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FAQs:  IT Investments

FAQs & Glossaries

Q. What is a Business Case?

A. To put it simply, a business case is the body of facts and evidence presented to senior management to support a recommended course of action. Generally, a business case is prepared when a major change in policy, direction, technology, etc. is proposed.

A business case consists of a thorough analysis of business needs, opportunities, threats, and options developed for senior management’s consideration and decision. This includes clear identification of proposed benefits (both quantitative and qualitative), cost-benefit analyses, risk analyses, alternative and sensitivity analyses, and return on investment (ROI) calculations.

The business case will also identify the IT project’s link to business objectives or strategic goals, show evidence of compliance with the organization’s information technology architecture, and indicate buy-in from project advocates. Furthermore, the business case may explain how the IT investment will directly or indirectly help to achieve the intended outcomes associated with business objectives; this would include proposed development time frames and delivery schedules.

So what is a business case? It is an explanation that allows senior management to understand a business issue and the implications of a business decision. The goal is to provide senior management with a comprehensive picture of why a particular IT is desirable and consistent with overall strategic direction.

If you are interested in learning more, consider our seminar, How to Build an IT Business Case.

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