Business cases – development guidance and comparison mechanism for improved decisions on investments

Abstract

Investment decision for beneficial return is vital in business adaptation and growth. The generic terms ‘business case’ and ‘return on investment’ are recognised without best practice in development, comparison and delivery mechanisms. The adoption of a central guidance and comparison for business case application is a catalyst for improved business outcomes. Innovative ideas for change are encouraged at all levels of organisations, though decision makers necessarily represent an approval stage gate. Development of a compelling business case is not simple, both in structure and validation of assumptions, particularly for less experienced employees. In businesses of limited resources, the decision quality is paramount to maximise benefit. Decision quality with the ability to enable fair comparison is eased with clear objectives, consistent approach and common axes for evaluation. Ideas require investment to deliver a benefit, and both investment and benefits are not limited to revenue/cost. Inclusion of less-tangible benefits assists in obtaining a true estimate of business return. A guided, transparent and comparable business case development methodology provides consistency. A centralised application with integrated workflows aids this consistency, improving estimation of execution costs and multi-faceted benefits. This paper explores how a diverse range of business cases require guidance, consistency and centralised visualisation for the comparison and communication of decisions. It provides insights into best practice for business case development through digital software, leading to improvement in efficiency and quality of ideas raised, decision quality, empowering employees and improving business outcomes.