BUSINESS CASE DOCUMENT TEMPLATE

Introduction

The template is designed to prompt the Project Manager and help in the creation of
the Business Case. The information for the Business Case is extracted from the
Start Up and Initiating a Project Processes which are part of the PRINCE2 Method of
Project Management which we will be looking at in more detail in the IPPM Theme
sessions in early 2007.

Entering the [....] text

When the template is complete, the whole Business Case Document should be used
in the Stage 1 - Group Presentation of the Assignment. Prior to printing, or copying
for use in your presentation, you should delete all [....] prompt text.

Once your Business Case Document is completed check the document against
the following Quality Criteria:

 Can the benefits be justified?

 Are the Project Plan and Business Case aligned?

 Are the reasons for the project consistent with corporate or programme
strategy?
BUSINESS CASE

Project:

Release:

Date of Issue:

Business Case
Author:

Project
Owner/Sponsor:

Project Client:

Document Ref:

Version No:
 Insert Project Name
Business Case
Date: 16 December 2014
1 Business Case History

Document Location
This document is valid only on the day that it is printed.

Revision History
Date of this revision:

Date of Next revision:

Revision Previous Summary of Changes Changes

date revision marked
date
First issue

Approvals
This document requires the following approvals.
Signed approval forms are filed in the Management/Specialist/Quality section of the
project files.

Name Signature Title Date of Version

Issue

Distribution
This document has been distributed to:

Name Title Date of Version

Issue

Page 1
 Insert Project Name
Business Case
Date: 16 December 2014

2 Table of Contents
Page

1 Business Case History 1

1.1 Document Location 1
1.2 Revision History
1.3 Approvals
1.4 Distribution

2 Contents

3 Purpose

4 Reasons

5 Options

6 Benefits Expected

7 Risks

8 Cost

9 Timescales

10 Investment Appraisal

Page 2
 Insert Project Name
Business Case
Date: 16 December 2014

Business Case

3 Purpose
[To document the justification for the undertaking of a project based on the estimated cost
of development and the anticipated business benefits to be gained. The Business Case
is used to say why the forecast effort and time will be worth the expenditure. The on-
going viability of the project will normally be monitored by the Project Owner/Sponsors
against the Business Case]

4 Reasons
The reasons for this project are
1) Provide better services to customers by keeping product deficiency low.
2) Provide the company a competitive advantage.
3) Help the company start a new method for selling its product.
4) Cut cost by only making products as demand comes and not stocking them up.
5) Reduce redundancy in the work force.
6) Create a better cash flow for the company by reducing stocks held in the warehouse.

5 Options
To develop the required system in house but this would take a longer time to complete.

6 Benefits Expected
1) Better usage of resources.
2) Leaner production- lower overhead cost (electricity, water)
3) Better quality products made.
4) Higher customer and end user satisfaction.
5) Able to meet demand on time, every time.
6) Better usage of space.

7 Risks
1) Cost might not justify the end result.
2) Higher over head cost as maintenance and support of system goes up.
3) Employees may resist to changes that the organization plans to carry out or even try to
find ways to sabotage the project.
4) Competitive advantage might be lost if competitors imitates the company’s move.
5) Technology implemented today which is considered a competitive advantage might
turn into an organisational nightmare tomorrow by becoming the organisational liability.
6) Focus might be to much on improving the IT of the company rather than the process of
the business in the long run.

Page 3
 Insert Project Name
Business Case
Date: 16 December 2014
8 Cost
Spend not more than £ 4 million

9 Timescales
(import the Gantt chart)

10 Investment Appraisal

Page 4