Business Case Analysis

The tool for busi­ness deci­sion mak­ing
Business Case Analyse

The busi­ness case analy­sis com­prises the work and research that pre­cede the prepa­ra­tion of a busi­ness case. It includes a detailed pre­sen­ta­tion and com­par­i­son of all costs, ben­e­fits and risks asso­ci­ated with the invest­ment project. At the same time, it weighs up the pos­si­ble courses of action. As a result, the analy­sis pro­vides con­struc­tive pro­pos­als for the imple­men­ta­tion of the project described therein as well as a trans­par­ent basis for the busi­ness deci­sion.

Trans­par­ent method

Clear for all involved


If a com­pany is plan­ning a project that involves a major invest­ment, it may be use­ful to pre­pare a busi­ness case. With the help of this method, it is pos­si­ble to assess whether the imple­men­ta­tion of the invest­ment project is really worth­while for the com­pany. The prepa­ra­tion of a busi­ness case is par­tic­u­larly help­ful if, for exam­ple, the project involves a far-​reaching struc­tural change in the com­pany, the intro­duc­tion of a new prod­uct or expan­sion into new busi­ness areas in which the com­pany con­cerned has not yet been able to gain any expe­ri­ence.

The prepa­ra­tion of the busi­ness case is pre­ceded by the busi­ness case analy­sis. Trans­parency and com­pre­hen­si­bil­ity are of par­tic­u­lar impor­tance here – in terms of a detailed, dif­fer­en­ti­ated and com­pre­hen­sive approach – for the exec­u­tive decision-​makers and other stake­hold­ers. As a rule, an impact matrix is used that clearly illus­trates how the var­i­ous issues and para­me­ters of the invest­ment project inter­act with each other. The cur­rent and fore­cast sit­u­a­tions are always com­pared. In addi­tion to cal­cu­la­tions and risk assess­ments, exist­ing case stud­ies, com­pa­ra­ble busi­ness cases and expert assess­ments are also con­sulted.

The final result is the busi­ness case with deci­sion and imple­men­ta­tion pro­pos­als. These include, for exam­ple, the rec­om­mended num­ber of employ­ees to be assigned to the project, report­ing inter­vals on the degree of tar­get value achieve­ment, and well-​founded finan­cial fore­casts.

Fea­tures

What is the use


  • Reli­able fore­casts thanks to com­pre­hen­sive and detailed analy­sis
  • Con­fi­dence in decision-​making thanks to a trans­par­ent and com­pre­hen­si­ble pre­sen­ta­tion and pro­ce­dure
  • Max­i­mum room for maneu­ver through the inclu­sion of alter­na­tives and their eval­u­a­tion
  • Iden­ti­fi­ca­tion of risks and the abil­ity to avoid or adjust to them
  • Pru­dent plan­ning and defined project steps, instead of dri­ving “on sight”.

IPD Knowl­edge

In a nut­shell


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