In this Business Analysis Training session, you will learn developing a business case. Topics covered in this session are: • Why do we develop Business cases? • Key components of a Business case • Importance of identifying Benefits • Role of the Business Analyst • How we can integrate Benefits to the business case • Setting the foundation for the rest of the project • Questions & Answers To learn more about this course, visit this link: https://www.mindsmapped.com/courses/business-analysis/business-analysis-fundamentals-with-hands-on-training/

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Business Analysis
Training
Developing a Business Case

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Agenda
• Why do we develop Business cases?
• Key components of a Business case
• Importance of identifying Benefits
• Role of the Business Analyst
• How we can integrate Benefits to the business case
• Setting the foundation for the rest of the project
• Questions & Answers

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Why do we develop Business cases?
• A business case is : “a document
that describes the necessary
information from a business
standpoint to determine whether or
not the project is worth the required
investment. It is commonly used for
decision making by managers or
executives”1
1PMBOK® Guide, Fifth Edition, p. 69
PMBOK is a registered mark of the Project Management
Institute, Inc.
• It can originate from various part of
the organisation but it is usually
developed during the Enterprise
Analysis effort.
• It helps determine which
projects/initiatives the organization
should undertake.

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Key Components of the BC
A Business Case traditionally includes:
• Executive summary
• Project description
• Purpose and background
• Scope / high level solution requirements
• Assumption, dependencies and constraints
• Risks
• Project Economics
• Economics indicators: ROI, IRR,…
• Estimates used for developing the indicators
• Proposed Project schedule
• Appendixes
But often developing a business case means focusing mostly on justifying
the initiative on financial grounds:
– Is the expected annual percent return on investment acceptable
compared to alternatives?

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How do we assess project success?
• On time, on budget and as per
scope.
• Deliverables are completed and
accepted.
But in reality what an organisation wants to know is how well the project
delivers the expected business value / are the expected benefits realised?

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Importance of identifying Benefits
By focusing on Benefits, at the time when we are developing the business
case, we can:
• Start with the end in mind (what do we hope to realise? What is the value
expected?)
• Align the initiative/project with the business strategy
• Clearly understand the “true” value of the initiative
• Ensure the organisation has an effective business case – not just a
justification for an investment opportunity
• A benefit is : a measurable improvement which contributes to one or more
organisational objectives.

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Critical role of the Business Analyst?
The Business Analyst can contribute to making a more effective business
case, by identifying the expected benefits, based on his/her:
• understanding of both the organisation’s strategy (including the enterprise
architecture) and the organisation’s operations.
• ability to act as a liaison among all stakeholders.
• business analyst’s tools and techniques.
• unique insights into both the problem/opportunities and the solution
requirements.

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How to integrate Benefit targets to the Business Case
• Identify benefit targets that will
contribute to at least one or
more strategic objectives
• Be realistic and focus on tracking
the metrics that matter
• Define clearly the metric to be
used and establish a current
baseline
• Set and agree targets at each
milestone for each benefit and
each benefit owner
• Can be measured in either
monetary or non monetary
terms – be creative on the non
monetary

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Examples of Benefits and metrics
• ERP Implementation project:
• Deliverable: ERP system implemented
• Benefit targets:
• Greater Stock accuracy : Real time stock value, reduction of the level
of discrepancy between stock level and actual stock from 5% to less
than 2%,…
• Reduce time taken to do the monthly account closure from 6 days to 3
days
• Internet banking application for smart phone
– Project deliverable: a secure internet banking phone apps
– Benefits targets:
• Increase market share by 10% in the 18 to 24 age group
• Improve visibility of the brand, easier access to information,
increase customer satisfaction,….

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What is required to make it happen?
• Ownership is key
• Do not reinvent the wheel – use measure available
• Use more than one measure
• Be outcome driven
• Do not just limit in delivering the benefit but in maximising the benefits.

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Set the foundation for the rest of the project
Benefit targets will then be used to:
• Give direction for the project team and stakeholders
• Give focus on what need to be achieved
• Support when changes happen to make right decision
• Go beyond project completion
The Business Case become the strategic driver from project initiation to
project execution to long term operation. It supports the strategy
implementation and measure the “true” success of a project.

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Conclusion
“If you want to build a ship, don’t drum up the men to gather wood, divide the work, and give
orders. Instead, teach them to yearn for the vast and endless sea.”
Quotation from Antoine de Saint-Exupery

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Thank You!