What are the reasons for developing a business case as part of scoping requirements? How would an organisation use this document?
Question
What are the reasons for developing a business case as part of scoping requirements?
How would an organisation use this document?
Solution
Developing a business case as part of scoping requirements is crucial for several reasons:
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Justification: A business case provides a justification for undertaking a project or programme. It presents the value and benefits that the project will bring to the business, which helps in decision-making.
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Cost-Benefit Analysis: It allows for a detailed cost-benefit analysis. This includes an estimate of the project's cost, the benefits it will bring, and a timeline for when those benefits will be realized.
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Risk Assessment: A business case includes a risk assessment that identifies potential risks involved in the project and how they will be managed.
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Alignment with Strategic Goals: It ensures that the project aligns with the organization's strategic goals and objectives. This helps to ensure that the project contributes to the overall direction of the business.
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Stakeholder Management: A business case helps to manage stakeholders by setting out clear expectations for what the project will deliver and how it will do so.
An organisation would use this document in several ways:
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Decision Making: The business case is used by senior management to make informed decisions about whether to proceed with the project.
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Prioritisation of Projects: It can be used to compare and prioritise different projects based on their expected value and alignment with strategic goals.
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Budgeting and Resource Allocation: The cost estimates provided in the business case are used for budgeting and resource allocation.
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Project Management: Once the project is underway, the business case serves as a reference point to ensure that the project is on track to deliver the expected benefits.
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Communication: The business case can be used to communicate the purpose and benefits of the project to stakeholders, including employees, investors, and customers.
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