A business case is typically created by the key stakeholders involved in a project or initiative, such as senior management, project managers, or business analysts. It outlines the justification, potential benefits, and financial feasibility of the proposed undertaking.
A more thorough response to your inquiry
A business case is typically created by the key stakeholders involved in a project or initiative, such as senior management, project managers, or business analysts. These individuals are responsible for evaluating the feasibility and potential benefits of the proposed undertaking. They gather relevant data, conduct analysis, and present a comprehensive case that justifies the need for the project and its expected outcomes.
In the words of renowned management consultant Peter Drucker, “Whenever you see a successful business, someone once made a courageous decision.” Creating a business case requires making such courageous decisions by thoroughly examining the potential risks, costs, and benefits associated with a project or initiative.
Here are some interesting facts about the creation of a business case:
-
Business cases serve as a strategic tool, providing a structured approach to assess the value and viability of a project before committing resources.
-
The primary purpose of a business case is to persuade decision-makers to approve and support the proposed initiative.
-
It is essential to clearly define the problem or opportunity that the project seeks to address in the business case. This helps stakeholders understand the purpose and relevance of the undertaking.
-
A business case typically includes sections on the strategic context, problem/opportunity statement, analysis of alternatives, cost-benefit analysis, risks and dependencies, implementation plan, and expected benefits.
-
The financial feasibility of a project is a critical component of a business case. It involves estimating the costs, return on investment, payback period, and other financial metrics to determine the project’s profitability.
-
Stakeholder analysis is an integral part of creating a business case. It helps identify and evaluate the impact of the project on different individuals or groups, enabling effective engagement and communication strategies.
To further illustrate the process and components of a business case, here is an example table highlighting the main sections typically included:
| Section | Description |
|---|---|
| Strategic Context | Overview of the organization’s goals and how the project aligns with them. |
| Problem/Opportunity Statement | Clear identification of the problem or opportunity the project aims to address. |
| Analysis of Alternatives | Evaluation of different approaches or solutions to achieve the desired outcomes. |
| Cost-Benefit Analysis | Assessment of the financial costs, benefits, and expected return on investment. |
| Risks and Dependencies | Identification and analysis of potential risks and dependencies that may impact the project’s success. |
| Implementation Plan | Detailed roadmap outlining the steps, timeline, and resources required for project execution. |
| Expected Benefits | Quantification of the anticipated benefits and value that the project will deliver. |
In conclusion, the creation of a business case involves careful analysis, decision-making, and persuasive communication to convince stakeholders of the value and feasibility of a proposed project or initiative. It is a crucial step in the project management process, contributing to the success and achievement of organizational goals.
See more responses
The Business Case is developed by Senior Management and presented for approval by the Project Board or Project Sponsor. It aligns with the overall Business Strategy and it is often the first document used in the Project Lifecycle.
A business case is a document that justifies a new project to management and stakeholders. This document is crucial when a project requires a major investment of money or resources. The business case is typically developed by the project sponsor and presented to key stakeholders for evaluation.
The project sponsor is responsible for preparing the business case. However, all appropriate team members should contribute to its development. Likewise, subject matter experts from other functions ― finance, HR, IT, service delivery, and so on ― can provide specialist information.
The business case is created during its project initiation phase comprising all details about the business change and its aspects. The project sponsor reviews the business case and then gets approved by the stakeholders.
This video has the solution to your question
In this video, Edwin Chiheb provides a comprehensive overview of the contents of a business case. He explains that a business case is a document created to justify an organization’s investment in a specific project or product. The key components of a business case include an executive summary, an introduction to the business opportunity or problem, a discussion of alternative solutions, a list of benefits and costs, financial analysis, assumptions made, constraints, and market analysis. Chiheb stresses the importance of including financial information like return on investment and net present value, as well as considering both tangible and intangible benefits. He also emphasizes addressing constraints and assumptions in the development of the business case. In addition, Chiheb discusses organizational considerations, risk analysis, and project implementation details that should be incorporated into the business case. He advises evaluating the adaptability and integration of the proposed solution within the organization, analyzing associated risks, conducting sensitivity analysis, and providing details on the project team, timelines, and milestones. Lastly, he recommends confidently recommending the release of the product and emphasizing the need for decisive action.
Addition on the topic
In addition, people ask
Correspondingly, Who is responsible for creating business case?
As an answer to this: The Business Case is created and first completed in the Initiation Stage, and it becomes part of the Project Initiation Documentation. The Executive is responsible for creating the Business Case, but it can be written by others or with help from others.
Who prepares business case in project management? As an answer to this: Who writes the Business Case? Programme management often develops the detailed Business Case, but many organisations delegate this work to the Project Manager or a business analyst. Project Assurance can also assist with developing the Business Case.
Do product managers create business cases?
Response: Product managers should be accountable for creating a business case for their product. Other departments should contribute as necessary, but the product manager should drive the content, the creation process, and the presentation.
Consequently, What is involved in building a business case?
Making a business case will carefully examine the benefits and risks involved in proceeding with the recommendation, the alternatives and the benefits of the recommendation, and the risks of not proceeding. A strong business case will make a compelling recommendation for implementation.
Beside this, What is the purpose of a business case? Answer will be: The business case is needed when resources or expenditure on a project has to be justified. Approval is usually sought from the project sponsor and other interested parties. For instance, the finance function may authorize funds and the IT department provide resources. The purpose of the business case is communication.
Hereof, Where did the business case come from?
The formal business case has its roots in 19th-century Europe, particularly with the work of French-Italian engineer-economist Jules Dupuit. His contribution included statistical tools to identify, measure, and value the benefits beyond merely determining the lowest bidder.
Secondly, Do you need a business case for a project?
The reply will be: The need for a business case is that it collects the financial appraisal, proposal, strategy and marketing plan in one document and offers a full look at how the project will benefit the organization. Once your business case is approved by the project stakeholders, you can begin the project planning phase.
Also to know is, How to create a business case?
Response: The first step to create a business case is to identify the business problem and define it clearly. Market research and any available data to justify the business need is helpful to include in the business case. If you are a human seeing this field, please leave it empty. 2. Explore all possible solutions
What is the purpose of a business case?
The business case is needed when resources or expenditure on a project has to be justified. Approval is usually sought from the project sponsor and other interested parties. For instance, the finance function may authorize funds and the IT department provide resources. The purpose of the business case is communication.
Additionally, Where did the business case come from?
The formal business case has its roots in 19th-century Europe, particularly with the work of French-Italian engineer-economist Jules Dupuit. His contribution included statistical tools to identify, measure, and value the benefits beyond merely determining the lowest bidder.
In respect to this, Do you need a business case for a project? You may be familiar with using a project plan or project charter to propose a new initiative and get the green light for a project. But if your proposed project represents a significant business investment, you may need to build a business case. If you’ve never written a business case, we’re here to help.
In this regard, How to create a business case?
The answer is: The first step to create a business case is to identify the business problem and define it clearly. Market research and any available data to justify the business need is helpful to include in the business case. If you are a human seeing this field, please leave it empty. 2. Explore all possible solutions