A business case framework is a structured approach to developing a persuasive argument for a specific action or investment. It typically consists of several vital components to define the problem or opportunity, assess the costs and benefits, and provide recommendations for moving forward.
The following are the standard components of a business case framework:
Executive Summary: A brief overview of the entire business case summarizes the key points and recommendations.
Background: A description of the problem or opportunity the business case addresses. This section should include a brief history of the issue, the current state of affairs, and any relevant trends or data.
Objectives: A clear statement of the objectives the business case is trying to achieve. These objectives should be specific, measurable, achievable, relevant, and time-bound (SMART).
Scope: A definition of the boundaries of the business case, including what is included and excluded.
Alternatives: A description of the options considered and how they were evaluated. This section should include an analysis of the pros and cons of each choice.
Cost-Benefit Analysis: A detailed assessment of the costs and benefits associated with each alternative. This section should include a breakdown of the costs and benefits and a calculation of the net present value (NPV) and return on investment (ROI).
Recommendation: A clear and concise recommendation for the preferred alternative based on the analysis conducted in the previous sections.
Implementation Plan: A plan for how the recommended alternative will be implemented, including timelines, milestones, and key stakeholders.
Risks and Assumptions: An assessment of the risks associated with the recommended alternative and any key assumptions made during the analysis.
Conclusion: A summary of the key findings and recommendations and a call to action for the intended audience.
The business case framework is a valuable tool for decision-makers, stakeholders, and investors who need to assess the value and feasibility of a proposed initiative or investment. A well-developed business case ensures that resources are allocated effectively and that the desired outcomes are achieved by following a structured approach and including all relevant information.
The Business Case Framework category in our CIO Reference Library is a curated collection of resources, articles, and insights. It provides IT executives and other professionals a comprehensive understanding of the various frameworks and models used to develop and evaluate business cases.
A business case is a document that outlines the justification for a proposed investment, including the expected benefits, costs, risks, and other factors that may impact the decision. Developing a well-structured and comprehensive business case is critical for ensuring that proposed investments align with strategic objectives and provide value to the organization.
This category covers a wide range of topics related to business case frameworks, including:
Overview of business case: This includes an introduction to the concept of a business case, its purpose, and the key elements that should be included in a business case.
Business case frameworks: This includes an overview of the various frameworks and models used to develop and evaluate business cases, such as the cost-benefit analysis, return on investment (ROI), and net present value (NPV) frameworks.
Business case development: This includes an overview of the process for developing a business case, including identifying the problem or opportunity, defining the scope, identifying options, conducting analysis, and making recommendations.
Business case evaluation: This includes an overview of the process for evaluating a business case, including reviewing the assumptions and analysis, assessing the risks, considering the strategic alignment, and making a decision.
By exploring the Business Case Framework category, IT executives and other professionals can gain a comprehensive understanding of the various frameworks and models used to develop and evaluate business cases. This knowledge can help organizations to develop more effective business cases, evaluate proposed investments more objectively, and ultimately create more value for their stakeholders.
Featured: IT Business Case Example
This document describes the strategic assessment of an IT investment which answers the simple question: "is there a need?" This is perhaps the first stage in an investment's lifecycle and most critical because this is where one can either save the day or really make a blunder approving a disaster or rejecting a gem!
This business case development guide describes a best practice based approach to developing investment proposals specific to information technology investments – establish a clear need, define benefits, and explore strategic options. This guide includes things sometimes omitted by others specifically, technology selection, organization readiness, and procurement.
This guide describes the five case model for developing business cases and provides step-by-step guidance on writing a business case using this model.
This guide is focused on the process more than the content of an investment business case. It provides templates and examples to illustrate the business case preparation and approval process. You will have to sift through some situation specific information to leverage this document but it is worth it.
Use the Total Value of Opportunity (TVO) methodology to align IT investments with strategic business objectives. Dive into this resourceful presentation to understand how to make informed IT decisions significantly contributing to your organization’s success.
This paper introduces Gartner’s Total Value of Opportunity (TVO) methodology “a metrics-based, standard methodology for comprehensive investment analysis of any IT-enabled business initiative.”
The authors argue that organizations pay lip service to IT investment management – they insist on a business case for every IT investment but do not apply the rigor to what is contained in it. The resulting lack of IT investment results is both expected and can be fixed using a better business case framework developed by the authors.
This IT business case template is part of the Demand and Value Assessment Methodology (DAM/VAM) Methodology.
ICT Business case template as an MS Excel spreadsheet that you can use to justify, and monitor it investments.
ICT Business case guide provides instructions on using the ICT business case template to justify, and monitor it investments.
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