What is the lifecycle for a business case in business case development?
- Initial business case before major resources committed
- Business case confirmed after detailed requirements
- Business case confirmed once development costs estimated
- Business case revisited before deployment
Each stage corresponds to specific phases in project development.
Identify the areas of feasibility assessment.
- Business
- Technical
- Financial
These areas help evaluate the viability of a project.
What are the contents of a business case?
- Introduction
- Management summary
- Description of the current situation
- Options considered
- Recommendations
- Appendices with supporting information
Under options considered contains
Options considered
Cost/benefit analysis
Risk assessment
Impact assessment
List the categories of costs and benefits in a business case.
- Tangible and Immediate
- Tangible and Longer Term
- Intangible and Immediate
- Intangible and Longer Term
Understanding these categories helps in evaluating the overall impact of a project.
What are the tangible costs in a business case?
- Project Staff Costs
- Business Staff Costs
- Equipment
- Infrastructure
- Packaged Software
- Relocation
These costs are directly measurable and can be quantified.
What are the intangible benefits in a business case?
- Increased job satisfaction
- Improved customer satisfaction
- Improved management information
- Greater organisational flexibility
- More creative problem-solving time
- Improved presentation or better market image
- Better communication
These benefits are harder to quantify but are crucial for long-term success.
What are the typical areas to examine in an impact assessment?
- Organisation structure
- Interdepartmental relations
- Working practices
- Management style
- Recruitment policy
- Appraisal and promotion criteria
- Supplier relations
These areas help identify how a project may affect the organization.
What should be documented in a risk assessment?
- Description
- Impact assessment
- Probability
- Countermeasures
- Ownership
This documentation helps in managing potential risks effectively.
List the key features relevant to the production of a business case within an Agile context.
- Time horizons are shorter
- Budgets are smaller
- Risks are reduced
- Partial ROI may occur earlier
Agile methodologies allow for more flexibility and quicker feedback.
Define Payback as an investment appraisal technique.
An investment appraisal technique where a cash-flow forecast is produced without adjusting for the declining value of money over time
It assesses when the project will pay back itself based on costs and benefits.
What does Discounted cash flow and net present value take into account?
The time value of money
It discounts future cash-flows to assess their present value.
What is the Internal rate of return?
A calculation that assesses the return on investment represented by the project in terms of a single percentage figure
It helps in comparing the profitability of different investments.
What are the tangible benefits of a business case?
Staff Savings
Reduced effort and improved speed of working
Faster responses to customers
Reduced accommodation costs
Reduced inventory
Other cost reductions
What are the intangible costs of a business case?
Disruption and loss of productivity
Recruitment
CARDI log
Constraints
Assumptions
Risks
Dependencies
Issues
