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Chase Consulting - The Business Case Guide PDF
Chase Consulting - The Business Case Guide PDF
CASE GUIDE.
5 STEPS TO DEVELOP A
SOLID BUSINESS CASE
www.chasegroup.com.au
Chase Consulting Group
Melbourne
Victoria 3113 AUSTRALIA
ABN 3308899035
ACN 099528435
Internet: www.chasegroup.com.au
Dr Craig Peacock
Director
Chase Consulting Group
E: [email protected]
P: +61 412 71 4549
www.chasegroup.com.au 2
About this Guide
01 What is it?
An executive guide on the planning and the steps for
developing business cases.
03 Who is it for?
Organisations, executives and professionals.
04 Who is it from?
This guide was prepared by Chase Consulting, a
leader in business cases, innovation and strategy for
organisations.
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Content
03 About this guide.
19 Case study
21 Conclusion
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01 WHAT IS THE
BUSINESS CASE?
It is becoming increasingly important for the board and senior
management to focus on investments that deliver true business
value. Initiatives throughout the business, including innovations;
business ventures; factory relocations; new products and
services; and IT investments, are accepted or rejected based on
the business value they deliver.
The reasons and benefits of a project may seem perfectly obvious to you
and others who are intimately involved with it, however, to stakeholders and
other decision-makers it may not be so obvious.
Often they are dealing with a myriad of different business units and objectives
and tasks which need to be done. A well-prepared business case can help your
project standout amongst the competing priorities within the organisation
and may be the key to getting approval and finances for the project.
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02
A BUSINESS CASE IS
DIFFERENT TO THE
BUSINESS PLAN.
A business case answers the question:
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02 A Business Case is Different
to the Business Plan.
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03 Why Create a Business Case?
01 DEMONSTRATE.
Demonstrate the value of a proposed innovation,
product or service would generate for your
organisation.
02 OBTAIN.
Obtain board approval for investment.
03 DECIDE.
Decide whether to outsource a particular function.
04 RELOCATE.
Relocate business operations and manufacturing
facilities.
05 PRIORITISE.
Prioritise projects within your organisation that
are competing for funding and resources.
06 SECURE.
Secure financial funding and resources
to implement the project.
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04 Types of business Cases.
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THE BUSINESS CASE DOCUMENT
01 Key objectives.
01 Executive summary
02 Project definition
03 Business requirements
04 Evaluation of options
05 Recommendation
07 Benefits
08 Risks
10 Financial analysis
12 Project authorisation
1.1 Launch the business 2.1 Identify the alternative 3.1 Analyse how the 4.1 Create the implementation 5.1 Confirm the recommended
case project. approaches alternatives will affect plan for the recommended option
the business objetives option
1.2 Confirm the business 2.2 Select three of four 3.2 Select the preferred - How will you achieve 5.2 Document the business case
opportunity
options to analyse option, taking into your goal,
- Project definition / scope
- Invest logic account the strategic - Who will be accountable - Strategic benefits
2.3 Gather information and financial value for each milestone,
- Financial benefits
about each alternative created and the risks - How will you mitigate the - Non financial benefits
1.3 Specify the high level 2.4 Analyze options and project risks - Fit with the corporate strategy
business requirements develop shortlisted - Implementation approach
options - Risk
- Financial analysis
5.3 Present business case for
approval
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06 Five Steps to Developing
a Solid Business Case
Consider them from different viewpoints, the opportunities that will accelerate the growth
of the organisation, the long-term strategic direction, what might disrupt your industry or
sector, your front-line staff, key stakeholders and from your customer’s perspective.
· Financial benefits
· Strategic benefits
· Other organisation and societal benefits
The implementation strategy enables you to start quantifying the how much money,
people, resources and time is required to implement the project and deliver the strategic
and financial benefits.
05 Step 5: Recommendation
Confirm the recommended option. Create the business case documents and present
the business case recommendation to the board and management team for approval to
proceed.
You will need to complete all of these steps to create a high-quality business case.
The process of developing a solid business case is critically important for securing the
approval for projects and investments.
A well-executed process enables you to increase the benefits and the value of the proposed
investment, and it reduces risks. It will also lead to a much greater likelihood of securing
support to proceed with the investment.
APPROACH:
Chase Consulting developed the business case for their
demand forecasting system project.
25% Results:
Our client reduced their inventory by
Inventory over twenty-five per cent; $3m better
than projected in the business case,
Reduction while simultaneously achieving a ten
per cent growth in sales.
$3m
responsible for ordering and managing
stock, use their industry and market
knowledge along with the demand
forecasting system recommended
order quantities and timings to make
better purchasing decisions.
Better than
projected One flow-on effect of the
implementation has been a reduction
of aged stock by over fifty per cent.
10%
from the systemised purchasing
procedure.
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BEING TOLD THAT THE FINANCIALS,
ESPECIALLY THE OPERATIONAL
COSTS REQUIRED TO EMBED AND
SUPPORT THE INNOVATION INTO
“BUSINESS AS USUAL” OPERATIONS,
HAS BEEN UNDERDONE CAN BE
DISAPPOINTING AND DISCOURAGING.
It also means going back, redoing work that has been
previously done, reengaging with key stakeholders, partners
and suppliers. Rework creates significant time pressures and
stress you don’t need as you frantically prepare for the next
decision-making cycle.
How could this guide have been better? Let us know! From time to time, we revise
our guides, and your input will help us help you in the future. Email us at info@
chasegroup.com.au
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09
HOW WE CAN HELP.
Chase Consulting has been developing business cases for over 20 years.
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Business Case Workbook and Templates
GET DETAILS
GET DETAILS
GET DETAILS
ABN 3308899035
ACN 099528435
Internet: www.chasegroup.com.au
Dr Craig Peacock
Director
Chase Consulting Group
E: [email protected]
P: +61 412 71 4549