- Posted by Keerat Deol
- On November 22, 2017
- Benefits Case, business analysis, return on investment, roi
Business cases are often overlooked by businesses large and small. A good business case will provide the leadership team with information on whether there is a valid economic or qualitative justification for investment in a project. However, many organisations skip producing a business case, citing reasons such as:
“the business case is obvious & we don’t have the resources to review all the options”.
In this blog entry, we work through a simple scenario to help you understand the value of a solid business case.
An example of a business case within a sales environment could be:
The sales department are unable to answer all calls from customers who have indicated they wish to place an order. As a result, the business is losing customers to a competitor.
Questions To Ask
The sales environment scenario sounds like a strong case for the review of the processes, resources and technical capability. However, the situation does not tell us:
- How much this problem is costing the business.
- Whether it is feasible to invest in a solution. What could other factors influence the success of the project?
- Whether any chosen solution is viable.
- The estimated cost to implement a change or solution.
- At what point the business will break even on the implementation cost versus earned benefits.
When a business is faced with a challenge like this, but are limited in resources, it can be tempting to react on instinct and arrange a solution without too much thought. This approach may well work in the short term, but can you be sure you are getting the best return on investment in the medium to long term?
For the sales team example, which solution options would your instincts direct you?
- An answering machine.
- More phone lines/expand your private branch exchange (PBX) and add more staff.
- A call queuing system.
- An e-commerce site for web-based order placement.
- An e-commerce site for web-based sales processing, coupled with workflows for order fulfilment and a customer relationship management (CRM) system.
When reviewing sales pitches and quotes from suppliers, would you have confidence that the claimed returns on investment apply to your business? Suppliers often quote business benefits based on assumptions about your business. If the premises are incorrect, then the cited benefits are invalid.
Let Solutions Workshop Produce A Business Case For You
At Solutions Workshop we work on your behalf, utilising business analysis and research techniques to produce an honest business case and feasible solution options. Your leadership team can then decide, with confidence, how they wish to proceed.