SRisks, assumptions, constraints and dependencies
Decision-makers need to understand what could undermine delivery or benefits. Good business cases separate:
Assumptions: statements treated as true for planning (for example, adoption rates or volume growth).Constraints
: fixed limits (for example, deadlines, budget caps, mandated technology).Dependencies: external items required for success (for example, data migration readiness, vendor delivery, approvals).
Risks
: uncertain events that could harm outcomes (for example, low user adoption, security gaps, scope creep).Risks and mitigations (example)
Risk
Impact
MitigationOwnerLow user adoption
Benefits not realised, process rework
Change management plan, training, champions, KPI tracking
Executive sponsor and operations lead
Data quality issuesErrors, low trust in reportingData profiling, cleansing, acceptance criteriaData owner
Supplier delivery delay
Timeline slippage, higher costsMilestone-based contract, contingency, parallel workstreamsProject manager
Example business case
Scenario:
A mid-sized service business proposes implementing a CRM to reduce manual admin, improve sales follow-up, and increase conversion rates.
Assumptions and baseline
- 40 sales and service users.
- Current admin time lost to manual updates: 2 hours per user per week.
- 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).
Estimated costs
Cost item
TimingAmount
- Implementation and configurationYear 0 (one-off)GBP 45,000Training and change management
- Year 0 (one-off)GBP 10,000Licences and supportAnnual
- GBP 24,000Estimated 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.Total benefits:
- GBP 147,360 per year.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):