Again, there are 2 costs – project costs and the ongoing operational costs over the benefits realization timescale. When the decision is taken whether to invest in this project, the total costs (i.e. project costs and ongoing operational costs) are weighed against the expected benefits over the same time period.
RisksDownload the ultimate guide to careers in business analysis
One major risk has been identified in this example, but on your project, there could be many risks.
Investment appraisalDownload
The final section is the investment appraisal. The investment technique used in this example is called net benefits. As you can see from the table, the project and operational costs are recorded for each year of the investment.
The project lasts 1 year which is why the project costs are zero after year 1. Of course, the benefits won’t be realized until the solution is in place and the company starts to use the handheld devices.
The net benefits are simply the total benefits minus the total costs. This shows that the company will start to get a return on its investment sometime towards the end of year 2. This knowledge is vital if the decision-makers are to take a sensible decision about whether to invest in the project.
Business case templateEnhance your skills with our expert-led courses
This simple business case template is free to download.
SummarySelf-paced
A business case is the most important document on any project. That’s because it justifies the investment.BCS Foundation Certificate in Business Analysis self-paced online
It helps an organisation be clear about why a project is needed, and what the results of the investment will be. This is crucial because no organisation has unlimited funds to spend on an unlimited number of projects. Therefore, a business case gives confidence to senior managers when deciding to invest in one project rather than another.
However, as you have seen in this article, a business case is something which you can find useful when taking major decisions in your own personal life. Remember – a business case doesn’t need to be a lengthy document. It could easily be a few notes scribbled on the back of something or even sent in an email.£499 +vat
Whatever form your business case takes, remember one thing – it will help you or your organisation take sensible decisions about committing time and resources to a project or activity.
Remember, if you want to learn more about developing a business case, and learn many of the techniques useful for assessing business problems, consider attending a classroom business analyst course .Self-paced
Business case FAQsResearch skills – analysing documents, observe procedures, and interview stakeholders to identify core issues.
Who approves a business case?Technical skills – familiarising yourself with SQL, Oracle, .NET, C#, and other computer skills on a basic level.
Usually on a project, the project sponsor (the person or people who are committing the funds) will approve a business case. Before approving it, they need to have confidence that the problems have been addressed and the right solution has been selected, that the benefits are achievable and realistic, when the investment will pay off, and how big will the return on investment be.Written and verbal communication skills – conducting interviews and meetings to understand company requirements. They can be face-to-face or virtual meetings. You must be able to write in a clear and concise way.
What makes a good business case?3. Get a business analysis qualification
As you have seen in this article, there’s several important bits of information which goes into a business case. Don’t spend unnecessary time though adding information which isn’t required. Your project sponsor will have to read your business case before they approve it, and you don’t want to make their job any harder than it already is!The next step would be getting a qualification in business analysis. Professional certifications help you to gain the knowledge, tools, processes and techniques which are commonly used by business analysts.
There are several things you can use to check whether your business case is adequate or not. Here’s a checklist of 13 questions to ask yourself before you submit your business case to your sponsor for approval:Depending on which accredited institute you choose, you can start with a
- Are the reasons for the project consistent with the corporate, BCS Business Analysis Foundationportfolio entry-level course. or Having a business analyst qualification on your programme managementbusiness analyst resume strategies? will boost your confidence levels and make you stand out from the crowd. As a result, you will for sure find a return on your in investment when you are employed.
- Is the It is worth mentioning that some BA jobs may require experience or qualifications in other subjects such as:project planIT service management such as aligned with the business case? (e.g. are the costs and timescales in the project plan correctly reflected in the business case?)ITIL
- Are the benefits clearly identified and justified?;
- Is it clear how the benefits will be realized?Project management
- Is it clearly defined what will judged a successful outcome? like
- Is the preferred business option clearly stated, along with the reasons why?PRINCE2
- If the project requires external procurement, is the preferred sourcing option stated, and why? or
- Is it clearly stated how any necessary funding will be obtained?APM PFQ
- Does the business case include non-financial, as well as financial criteria?;
- Does the business case include operations and maintenance costs and risks?Agile Project Management
- Does the business case include project costs and risks? such as
- Does the business case conform to organisational accounting standards (e.g. break-even analysis and cash-flow conventions)?AgilePM
- Are the major risks faced by the project explicitly stated, together with any proposed responses?.
How do you write a good business case?4. Look for BA jobs
A good business case must contain certain key information including:Look for business analyst jobs internally in your organisation. If there aren’t any, you can then look for jobs externally at:
- The reasons for doing the project;Conferences and job fairs;
- The business options which have been considered, including the base business options of do nothing, so something, or do something else;Social media, especially LinkedIn;
- Project and operational costs;Job Sites like Reed, Monster and Jobsite;
- Project and operational timescales;Recruitment agencies;
- Benefits, expressed in measurable terms;Walk in or direct approach through an organisation’s website.
- Investment appraisal (or cost benefit analysis);You could be hired as a business analyst on a project or get employed by a large technology firm, moving between departments.
- Major risks and their mitigation plans;5. Work as a BA and keep up it up!
How long is a business case?So, after following the 4 previous steps, if you now become a business analyst, congratulations! But don’t assume your journey now ends.
A good business should be long enough that it contains all the information needed for the decision-makers to take an informed decision about whether to invest in the project. That means, remove any waffle, and only include information which helps decision-making.You will now have to:
What’s included in a business case?Embrace new challenges;
The following are the most important items to put into a business case:Listen and learn every day;
- Executive summary – summarizes the key points;Approach assignments with an open mind;
- The reasons for the project (answers the question ‘Why are we doing this?’);Develop real world strategies which get successful results;
A business case template serves as a starting point when writing a business case. It is reusable and can be used across all your projects. Depending upon its needs, your organisation may have different business case templates, each one used for different scales of projects.