Building the Business Case Flashcards
What are the 3 objectives of a business case?
- Identify and describe a business need
- Justify expenditure to satisfy this need
- Provide information to ensure the business case is prioritised
What are the 3 broad questions covered in a business case?
WHAT is required
WHY it is needed
HOW - implementation plan defining tasks, resources and overall timescale
What are the 10 components of a business case?
Introduction, Management summary, Current situation, Options considered (why each was rejected- brief CBA), CBA for chosen solution, Investment Appraisal, Impact Assessment, Risk Assessment, Recommendations and Appendices
Which 3 groups can make a business case option unacceptable?
Financial
Business
Technical
Which 3 groups can make a business case option unacceptable?
Financial
Business
Technical
What is ‘Increased premises costs’ an example of?
Ongoing cost (Tangible)
What is ‘Relocation’ an example of?
One-off cost (tangible)
What is ‘Reduced inventory’ an example of?
a tangible benefit
What is ‘Recruitment/induction’ an example of?
Intangible cost
What is ‘Greater organisational flexibility’ an example of?
Intangible benefit
Which technique goes hand in hand with the C/B analysis?
Investment appraisal techniques- payback calculation, discounted cash flow and internal rate of return
For each risk we identify, what do we need to consider?
Description Impact assessment Probability Mitigation Ownership
What do we do with the risk?
Assess probability
Assess impact
Build in management actions- avoidance, transference, acceptance
Reflect in the business case
What does the impact assessment do?
Explore any impacts there may be on the organisation. Some of these impacts might have associated costs with them but others may not and are simply things that will happen as a result of adopting the change
