Name: Date: Author: Version: business case Name: Date: Author: Version:

how to use The Business Case helps you to capture the reasoning for starting a project, idea or initiative. It helps you to decide whether an initiative is worthwhile investing in. In a business case you describe the background, resources, benefits and costs, and risks of an initiative. How to use A business case is written to identify a future opportunity that is supported by an analysis of the benefits, risks and costs involved. The business case consists of five main parts: the reasons & goals, the needs, the options, the costs & benefits, and the risks. In addition, you should write a summary highlighting the main findings of the business case. Reasons & goals Explain about the background of the project or initiative. Clearly describe which problem or opportunity is addressed with the initiative. Especially explain why the outcome of the project or initiative is needed. - Why this initiative and why now? - Are there any problems that make this initiative needed? - Is there an opportunity that is addressed by this initiative? - What will be achieved with the initiative? - What are the expected results of the initiative? ! This slide provides information, it will not be visible in the presentation view

how to use Needs Describe what is needed to make the initiative a success for your business. Describe for instance which resources, partners, delivery structure and monitoring is needed. Who are the stakeholders of this initiative? - What are the stakeholders’ level of interest and attitude towards this initiative? - What are the requirements for implementing this initiative successfully? - What is needed from the business and what is needed from the employees? Options A short description of the different options considered for the project or initiative. There are different options to implement the initiative. Some possible options are: to implement the initiative not at all, to completely implement the initiative, to implement a part of the initiative, to implement the initiative in phases or to implement a minimum of changes. - What are the options for implementing the initiative? - What would the impact of each option be on the business? - What is the planning of the preferred option? ! This slide provides information, it will not be visible in the presentation view

how to use Benefits & costs The estimated costs should include one-time costs and on-going costs. The estimated benefits should include financial benefits as well as other non-financial benefits. The costs and financial benefits should be expressed in a Return on Investment (ROI) calculation, demonstrating whether the project is profitable or not. In a ROI calculation, a cost/benefit analysis is made. To get a clear idea of the impact of the initiative, create one ROI calculation for the current situation (without the initiative being implemented) and one for the future situation (when the initiative is implemented). A ROI can be made with the Return on Investment Calculator tool. Copy the results to the business case for a good overview of the benefits and costs. Risks Summarize the key risks of the project or initiative. Include risks that might affect time, cost, cash flow, quality, and levels of benefit achieved. Determine for each risk what the impact might be and the probability of the risk occurring. Give a score from 1 (low) to 5 (high) to the impact and probability of each risk. Multiply the score of impact with the score of probability to determine the effect of the risk. The risk with the highest score on effect will have the biggest implication for the initiative. ! This slide provides information, it will not be visible in the presentation view

summary The summary should provide the reader with a clear understanding of the reasons for the initiative and its outcome The summary should not contain any information that is not in the body of the business case The summary should not exceed one page and should be readable on its own ! This slide provides information, it will not be visible in the presentation view

summary

Problem or opportunity reasons & goals Problem or opportunity Clearly define the problem or opportunity, which is the cause for this initiative Describe the impact of the problem or opportunity on your business

Problem or opportunity reasons & goals Problem or opportunity

reasons & goals Goals and objectives Explain which solution is created by the initiative Clearly define what is accomplished with the initiative Describe how the initiative is the answer to the problem or opportunity Make clear what will not be accomplished with the initiative Determine what results are desired from the initiative Create goals out of these desired results

reasons & goals Goals and objectives

needs Stakeholders Describe who will be involved or influenced by the initiative Describe which stakeholders have an interest in the initiative Explain the attitude of the stakeholders towards the initiative

needs Stakeholders

Assumptions and requirements needs Assumptions and requirements Describe what is needed from the business to make the initiative successful (resources such as money, time, materials, machines, housing, etc.) Describe what is needed from the employees to make the initiative successful (needed education, time, technical knowledge, etc.)

Assumptions and requirements needs Assumptions and requirements

options The options Describe which options there are in implementing the initiative (in one time, iterative, partially, not at all, etc.) Explain in short what each option will mean for the initiative and the business Describe which option is preferred

options The options

options Planning Provide a planning / timeline for the preferred option Determine the main steps to be made Determine who have to be involved at which step Create a timeline mentioning the main steps and people involved

options Planning

costs & benefits Costs Describe the financial costs connected to the initiative (production, resources, machines, materials, etc.) Describe the non-financial costs connected to the initiative (reputation, brand, environmental, etc.) Explain the effect on the costs 5 years into the future

costs & benefits Costs

costs & benefits Benefits Describe the financial benefits connected to the initiative (revenue, governmental aid, saving of time or space, etc.) Describe the non-financial benefits connected to the initiative (brand, image, reputation, effectiveness, responsiveness, etc.) Explain the effect on the benefits 5 years into the future

costs & benefits Benefits

Cost / benefit analysis costs & benefits Cost / benefit analysis Describe how the financial costs and benefits relate to each other Use a cash flow calculator to determine the profit made after 5 years Describe the return on investment (ROI) and the payback period Explain whether the analysis is beneficial to the business or not

Cost / benefit analysis costs & benefits Cost / benefit analysis

risks Risk identification Identify the major constraints of the initiative (stakeholder attitude, unrealistic planning, resource limitation) Describe the risks resulting from the constraints Think of external risk that might influence the initiative

risks Risk identification

risks Risk analysis Determine which risks can have the largest result for the initiative Determine the likelihood that the risk will occur Determine the impact of the risk on the initiative and business Write each risk in the table and determine its likelihood and impact with a rate of 1-5 (low-high) Risk Likelihood Impact Effect (L*I) Risk 1 4 3 12 Risk 2 1 2 Risk 3 5 10

risks Risk analysis Risk Likelihood Impact Effect (L*I)