Artifact: Business Case
 Business Case |
The Business Case provides the necessary information from a business standpoint, to determine whether or not this project is worth investing in. |
| Worker: | Project Manager |
| Template: | Business Case template |
Purpose 
The main purpose of the Business Case is to develop an economic plan for realizing the project vision presented in the Artifact: Vision. Once developed, the Business Case is used to make an accurate assessment of the return on investment (ROI) provided by the project. It provides the justification for the project and establishes its economic constraints. It provides information to the economic decision makers on the project's economic worth, and is used to determine whether the project should move ahead.
At critical milestones, the Business Case is re-examined to see if estimates of expected return and cost are still accurate, and whether the project should be continued.
Brief Outline
1. Objectives
A brief description of the purpose of the Business Case.
2. Scope
A brief description of what the Business Case applies to; what is affected or influenced by this document.
3. References
A list of related or referenced documents.
4. Product Description
Describe briefly the product that is to be the end result of the project effort.
5. Business Context
Domain, market, scope, contractual, speculative, continuation of existing project, etc.
6. Product Objectives
Success criteria; revenue projection, market recognition etc.
7. Financial Forecast
Estimates of return on investment, costs, resources, revenue. Include assumptions used to generate the estimates.
8. Constraints
High-level requirements, external interfaces, technical approach, etc., that impact on risk and cost.
Annotated
Outline
Product Description
To give a context to the reader briefly describe the product that is to be developed. Include the name of the system and possibly an acronym if that is used. Explain what problem it solves and why the development will be worth the effort. Refer to the Vision.
Business Context
Define the business context for the product. In which domain is it going to function (for example, telecom or bank) and what market - who are the users? State whether the product is being developed to fulfill a contract, or if it is a commercial product. If it is a continuation of an existing project, this should also be mentioned.
Objectives
State the objectives for developing the product - the reasons why this is worthwhile. This includes a tentative schedule, and some assessment of schedule risks. Clearly defined and expressed objectives provide good grounds for formulating milestones and managing risks, that is, keeping the project on track and ensuring its success.
Financial Forecast
For a commercial software product, the Business Case should include a set of assumptions about the project and the order of magnitude return on investment (ROI) if those assumptions are true. For example, the ROI will be a magnitude of five if completed in one year, two if completed in two years, and a negative number after that. These assumptions are checked again at the end of the elaboration phase, when the scope and plan are known with more accuracy. The return is based on the cost estimate and the potential revenue estimates.
The resource estimate encompass the entire project through delivery. This estimate is updated at each phase and each iteration, and becomes more accurate as each iteration is completed.
Include an explanation of the basis of estimates (BOEs).
Constraints
Express the constraints under which the project is undertaken. These constraints impact risk and cost. They could be things like external interfaces that the system must adhere to, standards, certifications, or a technical approach employed for strategic reasons, such as using a certain database technology, or distribution mechanisms.
Timing
Developed during the inception phase. Approved at the lifecycle milestones. Updated on an ad hoc basis as the result of some assessment at some further milestones.
Responsibility
The Worker: Project Manager is responsible for the Business Case.
Tailoring
The depth and content of the business case will vary with the amount to be invested in the project and the requirements of the funding organization. Higher levels of investment and increased risk of return should correlate with more detailed estimates and more critically examined assumptions. The greater amount of investment, the greater estimates should be challenged and supported.
