Chapter

Business Case Framework

A business case framework is a structured approach to developing a persuasive argument for a specific action or investment. It typically consists of several vital components to define the problem or opportunity, assess the costs and benefits, and provide recommendations for moving forward.

The following are the standard components of a business case framework:

  1. Executive Summary: A brief overview of the entire business case summarizes the key points and recommendations.
  2. Background: A description of the problem or opportunity the business case addresses. This section should include a brief history of the issue, the current state of affairs, and any relevant trends or data.
  3. Objectives: A clear statement of the objectives the business case is trying to achieve. These objectives should be specific, measurable, achievable, relevant, and time-bound (SMART).
  4. Scope: A definition of the boundaries of the business case, including what is included and excluded.
  5. Alternatives: A description of the options considered and how they were evaluated. This section should include an analysis of the pros and cons of each choice.
  6. Cost-Benefit Analysis: A detailed assessment of the costs and benefits associated with each alternative. This section should include a breakdown of the costs and benefits and a calculation of the net present value (NPV) and return on investment (ROI).
  7. Recommendation: A clear and concise recommendation for the preferred alternative based on the analysis conducted in the previous sections.
  8. Implementation Plan: A plan for how the recommended alternative will be implemented, including timelines, milestones, and key stakeholders.
  9. Risks and Assumptions: An assessment of the risks associated with the recommended alternative and any key assumptions made during the analysis.
  10. Conclusion: A summary of the key findings and recommendations and a call to action for the intended audience.

The business case framework is a valuable tool for decision-makers, stakeholders, and investors who need to assess the value and feasibility of a proposed initiative or investment. A well-developed business case ensures that resources are allocated effectively and that the desired outcomes are achieved by following a structured approach and including all relevant information.

The Business Case Framework category in our CIO Reference Library is a curated collection of resources, articles, and insights. It provides IT executives and other professionals a comprehensive understanding of the various frameworks and models used to develop and evaluate business cases.

A business case is a document that outlines the justification for a proposed investment, including the expected benefits, costs, risks, and other factors that may impact the decision. Developing a well-structured and comprehensive business case is critical for ensuring that proposed investments align with strategic objectives and provide value to the organization.

This category covers a wide range of topics related to business case frameworks, including:

  • Overview of business case: This includes an introduction to the concept of a business case, its purpose, and the key elements that should be included in a business case.
  • Business case frameworks: This includes an overview of the various frameworks and models used to develop and evaluate business cases, such as the cost-benefit analysis, return on investment (ROI), and net present value (NPV) frameworks.
  • Business case development: This includes an overview of the process for developing a business case, including identifying the problem or opportunity, defining the scope, identifying options, conducting analysis, and making recommendations.
  • Business case evaluation: This includes an overview of the process for evaluating a business case, including reviewing the assumptions and analysis, assessing the risks, considering the strategic alignment, and making a decision.

By exploring the Business Case Framework category, IT executives and other professionals can gain a comprehensive understanding of the various frameworks and models used to develop and evaluate business cases. This knowledge can help organizations to develop more effective business cases, evaluate proposed investments more objectively, and ultimately create more value for their stakeholders.

 

Featured: IT Business Case Example

IT Investment Business Case Toolkit

This comprehensive, multi-volume guide contains a complete set of tools – framework, process, instructions, templates, and tools – to create a business case for information technology (ICT) investments. This guide contains information, and tools for the preparer, and reviewers. Excellent toolkit for the CIO who wants a structured approach to IT Business Cases.

How to Develop a Business Case for IT Investments

This business case guide provides a template for managers to seek approval and support for IT investments. It provides the steps in the analysis required to ensure that IT investments are planned and documented – requirements are defined, performance metrics are identified, and program costs, benefits, and risks are well defined and understood prior to initiating an IT project.

Introduction to REJ

This presentation provides an introduction to Microsoft's Rapid Economic Justification (REJ) methodology.

Creating a Preliminary Business Case for an IT Investment

This guide helps build an initial or indicative business case for an investment. This business case established the strategic context of the proposed investment, confirms the need for a solution to a business problem, recommends an approach with a list of viable options, and gets approval for further analysis to

Creating a Business Case for an IT Investment

This guide helps create a business case for an IT investment. This business case establishes the strategic context and fit, confirms the case for change, identifies the investment option that maximizes business value, prepares a proposal for procurement, and seeks the necessary funding and management approvals for successful implementation.

Strategic Assessment of Investment Proposal

The Strategic Assessment is intended to provide stakeholders with a high degree of confidence that the investment they are considering aligns with the organizations strategic priorities and responds to a true business need. Stakeholders can consider the rationale for a proposed investment at an early stage, and determine if the proposal warrants the development of a business case.

Benefit Assessment of Investment Proposal

This document discusses benefit assessment of an investment proposal. Benefits management is vital in ensuring that an initiative achieves what it set out to do. It involves articulating what benefits are expected from the initiative, how it will be known that the benefits are achieved, and the assessment of what has eventuated against what was planned. Managing benefits extends beyond the lifecycle of a project or program. It requires a structure that survives long after the project/program team has disbanded.

Better Business Case Overview

This business case framework and approach is designed to improve the outcome of major investments using a structured approach that integrates disciplined decision making with program management and assurance. This approach provides an intuitive process to ensure key aspects of an investment proposal are considered and supported and a standard communication tool for engaging key stakeholders throughout the lifecycle and the various decisions at key points along it.

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