Business Case

Definition

A Business Case provides the justification for a proposed initiative based on the expected business value compared to the cost, effort, and risk of pursuing it. It typically articulates the problem or opportunity, the proposed approach, alternatives considered, expected benefits, costs, risks, and a recommendation.

Inputs

• A defined business need, problem, or opportunity
• Estimated costs, expected benefits, and known risks or constraints
• Alternative approaches considered, including the option of doing nothing

Outputs

• A documented justification recommending whether (and how) to proceed with an initiative
• A basis for go/no-go decision-making and initial funding approval

When to Use

• Securing approval and funding for a new initiative before significant investment begins
• Comparing multiple possible approaches to solving the same business problem
• Major decision points where stakeholders need a clear cost-benefit rationale

When Not to Use

• Small, low-risk changes within an already-approved scope or budget
• Situations where the decision has effectively already been made and formal justification would be purely ceremonial