If you’re in charge of a business unit and it’s expenditures, you want a clear and concise process for individuals on your team to submit ideas and solutions to be evaluated. And if you’re the individual pitching a new product idea, or a solution to solve a production bottle neck at your company, chances are you will need to convince someone within your enterprise that it’s worth investing the necessary resources in.
In order to figure that out, you will need to determine what resources will be needed and what the return on investment will be, among other important considerations. This is where the business case comes in handy, as you are making the case for this new business expenditure [your proposed idea or solution]. If your idea does not require a purchase or any dedicated resources, then you may not need something as detailed as a business case. Nevertheless, it’s a great tool for evaluating an idea or possible spend.
What is a business case?
The business case captures, documents, and communicates the purpose for starting a project. It details the allocation of budget and resources to execute the plan, as well as the benefits for executing the project or task. A thorough business case will also identify alternative options and provide critical data so leadership can make an informed decision. Business cases can be a comprehensive analysis or a simple, informal presentation. edison365businesscase allows it’s users to configure templates to make the business case process easier and more streamlined.
Who needs a business case?
If you are working in the corporate or government landscape and you have an idea to pitch, the business case will help solidify the value of your idea. Corporations and government agencies typically have a bit of “red tape” to get through when it comes to anything new or involves use of budget or resources. Typical roles involved with the business case might be: business analyst, project manager, finance manager, department head, controllers or similar.
Why do you need a business case?
One of the primary goals of creating the business case is to convince decision makers to go forward with the project idea, but it also helps the organization prioritize projects that are in line with the overall strategy of business. If the project is chosen, the business case can help with managing the scope of the project during the initial planning stage. After the project is completed, the business case becomes the measure to assess how well the organization did with its planning and implementation.
So now that you know what a business case is and why it’s important, download our Intro to Business Case that William Dow PMP so graciously shared with us. This guide will walk you through each step of a complete business case and why each one is important so that you can quickly propose your idea or get your pet project approved.