Task: Develop Business Case
Develop Business Case
Disciplines: Business Analysis

Purpose

To identify the business need presented and ensure it fits within the vision of the agency.

Relationships

RolesPrimary Performer: Additional Performers:
InputsMandatory:
    Optional:
    • None
    Outputs

      Main Description

      Analyzing the enterprise includes identifying the business need, refining and clarifying the definition of the need, and defining a solution scope that can feasibly be implemented by the business. This task describes problem definition and analysis, business case development, feasibility studies, and the definition of solutions scope. Enterprise analysis is often the defining point of a project and is continued as changes occur and more information becomes available.

      Steps

      Define the Business Need
      The definition of the business need is frequently the most critical step in any business analysis effort. The business need defines the problem that the business analyst is trying to find a solution for. The way the business need is defined determines which alternative solutions will be considered, which stakeholders will be consulted, and which solution approaches will be evaluated.
      Assess Capability Gaps

      Assess the current capabilities of the enterprise and identify the gaps that prevent the agency from meeting business needs and achieving desired outcomes. Determine if it is possible for the agency to meet the business need using its existing structure, people, processes, and technology. If the organization can meet the business need with its existing capabilities, the resulting change is likely to be relatively small.

      However, if existing capabilities are inadequate, it will probably be necessary to launch a project to create that capability. Change may be needed to any component of the enterprise, including but not limited to: business processes, functions, lines of business, organization structures, organization locations, data and information application systems and/or technology infrastructure.

      Determine Possible Solution Approach

      The solution approach describes the general approach that will be taken to create or acquire the new capabilities required to meet the business need. To determine the solution approach, it is necessary to identify possible approaches, determine the means by which the solution may be delivered and assess whether the agency is capable of implementing and effectively using a solution of that nature.

      Some possible approaches include:

      ·         Utilize additional capabilities of editing software/hardware that is already available within the agency.

      ·         Purchase or lease software/hardware from a supplier.

      ·         Design and develop custom software.

      ·         Add resources to the business or make organizational changes.

      ·         Change the business procedures/processes.

      ·         Partner with other organizations, or outsource work to suppliers.

      Define Solution Scope

      Conceptualize the recommended problem you are going to solve in enough detail to enable the stakeholders to understand which new business capabilities the initiative will deliver. The solution scope will change throughout a project, based on changes in the business environment or as the project scope is changed to meet budget, time, quality, or other constraints. The solution scope includes:

      ·         The scope of analysis which provides the context in which the solution is implemented.

      ·         The capabilities supported by solution components, such as business processes, organizational units, and software applications.

      ·         The capabilities to be supported by individual releases or iterations.

      ·         The enabling capabilities that are required in order for the organization to develop the capabilities required to meet the business need.

      Develop Business Case Document
      The business case describes the justification for the project in terms of the value to be added to the business as a result of the deployed solution, as compared to the cost to develop and operate the solution. The business case may also include qualitative and quantitative benefits, estimates of cost and time to break even, profit expectations, and follow on opportunities. The business case may present expected cash flow consequences of the action over time and the methods and rationale that were used for quantifying benefits and costs. This provides a framework to demonstrate how the initiative is expected to achieve business objectives. In addition, the business case lists the constraints associated with the proposed project, along with the estimated budget, and alignment with strategies established by the agency.

      Key Considerations

      The performance of all enterprise analysis activities are governed by the business analysis plans. The business analysis performance metrics should be tracked.