Think of your business case as a sales pitch and a business case for a project with robust analysis and justification. The business case process helps organizations formulate innovations, projects and changes. The business case document is a crucial building block of project success with senior-level involvement. It explains the project's business value to enable the stakeholders to make decisions.
The business case process critically examines the opportunities, alternatives, project stages, and financial investment to recommend the best course of action to create business value. It demonstrates why the project is needed and the benefits of the project when it is delivered. The business case document entails the facts and data about the problem or opportunity and the recommended solution that is to be implemented.
Capital equipment business cases are a written justification of a proposed capital purchase or replacement, which lists the benefits and explanations of buying a particular capital item.
These business cases are intended primarily for internal use within an organization. However, in some cases, they may be used as a basis for external funding.
The business case describes and recommends why the capital project should be approved. In addition, it outlines its intended outcomes, anticipated problems, and methods for overcoming obstacles.
Improving the customer experience (CX) has become a strategic imperative for businesses across industries. The business case for enhancing customer experience explains why investments in customer service, user interfaces, or product improvements are essential for long-term success.
The Customer Experience Enhancement Business Case outlines the robust strategy for measuring and evaluating the impact of CX enhancements.
- Customer feedback and satisfaction data
- Proposed improvements or innovations
- Cost estimates for implementing changes
- Expected impact on customer retention and loyalty
- Competitive advantage and differentiation
- ROI analysis based on increased sales
- Implementation plan and timeline
- Measurement and evaluation:
- Integration of employee engagement
- Alignment with organizational goals
- Long-term cx strategy and planning
- Customer-centric culture
These business case comprehensively assesses the necessity, feasibility, and expected benefits of integrating technologies such as AI, big data, cloud computing, and IoT into the organization's operations. The primary aim is to convince stakeholders, including senior management and investors, of the merits of investing substantial resources into transforming the company's digital capabilities.
- Market and Internal Analysis: Evaluate market trends and internal capabilities.
- Objectives and Scope Definition: Clearly define transformation objectives and scope.
- Technology Evaluation: Assess alignment with business needs, scalability, and interoperability.
- Financial Projections: Provide detailed cost analysis and ROI, including NPV and payback periods.
- Stakeholder Engagement: Ensure alignment and proactive communication.
- Change Management: Develop strategies for training and adaptation.
- Risk Management: Identify and mitigate potential risks.
Investing in employee training and development is essential for improving workforce skills and organizational performance. A business case for training programs outlines the reasons, benefits, and expected outcomes of investing in employee education.
Key components of an employee training business case include:
- Skills gap analysis and training needs assessment.
- Specific training programs, methods, and content.
- Budget allocation for training resources.
- Expected improvements in employee performance and productivity.
- Measurable outcomes and evaluation criteria.
- Alignment with organizational goals and strategic priorities.
- Long-term talent retention and recruitment benefits.
The business case for equity investment outlines why a company and its investors should (and will) invest in a venture.
The business case outlines how that investment will be made, the projected costs and revenue from the venture, and the expected return on investment.
The business case details a company's assets, customers, products, distribution channels, and finances. In addition, it gives information on the company's strategies and operations that convince investors that the company is a good investment. Finally, it will demonstrate due diligence and explain why the investment is worthwhile.
The business case addresses the following:
- The opportunity and return on investment for the investor or financier.
- How the business or joint venture scales up and achieves the projected growth.
- Details where the funding will be applied in the business, such as capital, working capital, operating expenses, etc.
- Explains the return on investment (ROI) from the investment.
A successful business case for equity investment will get the approval for the investment. This business case example seeks to raise an equity investment or finance a business or joint venture.
Expanding into new markets can unlock untapped potential and drive business growth. It's a strategic move to reach new customers and diversify your revenue streams.
To make a solid business case for expansion, you must analyze market conditions, customer demand, and competitive landscape. You must identify the unique opportunities and challenges of the new market. With a well-defined strategy and thorough research, you can position your business for success in new markets. It's about seizing opportunities, expanding your reach, and staying ahead of the competition.
The business case for expansion into new markets justifies the decision to enter a new geographic region or demographic group.
Key elements of an expansion business case include:
- Market research and analysis.
- Entry strategy.
- Financial projections.
- Regulatory and legal considerations.
- Competitive landscape.
- Risk assessment and mitigation.
- Marketing and sales strategies.
- ROI analysis.
- Implementation plan and timeline.
- Monitoring and evaluation.
Infrastructure business cases are economic business cases to justify infrastructure projects or significant industry or sector projects.
Major infrastructure projects take many years to build and cost multiple billions. They also employ thousands of workers at their peak. Several business cases are developed along the investment journey until the final business case is approved. Multiple options are explored and analyzed to create the best possible business case. Then the shortlist options are evaluated in detail to recommend the best option.
These types of business cases also address environmental impacts.
Infrastructure business cases provide a detailed assessment of the costs of the infrastructure investment, the anticipated benefits, and the financial risks associated with the investment.
Infrastructure business cases provide a detailed assessment of the costs of the infrastructure investment, the anticipated benefits, and the financial risks associated with the investment.
These documents typically include a cost-benefit analysis, and can help potential investors understand the impacts, outcomes and benefits.
The infrastructure business case usually includes the following:
- Capital costs include the costs of acquiring land and buildings and constructing or refurbishing necessary infrastructure.
- Operating costs: This includes utility and service fees, as well as salaries and wages for employees.
- Strategic or Initial business
- Preliminary business case
- Full business case.
The preliminary business case or feasibility study can be more than 1,000 pages, including appendices costing several million dollars.
The full business case can cost many millions and take at least 12 months to develop and include significant community consultations.
You'll find all the details in the business case - from the expected outcomes to the costs involved. It's a roadmap for success, guiding you through the strategies and tactics you'll use to achieve your goals. Without a strong business case, your marketing campaign may lack direction and fail to deliver.
Think of the business case as your pitch to stakeholders and decision-makers. It's your chance to convince them why this campaign is worth the investment. By presenting a clear and compelling case, you'll increase your chances of securing the resources and support needed to make your campaign a success. So, don't underestimate the power of a well-crafted business case.
Key components of a marketing campaign business case include:
- Target audience and segmentation.
- Marketing objectives and goals.
- Budget allocation and cost estimates.
- Marketing channels and tactics to be used.
- Expected ROI and performance metrics.
- Competitive analysis and market research.
- Timeline and campaign schedule.
A well-structured marketing campaign business case helps organizations make informed decisions about investing in marketing initiatives and ensures alignment with overall business objectives.
M&A business cases involve detailed analyses that justify the financial outlay and align the strategic objectives of both entities involved. They provide a structured approach to evaluating the potential benefits and risks, ensuring that the merger or acquisition will deliver value to shareholders and stakeholders alike.
Key Aspects of M&A Business Cases:
- Strategic Rationale: Explains the strategy behind the M&A and how it enhances market position and competitiveness.
- Financial Projections: This includes an analysis of the target’s financial health and synergistic benefits post-merger.
- Market and Competitive Analysis: Evaluate industry trends, competitive dynamics, and the potential market position post-M&A.
- Operational Synergies: Identifies cost-saving and revenue-enhancing opportunities through integration.
- Risk and Mitigation: Details potential risks and strategies for their mitigation to ensure successful integration.
- Regulatory Considerations: Considers legal and regulatory implications and compliance necessities.
- Implementation Roadmap: Outlines steps from due diligence to complete integration with a clear timeline.
By meticulously planning and justifying the merger or acquisition through a well-founded business case, organizations can significantly increase the likelihood of successful integration and value creation. This business case serves not just as a financial and strategic analysis but as a blueprint for post-merger integration and future growth.
A new product business case is a document identifying why a new product needs to be commercialized. The document outlines the business case for developing a new product or service. The business case not only presents the financial justification for a new product but also helps the organization understand the new product's marketing, management, and operations implications. New product business cases require careful research and analysis to ensure all costs are accounted for.
- Strategic positioning of the new product/service/innovation in the market.
- Market demand and pricing.
- How quickly an organization can introduce a new product to the market.
- Go to market strategy.
- The revenue growth model.
- Initial order quantities for products.
- Product and service delivery model.
- Customer service to support the clients and channel partners.
The program office is the corporate entity that provides strategic oversight of the entire organization’s portfolio of projects.
Business cases to establish the program office describe and recommend what the program office needs to do to accomplish the strategic objectives. These business cases justify a new work program for the organization's board of directors.
These documents are written from a business perspective rather than a technical one. As they are written in a business sense, they are typically constructed in two parts:
- The first part of the business case identifies and quantifies the business case objectives. The document also specifies the program office's constraints in achieving the objectives.
- The second part describes a proposed course of action that the program office will take to achieve the objectives. Finally, the document describes the benefits for the program office, the benefits for the users, and the financial costs.
Business cases developed by the Program Office
Developing a business case is an essential function of the program office, outlining and recommending the commercial justification for business and IT projects.
The program office must develop compelling business cases to create value and recommend the best option. These business cases establish the project's detailed requirements that the project must meet and cost estimates. In addition, the business case describes the commercial justification for each project. Finally, the financial justification details the financial implications of each activity within the projects.
These initiatives and projects can be initiated by non-profits, government bodies, or even profit-driven businesses aiming to address social issues such as poverty, education, health, and environmental sustainability through innovative solutions.
- Societal, environmental, and community benefits.
- Financial sustainability and growth potential.
- Impact measurement frameworks.
- Community engagement and partnerships.
- Stakeholder engagement strategies.
Ensuring financial sustainability is paramount, which involves outlining a detailed financial model that considers the cost of impact activities and the expected social return on investment (SROI). For social impact initiatives, this might mean exploring diverse funding sources such as revenue streams (the financial customer), grants, philanthropic contributions, and social impact investments.
The business case explores the potential solutions, beginning with the organization's needs. From there, the business case evaluates the potential costs and benefits and considers potential obstacles, such as limited scalability. Finally, the business case suggests the approach that should be taken.
The SaaS business case recommendation is aligned with the goals and objectives of the organization. It details how the recommended solution solves some of the problems and challenges that the organization is facing.
- The business problem you are solving.
- How the client experience will be improved.
- How the solution features match business needs and align with the strategic objectives.
- How the SaaS solution will be maintained, supported and serviced.
- The strategic, financial and client outcomes and quantifies the benefits.
- The return on investment (ROI).
- The implementation approach, milestones and required resources.
A start-up business case is a document used by a company to obtain funding from an investor, a bank, or a partner. This document explains the strategic and financial advantages of the business model.
A business case is closely related to a start-up business plan, which forms a part. For example, when an investor or bank decides whether to fund your start-up, it typically wants to see a business case. This business case goes into greater detail about your start-up's business model and its goals.
A business case is a tool that entrepreneurs can use to convince investors that their start-up is a good investment. This document outlines your start-up's advantages, revenue and operating models. The business case document requests funds used to support the business. It details the financials, revenue, expenses, and any other information a business needs to know to decide whether to invest.
Potential investors will expect an in-depth account that covers all the financial aspects of the business, including projected cash flow, operating and capital expenses, and more. In addition, the financial sections of the business case detail the revenue and costs associated with the business.
Sustainability and corporate social responsibility (CSR) initiatives are becoming increasingly important for businesses. A business case for such initiatives explains why investing in sustainability is beneficial for the organization, its stakeholders, and the environment.
These business cases begins by setting clear sustainability goals and objectives, whether they involve reducing environmental impact, enhancing social responsibility, or driving economic sustainability. It then examines the holistic impact of these initiatives, considering environmental, social, and economic factors. By quantifying these impacts, organizations can demonstrate their commitment to ethical business practices and social responsibility.
Of course, no initiative is without costs. The business case thoroughly analyzes the financial aspects of sustainability investments, encompassing expenses related to sustainable infrastructure, renewable energy adoption, ethical sourcing, and employee engagement programs. It also factors in the potential returns, including improvements in brand reputation, customer loyalty, and employee morale.
Key elements of a sustainability and CSR business case include:
- Clear sustainability goals and objectives.
- Environmental, social, and economic impact assessment.
- Costs associated with implementing sustainable practices.
- Potential reputational and brand value improvements.
- Regulatory compliance and risk reduction considerations.
- Stakeholder engagement and support strategies.
- Measurement and reporting of sustainability metrics.
- Financial analysis, including costs and potential returns.
- Alignment with international reporting standards (e.g.,EU CSRD, GRI, SASB, B Corp, etc).
- Long-term sustainability strategy and planning.
- Identification of sustainable supply chain opportunities.
- Consideration of community and societal benefits.
- Evaluation of competitive advantage and differentiation.
Each business case perfectly aligns with your strategic objectives and goals, whether you're tackling one of 15 distinct business case examples—from digital transformations and new product launches to social impact programs and capital equipment investments.
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- Cost Efficiency: Substantial cost reduction per business case through enhanced efficiency and time optimization.
- Time to Value: Speeds up the process from opportunity to decision to realization of benefits, enhancing the ROI on your projects.
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By embracing this tool, you'll fundamentally change your approach to business cases.
The key to developing a solid business case is a fundamental understanding of how each of its sections fits together. Creating the business case is also a collaborative effort between stakeholders involved in project delivery and those responsible for the outcome.
Take the time at the beginning of the process to critically examine the business need and outcome, including the competitive environment, the strategic fit, the business needs and the scope.
To get the approval for your business case, you will need to demonstrate why the project is required, quantify the business value, and detail how these benefits will be realized. The project's reasons and benefits may seem perfectly obvious to you and others intimately involved; however, it may not be so obvious to the decision-makers and other stakeholders.
When the time is taken to develop a solid business case, the investment proposal is much more informed. In addition, the high-quality business case makes your project stand out amongst the organization's competing priorities; it may be the key to getting approval and the project's finances.
Our Five Steps Business Case Framework is a simple, easy-to-follow and effective way of developing your business cases for the board, the executive team, the business owners, external stakeholders and investors.
As a business leader or professional, you know that business cases are used to evaluate and justify projects and decide whether to accept or reject them.
Suppose you are in charge of a business case. In that case, you will need to quantify the financial, strategic and social value this project represents for your organization.
To inform better decision-making, you will need to consider the following:
- How to quantify and calculate the value of an investment.
- How to determine the value of the project.
- How to calculate the cost of the project.
- How to calculate the return on investment (ROI) for the project.
- The financial analysis and modelling used.
- How to embed corporate responsibility performance into the recommendation.
Quantifying the business benefits is central to strategic planning, cost-benefit analysis, and business case analysis. Therefore, it is critical to gain a solid understanding of the main drivers of the business case.
To develop a robust business case, you must model the business case drivers that drive the strategic and operational outcomes and monetize the financial outcomes and benefits.
The business case drivers:
- These key inputs and activities drive the business case's strategic, operational, and financial outcomes.
- They have a significant impact on outcomes & benefits.
- They are controllable by the business case.
- Before building a financial model, you will need to model the business drivers to evaluate the relative strengths and weaknesses to make the best choices about the business case.
Our How to Quantify the Financial Value in Business Cases article will explain how to do that.
We have reviewed and accessed over 100 business cases in the past 24 months.
So, where do business cases go wrong?
The lessons learned from these projects have identified that business cases often go wrong in the following areas:
Poorly written business cases that fail to convince investors – It is painful when you put your heart and soul into a business case only to receive a "We're not interested."
No business case process – The business case process is inefficient, costly and takes too long.
Unclear project scope - Inadequate business cases with an unclear project scope. This leads to scope creep, which results in rework, cost overruns, delays, etc.
Poor ROI - The numbers do not add up, and the case is rejected.
No business benefits – The business cases do not contain any specific benefits. As a result, the organization fails to realize the business benefits.
Financial analysis is underdone - The financial analysis has missed some critical investment, project or operating costs, with no discounted cash flow analysis. As a result, the business case will need to be rewritten.
Flawed option analysis – The business case only considered one option; it did not consider other potential solutions.
Poor alignment to the corporate plan - The business case investment and timing were not aligned with the corporate plan. The recommendations are not approved.
No key stakeholder buy-in – The business case failed to obtain key stakeholder support before decision-making. As a result, project implementation stalls and is abandoned.
Risk management - The business case did not apply risk management tools to identify, treat and mitigate the significant risks.
