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Table 3-2 outlines the business case for JWD Consulting that was developed in its project initiation stage. The introduction part of the business case highlights the core business goal of the organization. This is to provide world-class services in project management consulting through business streamlining. This process would enhance efficient provision of reliable and accessible information that is relevant to project management.
The business case indicates the current situation including the business problems and opportunities that the project can exploit. This section even illustrates the strengths and weaknesses of the project. The fourth aspect captured in the business case is the assumption and constraints with which JWD Consulting is operating. The other strategic area that the business case outlines is the analysis of the options and the recommendation. This area basically concerns itself with how the business can adjust its operational structures so as to realize its broad goal and objective.
The business case also depicts the preliminary requirements of the project. This section also highlights the major features of the project management intranet site. This will facilitate efficient and effective management and operation of the project. Table 3-2 of the business case also shows the budgetary estimates and financial analysis of the project. This includes the estimated costs for the project in its entirety. The estimates of the scheduled timelines of the project are indicated to meet the demands of the project sponsor.
The JWD Consulting business case also indicates the potential risks involved in the project undertaking. This includes lack of interest by the internal consultants and external clients in the new project system. The technical risks involved are also outlined in the section dealing with risk potentials. The exhibits and financial analysis of the project is summarized in the table 3-2 of JWD Consulting business case.
Justifying the Need to Invest in Information Technology (IT) Project
Investment in Information Technology (IT) is justified by many businesses and organizations concerned with competitiveness in their area of operation (Love, Miele, Rahimi & Gunasekaran, 2001). Survival and efficiency in operation in the long-term requires continued upgrading and investment in IT. An advance in IT enables competitors to invest in the available markets more readily. This stimulates and strengthens global paradigm of competitiveness.
Globalization and increased economic pressure compels most business enterprises to evaluate and upgrade their IT operations so as to be competitive on the global market. Therefore, in order to enhance and improve organizational performance, most businesses consider investing in IT projects as a strategy for profitability and productivity. The tangible and intangible benefits of investment in IT projects are various. These include the enhancement of competitive advantage, security of future business, improved productivity, profitability and efficiency as a result of effective and upgraded IT systems and solutions in the business operations.
Business Case and Approval of Business Project by Sponsors
Business case is a very important document to the sponsors of a business project. As such it must be included before sponsors approve a project to start operating. For example, it is the business case that describes the business need that the project initiative will meet. This document also serves as a tool that helps the sponsors of a project to come to terms with how the sponsored project will help the business to achieve its strategy.
Business case presents a financial analysis and investment appraisal that is very essential in the determination of the estimated total costs and potential benefits that the project will actually present. Further, the sponsor must be in the light especially in terms of the implementation strategy that the management of the business project has. This promotes accountability and effective monitoring and evaluation of the business project.