Falcon Invoice Discounting: Empowering Your Business Growth
The Benefits Of Business Casing
1. The Benefits of Business Casing
A presentation (c)
by
Barbara Gilmore MSc PMP
2. The Benefits of Business Casing
• A Business Case is a structured proposal for a business change
that is justified in terms of cost and benefit;
• Typically a pre-requisite for the initiation of a project;
• Typically the Business Case is issued by the Project Sponsor
or Initiator, and prepared by the Primary Business Stakeholder;
• The Business Case is reviewed and signed-off by the Business
and I.T Stakeholders.
Barbara Gilmore 2007 (c)
3. The Benefits of Business Casing
Typical Business Case Template:
• Executive Summary
• Background
• Project Description
• Strategic Alignment
• Environment Analysis
• Alternatives
• Business and Operational Impacts
• Project Risk Assessment
• Cost/Benefit Analysis
• Conclusions and Recommendations
• Implementation and Change Control
• Review and Approval
Barbara Gilmore 2007 (c)
4. The Benefits of Business Casing
Why complete a Business Case?
• It defines the project’s business and operational benefits;
• It identifies project risks;
• It documents the project’s strategic alignment with the organization;
• It defines the project’s Critical Success Factors;
• It documents a Cost/Benefit Analysis and defines the Project
Payback Period.
Barbara Gilmore 2007 (c)
5. The Benefits of Business Casing
Option # Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Cost/Benefit 1
Benefits:
Revenue 0 10,000 10,000 10,000 10,000 10,000
Costs:
Analysis 2,000 2,000 0 0 0 0
Design 3,000 3,000 0 0 0 0
Impl. 0 3,000 0 0 0 0
Ongoing
Ops.Costs
Human 10,000 0 2,000 2,000 2,000 2,000
Resources
Net Benefit -15,000 2,000 8,000 8,000 8,000 8,000
Net Present -15,000 1818 6611 6010 5464 4968
Value (10%
used)
Barbara Gilmore 2007 (c)
6. The Benefits of Business Casing
Where does a Business Case fit within the ‘Big Picture’?
• Within the I.T Development Process Model (Waterfall) the
Business Case is part of the Initiation phase:
Initiation Analysis Design Testing Implementation Support
Barbara Gilmore 2007 (c)
7. The Benefits of Business Casing
• Within the Project Management Institute’s (PMI) Project
Management Framework, the Business Case is an input to the
‘Prepare Project Charter’ process;
• The Project Charter is issued by the Project Sponsor or
Initiator and formally authorizes the existence of a project.
Barbara Gilmore 2007 (c)
8. The Benefits of Business Casing
INITIATING
Develop Project Charter Develop Preliminary Project Scope Statement
PLANNING
Plan Scope, Activity, Schedule, Cost, Quality, Human Resources,
Develop Project Management Plan
Communications, Risk, Purchases, Acquisitions and Contracts
EXECUTING
Direct and Manage Project Execution (deliverables, human
Perform Quality Assurance
resources, communications and procurement)
Barbara Gilmore 2007 (c)
9. The Benefits of Business Casing
MONITORING & CONTROLLING
Monitor and Control Project Work (Scope, Schedule, Cost, Quality, Human
Change Control Resources, Communication, Risk & Procurement)
Stakeholder Management & Performance Reporting
CLOSING
Final Product Delivery Contract Closure
Barbara Gilmore 2007 (c)
10. The Benefits of Business Casing
Thank you, any questions?
Barbara Gilmore 2007 (c)