A business case projects the value of the new project by doing a detailed cost-benefit analysis which includes calculating the net-present value of the project and the payback period needed to provide a return on the initial investment.
A business case should contain some or all of the following information:
• High level business context (overall strategy) and a business plan (business idea, target markets, customers, competitors, own competitive position, market environment, product information and attractiveness, marketing and sales strategy, …)
• Project options evaluated (where “doing nothing” is an option, too)
• Factors to be considered:
o A project description
o Assumptions, constraints and dependencies
o Project value proposition – Business benefits, whether it fits into the overall organizational road map, financials, project risks
o Overview on stakeholders
o Project organization and governance
o Feasibility outlined (proof that complexity can be managed)
o High level project and resources planning
o Key deliverables and milestones
o Controls / tracking mechanisms for the Business Case
The business case is normally established within a client organization with a standard valuation tool to quantify investment opportunities in terms of money. Such tool normally follows the widely accepted Net Present Value (NPV) criteria.
The CBCC tool validates the user input on each row level and displays the warning/informative messages appropriately as and when the user enters the incorrect value in the text box provided.
By default, the users are expected to enter positive values in the green colored rows (for e.g., Incremental Sales) and negative values (have to be prefixed by minus symbol) in the red colored rows (for e.g., Project costs internal). However, under abnormal scenarios the user can still enter negative values in the green colored input rows (for example., Volume related costs) and positive values in the red colored input rows (for e.g., Non-Incremental sales).
Additionally, each row has a short explanation of the respective business term and the formulas applied in the tool if applicable. The user has to click the help symbol ( ) to view the short explanation.
CBCC has a flat-user structure meaning that there is only one user level through which the user can:
• Create a new business case
• View an existing business case
• Modify an existing business case
Sign Up/Logging On
The user can create a login id using the "Sign Up" option available in the main screen. Below screen shot shows the option marked in red.
In the following screen, the user can enter the details to create a login for the tool. All the input fields are mandatory except phone number. Mandatory fields are marked by asterisk (*).
After the user enters the required data and click on the "Create User" button, the user would receive an activation mail as below:
In order to activate the user, the user shall click on the "activation link" present in the mail with the subject "Verify Your Email Address".
Creating a Business Case
After the successful login, the user can create a new business case or select one of the previous business cases. Click on the link "New Business Case" to create a new case. Below screenshot shows the highlighted link in red color .
After the user clicks the "New Business Case", the below screen would be displayed to the user.
The first section marked in red shows the assumptions taken for the case. Standard default values are considered for each case. However, the user can modify the default values of both the key financial parameters and depreciation periods according to their own market conditions.
The user must enter a unique business case title which is mandatory. The user can use alphabets, numbers or special characters or a combination of all for the title. This business case title would be saved by the tool in case if the user wants to view/edit the business case later in the future.
In case, if the user forgot the password for the tool, the "forgot password" option can be used to setup a new password.
The user must enter the same email-id which was entered while creating the login id. After entering the valid email-id, the user shall click on the "Reset Password" button.
Now, the user would receive a email with the subject "Reset Password" which has the name of the user and the link to reset the password. The user shall click the link in the email and enter the new password.