business case

Business cases are created to help decision-makers ensure that:

• the proposed initiative will have value{{sfn|Project Management Institute|2021|loc=Section 3.4 Focus on Value}} and relative priority compared to alternative initiatives based on the objectives and expected benefits laid out in the business case.

• the performance indicators found in the business case are identified to be used for proactive realization of the business and behavioral change.

{{Excerpt|Business process|only=paragraph}}

The business case process should be designed to be:

• adaptable – tailored to the size and risk{{sfn|Project Management Institute|2021|loc=§3.4 Focus on Value}} of the proposal
• consistent – the same basic business issues are addressed by every project
• business oriented – concerned with the business capabilities and impact, rather than having a technical focus
• comprehensive – includes all factors relevant{{sfn|Project Management Institute|2021|loc=§2.7.1.2 Effective Metrics}} to a complete evaluation
• understandable – the contents are clearly relevant, logical and, although demanding, are simple to complete and evaluate
• measurable – all key aspects can be quantified so their achievement can be tracked and measured
• transparent – key elements can be justified directly
• accountable – accountability and commitments for the delivery of benefits and management of costs are clear.

A good business case report brings confidence and accountability into the field of making investment decisions. It is a compilation of all information collected during enterprise analysis and the business case process. The key objective is to provide evidence and justification for continuing with the investment proposition.

A business case can include details such as strategic alignment, return on investments, risk exposure assessment, feasibility study, expected key performance indicators, evaluations and alternative measures.{{sfn|Project Management Institute|2021|loc=§3.4 Strategy Artifacts}}{{cite web |last1=Tamang |first1=Suman |title=Business Case Study of Yahoo: The Rise and Fall |url=https://moneysifu.com/business-case-study-of-yahoo/ |archive-url=https://web.archive.org/web/20231130082607/https://moneysifu.com/business-case-study-of-yahoo/ |url-status=usurped |archive-date=November 30, 2023 |website=Money Sifu |access-date=December 2, 2023}}

{{Excerpt|Strategic alignment|only=paragraph}}

{{Excerpt|Feasibility study|only=paragraph}}

{{Excerpt|Performance indicator|only=paragraph}}

Here is an example of a report structure for a business case:[http://www.globusresearch.com/business-case.aspx#info Source: Messner, W.: More on Making the Compelling Business Case] {{Webarchive|url=https://web.archive.org/web/20170406225608/http://www.globusresearch.com/business-case.aspx#info |date=2017-04-06 }} GloBus Research, accessed: 5 May 2013 and Messner, W. (2013): [http://www.thebusinesscase.info Making the Compelling Business Case]. Houndmills: Palgrave Macmillan.{{cite news |last1=Vardrup |first1=Kasper |last2=Stigzelius |first2=Mats |title=How to write a solid Business Case |url=https://slideworks.io/resources/how-to-write-a-solid-business-case-examples-and-template |access-date=18 June 2024 |work=Slideworks.io |language=en}}

• Preface
• Table of contents
• Executive briefing
• Recommendation
• Summary of results
• Decision to be taken
• Introduction
• Business drivers
• Scope
• Financial metrics
• Analysis
• Assumptions
• Cash flow statement (net present value, etc.)
• Costs
• Benefits
• Risk
• Implementation plan
• Strategic options
• Opportunity costs
• Conclusion, recommendation, and next steps
• Appendix

At various stages in the project, the business case should be reviewed to ensure that:

• The justification is still valid,
• The project will deliver the solution to the business need.

The result of a review may be the termination or amendment of the project.{{sfn|Project Management Institute|2021|loc=§3.4 The Tailoring Process}} The business case may also be subject to amendment if the review concludes that the business need has abated or changed,{{sfn|Project Management Institute|2021|loc=§3.4 Focus on Value}} this will have a knock-on effect{{sfn|Project Management Institute|2021|loc=§2.8.3 Complexity}} on the project.

Many public sector projects are now required to justify their need through a business case. In the public sector, the business case is argued in terms of cost–benefit analysis, which may include both financial and non-financial cost and benefits.{{sfn|Project Management Institute|2021|loc=§4.4.1 Data Gathering and Analysis}} This allows the public body concerned to take social and environmental benefits into account, allowing a more comprehensive understanding of economic impacts.

• Business plan
• Project charter
• Case competition
• Innovation
• Optimism bias
• Planning fallacy
• Reference class forecasting
• Win–win game

• Bentley, C.: Practical Prince2 (The Stationery Office), {{ISBN|0-11-702853-3}}.

• [https://www.industryweek.com/articles/five_elements_to_include_in_a_compelling_business_case_15594 Five elements to include in a compelling business case]

• Messner, W.: Making the Compelling Business Case. Decision-Making Techniques for Successful Business Growth. Houndmills: Palgrave Macmillan, 2013 ([http://www.thebusinesscase.info book companion website])

• OGC Guidance and templates on [https://web.archive.org/web/20060901141349/http://www.ogc.gov.uk/documentation_and_templates_business_case.asp 'Business Case']

• {{Cite book|last=Project Management Institute|title=A guide to the project management body of knowledge (PMBOK guide)|date=2021|others=Project Management Institute|isbn=978-1-62825-664-2

|edition=7th|location=Newtown Square, PA}}

• Schaltegger, S. & Wagner, M. (Eds.): Managing the Business Case for Sustainability. The Integration of Social things, and Economic Performance. Sheffield: Greenleaf, 2006

• [http://prince2.wiki/Business_Case Business Case article in PRINCE2 wiki]

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Category:Project management

Category:Evaluation methods

ru:Технико-экономическое обоснование