Business Case Example

A business case serves as a critical document in the decision-making process for organizations, outlining the justification for undertaking a project, program, or initiative. It comprehensively analyzes the potential benefits, costs, and risks associated with proposed options, ultimately recommending the most favorable solution.

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Let’s summarize creating effective business case the steps:

Step 1: Confirm the Opportunity
- Describe the situation and business opportunity.
- Establish the investment logic and high-level business requirements.
- Align with strategic objectives.
- Obtain sign-off from the project sponsor.

Step 2: Analyze and Select the Short-listed Options
- Develop a long list of alternative solutions.
- Conduct an evidence-based assessment.
- Select three or four options for further analysis.

Step 3: Evaluate the Options
- Assess how options will meet business objectives.
- Quantify benefits, considering strategic, financial, and societal value.
- Develop financial projections, including revenue, costs, and cash flow.
- Confirm hurdle rates for investment viability.