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Business Case (Template)




             Business Case
             (Template)




             EI Toolkit
             Submitted: Version 1.0




EI Toolkit                            Page i of 10
Document version 1.0, December 2003    EITK0604
Last validated: December 2003
37. Business Case  Template
Business Case (Template)




Table of Contents
EXECUTIVE SUMMARY.........................................................................................................................................1
1 INTRODUCTION......................................................................................................................................................2
   1.1 BACKGROUND..................................................................................................................................................2
   1.2 SUBJECT OF THE BUSINESS CASE...........................................................................................................................2
   1.3 PURPOSE OF THE BUSINESS CASE..........................................................................................................................2
   1.4 GOVERNING MANDATES......................................................................................................................................2
   1.5 ACKNOWLEDGEMENTS / CREDITS.........................................................................................................................2
2 METHODS AND ASSUMPTIONS.........................................................................................................................3
   2.1 ALTERNATIVE SOLUTIONS AND DATA....................................................................................................................3
   2.2 SCOPE OF THE CASE..........................................................................................................................................3
   2.3 FINANCIAL METRICS..........................................................................................................................................3
   2.4 BENEFITS........................................................................................................................................................3
   2.5 COSTS............................................................................................................................................................3
   2.6 MAJOR ASSUMPTIONS........................................................................................................................................3
3 BUSINESS IMPACTS...............................................................................................................................................4
   3.1 OVERALL RESULTS...........................................................................................................................................4
   3.2 BENEFITS........................................................................................................................................................4
   3.3 COSTS............................................................................................................................................................4
   3.4 ANALYSIS OF ALTERNATIVES..............................................................................................................................4
4 SENSITIVITIES, RISKS, AND CONTINGENCIES............................................................................................5
5 RECOMMENDATIONS AND CONCLUSIONS..................................................................................................6




Table of Tables
            Table                                                                                                                                               Page




Table of Figures
            Figure                                                                                                                                              Page




EI Toolkit                                                                                                                                  Page i of 10
Document version 1.0, December 2003                                                                                                          EITK0604
Last validated: December 2003
37. Business Case  Template
Business Case (Template)




              EXECUTIVE SUMMARY

         <Summarize problem statement, alternatives considered, expected results, and
         recommendation.


         Provide supportive net cash chart or tables for primary alternatives to support decision
         process.>




EI Toolkit                                                                        Page 1 of 10
Document version 1.0, December 2003                                                 EITK0604
Last validated: December 2003
Business Case (Template)




         1 INTRODUCTION
         1.1    Background
         <Provide limited background on the organization, industry or market conditions, that
         create drivers for the project.>


         1.2    Subject of the business case
         <Describe the problem statement under consideration and key objectives that drove the
         decision to develop a business case.>


         1.3    Purpose of the business case
         <Describe the intended use of the business case, including audience and timing.>


         1.4    Governing mandates
         <Describe any organizational, industry, or government mandates that guide or constrain
         alternatives available.>


         1.5    Acknowledgements / Credits
         <Give credit where due.>




EI Toolkit                                                                       Page 2 of 10
Document version 1.0, December 2003                                                EITK0604
Last validated: December 2003
Business Case (Template)




         2 METHODS AND ASSUMPTIONS
         2.1    Alternative Solutions and data
         <Describe the primary alternatives considered. Provide the basis for any comparable
         projects and or benchmark models used to validate estimation data sources. Describe
         the estimation approach (ballpark, parametric, or detail labor and material) used.>


         2.2    Scope of the case
         <Describe the time frame and resources available for the business case development
         process. Also, describe any constraints in alternatives considered.>


         2.3    Financial metrics
         <Describe which financial metrics will be used to evaluate the effectiveness of an
         investment and / or to compare alternative solutions.>


         2.4    Benefits
         <Describe the expected primary benefit areas (revenue enhancement and cost reduction)
         for each alternative solution.>


         2.5    Costs
         <Describe the expected primary cost areas (capital and expense) for each alternative
         solution.>


         2.6    Major assumptions
         <Describe key assumptions that are critical to the investment decision.>




EI Toolkit                                                                          Page 3 of 10
Document version 1.0, December 2003                                                   EITK0604
Last validated: December 2003
Business Case (Template)




         3 BUSINESS IMPACTS
         3.1    Overall Results

         <Present net result (Cash Flow, IRR, etc.) that demonstrate impact of primary alternatives
         under consideration.
         Supplement with tables and / or charts that demonstrate accrual and cash flow impacts of
         the investment (for example, annual and cumulative cash flow charts and summary
         financial results tables).>>


         3.2    Benefits

         <Present significant benefit impacts (both revenue enhancement and cost reduction) for
         each project alternative under consideration>


         3.3    Costs

         <Present significant cost impacts (both capital and expense) for each project alternative
         under consideration.>


         3.4    Analysis of Alternatives

         <Compare primary alternative solutions in side-by-side table or chart (or possibly
         overlapping chart if it is not overly complex) to assist in evaluating decision>




EI Toolkit                                                                         Page 4 of 10
Document version 1.0, December 2003                                                  EITK0604
Last validated: December 2003
Business Case (Template)




         4 SENSITIVITIES, RISKS, AND CONTINGENCIES

         <Identify key parameters and conditions that impact the investment decision. Present
         potential contingent actions that could mitigate the uncertainty. Identify how such
         uncertainties impact the analysis and investment decision
         Link spreadsheet sensitivity or simulation charts or tables if they clarify the decision
         process. Also consider using a decision tree if it aids in understanding the alternative
         solution uncertainties..>




EI Toolkit                                                                         Page 5 of 10
Document version 1.0, December 2003                                                  EITK0604
Last validated: December 2003
Business Case (Template)




         5 RECOMMENDATIONS AND CONCLUSIONS

         <Provide recommendations based on the analysis above. Discontinue investment, select
         one of the identified alternatives, or defer decision pending additional information or
         changes in business or market conditions.
          Identify any specific actions that are recommended to ensure that risks and uncertainties
         are effectively managed throughout the implementation process.>




EI Toolkit                                                                        Page 6 of 10
Document version 1.0, December 2003                                                 EITK0604
Last validated: December 2003

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37. Business Case Template

  • 1. Business Case (Template) Business Case (Template) EI Toolkit Submitted: Version 1.0 EI Toolkit Page i of 10 Document version 1.0, December 2003 EITK0604 Last validated: December 2003
  • 3. Business Case (Template) Table of Contents EXECUTIVE SUMMARY.........................................................................................................................................1 1 INTRODUCTION......................................................................................................................................................2 1.1 BACKGROUND..................................................................................................................................................2 1.2 SUBJECT OF THE BUSINESS CASE...........................................................................................................................2 1.3 PURPOSE OF THE BUSINESS CASE..........................................................................................................................2 1.4 GOVERNING MANDATES......................................................................................................................................2 1.5 ACKNOWLEDGEMENTS / CREDITS.........................................................................................................................2 2 METHODS AND ASSUMPTIONS.........................................................................................................................3 2.1 ALTERNATIVE SOLUTIONS AND DATA....................................................................................................................3 2.2 SCOPE OF THE CASE..........................................................................................................................................3 2.3 FINANCIAL METRICS..........................................................................................................................................3 2.4 BENEFITS........................................................................................................................................................3 2.5 COSTS............................................................................................................................................................3 2.6 MAJOR ASSUMPTIONS........................................................................................................................................3 3 BUSINESS IMPACTS...............................................................................................................................................4 3.1 OVERALL RESULTS...........................................................................................................................................4 3.2 BENEFITS........................................................................................................................................................4 3.3 COSTS............................................................................................................................................................4 3.4 ANALYSIS OF ALTERNATIVES..............................................................................................................................4 4 SENSITIVITIES, RISKS, AND CONTINGENCIES............................................................................................5 5 RECOMMENDATIONS AND CONCLUSIONS..................................................................................................6 Table of Tables Table Page Table of Figures Figure Page EI Toolkit Page i of 10 Document version 1.0, December 2003 EITK0604 Last validated: December 2003
  • 5. Business Case (Template) EXECUTIVE SUMMARY <Summarize problem statement, alternatives considered, expected results, and recommendation. Provide supportive net cash chart or tables for primary alternatives to support decision process.> EI Toolkit Page 1 of 10 Document version 1.0, December 2003 EITK0604 Last validated: December 2003
  • 6. Business Case (Template) 1 INTRODUCTION 1.1 Background <Provide limited background on the organization, industry or market conditions, that create drivers for the project.> 1.2 Subject of the business case <Describe the problem statement under consideration and key objectives that drove the decision to develop a business case.> 1.3 Purpose of the business case <Describe the intended use of the business case, including audience and timing.> 1.4 Governing mandates <Describe any organizational, industry, or government mandates that guide or constrain alternatives available.> 1.5 Acknowledgements / Credits <Give credit where due.> EI Toolkit Page 2 of 10 Document version 1.0, December 2003 EITK0604 Last validated: December 2003
  • 7. Business Case (Template) 2 METHODS AND ASSUMPTIONS 2.1 Alternative Solutions and data <Describe the primary alternatives considered. Provide the basis for any comparable projects and or benchmark models used to validate estimation data sources. Describe the estimation approach (ballpark, parametric, or detail labor and material) used.> 2.2 Scope of the case <Describe the time frame and resources available for the business case development process. Also, describe any constraints in alternatives considered.> 2.3 Financial metrics <Describe which financial metrics will be used to evaluate the effectiveness of an investment and / or to compare alternative solutions.> 2.4 Benefits <Describe the expected primary benefit areas (revenue enhancement and cost reduction) for each alternative solution.> 2.5 Costs <Describe the expected primary cost areas (capital and expense) for each alternative solution.> 2.6 Major assumptions <Describe key assumptions that are critical to the investment decision.> EI Toolkit Page 3 of 10 Document version 1.0, December 2003 EITK0604 Last validated: December 2003
  • 8. Business Case (Template) 3 BUSINESS IMPACTS 3.1 Overall Results <Present net result (Cash Flow, IRR, etc.) that demonstrate impact of primary alternatives under consideration. Supplement with tables and / or charts that demonstrate accrual and cash flow impacts of the investment (for example, annual and cumulative cash flow charts and summary financial results tables).>> 3.2 Benefits <Present significant benefit impacts (both revenue enhancement and cost reduction) for each project alternative under consideration> 3.3 Costs <Present significant cost impacts (both capital and expense) for each project alternative under consideration.> 3.4 Analysis of Alternatives <Compare primary alternative solutions in side-by-side table or chart (or possibly overlapping chart if it is not overly complex) to assist in evaluating decision> EI Toolkit Page 4 of 10 Document version 1.0, December 2003 EITK0604 Last validated: December 2003
  • 9. Business Case (Template) 4 SENSITIVITIES, RISKS, AND CONTINGENCIES <Identify key parameters and conditions that impact the investment decision. Present potential contingent actions that could mitigate the uncertainty. Identify how such uncertainties impact the analysis and investment decision Link spreadsheet sensitivity or simulation charts or tables if they clarify the decision process. Also consider using a decision tree if it aids in understanding the alternative solution uncertainties..> EI Toolkit Page 5 of 10 Document version 1.0, December 2003 EITK0604 Last validated: December 2003
  • 10. Business Case (Template) 5 RECOMMENDATIONS AND CONCLUSIONS <Provide recommendations based on the analysis above. Discontinue investment, select one of the identified alternatives, or defer decision pending additional information or changes in business or market conditions. Identify any specific actions that are recommended to ensure that risks and uncertainties are effectively managed throughout the implementation process.> EI Toolkit Page 6 of 10 Document version 1.0, December 2003 EITK0604 Last validated: December 2003