Business Case Development and Validation
Creating and validating business cases to justify project investments.
Business Case Development and Validation is a crucial process in business analysis within the PMI-PBA framework. It involves creating and evaluating a comprehensive business case document that justifies a proposed initiative or project. The business case typically includes these key components: 1. Strategic alignment - How the initiative supports organizational goals 2. Problem statement - The business need or opportunity being addressed 3. Financial analysis - Cost-benefit analysis, ROI, NPV, and payback period calculations 4. Risk assessment - Potential threats and mitigation strategies 5. Solution options - Alternatives considered and recommendation 6. Success criteria - Measurable outcomes that define project success Development Process: The business analyst collaborates with stakeholders to gather requirements and data. They analyze current state processes, identify gaps, and define the expected future state. Financial data is collected to calculate potential returns and costs. Multiple solution options are evaluated against established criteria. Validation Process: Validation ensures the business case is sound and based on realistic assumptions. This includes: - Verifying financial projections with appropriate experts - Confirming that benefits are measurable and achievable - Ensuring alignment with enterprise goals and strategy - Checking that all significant risks have been identified - Validating resource requirements and constraints The validated business case then serves as: - A decision-making tool for project approval - A baseline for measuring project success - A reference point during implementation - A guide for change management activities Business analysts must remain objective during this process, presenting factual information rather than advocating for specific outcomes. They should facilitate stakeholder input while ensuring the business case represents an accurate assessment of the initiative's value proposition and feasibility.
Business Case Development and Validation is a crucial process in business analysis within the PMI-PBA framework. It involves creating and evaluating a comprehensive business case document that justif…
Concepts covered: Feasibility Analysis, Cost-Benefit Analysis, Stakeholder Analysis, Alternatives Analysis, Stakeholder Analysis and Engagement, Feasibility Study, Assumptions and Constraints Analysis, Risk Assessment and Mitigation Strategies, Problem Statement and Opportunity Definition
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