Business Case Template

1 Strategic case
Purpose of the strategic case: the strategic case explains how the scope of the proposed project
fits within the existing business and IS/IT strategies of the organization; and the compelling case
for change, in terms of the existing and future operational needs of the organization.

1.1 Organization overview

Describe the organization’s main aims, organizational structure and key responsibilities
1.1.1 Organization’s main aims
1.1.2 Organizational structure and key responsibilities

1.2 Business strategy and themes

Describe the strategic vision, strategic plan and continuing aims
1.2.1 Strategic vision
1.2.2 Strategic plan
1.2.3 Continuing aims

1.3 IS/IT strategy and objectives

Outline the IS/IT strategic themes in your business/IS strategy, key programs and projects
1.3.1 IS/IT strategic themes
1.3.2 Key programs
1.3.3 Key projects

1.4 Investment objectives

Set out the case for change in terms of investment objectives such as ‘to improve the quality of
the organization’s business services through the integrated, improved and expanded use of IS/IT’
1.4.1 Investment objectives

1.5 Existing arrangements

Outline the current IT base, IS/IT service delivery arrangements, major contracts with service
providers, the in-house function
1.5.1 Current IT base
1.5.2 IS/IT service delivery arrangements
1.5.3 Major contracts with service providers
1.5.4 The in-house function

1.6 Business need and service gaps

This section links to the investment objectives above. Identify business needs and service gaps in
relation to the business programs and agenda, and its operational requirements
1.6.1 Business needs and service gaps
1.6.2 Business programs
1.6.3 Operational requirements
1.7 Scope: core, medium, optional
Summarize the potential scope of requirement against a continuum of need, ranging from a
minimum or core scope (replacement of existing services) to a desirable scope (core plus some
other contracts and business improvement) to an optional scope (the latter plus IS/IT
underpinning parts of the business).
1.7.1 Core scope
1.7.2 Medium scope
1.7.3 Optional scope
1.7.4 (Intermediate scope as required)

1.8 Constraints
Summarize the main constraints, such as the willingness of senior management to absorb
fundamental business change, the affordability of proposals, existing contractual commitments
1.8.1 Constraints

1.9 Dependencies
Outline the internal and external factors upon which the successful delivery of this project are
dependent
1.9.1 Internal factors
1.9.2 External factors

1.10 Strategic Benefits

Outline high level strategic and operational benefits such as minimized development costs,
maximized use of corporate information
1.10.1 High level strategic benefits

1.11 Strategic risks

Outline business risks such as continuing need for the service and changes in business direction;
service risks such as the lack of internal skills and funding to implement the required projects;
and external environmental risks
1.11.1 Business risks
1.11.2 Service Risks
1.11.3 External environmental risks

2 Economic case
Purpose: the economic case, in accordance with the “business policies”, documents the wide
range of options which has been considered within the broad scope identified in response to the
organizations’ existing and future business needs.

2.1 Long and short list of options

Outline options identified for analysis (described in more details below), each subjected to SWOT
analysis against investment objectives and critical success factors
2.1.1 Option 1 (do minimum)
2.1.2 Option 2
2.1.3 Option 3
2.1.4 (additional options as required)
2.2 Critical success factors
explore critical success factors of business needs, strategic fit, benefits optimization, risk
management and potential achievability, provider capacity and capability, potential affordability
2.2.1 Business needs
2.2.2 Strategic fit
2.2.3 Benefits optimization
2.2.4 Risk management and potential achievability
2.2.5 Provider capacity and capability
2.2.6 Potential affordability

2.3 Scoping options

Outline scoping options from ‘do nothing’ to major business improvement, with brief description of
each, advantages/disadvantages and conclusions
2.2.1 Option 1 (do minimum)
2.2.2 Option 2
2.2.3 Option 3
2.2.4 (additional options as required)

2.4 Solution sets

Consider the range of potential technology which could be used to support the services required
by the organization within the parameters of the desired scope for the project; the detail will be
determined during the course of procurement or detailed study with existing providers
2.4.1 Solution 1 (do minimum)
2.4.2 Solution 2
2.4.3 Solution 3
2.4.4 (others as required)

2.5 Service delivery options

Investigate options ranging from in-house delivery to degrees of partnerships: with brief
description of each, advantages/disadvantages and conclusions
2.5.1 Service delivery option 1
2.5.1.1 Advantages
2.5.1.2 Disadvantages
2.5.1.3 Conclusions
2.5.2 (others as required)

2.6 Implementation options

For Outline Business Case: examine options for the pace at which the contracted services could be
implemented, in terms of the timescales and degree of business change required; investigate
short listed options of “do minimum” (more ambitious and less ambitious options)
2.6.1 Option 1 (do minimum)
2.6.1.1 Timescales
2.6.1.2 Degree of business change required
2.6.2 Option 2
2.6.2.1 Timescales
2.6.2.2 Degree of business change required
2.6.3 Option 3
2.6.3.1 Timescales
2.6.3.2 Degree of business change required
2.6.4 (additional options as required)
2.7 Options appraisal
Provide an explanation of the general approach taken to the calculation of costs and benefits,
together with overview of the key findings which result from each of the short listed options
2.7.1 General approach to calculation of costs and benefits
2.7.2 Overview of key findings
2.7.2.1 Option 1 (do minimum)
2.7.2.2 Option 2
2.7.2.3 Option 3
2.7.2.4 (additional options as required)

2.8 Risk quantification and sensitivity analysis

For risk quantification show the ‘cost of risk retained’ under each option: risk category (e.g.
business critical systems risks); related key risks (e.g. changes in business direction leading to
cost increases) and value (money). Supplement this information by the organization’s high level
risk register
For sensitivity analysis show the effect of changes in crucial factors to each option, expressed as
% increase or decrease from similar comparator
2.8.1 Risk quantification
2.8.1.1 Option 1 (do minimum)
2.8.1.2 Option 2
2.8.1.3 Option 3
2.8.1.4 (additional options as required)
2.8.2 Sensitivity analysis
2.8.2.1 Option 1 (do minimum)
2.8.2.2 Option 2
2.8.2.3 Option 3
2.8.2.4 (additional options as required)

2.9 Benefits appraisal

Show results of identifying key benefits criteria, weighting their relative importance, scoring short
listed options against those criteria; deriving a weighted benefits score for each option and
undertaking an analysis of the sensitivity of the assessment to changes in weighting and scoring
2.9.1 Key benefits criteria
2.9.2 Weighting or relative importance
2.9.3 Short listed options: scoring against criteria
2.9.3.1 Option 1 (do minimum)
2.9.3.2 Option 2
2.9.3.3 Option 3
2.9.3.4 (additional options as required)
2.9.4 Short listed options: weighted benefits score
2.9.4.1 Option 1 (do minimum)
2.9.4.2 Option 2
2.9.4.3 Option 3
2.9.4.4 (additional options as required)
2.9.5 Sensitivity analysis
2.9.5.1 Option 1 (do minimum)
2.9.5.2 Option 2
2.9.5.3 Option 3
2.9.5.4 (additional options as required)
2.10 Preferred option
Summarize findings from economic appraisals, benefits evaluation, sensitivity analysis and overall
ranking
2.10.1 Economic appraisals
2.10.2 Benefits evaluation
2.10.3 Sensitivity analysis

2.11 Key assumptions

The case must make assumptions about factors which are primarily outside the direct control of
the organization
These include:
2.11.1 Financial assumptions regarding interest rates, inflation and the company’s cost of
capital
2.11.2 Competitive assumptions especially if the project is anticipated to increase revenue or
market share
2.11.3 Secondary effects on other parts of the business, including vendors and customers

3 Commercial case
Purpose: where there is an external procurement, this case outlines the potential deal. Most of
this information will be produced for the Outline Business Case

3.1 Output based specification

Summarize the requirement in terms of outcomes and outputs; supplemented by full specification
as annex

3.2 Service support required

Outline the services required such as business improvement service, support for specialist staff
3.2.1 Service support 1 (title)
3.2.2 (additional services as required)

3.3 Charging mechanisms

Outline the proposed charging mechanisms that will be negotiated with the providers – eg linked
to performance and availability, providing incentives for alternative revenue streams
3.3.1 Charging mechanisms

3.4 Risk allocation and transfer

Summarize an assessment of how the types or risk might be apportioned or shared, with risks
passed to the party best placed to manage them subject to achieving value for money
3.4.1 Risk allocation
3.4.2 Risk transfer

3.5 Contract length

Outline scenarios for contract length and proposed key contractual clauses
3.5.1 Contract length
3.5.2 Key contractual clauses

3.6 Personnel issues

Outline personnel implications and discussions with NSGEU where applicable
3.6.1 Personnel implications
3.6.2 NSGEU discussions
3.7 Implementation timescales
Provide a high level view of implementations timescales. For the Outline Business Case and Full
Business Case, provide evidence of service providers’ high level implementation plans, taking into
account essential considerations related to benefits realization, risk management and control
3.7.1 Implementation timescales

4 Financial case
Purpose: assessment of affordability. Includes revenue implications against budget period,
income and expenditure account, balance sheet and cash flow

Produce a high level view of affordability for the Strategic Outline Case; produce more detailed
assessment for Outline Business Case using headings below
4.1.1 Budget period
4.1.2 Income and expenditure account
4.1.3 Balance sheet
4.1.4 Cash flow

5 Project management case

Purpose: this case addresses the ‘achievability’ aspects of the project. Its primary purpose is to
set out the actions which will be undertaken to support procurement activity (where applicable) or
detailed study with existing providers

5.1 Project roles

Set out key roles (Use PMBOK for guidance)
5.1.1 Project director
5.1.2 Project manager
5.1.3 Key stakeholders
5.1.4 (as require depending on sale of the project)

5.2 Procurement strategy (where applicable)

Set out indicative timetable
5.2.1 Indicative timetable

5.3 Project plan

Outline the main phases of the project plan
5.3.1 Project start up
5.3.2 Initiation
5.3.3 Stage 1 (include additional stages as required)

5.4 Contract management

Outline Business Case: summarize outline arrangements for contract management
5.4.1 Contract management

5.5 Risk management strategy

Summarize outline arrangements for risk management
5.5.1 Risk management strategy
5.6 Benefits realization plan
Summarize outline arrangements for benefits management
5.6.1 Benefits management

5.7 PIRs and PER

Summarize outline arrangements for PIRs and PER
5.7.1 Post Implementation Review (PIR)
5.7.2 Post Evaluation Report (PER)

5.8 Contingency plan

Summarize outline arrangements for contingency management
5.8.1 Contingency plan