Please enable JavaScript.
Coggle requires JavaScript to display documents.
Making a business case - Coggle Diagram
Making a business case
4 gateways in BC lifecycle
after feasibility study - outline proposed costs and benefits
BC confirmed post requirements defined - confirm costs & benefits
assurance BC met before deployment
benefits review
Feasibility checking - 4.2 for details (pg 49)
business
tech
financial
Option Selection
id possible options
should include doing nothing
nothing should be excluded
Consider
Scope
approach
resources
product
technology
shortlist options
3 or 4 realistic possibilities, including doing nothing
do nothing - highlight the risk of not making changes
evaluate shortlist
evaluate using feasibility check
ball park costs and benefits
take forward
cost-benefit analysis
page 53 - figure 4.4
page 54 - examples
tangible
Provable in advance eg savings from decommissioning or reducing headcount
capital costs - one time expenses incurred by the project = tangible
intangible
soft benefits eg improved staff morale
immediate
incurred/enjoyed at the start
longer term
apparent later
investment appraisal
how long it will take to recover the investment in the project in financial terms
payback/break even calculation
cash flow forecast - accumulated benefits outweigh accumulated costs
time value for money should be considered
discounted cash flow (DCF)
net present value (NPV)
apply a discount factor to today's value for money to give NPV
internal rate of return (IRR)
interest rate used to calculate DCF/NPV
Return on investment (ROI)
net benefits = costs from gross benefits
net profit /total investment *100
Risk analysis
Project risks
business risks
9 grid analysis box
impact analysis
make sir mngmt aware of key impacts to the project/option
justifies the business need of a project
revisited throughout the lifecycle