108 BUISINESS CASE ANALYSIS

Question 1

State the purpose of a Business Case Analysis (BCA).

Answer 1

NETCINST 1510.3 pg 1
A BCA is a structured methodology to facilitate its decision-making process. It is a continuous
process from conception of an alternative or solution to implementation.

Question 2

Explain the purpose of the executive summary of a BCA.

Answer 2

NETCINST 1510.3 pg 3
To provide a concise summary of the key highlights of the business case. The reader should be able to understand what the project is about, the role of the project in the department’s plan/direction, and the business justification of the project as well as how it will improve the overall efficiency and/or effectiveness of the government

Question 3

Describe how strategic alignment is important in a BCA.

Answer 3

NETCINST 1510.3 pg 8
It provides the reader with an understanding of how the initiative aligns with the overall business plan of the Navy and how it may impact other initiatives. It identifies the level of impact (high, medium, low) the initiative has on achieving its goals.

Question 4

Explain what analysis of alternatives does.

Answer 4

NETCINST 1510.3 pg 9
Provides the reader with an outline of the realm of possibilities that are available to address the problem or opportunity. Secondly, it provides the reader with rationale to why some have been eliminated as viable alternatives. Finally, it provides a detailed description of viable options (including a ―do-nothing‖ option) that should be discussed.

Question 5

Discuss risk assessment in decision making of a BCA.

Answer 5

NETCINST 1510.3 pg 13
Provides the reader with an understanding of the risks related to the initiative and how risks vary by viable alternative. Must be performed as a component of the BCA. It assigns an estimate of the risk to likely outcomes of alternatives and includes a risk mitigation strategy for each risk.

Question 6

Explain how cost benefit impacts a BCA.

Answer 6

NETCINST 1510.3 pg 16
Insures the reader can easily understand and compare the initial and on-going expenditures to
the expected financial and non-financial benefits (tangible and intangible) for each viable
alternative.

Question 7

Explain the final stages of a BCA:Conclusions and recommendations

Answer 7

To provide the reader with a selected alternative based on an overall evaluation of the alternatives in terms of impact, risk and cost/benefit. Specific recommendations for moving a project forward are also presented

Question 8

Explain the final stages of a BCA:Implementation Strategy

Answer 8

To ensure that those approving the business case understand the resources they must allocate (people, dollars, time) to complete the recommended next steps of the initiative. Includes: Major phases, High-level work plan/deliverables/target dates for completion, Costs, Personnel, assignment of responsibilities for risk mitigation

Question 9

Explain the final stages of a BCA:Review and approval

Answer 9

Clearly presents the reader with whom and how the business case has been resolved and approved. Also contains the final outcome of the business case – if approved, the evidence of approval is included; if not approved, documentation of the decision is provided.