Business Case Analysis Components That Can Have a Real Impact on Project Costs

Business Case Analysis Components That Can Have a Real Impact on Project Costs

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A business case represents the rationale for starting a project or activity. Often it’s presented in an organized written document, although it can also come in the more simple form of a verbal discussion or presentation. In order to be successful, a business case must make a convincing case for the business case, its reasons and the benefits derived from starting the project. The most basic business case is one that makes a pro-active case for beginning a new project, while others present more details and provide a detailed description of the case, the benefits and the estimated time frame. Business cases often go further into detail by providing supporting documentation and statistical data.

How to write a business case can contain many moving parts, and many different types of information. This means that it requires the business owner to consider many different things before writing. Questions such as: What kind of business do you want to start? What are your customers looking for?

Why should you start the project? What are your personal life and business life goals? How will the project benefit your family and friends? How will the project fit into your budget? There are many other things to consider, including timescales, financial forecasts, technology considerations, legal considerations, risk management, regulatory obligations and business requirements.

Document review and other follow-up questions: When considering your business case, you should think about how to manage and document the risks and the benefits. For example, a good business case will include a list of risks and benefits, along with their mitigations. You should also think about timescales and when the risks might become significant.

Risk assessment: A key component of any business case analysis is risk assessment. Your team can choose to assess both the direct and indirect risks inherent in your project. Indirect risks refer to those that arise due to decisions made by the project manager or team, while direct risks refer to those that occur directly. Indirect and direct risks may not have an impact on your business or company. For example, if a customer decides to buy a product from a competitor and that competitor provides delivery services, the direct risk of losing customers to a competitor may be considered, while the indirect risk of poor performance-based logistics may not.

Project management: A key component of your business case includes a plan of action for managing risks and project costs. Your team can choose to manage the risk of risks through controlling processes or by improving performance. Management can take many forms, from individual steps, to teams, to software, to systems. Project management is not just about controlling risks; it is also about managing your resources, such as time and staff, effectively. Clearly stated goals and objectives are essential in project management as well as clearly stated methods of achieving those goals and objectives.

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