A business case takes all the possible inputs into account to identify the most appropriate, profitable and effective business solution. It describes in simple language the reasons for starting a project or activity. It is commonly presented in an organized written document, but can also come from a short verbal version or talk given during a meeting. The goal is to provide an accurate, clear and comprehensive overview of the business case to the people who will be involved in making decisions about it.
A well-organized business case becomes a tool for decision-making because it takes into account all the relevant business needs and the unique features of the project. It shows how the project can contribute to overall growth in the organization, why it is essential, what are the costs and other factors to consider, and how it can benefit current and future customers. It shows how the project’s benefits will be obtained at a low cost, while demonstrating how a change in the business process, technology, or business structure can make those benefits more accessible. It should be the starting point of any serious investment that aims to achieve its objective, which is to transform a company into a better, more competitive, company.
Before starting a business case, it is first necessary to define the exact purpose of the project. It must be able to tell the story of the organization and what it expects from the project. Then it must highlight the key benefits of starting the project, how it will deliver those benefits, and how it will achieve those benefits over time. A business case is usually written to show how the current organizational setup can be improved to achieve the anticipated results. It should identify the most important questions that any organization must answer to understand its mission and what role it plays in an industry.
A solid business case makes it easy to understand the benefits and risks of starting the project, and lays the foundation for the evaluation of the project. The benefits are primarily identified through an analysis of the market, the competitors, and the existing processes, as well as a look at the organizational setup and the relevant technologies, people, and processes. High-level strategies are analyzed, including both the direct and indirect costs of the project. The risks refer to the risk of loss and damage, and are typically associated with a number of possible events including unexpected negative events (catastrophic), negative surprises, events beyond the control of the organization and the probability that negative events will repeat (for example, inflation, war, natural disasters, and violence).
When evaluating the business case, managers may also evaluate the results of their efforts. This evaluation should focus on five steps that managers can use to evaluate their progress: identification of the problem, identifying the solution, determining whether the solution is practical, implementing the solution, measuring the success of the solution, and whether the solution is successful and consistent with the organization’s mission and goals. The problem may be defined as a challenge to the organization. The solution may be a modification of the current process or a completely new approach. Identifying the problem and finding the solution often involves the use of information technology, information management systems, statistical methods, and so on.
Finally, in addition to using these steps to assess the validity of the business case, managers may use the result of the audit to make an investment decision. To do this, managers should consider how the organization, its staff, its processes, technology, and its customers are changing in response to the methodology used by the business case. Using the results of the audit as a basis for investment decisions can help managers make sound investment decisions. To ensure a sound investment decision, managers must also consider the impact of the audit on staff morale and productivity, which can have a significant effect on the success of the investment. For these reasons, it is important to consider business case analysis as an integral part of the overall strategic planning process for any organization.