BUSINESS CASE

APURVA SINGHAI

DATE- 18-8-2018
 V

Business case  provides an opportunity for the business to determine if a

project is needed and if the solution options are beneficial to the organization

Analyst present their findings and propose a coarse of action for senior
management to consider. 

A LIVING DOCUMENT. 
1. DESCRIPTION
OF THE
CURRENT
SITUATION

--THE SYMPTOM

--ANALYSIS FOR
ACTUAL
PROBLEM

Five why's 
Fishbone
Mind maps
Process diagrams
Interrelationship diagrams
Pareto 
Scatter diagrams
SYMPTOM
Mortgage applications at Speedy
Mortgage require on average 45
days to process, delaying their
approval and final closing at an
estimated cost of $100 per closed
loan. Delays also cause 5% of
loans to be abandoned, losing
$10,000 revenue per loan, or $1.2
million per year.

To uncover the problem, apply the

above mentioned techniques. 
SYMPTOM
Mortgage applications at Speedy
Mortgage require on average 45
days to process, delaying their
approval and final closing at an
estimated cost of $100 per closed
loan. Delays also cause 5% of
loans to be abandoned, losing
$10,000 revenue per loan, or $1.2
million per year.

To uncover the problem, apply the

above mentioned techniques. 
2-IDENTIFY AND
EXPLORE THE
VARIOUS
OPTIONS
identifying options-
Brainstorming, workshops,
creative problem solving
approaches, Business activity
modelling, Business process
modelling, industry practices.

Functional decomposition, User

stories, Scope diagrams

Do nothing option
Basic, advanced options

Evaluation- to see which ones are

worth examining further. Some
ideas can be rejected quickly as
being too expensive or taking too
long to implement or being
counter cultural. ( Force field)

Shortlist 3-4 possibilities.

2-IDENTIFY AND
EXPLORE THE
VARIOUS
OPTIONS
Followed by cost benefit analysis
( Tangible costs, intangible costs,
Tangible benefits, intangible
benefits)

Tangible ( immediate, long term)

intangible ( Immediate, long term

Feasibility Analysis
Business
Technical
Financial)

Decision trees

Weighted ranking matrices

3-IMPACT
ASSESSMENT

Organization structure

interdepartmental relationships

Working practices

Management style

Recruitment policy

Appraisal and promotion criterion

Supplier relations
4-RISK
ASSESSMENT

Description of risk

impact assessment

Probability- Small, moderate,

large

Countermeasures

Ownership
4-RISK
ASSESSMENT

Risks should be phrased and

framed properly in order to be
best managed. Risks should
identify three aspects;

The circumstances that enable the

risk to occur, often the trigger

The actual risk, or thing that might

happen

The impact of the risk event

occurring to the project or
business
4-RISK
ASSESSMENT

For example these are poorly

framed risks:

We may set the price too high

Technical resources are not

available

This is a more effective way of

describing the risk:

If we raise prices to high

customers may find better
alternatives and churn away
causing loss of market share and
revenue.

If technical resources are not

available by [date] the project’s
critical path will be affected
resulting in at least a four week
delay to launch.
4-RISK
ASSESSMENT

Positive risk versus

negative risk
4-INVESTMENT
ANALYSIS

NPV

Payback methods

Discounted cash flow

Sensitivity analysis

ROI

IRR
RECOMMENDATION

MAIN TASKS

TIME SCALE