Project business case

A project business case is a structured document that outlines the proposed solution to a business problem and the expected benefits and risks associated with implementing the proposed solution. It provides a detailed analysis of the costs, benefits, and risks of a project, in addition to the justification for undertaking the project. The business case helps to ensure that the project is properly aligned to the organization’s strategic objectives, and that all stakeholders understand the project’s purpose, expected outcomes, and the resources required to complete it.

Example of project business case

• XYZ Corporation is considering a project to develop a new product line in order to increase market share. The project business case outlines the expected costs of development, including materials, labor, and marketing. It also outlines the expected benefits, such as increased revenue and market share. The business case also assesses the potential risks associated with the project, such as the possibility of technical difficulties or delays in development. Finally, the business case outlines the expected return on investment, which is necessary in order to justify the project and ensure that it is aligned with the organization’s strategic objectives.
• ABC Company is considering a project to expand into new markets. The project business case outlines the expected costs of expansion, including investments in infrastructure and research and development. It also outlines the expected benefits, such as increased revenue and market share. The business case also assesses the potential risks associated with the project, such as the possibility of political instability or economic downturns in the new markets. Finally, the business case outlines the expected return on investment, which is necessary in order to justify the project and ensure that it is aligned with the organization’s strategic objectives.
• DEF Inc. is considering a project to upgrade its IT systems. The project business case outlines the expected costs of the upgrade, including hardware and software purchases, training, and maintenance. It also outlines the expected benefits, such as improved efficiency and reliability. The business case also assesses the potential risks associated with the project, such as the possibility of technical difficulties or data security breaches. Finally, the business case outlines the expected return on investment, which is necessary in order to justify the project and ensure that it is aligned with the organization’s strategic objectives.

When to use project business case

A project business case should be used when:

• Making a decision whether or not to pursue a project,
• Identifying and evaluating potential solutions to a business problem or opportunity,
• Establishing measurable objectives and success criteria for the project,
• Estimating the total cost of ownership and return on investment,
• Analyzing the project’s risks and benefits, and
• Determining the resources and timeline required to complete the project.

Types of project business case

A project business case is a structured document that outlines the proposed solution to a business problem and the expected benefits and risks associated with implementing the proposed solution. It is used to ensure that the project is properly aligned to the organization’s strategic objectives, and that all stakeholders understand the project’s purpose, expected outcomes, and the resources required to complete it. There are several types of project business cases that can be used to evaluate projects and make decisions about their implementation. These include:

• Strategic Business Cases: These are used to evaluate the strategic fit of a project, and assess whether it aligns with the organization’s goals and objectives. They include an analysis of the project’s risks, benefits, costs, and other considerations.
• Financial Business Cases: These are used to analyze the financial feasibility of a project and assess its potential returns. They include an analysis of the project’s expected costs, income, and other financial considerations.
• Operational Business Cases: These are used to assess the operational feasibility of a project, and evaluate its potential impact on the organization’s operations. They include an analysis of the project’s expected time frames, resource requirements, and other operational considerations.
• Social Business Cases: These are used to assess the social impact of a project, and evaluate its potential impact on the organization’s stakeholders. They include an analysis of the project’s expected social implications, including its effect on local communities and other stakeholders.

Advantages of project business case

A project business case can be an invaluable tool in helping to make informed decisions about the success of a project. It can provide the following advantages:

• It helps to ensure that the project is aligned with the organization’s strategic objectives, and all stakeholders understand the purpose, expected outcomes, and resources required.
• It provides a detailed analysis of the costs, benefits, and risks associated with the project, which can help to identify potential issues and opportunities for improvement.
• It helps to ensure that all stakeholders are aware of the potential risks and benefits associated with the project, which can help to ensure that the project is managed effectively and efficiently.
• It can provide a clear and concise overview of the project, which can help to communicate the goals and objectives to all stakeholders.
• It can provide an objective analysis of the expected benefits and risks associated with the project, which can help to identify potential areas for improvement.
• It can provide a structured approach to decision-making, which can help to ensure that all stakeholders are aware of the potential risks and benefits associated with the project.

Limitations of project business case

A project business case can provide a comprehensive overview of a project and its expected benefits; however, it has some limitations. These include:

• Lack of detailed information: The business case typically provides a high-level overview of the project, which can lack the detail needed to accurately assess the project’s potential success.
• Limited stakeholder input: The business case is often developed by one individual, or a small group, which can result in a lack of input from other stakeholders. This can lead to a lack of alignment between the project and the organization’s strategic objectives.
• Limited resources for analysis: The business case can be limited by the resources available for analysis, which may not be sufficient to fully understand the risks and benefits associated with the project.
• Risk of bias: The business case is typically developed by an individual or a small group, which can lead to bias in the analysis. This can lead to an inaccurate assessment of the project’s potential success.
• Time-consuming process: Developing a business case can be a time-consuming process, which can limit its effectiveness as a decision-making tool.

Project business case — recommended articles

Feasibility study — Managerial decision making — Business case development — Assessment of the project — Project evaluation — Lack of information — Analysis of project — Allocation of resources — Analysis of processes

References

• Leatherman, S., Berwick, D., Iles, D., Lewin, L. S., Davidoff, F., Nolan, T., & Bisognano, M. (2003). The business case for quality: case studies and an analysis. Health affairs, 22(2), 17-30.
• Salzmann, O., Ionescu-Somers, A., & Steger, U. (2005). The business case for corporate sustainability:: literature review and research options. European management journal, 23(1), 27-36.