Definition Of Business Case

The business case is normally developed at the starting up a project process unless it is provided by corporate or programme management.

Definition of business case. It does not have to be a formal document however when a decision is being made by one or more other people capturing the information required is often provided in a standardised format. Ein business case untersucht ein geschäftsszenario hinsichtlich der rentabilität der dafür nötigen investition. A business case captures the reasoning for initiating a project or task. The purpose of the business case is communication.

It is often presented in a well structured written document but may also come in the form of a short verbal agreement or presentation the logic of the business case is that whenever resources such as money or effort are consumed they should be in support of a specific business need. How does a business case work. Approval is usually sought from the project sponsor and other interested parties. A business case provides justification for undertaking a project programme or portfolio it evaluates the benefit cost and risk of alternative options and provides a rationale for the preferred solution.

As the project begins the business case establishes the ultimate goal of the project for all stakeholders including the project manager and sponsor. Once created it is then maintained. The business case is needed when resources or expenditure on a project has to be justified. There are invariably concepts in the minds of the key project participants of what they.

When written the document itself is sometimes referred to as a business case. The first is that it forces the individual creating the report to consider all of the costs risks and benefits of making a decision when making a decision it s easy to focus on the desired results instead of realistically evaluating every possible outcome. Why use business case analysis. A business case is a written or verbal value proposition that is intended to educate a decision maker and convince them to take some kind of action.

For instance the finance function may authorize funds and the it department provide resources. A business is defined as an organization or enterprising entity engaged in commercial industrial or professional activities. The business case is a collection of the minimum information required to facilitate a decision to perform some activity that will somehow impact the product its customers or the business. Ein business case beschreibt dazu den istzustand angestrebte ziele geschäftsanforderungen mögliche lösungsansätze.

The business case gathers the information to allow the management to judge if a project is desirable viable and achievable and therefore worthwhile to invest in. Er dient zur darstellung und abwägung der prognostizierten finanziellen und strategischen auswirkungen eines projekts eines vorhabens oder einer investition. The business case is a reference point before during and after a project. How to write a business case.

There are two powerful reasons to use business case analysis.