This document explains the importance of developing a business case in project funding, emphasizing that it outlines the anticipated return on investment. It describes key components of a business case, such as feasibility studies and cost/benefit analyses, which assess both tangible and intangible factors. Additionally, the text highlights that strong business case development skills are essential for business analysis professionals.

1. HOW TO DEVELOP A BUSINESS CASE?

2. Most organizations decide to fund a project
because obviously, they anticipate a return on the
investment (ROI). A business case describes this
anticipated return. For a BA to know a project, he
or she must understand the business case.
Sometimes the BA will be asked to develop the
business case as the first task of a project or before
a project has been approved. Understanding the
importance of developing business case is a key
business analysis skill.

3. Have you ever tried to convince
your spouse that you should get a
new car? Why did you decide to
buy a new pair of shoes? When
you are working to persuade
someone (even yourself) to take
action, you are building acase.

4. A business case is an explanation of
why the organization has decided to go
with a project. The wordcase comes from
the legal profession and means an
argument for or against something: “we
are building a case for…”, Business cases
which depict the value of an endeavor.

5. The mechanisms to evaluate business
case are:
Feasibility Study: A feasibility study
determines the practicability and
workability of a potential solution before
a project is approved. It answers the
question: “Can it be done?”

6. Cost/benefit analysis: This activity focuses on
financial analysis of the potential solution, using
economic calculations to project the potential return
on investment and payback period. It answers the
questions, “what are the costs VS benefits of doing
it?” Some costs and benefits are not easily
measurable. Benefits like goodwill and positive
public relations are referred to as intangible. Costs
that are easily measured are referred to as tangible.

7. Building a business case involves
bringing together research, logical
reasoning, and financial estimates. In
addition, business case development
requires creativity and big picture
thinking.
Bottom line is,Business case
development and cost/benefit analysis
are important skills for business analysis
professionals to develop early in their
careers.