A Business Case is a documented economic feasibility study that establishes the validity of the benefits to be delivered by a portfolio component, program, or project. It provides justification for investment by evaluating potential costs, risks, and expected returns.
Key Aspects of a Business Case
- Justifies Project Investment – Demonstrates why the project is worth funding.
- Defines Expected Benefits – Outlines the measurable value of the initiative.
- Evaluates Feasibility – Assesses financial, operational, and technical viability.
- Supports Decision-Making – Helps stakeholders determine project approval.
Core Components of a Business Case
- Problem Statement – Defines the business need or opportunity.
- Objectives & Expected Benefits – Details the value the project will deliver.
- Cost-Benefit Analysis – Compares estimated costs versus anticipated benefits.
- Risk Assessment – Identifies potential risks and mitigation strategies.
- Recommended Solution – Proposes the best approach for achieving project goals.
Example Scenarios
Technology Upgrade
A company evaluating a new ERP system develops a Business Case that compares implementation costs against anticipated efficiency improvements.
Infrastructure Investment
A city government assesses the feasibility of a new public transportation system, considering long-term economic and environmental benefits.
Product Development
A business case for launching a new product line analyzes market demand, projected revenue, and production costs to determine financial viability.
Why a Business Case Matters
- Ensures Strategic Alignment – Confirms that projects align with organizational goals.
- Reduces Unnecessary Spending – Prevents investment in low-value initiatives.
- Supports Stakeholder Buy-In – Provides data-driven justification for approval.
- Enhances Risk Awareness – Identifies challenges before committing resources.
See also: Benefits Management Plan, Feasibility Analysis, Risk Assessment, Cost-Benefit Analysis.