SECTION 108 - BUSINESS CASE ANALYSIS (BCA) Flashcards
What is the purpose of a Business Case Analysis (BCA)?
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.
What is the purpose of the executive summary of a BCA?
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.
How is strategic alignment important in a BCA?
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.
Explain what analysis of alternatives does.
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.
Explain risk assessment in decision making of a BCA.
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.
Explain how cost benefit impacts a BCA.
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.
Explain the conclusions and recommendations stage of a BCA.
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.
Explain the implementation strategy stage of a BCA.
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.
Explain the review and approval stage of a BCA.
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.
