Developing A Business Case

Question 1

What is the rationale for a business case ?

Answer 1

Provides justification for undertaking a project

Question 2

What is the introduction in the business case ?

Answer 2

Introduction sets the scene and explains why the business case is being presented.

Question 3

What is the management summary in the business case ?

Answer 3

distils the whole business case into a few paragraph, the paragraphs should contain:

What the study was about and what was found and the issues under consideration

A survey of the options considered, with their principal advantages and disadvantages

A clear statement of the recommendation being made and the decision required

Question 4

What is the description of the current state in the business case ?

Answer 4

The current situation explained and the problems and opportunities identified

Question 5

What is the options considered in the business case ?

Answer 5

Options are presented and the reasons why some have been rejected are set out

Question 6

What is the analysis of costs and benefits in the business case ?

Answer 6

Cost benefit analysis sums the potential rewards expected from a situation or action and then subtracts the total costs associated with taking that action

Question 7

Does cost tend to be tangible or intangible ?

Answer 7

Tangible

Question 8

What are the categories of cost and benefit

Answer 8

Tangible and Immediate/long term
Intangible and immediate/Long term

Question 9

Provide examples of tangible costs

Answer 9

Project staff costs
Business staff costs
Equipment
Infrastructure
Packaged software
Relocation
Staff training and retraining
Ongoing costs

Question 10

Provide examples of intangible costs

Answer 10

Disruption and loss of productivity
Recruitment

Question 11

Provide examples of tangible benefits

Answer 11

Staff savings

Reduced effort and improved speed of working

Faster responses to customers

Reduced accommodation costs

Reduced inventory

Question 12

Provide examples of Intangible benefits

Answer 12

Increased job satisfaction

Improved customer satisfaction

Improved management information

Greater organisational flexibility

More creative problem-solving time

Improved presentation or better market image

Better communications

Question 13

What is an impact assessment

Answer 13

Impact assessment for each option that the organisation needs to explore

Question 14

What are the type of impacts may be assessed ?

Answer 14

Organisational structure
Interdepartmental relations
Work practices
Management style
Recruitment policy
Appraisal and promotion criteria
Supplier relations

Question 15

What should be recorded for each risk

Answer 15

Description
Impact Assesment
Probaility
Countermeassures
Ownership

Question 16

What is DCF

Answer 16

Discounted Cash Flow.

Question 17

What is payback

Answer 17

Payback is the most straightforward technique. The calculation is simple; costs - benefits for each year, until break even has been hit. The year when costs are above 0 is the year of break even.

Question 18

What is NPV

Answer 18

A method that takes account of the time value of money is known as CDF and this leads to an NPV for the project. This means that all the cash flows accumulated in the years after year 0 are discounted or adjusted to todays value of money

Question 19

DCF leads to the ___ of the project

Answer 19

NPV

Question 20

What may be produced before a Business case ?

Question 21

At what point is the business case involved in the Business change lifecycle

Answer 21

Alignment
Definition
Design and Development
Implementation
Realisation