Business Case Template

by https://www.businessanalyststoolkit.com/

If you have any questions or comments please contact me at

[email protected]

Instructions:
This template is comprehensive, and depending on the level of detail required, it can be adapted
accordingly. Sections can be rearranged or condensed as per your preference and business need.
It contains examples and annotations in grey “annotation” font. When building your business case,
remove the “annotation” font and replace it with “normal” font.
This page should be removed altogether. Also, a PDF copy is included in this pack so you can
reference back to our original instructions and examples.
Business Case for <<Insert Title Here>>

Author Insert name of author

BUSINESS CASE Date Insert date
<<Insert Title>> Version Insert document version
number

Status Insert Final or Draft

Project Sponsor Insert name of project sponsor (the person representing the area of
business that is paying for the project).

Business Owner Insert name of business owner, if different to project sponsor.

Project Objectives Briefly state the objectives that this business case is based on.

Recommendation Briefly state the recommendation.

Budget Required Identify budget source and total required budget amount in your
currency.

Estimated Savings Insert potential savings if the recommended option was implemented.

Page 2 of 17
Business Case for <<Insert Title Here>>

Business Case History

Document Location
Enter the file location of this business case document here.

Revision History

Version From Author Change Summary

Distribution
This document has been distributed to:

Name Title Date of Issue Version

Approvals
This document requires the following approvals.

Name Signature Title Date of Issue Version

Page 3 of 17
Business Case for <<Insert Title Here>>

Table of Contents
1 Executive Summary 5

2 Introduction 6
2.1 Document Purpose 6
2.2 Stakeholders 6
2.3 Document Scope 6
2.4 Related Documents 7
2.5 Business Case Development Approach 7

3 Project Overview 8
3.1 Background 8
3.2 <<Change Description>> 8
3.3 Current Situation & Problem Statement 8
3.4 Project Objectives 9

4 Organisational Objectives 10
4.1 Key Business Drivers 10
4.2 Target Outcomes & Benefits 10

5 Identification & Analysis of Options11

5.1 Option 1 - Do Nothing 12
5.2 Procure and implement <<Technology Option A>> 13
5.3 Procure and implement <<Technology Option B>> 14
5.4 Procure and implement <<Technology Option C>> 14
5.5 Summary of Options 15
5.6 Other Options Considered 15

6 Recommendation 16
6.1 Recommendation 16
6.2 Costs and Benefits 16

Page 4 of 17
Business Case for <<Insert Title Here>>

1 Executive Summary
Along with the cover page, write the executive summary last.
The executive summary is a critical part of the document. In addition to the cover page above, this is
the section that decision makers / funding approvers will be the reading first so it must be clear and
concise and tell them exactly what they need to know. Read more about this in the article
Presenting a Case for Change – How to Get People to Read Your Business Case. The executive
summary should include this information under the following subheadings.

Background
Describe the purpose of the business case and some background information (1 paragraph).

Current Situation
Describe the problem and associated risks with the current situation (using real examples).

Options Analysed
Outline the options analysed and key findings (keep this very brief, use bullet points).

Recommendation
State the recommendation (include what the approvers and funders need to do).

Costs and Benefits

Describe the basis on which the benefits were identified and/or calculated (if financial). Describe the
financial and other benefits of the recommendation. This information can be presented in a table.
Cost categories shown are examples.

Year 13/14, Q3 Year 14/15 Year 15/16 Year 16/17

($000’s) ($000’s) ($000’s) ($000’s)
Tangible Benefits
Costs
Project Initiation Costs
Procurement Costs
Implementation Costs
Ongoing Costs
Infrastructure Costs

Identified Risks
Identify any risks, constraints, shortcomings or limitations of the recommended approach

Page 5 of 17
Business Case for <<Insert Title Here>>

2 Introduction

2.1 Document Purpose

Describe in 1 paragraph the purpose of this document.
For example,
This Business Case seeks to establish the scope, deliverables, activities, implications and issues
associated with the project to implement the <<insert name of system>> and to provide a
justification for proceeding with the recommended approach. It is a key component of the process to
identify a technological solution for the <<insert name of system>> as it assesses the value of the
project, and the project’s recommended approach, to <<insert organisation’s name>> and its
stakeholders.

2.2 Stakeholders
Describe in a bulleted list the intended audience for this document. The audience may be internal
and external stakeholders.
For example,
The intended audience for this document is confined within <<insert organisation’s name>> to the:
 <<names of relevant committees or reference groups>>
 <<role names and business unit names of relevant directors / managers (include business
owners and sponsors)>>
 Project Manager, <<business unit name>>.

2.3 Document Scope

2.3.1 Inclusions
Define the scope of this business case document by stating the inclusions.
For example,
To present a case for further analysis for the implementation of a <<type of system>>, and gain
approval from the <<approvers>> to proceed in accordance with the recommended approach, this
document will:
 Provide background of the current status <<of what>>,
 Define the business need for investigating new options, and
 Analyse options and recommend an approach for further analysis.

2.3.2 Exclusions
State what this business case does not cover.
For example,

Page 6 of 17
Business Case for <<Insert Title Here>>

This document does not recommend funding approval for the procurement and implementation of a
new <<system>>.

Page 7 of 17
Business Case for <<Insert Title Here>>

2.4 Related Documents

List the documents used to support this business case.
For example,
The following documents informs this Business Case by describing and prioritising the requirements
for the <<system>>.
 <<Document Title>>, <<Date>>, <<Version>>, <<Author>>

2.5 Business Case Development Approach

Describe how the business case was developed. State all activities undertaken to put this document
together. Include types of information gathering activities such as workshops, surveys, interviews,
document analysis, etc.
For example,
This Business Case was developed from information gathered through consultation with:
 <<insert internal stakeholders>>
 <<insert external stakeholders>>
 The validation and approval of the Business Requirements Specification
 Market analysis of existing commercially available products that can support the
requirements stated in the Business Requirements Specification
This Business Case assesses the value of implementing a technological solution and provides a
recommended approach. This value assessment is defined by the benefits and risks to business in
implementing a technological solution.

Page 8 of 17
Business Case for <<Insert Title Here>>

3 Project Overview

3.1 Background
In this section describe the circumstances and events that led up to identifying the need for change.
Describe any current processes or systems that require change. Identify the main business drivers
for change. Subheadings may be required to break the discussion in to sections.

3.2 <<Change Description>>

This section describes, at high level, what exactly the proposed change is about. This information is
quite often left out of business cases therefore not allowing the decision makers to understand what
the change will look like in business terms (not technological). The name of this section depends on
what is proposed but it should include a summary of the high level business requirements, priorities
and context diagram so the business can see how information and processes relate.
Here’s an example of a visual representation of requirements and priorities for a reporting system.

3.3 Current Situation & Problem Statement

Describe the problems that exist which have contributed to the need for change. Problems must be
written in practical business related terms so the decision makers can understand why this proposal
is put forward. Read more about defining the problem in the article 6 Strategic Categories for
Describing a Problem Statement.

Page 9 of 17
Business Case for <<Insert Title Here>>

3.4 Project Objectives

State the overall objectives and the more specific objectives that support the overall objective.
For example,
The overall objective of the project is to implement a system, which is responsive to business
demands, for the purpose of data collection, reporting and analysis on the key areas of <<insert
business functions>>.
Specific objectives of the <<system>> are to establish:
 A tool that supports the consistent capture of operational data from staff members on a daily
basis, and
 An easy to use, framework of reporting tools that provides the means to identify, retrieve and
present operational data (and other information to be identified in the future) from a
corporate repository. The reporting tools will provide the ability to retrieve details from the
repository and produce outputs to meet <<insert organisation’s name>> reporting
requirements.

Page 10 of 17
Business Case for <<Insert Title Here>>

4 Organisational Objectives
4.1 Key Business Drivers
In this section, list the key business drivers.
For example,
The key business drivers that will be fulfilled through the implementation of the <<system>> are the
ability to:
 Provide access to consistent, up to date and reliable <<type of information>> information,
 Provide user-friendly access to data, information, reports, and reporting tools,
 Access standard reports with drill-down capability, and
 Provide standard reports for meeting internal and external reporting requirements.

4.2 Target Outcomes & Benefits

For example,
The main benefits the <<system>> will provide is functionality to allow users and stakeholders to
make effective use of the data, information and technology infrastructure to manage and report on
<<insert business functions>>.

4.2.1 Business Benefits

For example,
This initiative will enable the business to:
 Minimise the issue of inconsistent reports arising from similar but different data sources by
moving to integrate current and future operational data into a common accessible corporate
data repository,
 Quickly and consistently respond to operational and business queries through the provision
of easy to use ad-hoc reporting tools, able to access the corporate data repository.

4.2.2 Financial Benefits

For example,
Financial benefits can be shown in savings made in the replacement or integration of systems. Initial
analysis has identified the following systems can be either replaced by, or integrated with, the
<<system>>:
 The various spreadsheets and ad hoc data stores will be replaced by the <<system>>
eliminating the cost in resource effort in maintaining data in an unreliable method which
lacks data integrity and production robustness.

Page 11 of 17
Business Case for <<Insert Title Here>>

5 Identification & Analysis of Options

Describe in a bulleted list the options identified and analysed further in Section 5. The example
below shows options for technology implementation. However note that depending on the proposed
change, identified options may not be identifying a technology, but a set of options based on a
procurement or implementation strategy.
Example,
Four technology options were reviewed against advantages, disadvantages and indicative cost.
They are:
1. Do nothing. Maintain the current status with the existing systems and processes.
2. Procure and implement <<Technology Option A>>. <<Insert brief description>>.
3. Procure and implement <<Technology Option B>>. <<Insert brief description>>.
4. Procure and implement <<Technology Option C>>. <<Insert brief description>>.

Also explain how each option was scored/assessed and include any quantitative criteria used e.g.,
you may want assign points against a set of assessment criteria. The higher the score, then the
assessed option is a better choice. Some of the things that options could be assessed/scored
against are as follows:
 Requirements coverage
 Contract value
 Implementation timeframe
 Ongoing cost
 Risk
Read more about one way to score and assess options in the article Solution Assessment Criteria –
How to Develop a Recommendation for the Implementation of a System.
The raw data for scoring each option (including the full risk assessment) should be presented in an
Appendix. If a scoring approach to assessing each option is not used then each section below
should also include a sub heading called Risk. The Risk discussion will contain a summary of the
associated risks with implementing the option.
Note that the following options are described in sections but they could also be laid out in a table. It
depends on the level of detail required.

Page 12 of 17
Business Case for <<Insert Title Here>>

5.1 Option 1 - Do Nothing

Example
The option to “Do Nothing” will maintain the current status with the existing systems and processes
for operational data management and reporting.

5.1.1 Assessment
Example
The table below shows the scores for each assessment criterion for the option to “Do Nothing”.
Criterion Score
Requirements Coverage 2
Contract Value N/A
Implementation Timeframe N/A
Ongoing Cost N/A
Risk 1
Total Score 3

5.1.2 Advantages
For example,
The advantages of maintaining the current status with existing systems and processes are:
 No new or additional costs involved;
 No impact or change for existing users; and
 No change to technical architecture.

5.1.3 Disadvantages
For example,
The disadvantages of maintaining the current status with existing systems and processes are:
 The current issues are still unresolved,
 Data continues to be stored in an inconsistent manner,
 The ability to access information on performance will continue to be difficult and manual, and
 The implementation of <<business function>> is not supported.

Page 13 of 17
Business Case for <<Insert Title Here>>

5.1.4 Costs
For example,
While no specific analysis has been done, there are likely to be opportunity costs of not
implementing the system due to:
 The use of information will continue to be inefficient due to intensive manual processes, and
 Data capture will continue to be inefficient due to the unstructured data management
processes.

5.1.5 Summary
The option to “Do Nothing” will not enable <<the organisation>> to leverage cost savings and
efficiency gains from system and process improvements. With this option, business, operational and
functional requirements will not be met.

5.2 Procure and implement <<Technology Option A>>

5.2.1 Assessment
In the assessment table included all of the criteria used to assess and score the option. The criteria
shown are examples.
Criterion Score
Requirements Coverage
Contract Value
Implementation Timeframe
Ongoing Cost
Risk
Total Score

Include assumptions as to how the costs were calculated in a bulleted list.

5.2.2 Advantages
The advantages of implementing <<Technology Option A>> are:
 <<Enter advantages here>>

5.2.3 Disadvantages
The disadvantages of implementing <<Technology Option A>> are:
 <<Enter disadvantages here>>

Page 14 of 17
Business Case for <<Insert Title Here>>

5.2.4 Costs
In the costs table, include all associated costs for the option analysed. Include all resources
identified in maintaining the change on an ongoing basis. Cost descriptions are shown as examples.
Cost Description Cost
Implementation
Initial Investment
Ongoing Cost (pa)
Contract Value
Total Cost

5.2.5 Summary
Insert summary of your findings here.

5.3 Procure and implement <<Technology Option B>>

Same as Section 5.2.

5.4 Procure and implement <<Technology Option C>>

Same as Section 5.3

Page 15 of 17
Business Case for <<Insert Title Here>>

5.5 Summary of Options

5.5.1 Costs

Cost Description Option 1 Option 2 Option 3 Option 4

Implementation
Initial Investment
Ongoing Cost (pa)
Contract Value
Total Cost

5.5.2 Assessment
If a scoring system was used to assess each option insert a summary table like the one below.
Option Technology Requirements Contract Timeframe Ongoing Risk Total
Option Coverage Value Cost Score

1 Do Nothing 2 N/A N/A N/A 1 3

2
3
4

5.6 Other Options Considered

Include options considered but discounted based on associated risks or other reasons.
Option Reason

Page 16 of 17
Business Case for <<Insert Title Here>>

6 Recommendation

6.1 Recommendation
Clearly state the recommendation. If relevant to the recommendation, provide a high level
description of an implementation strategy including proposed next steps, dependent activities and
expected timeframe for delivery.

6.2 Costs and Benefits

For example,
The table below shows the estimated savings (tangible benefits) over a four year period as a result
of system and business implementation, and the associated initial and ongoing costs. The cost
categories shown are examples.
Year 13/14, Q3 Year 14/15 Year 15/16 Year 16/17
($000’s) ($000’s) ($000’s) ($000’s)
Tangible Benefits
Costs
Project Initiation Costs
Procurement Costs
Implementation Costs
Ongoing Costs
Infrastructure Costs

Assumptions
Include all assumptions for calculating costs and benefits. Calculating benefits may be estimating
the time saved by streamlining business processes (as a result of implementation) and associating
dollar value against that time saved. Any extensive raw data should be placed in an Appendix.

Page 17 of 17