/initiative.

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