How does a business case affect an IT project? Explain your answer by using a suitable example.

A business case can significantly affect an IT project in several ways. It provides a justification for undertaking the project and outlines the business value that the project is expected to deliver. This can include potential cost savings, increased revenue, improved customer satisfaction, or other benefits that align with the organization's strategic objectives.

For example, let's consider a company that wants to implement a new customer relationship management (CRM) system. The business case for this IT project might include the following points:

1. Problem Statement: The company is currently using several different systems to manage customer information, which is inefficient and leads to data inconsistencies.

2. Proposed Solution: Implementing a new CRM system that consolidates all customer information into one platform.

3. Benefits: The new system will improve data accuracy, enhance customer service, and increase sales team productivity. It could also potentially lead to increased customer retention and revenue.

4. Costs: The business case would also outline the estimated costs of the project, including software purchase or subscription, implementation services, training, and ongoing maintenance.

5. Risk Assessment: The business case should also consider potential risks, such as implementation delays or overruns, user adoption challenges, or issues with data migration.

6. Return on Investment (ROI): Finally, the business case would calculate the expected ROI of the project, comparing the total expected benefits to the total expected costs.

The business case would then be used to make a decision about whether to proceed with the project. If the expected benefits outweigh the costs and risks, the project would likely be approved. If not, the project might be rejected, or the business case might be revised to find ways to increase the benefits or reduce the costs and risks.

In this way, the business case directly affects the IT project by determining whether it is approved and moves forward, and by setting expectations about the project's costs, benefits, and risks.