| Work Product: Business Case |
|
 |
| This artifact provides the necessary information from a business standpoint to determine whether or not this project is worth investing in. For a commercial software product, the Business Case should include a set of assumptions about the project and the order of magnitude return on investment (ROI) if those assumptions are true. For example, the ROI will be a magnitude of five if completed in one year, two if completed in two years, and a negative number after that. These assumptions are checked again at the end of the Elaboration phase, when the scope and plan are defined with more accuracy. |
|
Purpose
|
The main purpose of the Business Case is to develop an economic plan for realizing the project vision presented in the
Artifact: Vision. Once developed, the Business Case is used to make
an accurate assessment of the return on investment (ROI) provided by the project. It provides the justification for the
project and establishes its economic constraints. It provides information to the economic decision makers on the
project's economic worth and is used to determine whether the project should move ahead.
At critical milestones, the Business Case is re-examined to see if estimates of expected return and cost are still
accurate, and whether the project should be continued.
|
Relationships
| Roles | Responsible:
| Modified By:
|
| Input To | Mandatory:
| Optional:
| External:
|
Main Description
| For a commercial software product, the Business Case should include a set of assumptions about the project and the order of
magnitude return on investment (ROI) if those assumptions are true. For example, the ROI will be a magnitude of five if
completed in one year, two if completed in two years, and a negative number after that. These assumptions are checked again
at the end of the Elaboration phase, when the scope and plan are defined with more accuracy. |
Properties
| Optional |  |
| Planned |  |
Illustrations
Tailoring
| Representation Options |
The form and depth of analysis required for this work product depends on the level of investment required for the
project. The requirement for high levels of investment will demand a very formal, well researched and well founded
Business Case. The greater the amount of investment, the more estimates will be challenged by senior management.
In the case of a project performed under contract (as a result of a bid award, for example), the Request for Proposal,
the response, and the subsequent contract together form the Business Case.
|
More Information
© Copyright IBM Corp. 1987, 2006. All Rights Reserved.
|
|
