Business Case Development

Question 1

Describe the contents of a business case

Answer 1

Background description
Options and their descriptions
Costs - areas of cost, tangible and intangible costs, quantifying costs
Benefits - areas of business benefit, tangible and intangible benefits, quantifying benefits.
Cost/Benefit analysis using investment appraisal techniques
Risks - areas of risk, types of risk, risk analysis
Impact assessment
Recommendations

BOCBCRIR

Question 2

Why is the business case important

Answer 2

Explains the business need
Justifies the investment in change
Aid in decision making
Acts as a control mechanism

Question 3

Where in the lifecycle for business change would we first encounter the business case

Answer 3

Definition

Question 4

Does the business change ever change once it is written?

Answer 4

Yes

Question 5

When might the business case change?

Answer 5

Design, Implementation

Question 6

In connection with IT-enabled business change could you name for me examples of tangible costs?

Answer 6

Infrastructure
Development staff
Training
Hardware

Question 7

Could you name and a tangible benefit?

Answer 7

Saving staff costs

Operational Efficiency

Question 8

Could you name an intangible cost?

Answer 8

Recruitment/Induction

Disruption/loss of service

Question 9

Could you name an intangible benefit?

Answer 9

Increased Customer Satisfaction

Improved Communications

Question 10

Which option should always be considered

Answer 10

do nothing

Question 11

Who decides which option to go for?

Answer 11

The sponsor and business stakeholders

Question 12

What is the business analysts role in this?

Answer 12

facilitating the discussions

Question 13

Does every project need to be justified on purely financial grounds?

Answer 13

No

Question 14

Explain the concept of a payback period

Answer 14

The time (usually in years) it takes to payback the amount invested in the project (breakeven)

Question 15

Explain the concept of discounted cash flow and net present value

Answer 15

Discounted cash flow is based on the time value of money

Gives a more realistic indication of when payback will occur

Question 16

What is a risk?

Answer 16

Anything that might affect the project adversely

Question 17

What are the steps in managing risk?

Answer 17

Identifying the risk
Assessing the probability and severity
developing contingency plans to hadle them if they occur

Question 18

What areas of risk are there in IT Enabled Business Change in general?

Answer 18

Business
Technical
Project: Resources,

Question 19

How could you convey the impact of change for every option?

Answer 19

Impact assessment
desription 
impact
Probabilty
Owner

Question 20

Explain the connection between the business change and the benefits realisation process.

Answer 20

the business case should be used