What is the business case meaning?

What is the business case meaning?

A business case is a written or verbal value proposition that is intended to educate a decision maker and convince them to take some kind of action. When written, the document itself is sometimes referred to as a business case. At its simplest, a business case could be a spoken suggestion.

What are the different types of business cases?

The business case development process follows the Five Case Model:

  • The Strategic Case.
  • The Socio-Economic Case.
  • The Commercial Case.
  • The Financial Case.
  • The Management Case.

Why is a business case important?

A business case often provides decision makers, stakeholders and the public with a management tool for evidence based and transparent decision making. It is a framework for delivery and performance monitoring of the subsequent policy, strategy or project to follow thereafter.

What is a strategic business case?

The purpose of the Strategic Outline Case (SOC) is to provide the necessary Information in a format that will enable the authority and any public sector partners to assess the scope of the project and any investments in service improvement.

What are the 5 elements of a business case?

Five elements of a business case

  • Strategic context: The compelling case for change.
  • Economic analysis: Return on investment based on investment appraisal of options.
  • Commercial approach: Derived from the sourcing strategy and procurement strategy.
  • Financial case: Affordability to the organisation in the time frame.

What is a business case and what are its key components?

Definition. A business case provides justification for undertaking a project, programme or portfolio. It evaluates the benefit, cost and risk of alternative options and provides a rationale for the preferred solution.

Why do you need a business case?

Which information should a business case include?

Information included in a formal business case could be the background of the project, the expected business benefits, the options considered (with reasons for rejecting or carrying forward each option), the expected costs of the project, a gap analysis and the expected risks.

What is the difference between project charter and business case?

Project charter outlines a high-level project description and deliverables, while Business case describes what a company is trying to get from a project in terms of return on investment, future opportunity and so on.

How do you structure a business case?

When writing a business case, always define the scope and include an executive summary, detailed info about finances, and an overview of the project’s structure. Each member of the project team should contribute to the business case. Overall, the business case should be concise and only include relevant information.

How do you layout a business case?

How to write a business case

  1. Be brief and convey only the bare essentials.
  2. Make it interesting, clear, and concise.
  3. Eliminate conjecture and minimize jargon.
  4. Describe your vision of the future.
  5. Demonstrate the value and benefits the project brings to the business.
  6. Ensure consistent style and readability.

What is strategic business case?

The Strategic Business Case provides decision makers with an early indication of the preferred way forward for the investment. The Strategic Business case is used to seek decision makers’ approval to proceed with the development of a detailed business case.

What are the major sections of a business case?

When you develop your business case, be sure you answer the following questions as they relate to these seven critical sections:

  • Executive summary.
  • Problem statement.
  • Analysis of the situation.
  • Solution options.
  • Project description.
  • Cost-benefit analysis.
  • Number of recommendations.