- Average loaded labour cost: GBP 35 per hour.
- Expected time saving after rollout: 60% of current admin time.
- Revenue uplift from better follow-up: GBP 60,000 per year (conservative estimate).
- Discount rate for NPV: 8% per year (illustrative only).Functional
Estimated costs
| Cost item Always active | Timing | Amount |
|---|---|---|
| Implementation and configuration | Year 0 (one-off) | GBP 45,000 |
| Training and change management | Year 0 (one-off)The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network. | GBP 10,000Statistics |
| Licences and support | Annual | GBP 24,000 |
Estimated annual benefits
- Time saving: 40 users x 2 hours/week x 52 weeks x 60% x GBP 35/hour = GBP 87,360 per year.
- Revenue uplift: GBP 60,000 per year.The technical storage or access that is used exclusively for statistical purposes.
- Total benefits: GBP 147,360 per year.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
- Net annual benefit after licences: GBP 147,360 minus GBP 24,000 = GBP 123,360 per year.
Simple ROI, payback and NPV illustration
- Initial investment (year 0): GBP 55,000.
- Payback period:Marketing GBP 55,000 divided by GBP 123,360 is about 0.45 years (about 5 to 6 months).
- Simple ROI (year 1): (GBP 123,360 minus GBP 55,000) divided by GBP 55,000 is about 124%.
- NPV (3 years, 8% discount, simplified):Marketing NPV = -55,000 + 123,360/(1.08) + 123,360/(1.08^2) + 123,360/(1.08^3) = approximately GBP 262,000.
Interpretation: Under the stated assumptions, the business case supports approval because value is positive, payback is short, and risks can be mitigated through adoption and data-quality controls. In practice, include sensitivity analysis (best case, expected, worst case) for decision confidence.
Further business case examples are available on our web site.
Business case template
Use this template as a starting point. Keep language factual and include sources for material numbers.The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Download a business case templateManage options
1. Summary and decision requestDeny
- Decision required
- Recommended optionView preferences
- Option 2
- Evaluation criteria (value, risk, feasibility, time to benefit)
7. Recommended option and rationaleThe technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
- Why this option is preferred
- Trade-offs accepted
8. Benefits, costs and investment appraisal
- Benefits (quantified and qualitative)
- Costs (one-off and ongoing)Preferences
- Opportunity cost considerations
- ROI
- NPV (discount rate and period)
- IRRPreferences
- Payback period
9. Risks and mitigations
- Top risks
- Mitigations and owners
- Residual risk
10. Implementation plan
- Approach and phases
- High-level timeline and milestonesThe technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
- Resourcing plan
- Change management
11. Review plan
- How KPIs will be tracked
- Post-implementation review date and methodStatistics
Business case vs business plan
These documents are related but serve different purposes. Clarifying the difference helps prevent rework and mismatched expectations.
Business case vs business plan
| Business caseStatistics | Business plan |
|---|---|
| Justifies a specific investment, change, or project. | Explains how a business or product will operate and grow over time. |
| Centres on options analysis, investment appraisal, and approval. | Centres on market, strategy, operations, and financial forecasts. |
| Often used for internal governance and funding decisions. | Often used for external funding, partners, or internal planning. |
| Includes KPIs for benefits realisation and post-implementation review.The technical storage or access that is used exclusively for statistical purposes. | Includes broader performance targets and business milestones. |
Business case vs project charterThe technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
| Business case | Project charter |
|---|---|
| Explains why the work should be done and whether it is worth doing. | Authorises the project to start and defines roles, scope, and high-level plan. |
| Focuses on value, options, costs, benefits, and decision-making. | Focuses on delivery authority, governance, and initial project boundaries.Marketing |
Business case vs feasibility study
| Business case | Feasibility study |
|---|---|
| Recommends an option and seeks approval based on value and risk.Marketing | Assesses whether an option can be done, and under what conditions. |
| May include feasibility findings as evidence. | Often precedes or feeds into the business case. |
Governance and lifecycle
Business cases commonly follow a lifecycle so that approvals are controlled and benefits are validated:
- Draft : initial rationale, early estimates, and a shortlist of options.
- ReviewThe technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.: finance and subject experts challenge costs, benefits, and assumptions; risks and constraints are refined.
- ApprovalManage options: stakeholders and an executive sponsor endorse the recommendation; funding and authority are granted.Manage services
- Delivery updatesManage {vendor_count} vendors: the implementation plan is tracked; changes that affect benefits or costs are assessed against the approved case.Read more about these purposes
- Post-implementation review : benefits realisation and KPIs are evaluated against the baseline; lessons learned inform future decision-making.Accept
Strong governance improves transparency and reduces the chance that a business case becomes a one-off document that is never revisited.
How do you calculate ROI and NPV in a business case?
ROI is commonly calculated as (total benefits minus total costs) divided by total costs over a defined period. NPV discounts future cash flows using a chosen discount rate and sums them with the initial investment; a positive NPV indicates value under the model. Document the discount rate, time horizon, and key assumptions, and consider sensitivity analysis.
What makes a business case compelling?
A compelling business case has a clear baseline, credible options analysis, transparent assumptions and constraints, realistic costs and benefits with sources, an explicit risk and mitigation plan, and measurable KPIs with named benefits owners. It also explains opportunity cost and shows how governance will control change.
When is a business case required?
A business case is often required when requesting funding, committing significant resources, changing customer-facing services, or introducing material operational or compliance risk. It is also commonly required for projects that compete for prioritisation in a portfolio.