Chapter 9: Making the Business Case (5%)

Question 1

lifecycle for a business case

Answer 1

1. feasibility study
2. requirements analysis and specification
3. solution design
4. solution development + implementation
5. operation of new processes + systems

_____
Each stage updated with latest info

each review called a decision gate (decision made by project sponsor

Question 2

3 main areas of feasibility

Answer 2

Business

Technical

Financial

Question 3

structure of business case

Answer 3

introduction

management summary

description of situation

options

costs + benefits

impact assessment

risk assessment

recommendations

investment appraisal

Question 4

what tools can we use to analyse feasibility

Answer 4

PESTLE

force-field analysis

Question 5

impacts within impact assessment

Answer 5

organisational structure

interdepartmental relations

working practises

management style

recruitment

appraisals and promotions

supplier relations

Question 6

is a risk assessment, each risk should detail:

Answer 6

Description

Impact assessment

probability

countermeasures

ownership

Question 7

investment appraisal techniques

Answer 7

pay-back (break-even) - how many years to break-even - year investment made is Year 0

DCF + NPV (discounted cash flow + net present value) - best method of assessing value of an investment

IRR (internal rate of return) - single % figure using ROI, reverse DCF/NPV calculation

Question 8

definition of an Internal Rate of Return (IRR)

Answer 8

The discount rate that leads to a net present value of zero