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Making Smart IT Choices: Understanding Value and Risk in Government IT Investments



Chapter 3. Preparing a business case

Essential elements of a business case

A strong business case includes all of the following elements:

  • A brief, compelling, service-oriented problem statement
  • A mission statement or vision of the future that addresses the problem
  • A description of the specific objectives to be achieved
  • A description and rationale for your preferred approach
  • A statement of the benefits that address the concerns of all relevant stakeholders
  • Measures for gauging improved performance or progress toward each objective
  • A statement of the likely risks of your initiative and how they will addressed
  • A basic plan of work with a timeline and key milestones
  • A project management plan and names and roles of key managers
  • Alternatives considered and how they would or would not work
  • Cost estimates and potential sources of funding
  • Opposing arguments and your responses to them
Table 1 shows how the analysis described in Chapter 2 contributes data to the business case. The analysis has given you a great deal of information to use in the case-building process. Take advantage of it to help you tell a coherent story about the investment that will turn your ideas into action. However, the business case does not emerge automatically from the analysis. You still need to select and organize the material, put it in context, and do some additional planning (such as developing a high-level work plan and management approach).

Table 1. Building a business case from your analysis
Business case element
 
Suggested data sources
 
Problem statement
 
"Good problem" description
 
Mission or vision statement
 
Hopes and fears exercise
Strategic framework
Visioning
 
Specific objectives
 
Environmental scanning
Hopes and fears exercise
Process analysis
Self-assessment
Stakeholder analysis
Strategic framework
 
Preferred approach
 
Cost-benefit analysis
Cost-performance analysis
MAU model
Process analysis
Prototyping
SWOT analysis
Technology awareness sessions
 
Expected benefits
 
Cost-benefit analysis
Cost-performance analysis
Stakeholder analysis
 
Performance and progress measures
 
Baseline measures
Benchmarking
Best and current practice research
Process analysis
Strategic framework
 
Risks and ways to address them
 
News analysis
Partisan analysis
Positioning charts
Prototyping
Risk analysis
Scenario building
Stakeholder analysis
Technology awareness sessions
 
Plan of work, timeline, and key milestones
 
Draw from all learning during the analysis
 
Project management and staffing
 
Draw from all learning during the analysis
 
Cost estimates and funding sources
 
Best and current practice research
Cost-benefit analysis
Cost-performance analysis
Stakeholder analysis
 
Alternatives considered
 
Benchmarking
Best and current practice research
Modest, moderate, elaborate alternatives
Prototyping
Technology awareness sessions
 
Opposing arguments and responses
 
Best and current practice research
Cost-benefit analysis
Cost-performance analysis
Partisan analysis
Positioning charts
Prototyping
Risk analysis
Stakeholder analysis