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A business case is similar to a business plan prepared for private business. Its purpose is to outline the business rationale for undertaking the project and to define the parameters and management factors involved in the project itself. It provides the project manager with a tool to guide the design, management and evaluation of the project.

A written business case is required whenever resource or expenditure on a project has to be justified, and approval from another party is required to undertake that project.

The three Aims of a business case are to:

(i) Capture the knowledge -

The business case serves as a reminder to capture the knowledge developed about how the business will function both with and without the final solution.

(ii) Secure resource (people) and funding and approval to move forward-

It provides a vehicle to review the facts and assumptions in the proposal and document what would happen to the business if the project was not undertaken i.e. ‘do nothing.’

The development of the overall business case simplifies the process of financial justification, and will usually identify issues or potential problems with the solution.

It is also useful for prioritizing a project against the many other initiatives that may require additional resource, revenue and capital investment etc

(iii) Provide Consistency-

The Business Case provides a consistent message to many different audiences. It is a high level view of the entire project and enables all departments and organizations affected by the effort to be knowledgeable about the project.


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