Introduction to Business Case
(Presented by Chaouki Mustapha
Economist, ICAO)
SIP/2004-WP9
Business case
Special Implementation Project
Workshop on the development of business case for the
implementation of CNS/ATM systems
Cairo, 6–9 September 2004
What is a business case?
3
Definitions
¾ A tool supporting planning and decision-making
that can be used by public as well as private entities
¾ For a public entity, a business case
is a
substantiated argument for a public project, a
policy or a program proposal requiring a resource
allocation and/or investment, often including a
financial commitment;
¾ For a private entity, a business case can be
developed to assist decisions on capital investment,
product/service development, changes to business
processes, contracts, special pricing, partnerships,
etc.
4
Other definitions
¾“A 'business case' is a form of advice to
executive decision-makers. It is a
substantiated argument for a project,
policy or program proposal requiring a
resource investment, often including a
financial commitment.”1
1 The Government of New South Wales, Australia,
“Business case guidelines”, 2000
5
Other definitions
¾ “A management tool that supports planning and
decision-making for an investment by positioning the
investment decision in the context of business objectives.
The business case is a proposal and provides an analysis
of all the costs, benefits and risks associated with the
proposed
investment
and
offers
reasonable
alternatives.”1
¾ “Before making a final decision to proceed with project,
management needs to satisfy itself that three basic
questions have been properly answered:
Why are we doing this?
What will it cost?
What business value do we expect to achieve?” 1
1The Government of Alberta, Canada, “A cost benefit assessment
framework for information technology projects”
6
Other definitions
¾ “A multi-purpose document that generates the
support and participation needed to turn an
idea into reality.”1
¾ “It explains what