Business Case Development

Question 1

What is the purpose of a business case?

Answer 1

To collate information together after a period of discovery to present findings to senior management.

Feasibility is a mixture between business / technical / financial information.

Question 2

What might you consider under business elements of the business case?

Answer 2

• strategic fit
• market appropriate
• timely
• architectural alignment
• organisational fit
• cultural fit
• capability fit
• regulatory alignment

Question 3

What might you consider under technical elements of the business case?

Answer 3

• availability
• reliability
• maintainability
• performance
• security
• scalability
• proven

Question 4

What might you consider under financial elements of the business case?

Answer 4

• Within budget
• Sufficient funds available
• Acceptable ROI
• Acceptable cash flow
• Timely payback

Question 5

What are the contents of a business case?

Answer 5

• Background / description
• Costs
• Risks
• Options
• Benefits
• Impacts
• Preferred Option

& risks and assumptions

Question 6

What does the background / introduction of a business case do?

Answer 6

• Sets the scene
• Explains why it is relevant
• What it is we want to change and why

Question 7

What does the Options element of the business case include?

Answer 7

• All options considered, including rejected ones
• Do nothing option

Question 8

What does the costs of the business case cover?

Answer 8

Tangible Costs:
* Staff / resource
* Materials
* Building rent / purchase
* Training
* Marketing

Intangible Costs:
* Time taken to train
* Loss of productivity
* Recruitment

Question 9

What does the benefits of the business case cover?

Answer 9

Tangible:
* Staff / resource costs
* Time savings
* Process costs
* Estate costs

Intangible:
* Staff satisfaction
* Customer satisfaction
* Improved reputation
* Improved reporting, process

Question 10

What do you need to record for each risk in a business case?

Answer 10

• description
• probability
• risk owner
• how it will be handled:
  mitigated, avoided, accepted, transferred
• measure of its effect on delivery

Question 11

What do you need to include for impacts in a business case?

Answer 11

• people affected
• processes affected
• policies affected

Question 12

What do you include in a benefits appraisal within a business case?

Answer 12

• Pay back - when will we recoup? will it be worth doing it
• Discounted cashflow - what is the true cost of the change compared to investment
• Internal Rate of Return - cost of the money