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A business case provides a justification for a course of action based on the
benefits to be realized by using the proposed solution, as compared to the
cost, effort, and other considerations to acquire and live with that
A business case captures the rationale for undertaking a change. A business
case is frequently presented in a formal document, but may also be presented
through informal methods.
The amount of time and resources spent on the
business case should be proportional to the size and importance of its
The business case provides sufficient detail to inform
and request approval without providing specific intricacies about the method
and/or approach to the implementation.
It may also be the catalyst
for one or many initiatives in order to implement the change.
business case is used to: • define the need, • determine the desired
outcomes, • assess constraints, assumptions, and risks, and • recommend a
1 Need Assessment The need is the driver for the business
case. It is the relevant business goal or objective that must be met.
Objectives are linked to a strategy or the strategies of the enterprise. The
need assessment identifies the problem or the potential opportunity.
Throughout the development of the business case, different alternatives to
solve the problem or take advantage of the opportunity will be assessed.
2 Desired Outcomes The desired outcomes describe the state which should
result if the need is fulfilled.
The business case identifies and assesses various alternative solutions.
Alternatives may include (but are not limited to) different technologies,
processes, or business models. Alternatives may also include different ways
of acquiring these and different timing options. They will be affected by
constraints such as budget, timing, and regulatory.
alternative should be assessed and considered for the recommended solution.
Each alternative should be assessed in terms of:
• Scope: defines
the alternative being proposed. Scope can be defined using organizational
boundaries, system boundaries, business processes, product lines or
geographic regions. Scope statements clearly define what will be included
and what will be excluded. The scope of various alternatives may be similar
or have overlap but may also differ based on the alternative.
Feasibility: The organizational and technical feasibility should be assessed
for each alternative. It includes organizational knowledge, skills, and
capacity, as well as technical maturity and experience in the proposed
• Assumptions, Risks, and Constraints: Assumptions are
agreed-to facts that may have influence on the initiative. Constraints are
limitations that may restrict the possible alternatives. Risks are potential
problems that may have a negative impact on the solution. Agreeing to and
documenting these factors facilitates realistic expectations and a shared
understanding amongst stakeholders.
• Financial Analysis and Value
Assessment: The financial analysis and value assessment includes an estimate
of the costs to implement and operate the alternative,
as well as a
quantified financial benefit from implementing the alternative. Benefits of
a non-financial nature (such as improved staff morale, increased flexibility
respond to change, improved customer satisfaction, or reduced exposure to
risk) are also important and add significant value to the organization.
The recommended solution describes the most desirable way to solve the
problem or leverage the opportunity.
The solution is described in
sufficient detail for decision makers to understand the solution and
determine if the recommendation will be implemented.
solution may also include some estimates of cost and duration to implement
the solution. Measurable benefits/outcomes will be identified to allow
stakeholders to assess Business Model Canvas
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