A business case capture all the necessary information to analyze a business proposal or project. It is usually presented in an organized written document, but can also be presented in a short oral presentation or verbal discussion. It basically consists of three elements. These are an overview of the project; a description of the business case itself; and the reasons supporting the business case. However, many business owners do not fully understand the purpose of a business case and underestimate its importance or effectiveness. This article presents the basic definition of a business case and provides examples of its use in business practice.
A business case template provides a clear outline of what should be covered in a significant financial investment analysis. It consists of a summary of the project, including its current status and future projections. In addition, it identifies the primary business case, which is the reason that the investment was made in the first place, as well as the secondary business case that describes the process that the organization has used to reach the current state of affairs. Finally, it includes recommendations for future planning and implementation.
A business case summary is an important document for both executives and project stakeholders. Not only does it provide a clear picture of the project, but it can also explain why the project was chosen over alternatives and what expectations are associated with it. A well-written executive summary provides the basis for communication with key project stakeholders and contributes to a successful management of projects.
A business case represents a detailed description of an investment decision made by an organization. Its goal is to provide enough information to allow the executives and project managers to make informed decisions about investments. It focuses on the details that are often ignored in everyday business decisions. For instance, it may describe the impact of potential risks involved with the project, the likely investment size and other factors. It may also discuss the anticipated benefits and how those benefits will be achieved.
In addition to describing the project risk, the executive summary also describes the organization’s expectations regarding the value of the project. The purpose of this section is to identify the expected return on the investment. This section is critically important because the expected return will affect the organization’s decisions regarding priorities, staffing and other strategic decisions. If the return is less than the investment, the organization’s priorities will change and priorities must be considered in the execution of the decision. Conversely, if the expected return is greater than the investment, the organization’s priority will shift to a higher level of significance and risk will become more pronounced.
The primary function of a business case is to provide investment estimates, risk assessments and detailed discussions about how the project sponsor can achieve the value and goal of the project. An effective business case describes the anticipated results of an investment, identifies the factors that affect the likelihood of reaching that result and explains why these factors are important to the project sponsor and why they should be included in the overall cost estimation. A business case provides detailed descriptions about the factors that are important to the project and what will happen if those factors are not present. It also describes the expected impact of missing or changing factors and discusses whether those effects will offset the anticipated benefits. Finally, it describes the costs that will be incurred by the project sponsor if those aspects are not addressed adequately.