Business Case

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Business Case
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ualit! Manager
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Business Case
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Business Case
Tale of Contents
TEMPLATE GUIDE....................................................................................
E!ECUTI"E #UMMA$%.........................................................................&
& BU#I'E## P$(BLEM...........................................................................&
2.1 ENVIRONMENTAL ANALYSIS....................................................................................................... 2
2.2 PROBLEM ANALYSIS................................................................................................................. 2
) A"AILABLE (PTI('#..........................................................................)
3.1 OPTION 1 [OPTION NAME].....................................................................................................3
3.1.1 Description.................................................................................................................. 3
3.1.2 Benefts....................................................................................................................... 3
3.1.3 Costs........................................................................................................................... 4
3.1.4 Feasii!it".................................................................................................................... 4
3.1.# $is%s............................................................................................................................ #
3.1.& Iss'es.......................................................................................................................... #
3.1.( Ass')ptions................................................................................................................ &
3.2 OPTION 2 [OPTION NAME].....................................................................................................6
3.2.1 Description.................................................................................................................. &
3.2.2 Benefts....................................................................................................................... &
3.2.3 Costs........................................................................................................................... &
3.2.4 Feasii!it".................................................................................................................... &
3.2.# $is%s............................................................................................................................ &
3.2.& Iss'es.......................................................................................................................... &
3.2.( Ass')ptions................................................................................................................ &
* $EC(MME'DED (PTI('......................................................................+
4.1 OPTION RANKINGS.................................................................................................................. 7
4.2 OPTION RECOMMENDED...........................................................................................................7
, IMPLEME'TATI(' APP$(ACH................................................................-
5.1 PROJECT INITIATION................................................................................................................. 8
5.2 PROJECT PLANNING................................................................................................................. 8
5.3 PROJECT EXECTION............................................................................................................... 8
5.4 PROJECT CLOSRE.................................................................................................................. 8
5.5 PROJECT MANAGEMENT............................................................................................................8
. APPE'DI!......................................................................................./
6.1 SPPORTING DOCMENTATION.................................................................................................. !
iii
Business Case
Template Gui0e
What is a Business Case?
( )usiness *ase is a document w+ic+ out&ines t+e ,usti$ication $or t+e start-u% o$ a %ro,ect.
.t inc&udes/
( descri%tion o$ t+e 'usiness %ro'&em (or o%%ortunity) w+ic+ e!ists in t+e 'usiness
( &isting o$ t+e a#ai&a'&e o%tions $or de&i#ering a so&ution to reso&#e t+e %ro'&em
+e 'ene$its and costs associated wit+ eac+ so&ution o%tion
( recommended so&ution o%tion $or a%%ro#a&.
When do I use a Business Case?
+e )usiness *ase is usua&&y %resented 'y Senior Management wit+in t+e 'usiness to an
identi$ied )usiness S%onsor. .t is t+e $irst document used in t+e Pro,ect 0i$ecyc&e and, once
a%%ro#ed, a&&ows t+e %ro,ect to 'e $orma&&y de$ined. 1urt+ermore/
During t+e de#e&o%ment o$ a )usiness *ase, it may 'e necessary to underta2e a $orma&
1easi'i&ity Study. +is %rocess in#o&#es a more detai&ed assessment o$ t+e current
'usiness %ro'&em 3 o%%ortunity, t+e #arious so&ution o%tions a#ai&a'&e, t+e &i2e&i+ood o$ a
success$u& im%&ementation $or eac+ so&ution o%tion and t+e recommended so&ution
o%tion $or im%&ementation. +e 1easi'i&ity Study sim%&y %ro#ides t+e )usiness *ase wit+
more rigor $or t+e so&ution o%tions %resented.
+e )usiness *ase is $re4uent&y re$erred to during t+e %ro,ect. (t eac+ 5ua&ity "e#iew
%oint t+e )usiness *ase is used to determine w+et+er or not t+e 'ene$its, costs, ris2s
and issues %re#a&ent matc+ t+ose out&ined in t+e )usiness *ase. (t t+e end o$ t+e
%ro,ect a Post .m%&ementation "e#iew (P.") wi&& determine w+et+er or not t+e %ro,ect
de&i#ered t+e )usiness )ene$its out&ined in t+e )usiness *ase. .n t+is regard, t+e
success o$ t+e %ro,ect is measured against t+e a'i&ity o$ t+e %ro,ect to de&i#er t+e criteria
out&ined in t+e )usiness *ase.
+e ne!t stage $o&&owing a%%ro#a& o$ t+e )usiness *ase is t+e identi$ication o$ t+e %ro,ect
sco%e wit+in a Pro,ect erms o$ "e$erence document.
How to use this template
+is document %ro#ides a guide on t+e to%ics usua&&y inc&uded in a )usiness *ase
document. Sections may 'e added, remo#ed or rede$ined at your &eisure to meet your
%articu&ar 'usiness circumstance. 6!am%&e ta'&es, diagrams and c+arts +a#e 'een added
(w+ere suita'&e) to %ro#ide $urt+er guidance on +ow to com%&ete eac+ re&e#ant section.
$
Business Case
E1ecutive #ummary
Summari%e eac& o# t&e sections in t&is document concisel! '! outlining t&e(
Pro'lem or opportunit!
Solution alternatives
Recommended Solution
Implementation )pproac&*
& Business Pro2lem
&. Environmental Analysis 3inclu0e Business Process as
applica2le4
Outline t&e core aspects o# t&e 'usiness environment w&ic& &ave derived t&e need #or t&is
project to ta+e place* ,&ese ma! include(
-usiness .ision/ Strateg! or O'jectives
-usiness processes or tec&nologies w&ic& are not operating e##icientl!
New "ompetitor products or processes w&ic& &ave 'een identi#ied
New tec&nolog! trends 0or opportunities resulting #rom new tec&nologies introduced1
"ommercial or operational trends w&ic& are driving c&anges in t&e 'usiness
"&anges to Statutor!/ legislative or ot&er environmental re2uirements*
Provide an! #acts or evidence to support t&e conclusions drawn a'ove*
&.& Pro2lem Analysis
Outline t&e #undamental 'usiness pro'lem or opportunit! w&ic& t&e resulting project will
directl! address*
-usiness Pro'lem
Provide a summar! o# t&e core 'usiness pro'lem/ including(
) generic description o# t&e core issue to &and
,&e reasons w&! t&e pro'lem e3ists
,&e elements w&ic& create it 0e*g* &uman/ process/ tec&nolog!1
,&e impact it is &aving on t&e 'usiness 0e*g* #inancial/ cultural/ operational1
,&e time#rames wit&in w&ic& it must 'e resolved*
-usiness Opportunit!
Outline t&e 'usiness opportunit! w&ic& &as 'een identi#ied/ including(
4
Business Case
) summar! o# t&e generic opportunit!
)n! supporting evidence to prove t&at t&e opportunit! is real
) time#rame wit&in w&ic& t&e opportunit! will li+el! e3ist
,&e positive impact t&at reali%ation o# t&e opportunit! will &ave on t&e 'usiness*
) Availa2le (ptions
,&is section provides a #ull listing o# all solution options/ t&eir 'ene#its/ costs/ #easi'ilit!/ ris+s
and issues* Options suggested ma! include doing not+ing/ doing somet+ing t+at wi&& ac+ie#e
a simi&ar resu&t or doing somet+ing t+at wi&& ac+ie#e a 'etter resu&t t&an current per#ormance*
,r! to minimi%e t&e num'er o# options availa'le '! conducting a detailed Feasi'ilit! Stud!
'e#ore&and* For eac& solution option identi#ied/ t&e #ollowing in#ormation is re2uired(
). (ption 5 [Option Name]
Description
Provide a summari%ed description o# t&e option identi#ied* ,&is will include t&e general
approac& to 'e ta+en and a summar! o# t&e core elements o# t&e solution 0e*g* people/
process/ organi%ation/ tec&nolog!1*
Benefts, Goals and Measurement Criteria
Descri'e t&e tangi'le and intangi'le 'ene#its to t&e compan! upon implementation o# t&e
solution* One o# t&e o'vious 'ene#its descri'ed will 'e t&at t&e 'usiness pro'lem 5
opportunit! outlined a'ove will 'e addressed* "omplete t&e #ollowing ta'le(
Categor! Benefit Value
Financial
New revenue generated
Reduction in costs
Increased pro#it margin
7 !
7 !
7 !
Operational
Improved operational e##icienc!
Reduction in product time to mar+et
6n&anced 2ualit! o# product 5 service
! 8
! +rs
! 8
Mar+et
Increased mar+et awareness
Greater mar+et s&are
)dditional competitive advantage
! 8
! 8
Descri'e
"ustomer
Improved customer satis#action
Increased customer retention
Greater customer lo!alt!
! 8
! 8
Descri'e
Sta##
Increased sta## satis#action
Improved organi%ational culture
Longer sta## retention
! 8
Descri'e
! 8
7
Business Case
N-( ,&e 'ene#its listed a'ove are wor+ing e3amples onl!* )ll 2uanti#ia'le 'ene#its listed must
'e supported '! current per#ormance #igures*
8
Business Case
Costs and Funding Plan
Descri'e t&e tangi'le and intangi'le costs to t&e compan! upon implementation o# t&e
solution* ,&e costs o# t&e actual project s&ould 'e included 0e*g* e2uipment procured1 as
well as an! negative impact to t&e 'usiness resulting #rom t&e deliver! o# t&e project 0e*g*
operational down9time1* "omplete t&e #ollowing ta'le(
Categor! Cost Value Bu"gete"
People
Salaries o# project sta##
"ontractors 5 outsourced parties
,raining courses
7 !
7 !
7 !
96S
NO
96S
P&!sical
-uilding premises #or project team
62uipment and materials
,ools 0computers/ p&ones:1
7 !
7 !
7 !
NO
NO
NO
Mar+eting
)dvertising 5 'randing
Promotional materials
PR and communications
7 !
7 !
7 !
96S
NO
NO
Organi%ational
Operational down9time
S&ort9term loss in productivit!
"ultural c&ange
7 !
7 !
Descri'e
NO
NO
NO
N-( In addition/ !ou ma! need to identi#! w&et&er t&e cost item is a capital 0")P6;1 or
operational 0OP6;1 e3penditure item* ) separate spreads&eet s&owing an anal!sis o# t&e
cost e2uations ma! need to 'e attac&ed as an appendi3 to t&is document i# #urt&er
in#ormation is li+el! to 'e re2uired #or approval*
Identi#! Funding Sources and )mounts(
Fun"ing
Source
#mount Notes
Feasibility
Descri'e t&e #easi'ilit! o# t&e solution* ,o ade2uatel! complete t&is section/ a Feasi'ilit!
Stud! ma! need to 'e initiated to 2uanti#! t&e li+eli&ood o# ac&ieving t&e desired project
result* ,o assess t&e overall #easi'ilit! o# t&is option/ 'rea+ t&e solution down into
components and rate t&e #easi'ilit! o# eac& component in t&e #ollowing ta'le(
<
Business Case
Com$onent Rating
%&'&()
*etho" +se" to Determine Feasiilit!
New ,ec&nolog! < ) tec&nolog! Protot!pe was created to assess t&e solution
New People = ) surve! was completed to identi#! s+ill9set availa'ilit!
New Processes 7 Processes wit&in similar organi%ations were reviewed
New )ssets > P&!sical assets were inspected
,o ensure t&at t&e #easi'ilit! ratings are accurate/ use all appropriate met&ods possi'le to
identi#! t&e li+el! #easi'ilit! o# t&e solution* For e3ample/ i# adopting new tec&nolog!/ develop
a small protot!pe and test it to see i# t&e resultant 'ene#its matc& t&ose e3pected #rom t&e
e3ercise*
is!s
Summaries t&e most apparent ris+s associated wit& t&e adoption o# t&is solution* Ris+s are
de#ined as ?an! event w&ic& ma! adversel! a##ect t&e a'ilit! o# t&e solution to produce t&e
re2uired delivera'les@* Ris+s ma! 'e Strategic/ 6nvironmental/ Financial/ Operational/
,ec&nical/ Industrial/ "ompetitive or "ustomer related* "omplete t&e #ollowing ta'le(
Descri$tion ,i-elihoo" Im$act *itigating #ctions
Ina'ilit! to recruit
s+illed resource
Low .er! Aig& Outsource project to a compan! wit& proven
industr! e3perience and appropriatel! s+illed
sta##
,ec&nolog!
solution is una'le
to deliver re2uired
results
Medium Aig& "omplete a pilot project to prove t&e
tec&nolog! solution will deliver t&e re2uired
results
)dditional capital
e3penditure ma!
'e re2uired in
addition to t&at
approved
Medium Medium Maintain strict cost management processes
during t&e project
,o complete t&is section t&oroug&l!/ it ma! 'e necessar! to underta+e a #ormal Ris+
)ssessment 0'! documenting a "is2 Management P&an1* ,o reduce t&e li+eli&ood and
impact o# eac& ris+Bs eventuating/ clear Cmitigating actionsD s&ould 'e de#ined*
"ssues
Summari%e t&e &ig&est priorit! issues associated wit& t&e adoption o# t&is option* Issues are
de#ined as ?an! event w&ic& currentl! adversel! a##ects t&e a'ilit! o# t&e solution to produce
t&e re2uired delivera'les@* "omplete t&e #ollowing ta'le(
Descri$tion Priorit! Resolution #ctions
E
Business Case
Re2uired capital e3penditure
#unds &ave not 'een 'udgeted
Aig& Re2uest #unding approval as part o# t&is proposal
Re2uired computer so#tware is
onl! at C'etaD p&ase and &as not
!et 'een released live
Medium Design solution 'ased on current so#tware version
and adapt c&anges to solution once t&e #inal version
o# t&e so#tware &as 'een released
Regulator! approval must 'e
soug&t to implement t&e #inal
solution
Low Initiate t&e Regulator! approval process earl! so t&at
it does not dela! t&e #inal roll9out process*
Fpon approval o# t&e 'usiness case/ eac& issue s&ould 'e #ormall! recorded and trac+ed/
using an Issue Management Process/ Forms and Register*
G
Business Case
#ssumptions
List t&e major assumptions associated wit& t&e adoption o# t&is option* 63amples include(
,&ere will 'e no legislative/ 'usiness strateg! or polic! c&anges during t&is project
Prices o# raw materials will not increase during t&e course o# t&is project
)dditional &uman resource will 'e availa'le #rom t&e 'usiness to support t&is project*
).& (ption & 5 [Option Name]
Description
)s de#ined a'ove in Section 7*$*$
Benefts
)s de#ined a'ove in Section 7*$*4
Costs
)s de#ined a'ove in Section 7*$*7
Feasibility
)s de#ined a'ove in Section 7*$*8
is!s
)s de#ined a'ove in Section 7*$*<
"ssues
)s de#ined a'ove in Section 7*$*E
#ssumptions
)s de#ined a'ove in Section 7*$*G
=
Business Case
* $ecommen0e0 (ption
,&is section compares t&e +e! c&aracteristics o# eac& solution option and recommends a
pre#erred solution option #or implementation*
*. (ption $an6in7s
Identi#! t&e criteria '! w&ic& eac& o# t&e solution options will 'e assessed* ,&en agree a
rating mec&anism #or eac& criteria so t&at ratings can 'e added to determine a total score #or
eac& option* N- Ratings ma! 'e weig&ted to stress t&e importance o# t&e criteria 'eing
assessed* "omplete t&e #ollowing ta'le(
Criteria .$tion & .$tion / .$tion 0
-ene#its
Increased revenue
Reduced e3penditure
Improved e##icienc!
6n&anced 2ualit!
Ot&er
[1-10 "ating] [1-10 "ating] [1-10 "ating]
"osts
People
P&!sical
Mar+eting
Organi%ational
Ot&er
Feasi'ilit!
,ec&nolog! components
People components
Process components
)sset components
Ot&er
Ris+s
Resourcing
,ec&nolog!
Organi%ational
Ot&er
Total Score
*.& (ption $ecommen0e0
-ased primaril! on t&e &ig&est ,otal Score ac&ieved a'ove/ list &ere t&e CRecommended
OptionD #or -usiness "ase approval* Summari%e t&e primar! reasons w&! t&is option was
c&osen over t&e ot&er options previousl! identi#ied*
>
Business Case
, Implementation Approac8
,&is section provides an overview o# t&e general approac& underta+en to deliver t&e
pre#erred solution option and derive t&e resultant 'usiness 'ene#its*
,. Pro9ect Initiation
Outline t&e met&od '! w&ic& t&e project will 'e de#ined/ t&e project team #ormulated and t&e
project o##ice esta'lis&ed*
,.& Pro9ect Plannin7
De#ine t&e overall planning process to ensure t&at t&e project p&ases/ activities and tas+s
are underta+en in a co9coordinated #as&ion*
,.) Pro9ect E1ecution
Identi#! t&e generic p&ases and activities re2uired to complete t&e C'uildD p&ase o# t&e
project*
,.* Pro9ect Closure
List t&e generic steps necessar! to release t&e delivera'les to t&e 'usiness 0once complete1/
close t&e project o##ice/ reallocate sta## and per#orm a Post Implementation Review o# t&e
project*
,., Pro9ect Mana7ement
Descri'e in 'rie# &ow t&e #ollowing aspects o# t&e project will 'e managed(
,ime Management
"ost Management
ualit! Management
"&ange Management
Ris+ Management
Issue Management
Procurement Management
"ommunications Management
)cceptance Management*
Ot&er arti#acts as appropriate #or t&e 'usiness case
$H
Business Case
. Appen0i1
.. #upportin7 Documentation
)ttac& an! documentation !ou 'elieve is relevant to t&e -usiness "ase* For e3ample(
Pro'lem 5 Opportunit! researc& materials
Feasi'ilit! Stud! researc& materials
63ternal 2uotes or tenders
Detailed cost 5 'ene#it spreads&eets
S!stem re2uirements 0i# +nown1
Ot&er relevant in#ormation or correspondence*
$$