A business case is a document that presents a comprehensive view of the project and provides the financial justification for implementation.
WHY PREPARE A BUSINESS CASE
business case is a document that presents a comprehensive view of the project and provides the financial justification for implementation.
It is a critical component of your project because it makes the case for change and provides the financial justification for a project.
Project teams prepare business cases for a number of reasons.
A business case is mainly developed to
The business case is a useful tool throughout a project's life cycle.
It is particularly useful
when the project is approved to proceed and be funded
When the project is approved, the business case is then used as the key input into the project's detailed planning stages, and it communicates to the project manager and project team members what approved outcomes must be achieved.
during the project's implementation stages
During the implementation stages, the business case is used by the project manager to regularly test that the project is progressing as approved. It also is used to determine whether any key assumptions or objectives have changed and whether the business case needs reassessing.
once a project has been completed
When the project has been completed, the business case is used to compare what has actually been delivered to the business with what was approved in the business case.
Maria, a process engineer for a healthcare company, believes that the most critical need in the organization is to reduce the number of defects in diagnostic detection kits that the company is currently producing.
She is developing a business case that examines a number of ways to improve the quality procedures in the manufacturing plant. The business case analyzes the costs, benefits, and risks associated with each option and recommends that a new design inspection program should be introduced.
The business case explains how the inspection program will eliminate defects early on in the manufacturing process and save rework time. It estimates how long the program will take to implement and the savings that will be made. It details the commitment necessary to introduce the program in terms of time, money, and human resources.
QUESTION
A business case serves many purposes.
Why would you develop a business case for a project?
The business case is intended to raise awareness of a problem or opportunity that is facing your company.
The business case allows you to raise the issue of the particular problem or opportunity that the business is facing.
The extent of the problem or the opportunities that may be available are defined in the business case.
The business case should lay out a suitable plan of action to address the issues that the company faces.
You would use a business case to gain approval from management to proceed with a new project.
A business case outlines the resources that are required to begin a new project.
This information can prove to be the deciding factor in getting approval for your project.
In this topic, you have learned about the purpose of business cases and when they are used.
A business case is used to present the business issue and define the scope of the business issue. It presents options. The case is used to seek approval for the preferred option to be pursued as a project. It helps to obtain human, physical, and financial resources for a project. It documents what the project will accomplish and what the benefits will be.
A business case is used during all stages of a project's life cycle. It is used to obtain funding, it is referred to during the project life cycle, and it is used after a project is finished to assess what the project has delivered.
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