Business Case Research Paper
The document contains a business case and business plan outlines that show how to integrate an information technology (IT) project into the business enterprise for an effective and efficient achievement of business objectives. It explains the importance of the business case and business plan as tools used to trigger development and growth of business in automating various business processes, transactions, and operations. It provides an example of general business plan and business case differences in their outline.
The business case refers to a document that provides detailed information about am a project so as to determine a given decision about projects feasibility and benefits in business. The business document reflects the viability of a given project to show how it affects cash flows over a given period. It reflects how revenue and cost shall change as a result of investing in a given project. It gives financiers and investors a clear picture to decide whether to finance a given business project or not. Determining factors include Internal Rate of Return (IRR), Return on Investment (ROI), cash flow as well as Payback period.
Business case document contains the following outline based on the type of business, project being analyzed, the scope of business and other factors. The general outline of the business case may vary to incorporate more detailed information classified in the form of subtitles and subtopics. Hence, the document if not restricted to outlined format presented in this document
- Executive Summary
The section details that summary of contents of the business plan. The executive summary provides issues leading to a desire to formulate a business plan. It details an analysis of business problems such as decreased customers, low-income generation, small production of goods and services, and poor customer management strategies. It also reflects expected outcomes of implementing proposed project by specifying possible ways in which the problem may be solved. The section should address the major expectations that can make the benefit by suggesting solutions to business problems. The executive section should provide detailed information concerning a recommended action or project that should be implemented or financed to improve an enterprise. A justification should be provided to show why a particular IT based project should be implemented. It should reflect why a particular project was selected among other alternatives. Quantitative support should be provided to show why a particular IT project was selected. Subsections in the executive summary may include Issues, proposed solutions and alternatives, recommendations and justification (Project Management Docs, 2015).
- Business Case Analysis Team
The sections show the plan outlined to implement proposed solution. It shows distribution human resources, experts involved and their roles in developing and implementing the business project. The table is showing how roles and duties are classified reflected on the outline. Various teams and individuals in the team include executive sponsor, technology support team, process improvement analyst(s), project manager(s), and software support (Project Management Docs, 2015).
- Problem Definition
The section should contain detailed information about the project and the sections intended to be improved. It should be specific to provide exact process, technology, products or services to be improved by selected project. The section should reveal tools, hardware, and software required in organizations as well as provides new functions that may arise as a result of implementing the proposed project. The section should show how technology shall be migrated, and a strategy that shall be implemented to ensure business data and information integrity is not compromised. Deployment methodologies, backup strategies, and business contingency plan principles should facilitate secure retention of business assets. Subtopics in the section may include project requirements, and technology migration strategies (Office of Technology, 2015).
- Project Overview
The section should contain details specifying direct information about the project. The section should contain well-defined objectives and goals of the project. It should analyze performance criteria, assumptions of the project, constraints, and milestones of specified project. The section is explained in one full chapter to provide clearly full information based on project work. The section may contain subtopics such as project description, goals and objectives, project performance analysis, scope, project assumptions, constraints, and project milestone (Office of Technology, 2015).
- Cost and Benefit Analysis
The section is vital and sensitive toward decision making and analysis. It provides various detailed information regarding how business operations should be implemented without encountering loss delayed operations. Sections involve conducting feasibility studies, preparing budgets and calculating the total cost of the business project using Constructive Cost Model (COCOMO) methodology. Based on cost analysis the executive team decides whether to invest in proposed project or not (Project Management Docs, 2015).
The final stage in the business case is approval of the business project. The section gives a full mandate for project stakeholders to carry out and implement the project. ROI, NPV, and Cash flow measures are applied to facilitate determination and fate of the project. If project expenses are within reach and can be covered by the organization the executive team gives, financiers and investors provide to implement proposed a project (E-government, 2014).
A business plan refers to an initial document prepared by an organization a management team at the start of business or before initializing business transactions. Its purpose is to provide a summary of business operations and financial objectives. Business plan covers a period showing laid down objectives and how they can be achieved. It usually resembles a long term strategic plan of business that contains guiding business policies, strategies, principles, rules and regulations as well as standards that affect organization managers in making business decisions (Tim, 2014).
The standard outline of business plan can be outlined as shown below to reveal main components as shown below
- Executive Summary
Executive summary contains highlighted details in the form of a summary showing brief analysis of the business plan. The section provides details on how to show how the company is funded. Various funding systems include family, friends, and private investments (Tim, 2014).
- Company Description
The section contains legal establishment of the company. It contains history background of the organization and its contribution to nation’s economy. Reflects status of the organization and how it was founded based on the type of business such as partnership, sole proprietorship, corporate company and such classifications. The objectives, aims, missions, and visions of the company are outlined as from initialization of business. Plans and strategies of stake holders are given at company description stage (Rod, & Demand, 2015).
- Product or Service
The phase describes the company specialization. The company provides information based on what products and services it sells to the public. It also state items it manufactures at large scale and influence it has based on their products (Rod, & Demand, 2015).
- Market Analysis
Market analysis section provides detailed information on the status of the market. It shows how market trends change with time that organization should master. Section involves analyzing market size and development based on demands and supply. The market study analyses target and potential customers that can be linked to the business. It also provides analysis on the level of competition within the market (Tim, 2014).
- Strategic and Implementation
The section provides specific scopes for concentrating on such as age group target to focus on during production, type of advertising media to implement such as social media and social networks, type of fashions, designs, and technology to implement. The section should show specific strategies to implement for effective and efficient operations (Rod, & Demand, 2015).
- Financial Plan
The section should provide detailed targets, budgets, and other statements that should reflect how financial activities should be coordinated in a given organization. The section should indicate analyzed profit and loss documents, cash flow statements, balance sheets, break even analysis reports, and business assumptions. The section should also reveal business ratios that affect how business operations relate to each other (Tim, 2014).
Business case and business plan have differed in different settings and implementation. The business case is developed to serve mainly outsiders to who act as main financiers, stakeholders, and investors to the business organization. It can be developed at any time given that the organization requires implementing a given change in the business organization. Business is usually prepared before engaging in business transactions. It usually forms the initial document that makes business owners to start a business.
E government (2014). PM 902 Business Case (small)Template & guide Retrieved from http://www.egovernment.tas.gov.au/__data/assets/word_doc/0013/15520/pman-temp-open-sml-proj-bus-case.doc.
Office of Technology (2015). Business case. Retrieved from http://www.technology.wv.gov/SiteCollectionDocuments/Project%20Management%20Templates/Business%20Case%20Template.doc.
Project management Docs (2015). Business Case Template. Retrieved from http://www.projectmanagementdocs.com/project-initiation-templates/business-case.html#axzz4AUJrJAb7
Rod H., & Demand M. (2015).Definition of Business Planning. Retrieved from http://smallbusiness.chron.com/definition-business-planning-2527.html
Tim B. (2014) Business plan Basics. Retrieved from http://articles.bplans.co.uk/writing-a-business-plan/what-is-a-business-plan/384