The document outlines how to create an effective business case. It discusses what a business case is, why they are used, and when they are required. It also covers the typical components of a business case, including the strategic context, analysis and recommendations, and management and capacity phases. The document provides details on each phase and step to guide writing a comprehensive business case. It emphasizes analyzing options, justifying recommendations, and demonstrating how the proposed investment will be managed to achieve desired outcomes. Overall, the document serves as a guide for developing a formal business case proposal to obtain funding and approval for new projects and initiatives.

1. Wednesday, Dec 5, 2012 Julen C Mohanty
Business Case

2. Learning Objectives
• What is Business Case & Why to use it
• The component of an typical business case
• How to create an business case

3. CONSIDERATION
Divide yourself to different groups A, B, C …… by calling # 1,2,3,4

4. INDEX What we will learn today
What’s a Business Case
Why do a Business Case
When a Business Case Required
What does it Contain 
In detail of :
Assignment
• Phase 1: Strategic Context
• Phase 2: Analysis and Recommendation s
• Phase 3: Management and Capacity

What Makes an Effective Business Case
Writing the Business Case Brainstormi
Process After the Business Case writing is Complete
ng
 Case Study

5. What is Business Case
A document that forms the basis of advice for executive decision-making for
an asset investment.
It is a documented proposal to meet a clearly established service requirement. It
considers alternative solutions and identifies assumptions, benefits, costs and risks.’
A business case captures the reasoning for initiating a project or task & to persuade
those with authority that they should endorse and fund a particular project or initiative
The business case generally covers:
 The business need or requirement;
 The options to best address the business need or requirement;
 Analysis of the benefits and costs of the options;
 Recommendations regarding the preferred option;
 Risk identification and mitigation strategy; and
 Implementation strategy.

6. Why do a Business Case
Effective tool for achieving the following outcomes
 Show how more efficiently the project can reduce costs;
 Demonstrate how the project initiatives can help achieve company/ dept. objectives
 Articulate the risks which may eventuate if project is not taken or done incompletely
 Identify how previous errors could have been prevented or their impact diminished
through the project
 Highlight the need for the project to be considered when planning anything across
the agency;
 Demonstrate how the project benefits the company/ dept
 Communicate the resources required to implement the projects adequately
 Demonstrate a need for an increased operating budget.

7. When do We need a Business Case
Generally needed when funding is required in addition to the usual budget for the
Project/ Process management function, mostly BAUs
Situations where Top Management is required to know the Problem, The available
options as solutions & the best solution out of the available solutions, including the
justification of the extra investment that’s going to be done.
Business Case is to show the management the unseen forecast of the solution. This
always starts with an END in mind, that the management is to be convinced about.

8. 10 Mins
Tell Something about Business Case
No. 1, 2, 3, 4 of sequential teams to answer this
A1, B2, C3, D4, E1…..

9. What does Business Case contain
These three phases are:
Phase 1: Strategic Context
Phase 2: Analysis and Recommendation
Phase 3: Management and Capacity

10. What does Business Case contain
Phase 1: Strategic Context
Step 1: Business Needs and Desired Outcomes
- Establishes the case for change and clearly defines the need for the investment.
Phase 2: Analysis and Recommendation
Step 2: Preliminary Options Analysis
- Identification, analysis, and screening of a comprehensive list of options to demonstrate due-diligence in the
selection of choices.
Step 3: Viable Options
- Builds upon the preliminary analysis of options, where each viable option is subjected to an increasing level of
rigorous analysis.
Step 4: Justification and Recommendation
- Full comparison of each viable option against the evaluation criteria identified in the preliminary analysis
- Recommendation of a preferred option based on the net advantages of the viable option over all others.
Phase 3: Management and Capacity
Step 5: Managing the Investment
- Strategic considerations for how the investment will be managed.

11. 10 Mins
Write a simple business case to procure Video
Desk phones for your team
A2, B3, C4, E1…. Papers to be reviewed by the team sitting on their right side

12. What does Business Case contain
STEP - 1
BUSINESS NEED & DESIRED OUTCOME
• Strategic Environment
• Strategic Fit
• Detailed Description of the Business Need STEP - 2
• Scope of Project
PRILIMINARY OPTIONS ANALYSIS
• Evaluation Criteria
PHASE – 1 • List Possible Options
STRATEGIC CONTEXT • Screening of Options
• Rationale for Rejected & Viable options
STEP - 3
PHASE – 2 VIABLE OPTIONS
• • Benchmark
ANALYSIS AND Alignment
• Policy & Standard
• Cost
RECOMMENDATION • Cost – Benefit Analysis Consideration
• Implementation & Capacity • Advantages &
• Risk Disadvantages
PHASE – 3 JUSTIFICATION & RECOMMENDATION
Management and Capacity • Comparison Summary
MANAGING THE INVESYMENTS • Preferred Option
• Governance & Oversight • Risk Mgmt Strategy
STEP - 4
• Project Management • Change Mgmt Strategy
Strategy • Performance
• Outcome Management Measurement Strategy
Strategy
STEP - 5

13. What does Business Case contain
Phase 1: Strategic Context
Phase 1: Strategic Context Phase 2: Analysis and Recommendation
Phase 3: Management and Capacity
The purpose of this phase is to establish the case for change and clearly define the
need for the investment.
Where are we now? Describes the current business environment.
Where do we want to be? Describes the business objectives.
Describes the problem or opportunity facing the
What is the business need?
organization and the associated proposed
investment.
Describes the drivers for change.
What has triggered the need for change?
What are we trying to achieve? Describes the business’ desired outcomes.
Describes how the proposed investment maps to the
What is the strategic fit? departmental framework, to its goals, priorities,
outcomes, and policies, as well as to those of the
Organization.

14. What does Business Case contain
Phase 1: Strategic Context
Phase 1: Strategic Context Phase 2: Analysis and Recommendation
Phase 3: Management and Capacity
The focus of this phase is on the following:
Step 1: Business Needs and Desired Outcomes
The first step in developing a business case is to identify the need (problem or
opportunity) facing the sponsoring organization and the desired business
outcomes.
To do this effectively, due consideration should be given to the broader organizational
context, which includes
• the current business environment,
• strategic business objectives,
• drivers for change,
• along with an analysis of how the desired business outcomes align with
the overall organizational objectives, structure, and policy framework.
Ultimately, demonstrate the value of the investment to the organization.

15. 15 Mins
You are IT manager of a bank. The operations people want some kind of IT
system to help them in maintaining customer’s data. They have a robust
system for maintaining customer’s transactions, but everyone can’t get
access to that as there could be mishandling of the customer data. So they
want a separate system.
You want some software to be installed in your bank to take the details of the
customer, store it & let the employees extract the data as they want. It’s your
responsibility to implement the system.
What would be your problem statement when you prepare the business case
All to participate in the discussion
A4, B1, C2, D3, E4…… has to write this down & read for all others.

16. What does Business Case contain
Phase 1: Strategic Context
Phase 2: Analysis and Recommendation Phase 2: Analysis and Recommendation
Phase 3: Management and Capacity
The purpose of this phase is to analyse various options & do in-depth analysis for
the viable option to be selected
Presents the viable options and associated costs and
benefits that will undergo detailed analysis and the
How will we get there?
evaluation criteria that ultimately will be used to
determine an overall recommendation.
This question could be answered by a financial
What is the best option? appraisal to ascertain funding, affordability, and cost
balancing in relation to benefits and risks.
This phase is considered the heart of the business case

17. What does Business Case contain
Phase 1: Strategic Context
Phase 2: Analysis and Recommendation Phase 2: Analysis and Recommendation
Phase 3: Management and Capacity
Step 2: Preliminary Options Analysis
Comprehensive list of options should be produced and screened to demonstrate due
diligence in the selection process.
Once the initial screening is complete, details regarding the decision to either accept
or reject an option for further analysis should be presented. The objective is to
narrow the field of alternatives down to a reasonable number of viable options - for
rigorous analysis
It is considered a best practice to include a minimum of 3-4 viable options for
analysis, with one being the status quo option.

18. What does Business Case contain
Phase 1: Strategic Context
Phase 2: Analysis and Recommendation Phase 2: Analysis and Recommendation
Phase 3: Management and Capacity
Step 3: Viable Options
A more rigorous analysis of the viable options is conducted at this point in the
business case by building on the previous section’s analysis.
The advantages and disadvantages (with supporting evidence) of each option should
be fully explored and evaluated in terms of their costs (total or incremental) and
risks.
identify the preferred option from the short list of viable options that answer the
investment need and the case for change.
This is mostly the Feasibility Analysis of the options that could best address the
problem.

19. What does Business Case contain
Phase 1: Strategic Context
Phase 2: Analysis and Recommendation Phase 2: Analysis and Recommendation
Phase 3: Management and Capacity
Step 4: Justification and Recommendation
Nothing in the business case will be questioned or scrutinized more than the
justification supporting the recommendation to adopt the preferred option.
the goal of Step 4 is to identify a preferred option and demonstrate why the option
is deemed preferable over all others.
The evaluation criteria and the degree to which the key requirements of the
business need are addressed will be measured alongside the findings of the viable
options analysis conducted in Step 3

20. 15 Mins
You are a manager & have teams sitting in Mumbai, Bangalore, HYD &
Tampa. There are 8 people & work on the same process. You feel there are
lot of communication gap among the team, because of the different places
they are sitting. You want to propose to sr. management to take some action
& make the team collaborate and communicate properly.
Sr. management asks you to prepare a Business Case & propose to them,
what exactly you want, how that’s going to be beneficial for the dept./
company & what’s you exactly propose them to do.
All to participate in the discussion
A3, B4, C1, D2, E3…… has to write this down & read for all others. They can take
help from their team members.

21. What does Business Case contain
Phase 1: Strategic Context
Phase 3: Management and Capacity Phase 2: Analysis and Recommendation
Phase 3: Management and Capacity
This strategic-level phase should demonstrate to the business case’s reviewers that the
investment will be managed effectively.
The reviewers—and all the stakeholders—need assurance that all the appropriate project and outcome
management strategies are in place to achieve the desired business outcomes
Where and how will the investment fit within the Describes the governance and oversight
organization’s broader governance and oversight structure? structure for the investment.
How will the project be managed and reviewed throughout Describes the project management strategy for
its life cycle? the investment.
Describes the outcome management strategy for
How will the business outcomes be realized?
the investment.
Describes the risk management strategy for the
How will the business risks be mitigated and managed?
investment.
Describes the change management strategy for
How will change be managed and implemented?
the investment.
Describes the performance measurement
How will performance be measured?
strategy for the investment.

22. What does Business Case contain
Phase 1: Strategic Context
Phase 3: Management and Capacity Phase 2: Analysis and Recommendation
Phase 3: Management and Capacity
Step 5: Managing the Investment
the important final step in the business case development process, is to describe—at a
strategic level—how the investment, project, initiative, or event will be managed
further reinforce the key messages of the business case, ensuring its soundness and
conformity to commonly acknowledged best practices for business.
critical project management fundamentals as methodology and procedures are well
thought out and in place before the launch of the project:
 Governance and oversight
 Project management strategy
 Outcome management strategy
 Risk management strategy
 Change management strategy
 Performance measurement strategy

23. How to write Business Case Practical Approach
Approach Scope Create the Case
The generally followed & formal approach by industry is
 Define Business Need
 Assess Capability Gaps
 Determine Solution Approach
 Define Solution Scope
 Define Business Case
The generally non formal approach by industry is
 Define Situation
 Analyze Situation
SARIE  Propose a Recommendation
 Plan Implementation
 Evaluate the solution

24. How to write Business Case Practical Approach
SARIE KEY FEATURES TOOL USED
Define Situation Current Problems & Opportunities SWOT Analysis
Analyze Situation Root Cause Analysis (what’s missing to Mind Maps, Fishbone Diagrams,
meet needs) process Diagrams & other Tools
Propose a Recommendation What’s to be delivered & It’s effect Scope freeze, Work Breakdown,
Functional Decomposition, User
Stories
Plan Implementation Most feasible approach to deliver Decision Tree, Weighted Ranking
solution
Evaluate the solution Measure of Cost & Benefits Cost – Benefit Analysis, Pay back
Period Analysis, ROI
Situation Statement:
• Problem (or opportunity) of ‘A’
• Has the effect of ‘B’
• With the Impact of ‘C’

25. After Business Case is Complete
Obtaining Endorsement
Implementation
• Provide a timeline with clear milestones;
• Clearly state roles and responsibilities;
• Be linked to costs so that resources needed can be tracked and utilised efficiently
• Have clear deliverables & outcomes associated with each milestone so that key performance
indicators can be measured.
Business Business Case
Outcomes Development
RESOURCES
Business
Capability
Operational
Capability
After Business
Technical Case
Capability Development

26. After Business Case is Complete
Monitoring & Reporting
• It can provide evidence of your efficient management of projects
• It can be used in future business cases to demonstrate that records management projects
are cost effective
• It can be used to demonstrate how records management adds value to the agency.

27. 30 Mins
Prepare a business case in detail, to request your sr management to sponsor
commuting facility for your department.
All to participate in the Process
 4 people to be nominated as Sr. Management persons
 2 people will be nominated as dept. managers & they have to prepare the case
 The 2 people who are preparing the case will take help from rest all people to
prepare the case & present to the Sr. management.
 While these 2 dept. managers are preparing the in detail business case, the Sr.
Management guys are also preparing the same business case to have their
standpoint & decisions strong.

28. Thank You