Business Case

Business case refers to the documented justification of the reasons that have led to the need for the completion of the project in question. It relates to the consideration of the issues that have made it imperative for the project to be executed as for there to be the resolution of the prevailing situation. It involves the evaluation of the benefits as well as the associated risks in the context of undertaking the action as well as failing to execute the action.  It is necessary that the business case establishes the project being invested in is going to offer the investors a return on their investment. It must justify the need for the project by highlighting the fact that the benefits from the project are going to be more attractive that failing to execute the project (Writing a Business Case, n.d.). Business cases are tailored to ensuring that they capture the justification behind the implementation of a project and is commonly presented in the form of a well-structured document.

Purpose of Business Case

The main reasons for the presentation of a business case are to ensure that the target parties are shown the reasons that make the investment in the project worthwhile. It is central to convincing stakeholders of the need to execute a specific project by indicating the manner in which the current state of affairs demands a change through the execution of the project (Project Management Docs, n.d.)

The creation of business cases is vital to ensuring that the decision maker are aware of the fact that the proposed project is going to have the said value and that the relative priority in comparison to the alternative proposals based on the objectives as well as the expected benefits established in the business case (Project Management Docs, n.d.)

The business case is additionally a major means of ensuring that the decision makers comprehend the fact that the performance indicators established in the business case are adapted for a proactive realization of the business and behavioral change (Project Management Docs, n.d.).

The core purpose of the business case is for the facilitation of the investment decisions relating to the project as it summarizes the costs, benefits, and risks, allowing the organization to make decisions about whether or not to fund a project. It allows the organization the ability to make informed decisions relying on the realistic facts established by the business case (Project Management Docs, n.d.)

Business Plan

Business plans refer to the formal statement that establishes the goals of business, the reasons that these goals are going to be attained and the plans that are going to assist the realization of these goals. Business plans refer to the written descriptions of business’s future, regarding what the business plans to do and how it is going do it. They are used by the entrepreneurs seeking investment as means of conveying their vision to the possible investors (Writing a Business Case, n.d.). They address the goals, the strategies to be used, the challenges that the business could be facing as well as the means of addressing these challenges.

Differences between Business case and Business Plan

Elements that distinguish business cases from business plans include the fact that business cases are concepts associated with the business regarding both the practicability and profitability. Business plans on the other hand offer details, explaining the financial steps that are necessary for the creation of the successful business (Harvard Business School Press, 2011). While business plans are used as a proposal of the new business or major changes to the existing businesses, business cases are the proposal informing a strategy or proposal. Business although could contain almost the same information in the business plan is normally shorter and is used for the prioritization of strategy as well as approval of internal budgets. It additionally follows that business plans could be focused on the funding needs; budgetary requirements as well as the ability to operate within the budget. The scope of the business case could encompass the benefits as well as the costs to the stakeholders and the organization itself (Harvard Business School Press, 2011).

Components of Business case

The Executive Summary

The executive summary used in a business case refers to the high-level assessment of the business case document. It offers the explanation in condensers for as well as plain language the challenges that the proposed project is going to be addressing, the core considerations, the necessary resources needed for the completion as well as the desired results, ROI and timelines for the realization of the ROI (Writing a Business Case, n.d.). 

Problem Statement

The section presents the straightforward expression of the problem that is to be resolved by the project. It establishes the area that the issue ought to be addressed as the missed opportunities, inefficiencies, unacceptable market performance among others (Writing a Business Case, n.d.).

Situational Assessment

The section presents a description of the situation that is behind the challenges in a detailed manner, establishing the issues that led to the emergence of the problem. It additionally offers the general projections of the possible events that could arise in case the current situation arises with the conclusion of the analysis leading to the subsequent section (Writing a Business Case, n.d.).

Solution Alternative

The section encompasses an establishment of the possible solutions to the problem as well as the adequate description to ensure the reader understands the situation. Once there has been the assessment of all the possible solutions, there is the description of the one that is best suited to resolve the situation (Writing a Business Case, n.d.).

Description of the Project

The section offers a description of the project, encompassing the assessment of all the necessary resources for the implementation, the project budget as well as the timeline with measurable goals for the diverse project milestones. There additionally should be the listing of all the assumptions that the reader should know. It is additionally imperative that all the dependencies are established as the completion of other projects, identifying and describing all stages of the project (Writing a Business Case, n.d.). 

The Cost-Benefit Assessment

The section implements an evaluation of the costs as well as benefits of all the options, inclusive of the proposed solution to the problem as and the possible alternatives as the failure to take any actions. Charts moreover graphs are used to assist in the analysis (Writing a Business Case, n.d.).

Recommendations

The sections allow the writer to make their recommendations for the project especially in the manner it should be implemented. The implementation recommendation ought to be a brief restatement of the compelling results of the cost-benefit analysis along with a final statement advocating for the assertion that the project should go ahead (Writing a Business Case, n.d.).

The Appendix

This section contains the assessments, documentations, the approvals among other documents that assist the completion of the case but do not make part of it.

References

Harvard Business School Press (2011).  Developing a Business Case. Harvard Business Press.

Project management Docs (n.d) accessed on April 2, 2017

Writing a Business Case: Getting Approval and Funding for Your Sales Projects. (n.d.). 

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