What is the purpose of a business case?
To collate information together after a period of discovery to present findings to senior management.
Feasibility is a mixture between business / technical / financial information.
What might you consider under business elements of the business case?
- strategic fit
- market appropriate
- timely
- architectural alignment
- organisational fit
- cultural fit
- capability fit
- regulatory alignment
What might you consider under technical elements of the business case?
- availability
- reliability
- maintainability
- performance
- security
- scalability
- proven
What might you consider under financial elements of the business case?
- Within budget
- Sufficient funds available
- Acceptable ROI
- Acceptable cash flow
- Timely payback
What are the contents of a business case?
- Background / description
- Costs
- Risks
- Options
- Benefits
- Impacts
- Preferred Option
& risks and assumptions
What does the background / introduction of a business case do?
- Sets the scene
- Explains why it is relevant
- What it is we want to change and why
What does the Options element of the business case include?
- All options considered, including rejected ones
- Do nothing option
What does the costs of the business case cover?
Tangible Costs:
* Staff / resource
* Materials
* Building rent / purchase
* Training
* Marketing
Intangible Costs:
* Time taken to train
* Loss of productivity
* Recruitment
What does the benefits of the business case cover?
Tangible:
* Staff / resource costs
* Time savings
* Process costs
* Estate costs
Intangible:
* Staff satisfaction
* Customer satisfaction
* Improved reputation
* Improved reporting, process
What do you need to record for each risk in a business case?
- description
- probability
- risk owner
- how it will be handled:
mitigated, avoided, accepted, transferred - measure of its effect on delivery
What do you need to include for impacts in a business case?
- people affected
- processes affected
- policies affected
What do you include in a benefits appraisal within a business case?
- Pay back - when will we recoup? will it be worth doing it
- Discounted cashflow - what is the true cost of the change compared to investment
- Internal Rate of Return - cost of the money
