Form Groups .Develop a brief Business Case for a project of choice Ensure you co
ID: 418815 • Letter: F
Question
Form Groups .Develop a brief Business Case for a project of choice Ensure you cover the key aspects such as: .EXECUTIVE SUMMARY PROJECT OVERVIEW o Issue o Anticipated Outcomes o Recommendation o Justification o Project Description o Goals and Objectives o Project Performance o Project Assumptions o Project Constraints BUSINESS CASE ANALYSIS TEAM PROBLEM DEFINITION o Major Project Milestones o Problem Statement o Organizational Impact o Technology Migration STRATEGIC ALIGNMENT COST BENEFIT ANALYSIS ALTERNATIVES ANALYSIS APPROVALS Prepare your group presentation (30 minutes)Explanation / Answer
Any organization desires to carry the business in a profitable way. To promote the profits, company follows some business concepts known as business case. The necessary steps taken in order to raise the profits is referred to as a business plan. The following definition differentiates those two terms.
Business Case: It's a business-related concept which provides justification for a proposaland it is very realistic and directs the company to gain the profits from the product.
How the business case is used?
The content of the detailed business case will include:
It is at this point that the benefits review plan should be created and the benefits from the detailed business case used here. Information regarding how each benefit is to be achieved and measured must be added including the timing of benefit reviews.These benefit reviews may often align with end stage assessments, although these benefit reviews will continue after the project has completed.Project assurance will review the draft business case and the project board should approve it and the Benefits Review Plan, although they may prefer to review them later as part of the Project Initiation Documentation.Refine the Business Case and assemble the PID. (2014, January 1).Retrieved November 14, 2014, from http://www.prince2primer.com/refine-the-business-case-and-assemble-the-pid.
Business plan: It is defined as the explanation of every financial step in detail in order to create or grow the profits. It also specifies how the product will contribute to the financial value of the company. A business plan guides the company how to raise the profits and helps the stake holders in identifying the value of the plan or approach. As we can spectate that the scope and the domain of the business is the major difference between the business case and plan. The business case analyzes the project whereas, business plan analyzes the organization or a business unit.
How the business plan is used?
The business plan is used to:
A business case is organized around a single action orsingle decision and its alternatives. It Predicts cash flow results and important non-financial impactsthat follow from the action. It focuses on business objectives for the action and it is also based on a cost model and a benefits rationale, designed for the case, and applied to one or more action scenarios. It's used to measures financial metrics such as NPV, IRR, ROI, payback period, and TCO, based on projected cash flow. Also includes important non-financial impacts.In a non-profit or government organization,the scope of the case may include benefits and costs to the population served as well as the organization itself. Whereas, business plan is organized around an organization or the whole enterprise. The plan may cover a single product or product line or the whole organization. Business plan predicts business performance of the organization, especially in the main categories of the income statement. It may also include projected pro-forma income statements or balance sheets for future.An organization or the whole enterprise. The plan may cover a single product or product line or the whole organization and focuses on business objectives for the organization. It is based on the business model for the organization (showing where and how the company makes money, similar to income statement), as well as expected trends, competitor actions, etc.It measures business performance in terms such as sales, margins, profits, and business "health" by contributions to important balance sheet categories. In a non-profit or government organization, it may focus on funding needs, budgetary requirements, and ability to operate within budget. However, they are similar at strategies, vision, concept, and financial calculations.Business Plan Explained Definition, Content, Structure, and Purpose. (2004, January 1).Retrieved November 14, 2014, from https://www.business-case-analysis.com/business-plan.html.
The following links are some of the business case templates, I had researched:
I have selected a business case template (last link) which is very clear and easy when compared to rest of the templates I had searched. The other templates are so complex and too comprehensive. Although the templates consists of same content, the template which I selected was better and simple to understand. This template supports archiving of changes while the project was in progress. It is a initial business case and is used with two stage process. It is provided as general guide for agencies. There is a chance to correct the errors if something goes wrong in the requirements, cost analysis, etc.The contents in the template includes:
Executive summary: This part of the business case briefly elaborates the proposed project.
Project: This constitutes business needs, project limitations, background of the project, assumptions, identifying stakeholders.
Project Requirements: The end product of the project should be explained and should answer how would the project meets the scope and necessity of the business.
Risk management: This section includes the estimation of the risk, mitigate actions and how much does each risk and its mitigating factor costs, how the counter measure against the risk is implemented.
Cost Analysis:This section includes the project cost assessment, how the project deliverable could is achieved within the budget and cost effective measures and also cash flow statements are included.
Recommendation:If there are any changes in proposed system for the development of the business, those changes are included in this section. Otherwise, it's an optional.
Scoping study:Since it's aprimary business case, it includes how to manage the detail business case and the costs associated with it.
Authorization:The proposal should be approved and authorized by project sponsors.
Schedule of Annexes:All the documents that assists the finance in assessing the policy merit of the investment proposal is included in this section.
References:
Abrams, R. (2003). The successful business plan: Secrets & strategies (4th ed.; Deluxe binder ed., p. Xxxiv). Palto Alto, Calif.: Planning Shop.
Refine the Business Case and assemble the PID. - PRINCE2 Primer. (n.d.).