Any request for funds in support of activities that are essential to a business unit's base activities may be considered for incremental program funding and are driven in response to:
Documented user needs
Work process changes
Information systems changes
Significant network or technology enhancements
Quality and service improvements
Major operating efficiency improvements
Market, Technical or concept trials
The Business Case should answer the following questions:
What is the opportunity/problem you are trying to solve?
What is the desired result you are looking for?
What is the nature of the improvement?
What must be invested to get the desired result?
What are the new production operational costs?
What are the spending reductions, revenue improvements or profit improvements? What are the qualitative benefits, such as customer satisfaction, strategic value, cycle time improvements, etc.? What are the concerns or risks?
What is the exit strategy if an initiative is not returning investment?
Should be in the form of a business case or proposal for market or technical trial funding. Submission should be able to adequately substantiate the request for incremental funding by establishing the: Need for funding
Benefits to be derived
Corporation's ability to execute the program
Program's ability to provide adequate financial return
Resources identified within financial justification
Objectives of Business Case Guidelines
Provide assistance in the preparation of the business cases and their financials Provide a common basis for the information that is required for funding through the resource allocation and program prioritization process Define the parameters and criteria for program prioritization decisions Communicate the resource allocation as it relates to incremental funding
Incrementally funded business cases
Document the upfront market, technical, operational and financial analysis for requests Is the official document by which the results of the business analysis of a proposed business opportunity is communicated by a business unit to the corporation Serves as a basis for prioritization of funding requests for the allocation of corporate resources Provides the parameters for measurement
Sets the milestones by which the program will be tracked
Establishes accountability and documentation for the benefits that are committed
The business case is typically divided into sections which include:
Section 1--Purpose Statement
Include one or two pages that documents why the project is necessary Identifies user's clear needs--answers how the program came about and the benefit to users Provides linkage to corporate strategies and business unit value drivers, i.e., service, market, quality, efficiency, etc.--answers why the program will succeed Describes the corporation's capacity to successfully implement the program while meeting financial objectives
Section 2--Executive Summary
Summation of opportunity
Relevance to corporate strategies and business Unit value drivers Description of the system or program
Description of the benefits
High level view of resource requirements
Additional factors that materially impact the case such as service, cost, efficiency, volume, quality and deployment objectives
Section 3--Program Rationales
Frame the need for the program and relate it to corporate and/or business unit priorities and strategies Describe major decision drivers and how they influence the need for the program Describe the benefits and urgency for the program
Discuss the penalties or risks if the program is not funded Explain and identify the how the proposed capability will meet the needs of the business unit that...