The business case is characterized as a feasibility study that includes financial and non-financial benefits. The business case also helps to measure project results during the project by comparing them according to the criteria for success defined in the business case.
In PMBOK 7 business case is categorized as a strategy artifact among project artifacts, and recommended to be used in;
In PMBOK 6, project management processes in which the business case document was used as input are:
- Develop Project Charter
- Identify Stakeholders
- Collect Requirements
- Determine Budget
- Plan Procurement Management
- Close Phase or Project
The main purpose of creating a business case is to better understand the commercially existing need for the project and determine whether the project is worth implementing. The business case has three main components. These components are the commercial need, the reasons for choosing the project, and the commercial value of the project. The business case is heavily related to the "focus on value" project management principle as well as the system for value delivery.
In addition, a potential financial analysis of the project is also included in the business case document. Examples of the business requirements included in the business case are organizational needs, market demand, technological developments, customer demand, ecological effects, social needs, and legal requirements. When explaining the rationale for choosing a project, an assessment is made by making an assessment of the strategic priorities of your organization in general. Finally, the commercial value of the project is included in the business case document for the benefit that your organization will receive from the completion of the project.
A business case typically includes following information;
- The reason to start the project,
- The results of business justification analysis,
- The needs to achieve business strategy
- Desired outcomes
The business case document is created during the portfolio and program management processes before the project is launched and is one of the main inputs of the project charter. The format of the business case may change according to the development approach and life cycle selected to implement a project.
See also: Benefits Management Plan