Business and Financial Case

Question 1

When is a business case be produced?

Answer 1

It is first produced as part of the feasibility check as it helps to demonstrate if the project is viable. Various options are documented so management can choose one.

Question 2

Is the business case a living document?

Answer 2

Yes, it should be checked at various stages of the project lifecycle as should be revisited as the project proceeds.

Question 3

What is the process for developing options?

Answer 3

1) Identify Possible Options
2) Shortlist Options
3) Evaluate Shortlist
4) Produce Business Case

Question 4

What are the three aspects of feasibility?

Answer 4

Business, Technical and Financial.

Question 5

What is included in Financial Feasibility?

Answer 5

• Within Budget
• Sufficient Funds Available….
• …. Or can be Borrowed
• Acceptable ROI
• Acceptable Cash Flow
• Timely Payback

Question 6

What is included in Business Feasibility?

Answer 6

• Strategic ‘fit’
• Market Appropriate
• Timely
• Architectural Alignment
• Organisational ‘fit’
• Cultural ‘fit’
• Capability ‘fit’
• Regulatory Alignment

Question 7

What is included in Technical Feasibility?

Answer 7

• Available
• Reliable
• Maintainable
• Performance
• Secure
• Scalable
• Compatible
• Proven

Question 8

What is the structure of a business case?

Answer 8

1) Introduction
2) Managers Summary
3) Current Situation
4) Options Considered
5) Recommendations
6) Appendix

Question 9

What is included in the Options Considered section of the Business Case?

Answer 9

• Option Description
• Analysis of Cost and Benefits
• Impact Assessment
• Risk Assessment

Question 10

What are the categories within the cost and benefits analysis?

Answer 10

Tangible Cost
Intangible Cost
Tangible Benefit
Intangible Benefits

Question 11

What are some examples of an intangible cost?

Answer 11

• Disruption and Loss of Productivity
• Recruitment

Question 12

What are some examples of an intangible benefit?

Answer 12

• Increased Job Satisfaction
• Improved Customer Satisfaction
• Improved Management Information
• Flexibility
• Communication
• Creative Problem Solving
• Improved Market Image

Question 13

What are some examples of an tangible cost?

Answer 13

• Project Staff Costs
• Business Staff Costs
• Equipment
• Infrastructure
• Packaged Software
• Relocation
• Staff Training
• On-going Costs (Maintenance)

Question 14

Tangible Benefits

Answer 14

• Staff Savings
• Reduced Effort and Improved Speed of Working
• Reduced Accommodation Cost
• Reduced Inventory
• Other Cost Reductions