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Business Cases

Business Cases Article

Luggage:Business Cases

A business case is the concept of having a non-technical reason for a project or task. The logic of the business case is that any time resources such as money or effort are consumed, they should be in support of the business. An example could be that a software upgrade might improve system performance but the "business case" is that better performance would improve customer satisfaction.

Business cases can range from comprehensive and highly structured, as required by formal project management methodologies, to informal and brief, such as the example above. Information included in a formal business case could be the background of the project, the expected business benefits, the options considered (with reasons for rejecting or carrying forward each option), the expected costs of the project, a gap analysis and the expected risks. Consideration should also be given to the option of doing nothing including the costs and risks of inactivity. From this information, the justification for the project is derived.

At various stages in the project, the business case should be reviewed to ensure that:

The justification is still valid,
The project will deliver the solution to the business need.
The result of a review may be the termination or amendment of the project. The business case may also be subject to amendment if the review concludes that the business need has abated or changed, this will have a knock on effect on the project.