(TITLE page)

Business Case for Project Name

Author
Course
Date

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 TABLE OF CONTENTS

Table of Contents
EXECUTIVE SUMMARY..........................................................................................................................................3
INTRODUCTION.........................................................................................................................................................4
BACKGROUND......................................................................................................................................................4
CURRENT SITUATION........................................................................................................................................4
DESCPTION OF THE PROBLEM OR OPPORTUNITY..................................................................................4
PROJECT’S MEASURABLE ORGANIZATIONAL VALUE..........................................................................4
OBJECTIVES..........................................................................................................................................................4
ALTERNATIVES.........................................................................................................................................................5
ECONOMIC FEASIBILITY..................................................................................................................................5
1. Tangible Benefits........................................................................................................................................5
2. Intangible benefits......................................................................................................................................6
3. Cost- Benefit Analysis................................................................................................................................6
4. Total Cost of Ownership.............................................................................................................................7
5. Net Present Value Analysis of Benefits and Costs....................................................................................8
6. Payback Analysis........................................................................................................................................9
TECHNICAL FEASIBILITY.................................................................................................................................9
ORGANIZATIONAL FEASIBILITY...................................................................................................................9
ANALYSIS OF ALTERNATIVES...........................................................................................................................10
PROPOSED RECOMMENDATION.......................................................................................................................11

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 EXECUTIVE SUMMARY

 Brief description of the problem or opportunity

 Brief description of the target/proposed organization’s goal and strategy
 Brief description of the projects MOV and how it ties to the organizational goal and
strategy
 Brief description of each option or alternative analyzed
 Brief explanation of which alternative is being recommended and why

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 INTRODUCTION

BACKGROUND

CURRENT SITUATION

DESCPTION OF THE PROBLEM OR OPPORTUNITY

PROJECT’S MEASURABLE ORGANIZATIONAL VALUE

 HOW ACHIEVING THE PROJECT’S MOV WILL SUPPORT THE
ORGANIZATION’S GOAL AND STRATEGY

Year MOV
1 __% of Return on investment
____ increase in number of customers
2 __% of Return on investment
____ increase in number of customers
3 __% of Return on investment
____ increase in number of customers

OBJECTIVES (OF WRITING THIS BUSINESS CASE)

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 ALTERNATIVES

¡ Analyzing the feasibility and risk of each alternative at this point may act as a screening
process for ruling out any alternatives that are not worth pursuing.
¡ Describe each feasibility and analyze below

ECONOMIC FEASIBILITY – DEFINE COST AND BENEFITS

 Do funds and resources exist to support the project.

This section describes the development and operational costs of the proposed
solution. Estimated costs include the following areas: development, installation,
implementation, maintenance support, acquisition, fixed costs, variable costs .
Cost-Benefit Analysis which can be used are Net Present Value (NPV), Return on
Investment (ROI) and Break-Even Analysis (BEA).
It also describes the tangible and intangible benefits in acquiring the proposed
solution.
1. Tangible Benefits can be as follows:
● Increase in revenue/sales
● Cost reduction and avoidance
● Increased speed of activity/Elimination of job steps
● Error reduction
● Improve customer satisfaction
● Increased throughput
● Improvement of management planning and control

Tangible benefits worksheet

Year 1 through
year 5

1. Cost reduction or avoidance Php

2. Error reduction

3. Increased flexibility

4. Increase speed of activity

5. Improvement in management planning or

control

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 6. Others_______

Total tangible benefits Php________

2. Intangible benefits can be as follows:

● Improved customer goodwill
● Improved work process that can improve employee morale or customer
satisfaction
● Better service to community
● Better decision making
● Improved asset utilization
● Availability of new, better and real-time information

3. Cost- Benefit Analysis

a. One-time Cost (Sample Only)

Particulars Qty/Unit Amount

(In PhP)

a. Software Development 1 lot 20,396,000.00

b. Hardware

● Payment Kiosk 66 31,020,000.00

● Mobile POS 66 2,310,000.00

c. Implementation 1 lot 8,931,000.00

d. Training 1 lot 567,000.00

Total One-time cost 63,224,000.00 (VAT INC)

b. Recurring Costs

Particulars Qty/Unit Amount

(In PhP)

a. System Support and Year 1 4,359,000.00

Maintenance through Year
5
b. Cloud Hosting Services 3,025,000.00

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 Total Recurring Costs 7,384,000.00 (VAT INC)

4. Total Cost of Ownership

Particulars Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Software 20,396,000
Development

System 8,931,000
Implementation

Hardware

Compact Kiosk 8,460,000 5,640,000 5,640,000 5,640,000 5,640,000

Mobile POS 630,000 420,000 420,000 420,000 420,000

Training 567,000

System Support and 951,000 852,000 852,000 852,000 852,000

Maintenance

Cloud Hosting 605,000 605,000 605,000 605,000 605,000

Service

Sub-Total 40,540,000 7,517,000 7,517,000 7,517,000 7,517,000

Total Cost of 70,608,000

Ownership

5. Net Present Value Analysis of Benefits and Costs

Year of Project
Year Year 1 Year 2 Year Year 4 Year 5 totals
0 3

Development
cost

Operation and

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 maintenance cost

Discount factor
for 12%

Present value of
annual costs

Total present
value of lifetime
costs

Benefits derived
from operation
of new system

Discount factor
for 12%

Present value of
annual benefits

Total present
value of lifetime
benefits

NET
PRESENT
VALUE OF
THE
PROPOSED
SYSTEM

6. Payback Analysis data for the system proposal

Project Name:
YEAR COSTS CUMULATIV BENEFITS CUMULATIV
E COSTS E BENEFITS

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 2

TECHNICAL FEASIBILITY

7. Will the current infrastructure support the alternative?

8. Will new technology be needed? Will it be available?
9. Does the current IT staff have the skills and experience to support the proposed
solution?
10. If outsourcing, does the vendor or company have the skills and experience to develop
and implement the application?

ORGANIZATIONAL FEASIBILITY

¡ How will people and the way they do their jobs be impacted?
¡ Will they accept this change willingly?
¡ Will business be disrupted while the proposed solution is implemented?

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 ANALYSIS OF ALTERNATIVES

11. Methodology of how alternatives will be analyzed as follows:

a. Data collection methods
b. Metrics used and explanation why they are relevant
12. Presentation of results that compares each alternative
a. Metrics
b. Risks
c. Assumptions

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 PROPOSED RECOMMENDATION

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