Search

Four Components Every Business Case Requires

A business case is an assessment of all the risks involved in entering a potential market at a product level. It basically means that before a company decides to enter a market to launch a new product that would solve a problem existing in the market, it will assess all the risks involved and will weigh the pros and cons. After the successful assessment, if the pros are more than the cons and if the company can make a significant profit out of the venture, they go ahead with the launch of the product. A compelling business case should have a few crucial components that ensure that the business case is convincing to the stakeholder. The four major components are: #1: Clearly define the problem Since the main objective of a business case is to release a product to solve a problem, clearly define the problem. Ensure that you write about a single problem in a business case and don’t focus on multiple problems. In order to define problem vividly, conduct a thorough research among the target audience. Conduct surveys among them with all the necessary questions. Since they are facing the problem, they will have a vague idea about the solution to those problems as well. Once the survey and research are done, thoroughly analyze it. Only after the analysis is done, you should define the problem in the business case. Since you have conducted thorough research and analysis, the chances of you getting it wrong are minimal. #2: Follow an order Always ensure that you start your business case with an executive summary and end with appendices. The executive summary should be written in the end though it appears at the beginning of the document. The executive summary provides an outline of all the contents of a report. Do not explain the contents in detail here. A brief introduction will suffice. The appendices are required to explain the sources of all the solutions you have mentioned in the report. Each solution you mention in the report should have a solid source. That source and calculation should be mentioned in the appendices. #3: Possible benefits and reason The main objective of a business case is to document the possibilities of entering a particular market and the possible pitfalls in doing so. Hence, in the business case, once you make a note of all the possible benefits/downfalls, ensure that you write the reason for each of them. This will give the stakeholder a clear picture of your work and the market conditions. In case they have a doubt about a particular benefit/downfall, you should be able to immediately validate the reason for it. Also, make sure you do not entirely favour the sponsor in the report. The business case should not be biased and should not mandatorily favour any of the parties involved. #4: The final results In order to make a compelling business case, you need to use certain indicators in the solutions section. These indicators support your solutions and provide proof to your claims. It convinces the stakeholder that you have been thorough in your research. These indicators are: • ROI – Return on Investment This indicates how much profit the stakeholder can make when compared to the amount he is investing on the product/field. It is usually a percentage. ROI is one of the widely used profit indicators. • Usage of resources and duration This is one of the important factors the stakeholder is concerned with when he plans to enter a market. If the new business opportunity allows the stakeholder to use his resources judiciously and reduce the time required to make the product, it could increase his profits. Ensure you mention reliable sources in this calculation. • Revenue growth indicators This is an indication of the rate at which the business can expand. It showcases the increase and decrease in the sale of the product over a period of time. It will help the stakeholder make a wise decision about entering the market. A business case is a document that is taken seriously by stakeholders. This document is responsible for a major decision – if a company should enter a new venture or not. Hence, it should clearly indicate all the risks involved and solutions to those risks. The business case should also list the results and sources to those results.
Rated 4.0/5 based on 20 customer reviews

Four Components Every Business Case Requires

826
Four Components Every Business Case Requires

A business case is an assessment of all the risks involved in entering a potential market at a product level. It basically means that before a company decides to enter a market to launch a new product that would solve a problem existing in the market, it will assess all the risks involved and will weigh the pros and cons. After the successful assessment, if the pros are more than the cons and if the company can make a significant profit out of the venture, they go ahead with the launch of the product. A compelling business case should have a few crucial components that ensure that the business case is convincing to the stakeholder. The four major components are:

#1: Clearly define the problem

Since the main objective of a business case is to release a product to solve a problem, clearly define the problem. Ensure that you write about a single problem in a business case and don’t focus on multiple problems. In order to define problem vividly, conduct a thorough research among the target audience. Conduct surveys among them with all the necessary questions. Since they are facing the problem, they will have a vague idea about the solution to those problems as well. Once the survey and research are done, thoroughly analyze it. Only after the analysis is done, you should define the problem in the business case. Since you have conducted thorough research and analysis, the chances of you getting it wrong are minimal.

#2: Follow an order

Always ensure that you start your business case with an executive summary and end with appendices. The executive summary should be written in the end though it appears at the beginning of the document. The executive summary provides an outline of all the contents of a report. Do not explain the contents in detail here. A brief introduction will suffice. The appendices are required to explain the sources of all the solutions you have mentioned in the report. Each solution you mention in the report should have a solid source. That source and calculation should be mentioned in the appendices.

#3: Possible benefits and reason

The main objective of a business case is to document the possibilities of entering a particular market and the possible pitfalls in doing so. Hence, in the business case, once you make a note of all the possible benefits/downfalls, ensure that you write the reason for each of them. This will give the stakeholder a clear picture of your work and the market conditions. In case they have a doubt about a particular benefit/downfall, you should be able to immediately validate the reason for it. Also, make sure you do not entirely favour the sponsor in the report. The business case should not be biased and should not mandatorily favour any of the parties involved.

#4: The final results

In order to make a compelling business case, you need to use certain indicators in the solutions section. These indicators support your solutions and provide proof to your claims. It convinces the stakeholder that you have been thorough in your research. These indicators are:

• ROI – Return on Investment

This indicates how much profit the stakeholder can make when compared to the amount he is investing on the product/field. It is usually a percentage. ROI is one of the widely used profit indicators.

• Usage of resources and duration

This is one of the important factors the stakeholder is concerned with when he plans to enter a market. If the new business opportunity allows the stakeholder to use his resources judiciously and reduce the time required to make the product, it could increase his profits. Ensure you mention reliable sources in this calculation.

• Revenue growth indicators

This is an indication of the rate at which the business can expand. It showcases the increase and decrease in the sale of the product over a period of time. It will help the stakeholder make a wise decision about entering the market.

A business case is a document that is taken seriously by stakeholders. This document is responsible for a major decision – if a company should enter a new venture or not. Hence, it should clearly indicate all the risks involved and solutions to those risks. The business case should also list the results and sources to those results.

KnowledgeHut

KnowledgeHut

Author

KnowledgeHut is a fast growing Management Consulting and Training firm that is a source of Intelligent Information support for businesses and professionals across the globe.


Website : https://www.knowledgehut.com

Join the Discussion

Your email address will not be published. Required fields are marked *

Suggested Blogs

Essential Hacks To Become A CBAP Certified Professional

Certified Business Analysis Professional (CBAP®) offered by the International Institute of Business Analysis (IIBA®) is the most prestigious professional certification that a business analyst can do. In order to tackle and conquer the exam you need meticulous planning, diligent and honest preparation and confidence in facing the exam. This article intends to provide guidance on passing the examination from the time of filling up the application form. Filling your CBAP® exam application The journey to CBAP® certification starts with this all-important step of filling the application form. It is advisable for anyone to first of all read the CBAP® Handbook available on the IIBA® website and ensure that all requirements are met before submitting the application form. The application form can be obtained by navigating to Visit www.iiba.org > Certification & Recognition > CBAP® Recognition (Certification) Click on CBAP® Online Application from the Quick Links box The process of filling the application may take a good one to two weeks with the applicant having to fill multiple pieces of information including personal information, Education, Work Experience, Professional Development information and References details etc. It is important to make sure that the required number of hours for each knowledge area is properly documented and as such any guidance sheets (example the application guidance sheet provided by Watermark Learning) to assist in the same should be diligently utilized. It is also important to make sure that you add two proper contacts as references, either your previous or current managers or preferably at least one CBAP® certified professional. Remember to accept IIBA® code of ethics and submit your application online. The process of getting your application approved may take up to 15 days. Don’t worry in case your application is audited, in which case you just need to submit the requested documents on the specified time period. Make the payment once your application is accepted and you are good to go with the next important steps of preparing for the exam. Registering for the exam One additional step before you concentrate on your studies. Once your application is approved, you have a period of one year to make two attempts at passing the exam. CBAP® is available as a Computer Based Test (CBT) with only a limited number of test centers providing this capability. Search for Prometric testing centers in your preferred location / region using the following link and make the booking online. My advice is for you to fix the exam date as early as possible and then target to do your first attempt at the exam within 3 to 6 six months. You will thus have a target in mind and will make plans to work towards it. Trust me, a major problem we, the  working professionals have is the ‘student syndrome’! Preparing for the exam The time you spend preparing for the exam is the most important time of your journey towards getting CBAP® certified. Preparation begins from the time you start acquiring professional development hours for your application. Ways through which you can gather the required hours are as follows- Follow a CBAP® certification preparation training programme conducted by a Endorsed Education Provider (EEP) of IIBA®. You can get information about EEPs in your region from the IIBA® website. Be mindful that EEPs will be scarce, especially in developing countries, in which case you would have to resort to alternative means. Join a study group organized by your local IIBA chapter– I personally followed this method where a group of 10 got together to form a study group endorsed by the local chapter. We read the BABOK®, prepared our own material, and during each meeting, topics were presented, discussed and argued upon. This was a really good method of going through the BABOK® with concepts being critically analyzed using our own practical experience. Be mindful that study group sessions may end up running for a good 6 to 9 months (since meetups happen at most once a week and that too, for two hours) and that you are prepared for a long but rewarding journey. Follow an online CBAP preparation course conducted by again an EEP. You are already at the right place with Knowledgehut ☺. Note that an EEP will provide you with excellent learning and study techniques, access to a whole heap of practice questions, discussion of things to look for in the exam, discussion on issues that might be faced when preparing for and during an exam, test preparation strategies, test-taking strategies and other key aspects to concentrate on, remember and comprehend. EEP programs are always recommended for individuals who are pressed for time and prefer the human touch in terms of advice and guidance. You may also go through any other online material, videos or sites to enhance your knowledge in preparation for CBAP®. ‘Me time’ is important Whatever said and done, reading the BABOK® guide at least 3 times is of utmost importance. My advice is for you to do the following. This actually worked for me, but you may adjust according to your needs. Read the BABOK® once without making much effort to remember any of the concepts. Just read through the entire book once just to get a feel of the content. Before doing a second pass, critically go through the TOC to understand the structure of the guide. Then read the introduction, knowledge areas, underlying competencies and glossary sections, paying proper attention to the content. While reading the above sections I myself got the urge to refer to additional material on each area through other sources. Few tips for CBAP Exam that can help you prepare with more efficient in less time and finalize your exam preparation. What helped me the most were the following- There are many organizations that have published study guides and exam simulators. These study guides summarize the content in the BABOK® or are structured in such a manner with acronyms, study tips etc which makes comprehension and memorizing easy. Before making a complete 2nd pass through the BABOK® I read such a study guide once end to end making short notes, highlighting the document as well as creating my own set of flashcards. Then it was time to do a 2nd comprehensive read of the BABOK® guide. By this time I had gained a good idea about the structure of the BABOK® and was slowly able to remember some of the key concepts. Practice makes perfect It is important to test your learning on the go. Make sure that you do as many practice questions as possible. I myself purchased an online exam simulator offered by Watermark learning and did over 2000 questions. Exam simulators are structured in such a manner that you can first do questions relevant to a particular knowledge area (and that too you can attempt multiple times) before you try an actual simulation exam. Make sure you select a time slot where you can spend 4 hours when doing a practice test. This will also give an idea about your timing. Now it is time to do your 3rd pass of the BABOK® guide. I read each knowledge area of the BABOK® and then read the related content from my study guide and immediately answered the questions related to the knowledge area. I repeated this for all 6 knowledge areas. Once this was done, I immediately took 2 practice exams. This gave me a clear idea about where I stood (Which was actually quite good in my case). Two weeks before the exam, I read the BABOK® along with the study guide one last time and did one last simulation exam. Taking the Exam The exam constitutes of 200 MCQ questions to be completed within a 4 hours time period. On the exam day, make sure you arrive at the examination center at least 30 minutes prior to the scheduled start. I wrote the exam in Singapore, which is an alien country to me coming from Sri Lanka. I made sure that I found the exam center on the day prior to the exam just to make sure that I am there on time on the exam day. On the day prior to the exam, I only went through my short notes and flashcards (which actually had all the knowledge areas, key concepts from the BABOK®). You will not be allowed to take anything inside the exam center; not your purse, watch, handkerchief, mobile phone, stationary and not even a bottle of water. You will be provided with a writing pad, a marker and an eraser to take down notes. The center staff will do the necessary paperwork, check you in and allocate your test computer. The initial part of the exam is to verify some personal information followed by a few steps to familiarize you with the testing tool. Make use of that time to take down any notes on the writing pad. I myself noted down all the knowledge areas and key concepts along with the acronyms just so that I am equipped and ready to confidently answer the questions. Take your time to read the questions carefully, mark and skip difficult questions without wasting time. The testing tool allows you to always come back and review your answers. Once you submit the test, you will get another questionnaire about your testing experience. At the end you will immediately get to know whether you have got through or not. CBAP certification was helpful in broadening the knowledge and giving us insights on how to optimize performance of business analysis activities. Remember! You have two attempts. But always try to get through in your first go. All the very best for your CBAP® exams!!
Rated 4.5/5 based on 20 customer reviews
4685
Essential Hacks To Become A CBAP Certified Profess...

Certified Business Analysis Professional (CBAP®) ... Read More

Capturing Requirement Attributes In Use Cases

The Guide to the Business Analysis Body of Knowledge® or the BABOK® Guide as popularly known, which is published by the International Institute of Business Analysis (IIBA) is the globally recognized standard for the practice of Business Analysis. It defines how industry practitioners playing any sort of analysis role and even business organizations should operate, to deliver value to stakeholders through which to achieve superior business change or outcomes. The BABOK® Guide defines Requirements as a condition or capability that is required in a solution that is developed to achieve a change in a business which is operating within a certain business context. This business need that may be to solve a problem or to make tap into an opportunity is what is documented as different types of requirements using requirements modeling techniques as appropriate. I will not be talking about ‘types of requirements’ or ‘types of requirements modeling techniques’ here. I invite you to investigate more on this. I will today be talking about what requirement attributes are and how we can specify these when modeling requirements as use case descriptions. Again, I will not be discussing what a use case is and the best practices when modeling requirements as a use case here in this article. That may be for a later day!! A proper understanding of requirement attributes is essential for IIBA  ECBA® certification, CCBA® certification and CBAP® certification. A person attempting the ECBA® and CCBA® exams must be able to list all the 10 attributes, as well as be able to discuss its importance in analyzing and managing requirements. For the CBAP® exam, the individual is expected to be able to apply the concepts of requirement attributes to a practical situation. Capturing requirement attributes when writing use cases is a practical scenario faced by business analysts on a daily basis and this article is expected to serve as a pre-cursor to get such thought process going. So, what are attributes of requirements? The BABOK® defines requirements attributes as information about requirements.  Requirements need to be managed during its lifecycle from identification right until it satisfies with a solution to the need for change. The information about requirements often pop-up or must be planned to be captured along with the requirements. These attributes help in effectively and efficiently managing requirements, methodically managing the change and efficiently managing the stakeholders. As per the BABOK® there are ten pieces of information to be captured as attributes. They are- Complexity – Specifies how difficult it is to implement the requirement. This may be a subjective guesstimate made by the person eliciting and documenting the particular requirement. Complexity may be specified as ‘High’, ‘Medium’, ‘Low’ etc. when writing a use case description Absolute Reference – Unique identifier for the requirement. It remains same even if the requirement is moved, changed or deleted. This will be your unique use case ID. Risk – These are the severity levels of the uncertain events that may impact requirements. Risk may be specified as ‘High’, Medium’, ‘Low’ again in a use case. Author – Specifies who wrote the requirement or who is to be consulted if requirement is unclear. This attribute is important as it helps in situations where further clarification about requirements is required at a later stage such as during coding or testing. I know we don’t normally specify this in a use case description, but this should become the best practice. Source– Specifies the origin of the requirement. For example if we are eliciting requirements for a mobile version of a CRM solution for the sales department, we may elicit an important requirement from a sales executive on the field. The requirement may be documented in the use case as a scenario and it is important to mention the source so that the stakeholder can be contacted in future for further clarification. Stability – Describes the maturity of the requirement. Specifies whether the team is still in the initial stages of eliciting the requirement, whether elicitation and analysis is complete, whether adequate information has been gathered to ensure that the requirement may not change in the foreseeable future. Ownership– This identifies the individual or group that needs the requirement. This may be the business owner / sponsor or even a business division. For example, the owners of the CRM mobile solution for which requirements are being elicited can be the Sales Department. Urgency– It is important to indicate how soon the requirement is needed so that resources and schedules can be adjusted to implement and deliver the requirement as soon as possible. Urgency of requirements can again be documented as ‘High’, ‘Medium’, and ‘Low’. Priority– This indicates the relative importance of a requirement against other requirements. This can again be documented as ‘High’, ‘Medium’, and ‘Low’ and is important to clearly define the business priority against each use case as it will help identify features for the Minimal Viable Product (MVP). State– Indicates where the requirement definition stands. In the case of use cases this specifies whether the use case is in draft, reviewed, approved / rejected, implemented state etc. Lots of information, isn’t it? ☺. How do we remember these first of all? I use the acronym ‘CARA’S SOUPS’ for this purpose taking the first letter of each requirement attribute. I would now like to conclude by giving an extended template for a use case description. Why extended? A use case description has a defined set of sections that must be included such as pre-conditions, primary flow, alternate flows, exceptional flows, post-conditions etc. So, given below is the structure I use. You are free to use it or customize it as you deem fit. We often miss out on these important pieces of information about requirements and get into trouble mid way in projects. So, let’s make sure that we capture requirements attributes for a smoother communication and implementation of requirements.
Rated 4.5/5 based on 20 customer reviews
6603
Capturing Requirement Attributes In Use Cases

The Guide to the Business Analysis Body of Knowled... Read More

A Simple Guide To Becoming CBA Professional

The Certified Business Analysis Professional is a course offered by the International Institute of Business Analysis (IIBA) and can establish you as a certified business analyst in the global market. If you’re planning to get CBA certified, here’s how you can go about doing it. Apply For The Exam Applying for CBA exam is the first thing that you need to do. Get hold of the CBAP certification handbook—it offers you a thorough explanation of everything you need in order to apply for the exam. Documenting your work experience is important and is one of the most challenging parts of getting a CBAP certification. Documenting 10 years of work experience is not easy and you need to recall information about every project that you’ve ever worked on. You’d also need to align your experience with each task as defined in the BABOK (Business Analysis Body of Knowledge) guide. You also need determine the number of hours you’ve spent in business analysis training and that should be at least 7500 hours. This means, if you’ve worked in one project for 100 hours, and only 25% of the time was spent on business analysis activities, you can only include 25 hours from that project. In order to be eligible, you’ll also need experience in at least 4 out of the 6 core knowledge areas. A minimum of 900 hours spent on doing tasks from different knowledge areas makes you eligible for CBAP exam. In about three week’s time you’ll know whether your application has been approved or not. Get Close & Personal With BABOK Once approved, you need to start preparing for the exam with more benefits and BABOK is what you need to start with. It has all information to help you clear the exam. Memorize each term in the book and get a clear understanding of every concept as you’ll need to implement them while solving the paper. BABOK has everything you need to learn and understand to clear the exam, but BABOK is an extensive piece of business analysis literature that isn’t very easy to understand. Buy a few other guides to help you out when the BABOK gets too overbearing to comprehend. You can even consider joining a BABOK study group, that focuses on discussing BABOK content and even preparing for the exam. Schedule Your Exam Scheduling your exam is another important thing to do after your application is approved. Ideally, you need 2-3 months to prepare for CBAP exam and so schedule your exam accordingly. Rescheduling the exam is always possible and even if you don’t clear your exam in the first attempt, you can write it again in the same calendar year. Scheduling the exam well in advance will keep you motivated and help you set an action plan. Prepare Well When you sit for the exam, you should be in a position to recall the knowledge of BABOK effectively. And there are a lot of ways to do this. You can get a formal training that walks you through BABOK, addresses your concerns and doubts and help you prepare better with mock tests. You can also choose to study independently, then get hold of a study guide and a workbook. Consider rewriting the BABOK, so that you don’t forget anything. This is a great way to remember the terminology and jargons business analysts need to know. Writing The Exam Lastly, when you sit for the exam, make sure you write it to the best of your ability. Don’t get demotivated if you don’t clear it—there’s always a next time. Once you’ve cleared the exam, don’t forget to celebrate your success; it’s a well deserved one. Look for better job opportunities (as it is they’ll come your way) and remember to get yourself recertified every 3 years to remain a leader in the field.
Rated 4.5/5 based on 20 customer reviews
3189
A Simple Guide To Becoming CBA Professional

The Certified Business Analysis Professional is a ... Read More

Useful links

20% Discount