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Business cases: "What for" and "How to"? Business cases are mostly used in companies to prepare a major change, introduce a new project, or propose a new investment. Their impact is crucial as implementation will affect the whole organization significantly. A business case can also be the rationale for substantial reorganization or re-engineering. A few examples: Align key services with a re-defined strategy, like a new IT project funding; rejuvenate a mature activity, like a customer service; launch a new venture, like a call center; look for improvements for ailing areas that need a full redeployment, like service delivery, product reliability or product information systems. Basically, to put it simply, a business case should ideally demonstrate that its application will bring more benefits, with less costs, less risks and in less time: |
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→ 12 prerequisites before you to get started Before you fire off with the first lines of your business case, you obviously are aware that this is not a simple fill-in-the-blanks exercise. Just to give you a few ideas on how to set up your structure and start an acute analysis, here are 12 prerequisites that I consider vital to maximize your chances of "selling" your business case internally and succeed in its implementation: |
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Hope this short description helps! If you need a hand, drop me a line here. |
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Tip of the Week #11: While preparing your strategic action plan, go through a thorough screening process of all options with your team and think out of the box.
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1. |
Business case team must incorporate all required competencies. |
2. |
Scope of the business case must be crystal-clear and cover all critical items. |
3. |
Key success factors have to remain down-to-earth and rather conservative. |
4. |
Key issues demand careful impact measurement. |
5. |
Cost/Benefit analysis should be proven and extremely factual. |
6. |
Benefits should be tangible, well-identified, consistent and financially valued. |
7. |
Data must be correct, recent, covering all aspects: double-checking is essential. |
8. |
Payback / DCF / IRR models as used in your company are musts and complement financial tables. |
9. |
Investment life time must be precisely explained. |
10. |
Executive summary must contain all key items for decision making. |
11. |
Business case model agreed on must be strictly applied and not escaped or —worse— manipulated. |
12. |
Follow-up must happen on a regular basis. |