Business justification analysis is a group of analysis consists of different analysis such as payback period, internal rate of return, return on investment, net present value and cost - benefit analysis. By conducting all of this analysis you will be able to complete a thorough business justification analysis.
It is frequently used in the act of granting the justification for a decision or a project in our case. Often, business justification analysis results compose of an input to the business case document which is the essential document to justify a project. It is also known as business case analysis, however business case is a document that handles the work in a wider view.
It is used as a method in;
Project managers and and other decision makers commonly use it to persuade company stakeholders to back up any important decision. It is the project manager's responsibility to understand the project's costs, risks, and benefits, and to present the analysis to stakeholders for approval.
Project managers are typically the sole stakeholders for projects within small-scaled a company, so they do not need outside approval, therefore they may not conduct a business justification analysis. Analysis such as this is typically utilized by large organizations with many stakeholders. But even the smallest businesses can benefit from business case analyses because it forces the decision maker to consider all of the possibilities and this will affect the possibility of success in a positive way.
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