Investment Appraisal for Document Approvals Solution
Added on 2019-09-30
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1YOURLOGOHEREBUSINESS CASE[Business Case Title ]Effective Date[MM/DD/YYYY]Version NumberFinalApprover[Name]Team NameTeam MembersStudent IDemail(The text within brackets ( ) and in RED has been placed within this document for your instruction only; and formatted for the specific style required forthat area. Once you have completed filling out the template, you must remove the bracketed information and adjust the spacing.)1.0Introduction (Write an introductory paragraph that ‘sets the scene’ for the business case document. Outline the techniques used in the preparation of thebusiness case study and acknowledge those who assisted the preparation of the document. ) 2.0Executive Summary (This is probably the most important section of document as it is probably the only section which will be read by senior management!!! Thisshould be the last section to be completed as it draws on the information from the rest of the business case document. There should be threeparagraphs here and these should cover:-What the business case study was about and what the main findings were
2-What options were evaluated and are the main advantages and disadvantages of each-Your recommendation on what should be done and a clear request for the decision that needs to be made by management e.g.resourcing/funding for a more detailed investigation or a Go/No Go decision on a major investmentIt is really important that this section is brief and concise so as to allow management to understand the key issues involved quickly and tounderstand clearly the decision they are being asked to make. )3.0Reasons(This section is a more detailed description of the current situation which has given rise to the business case study. Essentially these are thereasons why the business case has been prepared. Here you need to outline the real problems and opportunities which exist. These need to beclearly defined and supported by data where possible such as resources being wasted. It is important that the ‘scope’ of the issues identified bythe study are relevant to the recommendations which will follow in the business case i.e. do not mention wider issues which yourrecommendation will not address. This can cause frustration and may bring in non-relevant issues which delay or negatively impact managementdecisions. )4.0Options (This section should describe in outline the various options that have been considered to deliver the required outcome. The availability of fundsand management capacity to successfully manage change is likely to be limited; consequently a comprehensive analysis is required so thatalternatives can be assessed. The chosen option should be described in detail, together with a summary of the reasons why the recommendedoption was chosen. This information provides assurances that alternatives were considered. The options for evaluation in the business case studyare as follow:-Invest in Web based FAQ and View Bill and Pay Bill facilities -Simplify the procedures around the handling of customer queries and manual card payments. -Set up two specialist teams in the Service Centre to deal with Customer Queries and Card Payments. -Doing Nothing. This means that GasEl management will continue to allow customers to contact the Service Centre for general queryinformation and processing card payments by phone.
3The Advantages and Disadvantages of each option should be included in the template and the team should recommend the Web basedinvestment. All remaining sections of Business Case template should focus on the recommended option (Web based investment).In evaluating options it should be noted that ‘Doing Nothing’ is always an option. This should describe what will happen if the project is not done.In practice this option is a very real possibility – there are many reports with good recommendations lying in desk drawers and filing cabinets!!!!So it is well worthwhile detailing how the organization will suffer if this option is taken. The template has been pre-populated a couple ofillustrative Advantages & Disadvantages for the Do Nothing Option. This illustrates the layout and level of detail required for the evaluation of thevarious options). Do Nothing OptionAdvantagesCustomers will continue to receive a personalized service from the Service Centre Staff rather than been referred to the Web for these servicesThere will be no disruption of the customer base arising from having to register for Web based services More ......... DisadvantagesHandling customer enquiries & card payments will continue to absorb significant resources in the Service Centre (estimated at 48% of time and just over €1ml p.a.)Increases pressure on management to increase resources to service growing customer base More .......
45.0Benefits (This section should identify each benefit that is claimed would be achieved by the solutions implementation. Both the tangible (measureable)and intangible (qualitative, strategic) should be described. Here are some examples for illustration. Tangible-Staff Savings, e.g. Labor costs reduced by €100k per annum-Reduced effort or e.g. 3 full time equivalent staff freed up for other more productive activities-Increased Efficiency, e.g. Sales call conversion increased from 45% to 70%In terms of intangible benefits (non-financial) there may be very important strategic objectives for investing in a solution. The strategic plan orSWOT should be reviewed to identify strategic objectives. Here are some examples for illustration:Intangible-Improved Customer Satisfaction, e.g. Helps organization to improve business relationships in key customer segment thereby increasing futuresales potential-Increased Job Satisfaction, e.g. Better staff morale and job satisfaction leading to greater productivityThe full range of benefits associated with the project should be considered and covered. Benefits should be listed on a prioritized basis.) 6.0Assumptions(Where any assumptions are being made in the quantification or presentation of costs or benefits then these should be covered in this section. Itis important to specify assumptions as these can be re-visited as the business case/solution develops to see if the original assumptions stillremain sound.)
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