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Business Case Cost-Benefit Template

Examples that are included in the table are not comprehensive. Add to / remove items from the table
as required.

Ministry: (insert ministry name here)
Initiative: (insert name of initiative here)

QUANTITATIVE COSTS Year 1 Year 2 Year 3 Year 4 Year 5 Total
($000s) ($000s) ($000s) ($000s) ($000s) ($000s)
Non-Recurring Costs
Hardware
Servers 0
Peripherals/Data centre equipment 0
Desktop (incremental due to project) 0
Telecommunication equipment 0
Software (packaged or custom)
Purchase 0
Facilities
Computer room upgrades 0
Furniture and fixtures 0
Other 0
Project organizational/support costs
Planning (upon approval) 0
Procurement 0
Contract negotiations 0
Labour
Infrastructure 0
Development 0
Business Process owners (users) 0
Management 0
Other labour 0
Other
Training of employees (pre-
implementation) 0
Transition costs (parallel systems) 0
Post implementation reviews 0
Total Non-Recurring Costs 0 0 0 0 0 0

Recurring Costs
Hardware/Software
Software maintenance and upgrades 0

overtime) 0 Reduced staff turnover costs 0 Total Cost Savings 0 0 0 0 0 0 Cost Avoidance (Enter Cost Avoidance Here) 0 0 0 Total Cost Avoidance 0 0 0 0 0 0 . benefits) 0 User training 0 Other Telecommunications 0 Office leases 0 Total Recurring Costs 0 0 0 0 0 0 Total Costs 0 0 0 0 0 0 QUANTITATIVE BENEFITS Year 1 Year 2 Year 3 Year 4 Year 5 Total ($000s) ($000s) ($000s) ($000s) ($000s) ($000s) Revenues (Enter revenue here) 0 0 0 Total Revenues 0 0 0 0 0 0 Cost Savings Decreased cost of services provided 0 Savings from Business process improvements 0 Productivity gains 0 Savings from structural changes 0 Savings from optimized information (or flow) 0 Decreased information publishing cost 0 Reduced staffing cost (incl.Computer supplies 0 Desktops (incremental to the project) 0 Help Desk support 0 Ongoing Additional Labour IT staff costs (incl.

00 ($000s) Present Value of Costs: $0.00 ($000s) .00 ($000s) Net Present Value (NPV): $0.Other Benefits (Enter Other Benefits Here) 0 0 0 Total Other Benefits 0 0 0 0 0 0 Total Benefits 0 0 0 0 0 0 Net Present Value (automatically calculated): Discount Rate: 5.00% (Do not change) Present Value of Benefits: $0.

Copy the data from this table into your business case in the 'Cost-Benefit Analysis' section.00 .00 Net Present Value $0.00 Present Value of Total Costs: $0. Quantitative Analysis Year 1 Year 2 Year 3 Year 4 Year 5 Total ($000s) ($000s) ($000s) ($000s) ($000s) ($000s) BENEFITS Cost Savings 0 0 0 0 0 0 Cost Avoidance 0 0 0 0 0 0 Revenue 0 0 0 0 0 0 Other 0 0 0 0 0 0 Total Benefits 0 0 0 0 0 0 COSTS Non-Recurring 0 0 0 0 0 0 Recurring 0 0 0 0 0 0 Total Costs 0 0 0 0 0 0 Net Benefit or Cost 0 0 0 0 0 0 Present Value of Total Benefits: $0.This table will be filled in automatically from the data on Tab 1 .'Cost-Benefit Template'.

The examples provided in the table are not comprehensive. Add to and remove from the table as required.Cost-Benefit Template Complete this table in as much detail as possible. The data in this table should be copied into the table in the Cost-Benefit Analysis section of the business case.Instructions for Completing This Spreadsheet: Tab 1 .Summarization This will be filled in automatically based on the information inputted into Tab 1. Tab 2 . .

This information will indicate the degree of confidence in the cost estimates. development effort. Business sponsors are ultimately accountable for ensuring that all costs (business and IT) have been included in the cost-benefit analysis and are clearly identified for decision-makers. etc. based on different assumptions).: internal time and effort of business process owners.). internal project management. ministries should describe the efforts undertaken to produce the cost estimates (e. subject matter experts. however. In the case of a joint or shared services initiative. While ministries will typically identify the direct costs of planning and implementing the new initiative. To assist decision-makers in their review of the business case and costs. Ministries should develop detailed breakdowns of all the costs and benefits associated with the proposed new project. etc. they should also include expected operating/ongoing costs as well. an analysis should recognize this uncertainty and address it through appropriate assessments (i. feasibility study.: release of an RFI.: hardware.). training costs. all the costs and benefits should be identified for the entire analysis period). including both one-time costs and recurring costs.Additional Guidance Include ALL Costs: The proposal should not only include IT costs. costs and benefits should reflect the full life cycle of the initiative (i.) IT resources are responsible for helping ministries to identify options to address their business need.g. ministries should include all costs associated with the project regardless of who pays for it (or components of it). .g. software.g.: complete multiple cost-benefit analyses. etc. completion of an 'Inception' phase. Business resources are responsible for providing any business-related cost estimates (e. but business costs as well.e. Include Costs and Benefits for the Entire Analysis Period: The business case template assumes a five-year cost-benefit analysis scenario. Describe the Degree of Confidence in Cost Estimates: The degree of certainty associated with cost estimates typically depends on the amount of up-front effort invested in exploring options and the proposed solution. Perform ‘Sensitivity Analysis’ if Needed: When the amounts and timing of important benefits and costs are uncertain.e. where applicable.. outline any next steps and timing for developing more accurate cost estimates if a project is approved. If applicable. and to provide ‘IT-related’ cost estimates to inform the business case (e. and management.

interviews.g. Consider the impact the initiative will have on the end user or stakeholder. and performance benchmarks (e. along with any variables or assumptions that were used to calculate each cost and benefit. For example. etc. There are. reduce turnaround time in processing application forms by 2 days by January 2010. ways to measure progress in achieving qualitative benefits. Identification of benefits is often more of a challenge than identification of costs. For each qualitative cost or benefit. . If a benefit cannot easily be expressed or translated into a dollar value.).Calculating Benefits: Benefits need to be clearly identified.: increase customer satisfaction survey scores by 10% for 2012-13. It helps to think in terms of outcomes and results rather than just in terms of outputs. however. all quantitative cost and benefit calculations must be explained within the business case. identify how progress will be measured. Examples of measures include: the use of surveys. it can be described in the 'Qualitative Benefits' section of the business case. Document Key Assumptions and Explain Calculations: As instructed in the business case template. does proceeding with the initiative ultimately result in changed knowledge or behaviors? It is recognized that it is not always possible to assign a dollar value to the benefits.