Business Case Study Report

This assignment is a comprehensive business case study report focusing on the evaluation of a web-based investment for GasEl. The report follows a structured format, beginning with an introduction and executive summary. It then delves into the reasons for the study, outlining the problems and opportunities prompting the investment proposal. Several options are evaluated, including a 'do nothing' scenario, with a detailed analysis of advantages and disadvantages for each. The report emphasizes the recommended option—a web-based investment—and details its tangible and intangible benefits. A thorough risk assessment is included, along with estimated costs, tasks, and timescales. Finally, an investment appraisal using methods such as Benefit/Cost Ratio, Accounting Rate of Return, and Payback Period is presented to justify the investment. Appendices provide supplementary information, including probability and impact scales for risk assessment.

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YOUR
LOGO
HERE
BUSINESS CASE
[Business Case Title ]
Effective Date [MM/DD/YYYY]
Version
Number
Final
Approver [Name]
Team Name
Team Members Student ID email
(The text within brackets ( ) and in RED has been placed within this document for your instruction only; and formatted for the specific style required for
that area. Once you have completed filling out the template, you must remove the bracketed information and adjust the spacing.)
1.0 Introduction
(Write an introductory paragraph that ‘sets the scene’ for the business case document. Outline the techniques used in the preparation of the
business case study and acknowledge those who assisted the preparation of the document. )
2.0 Executive Summary
(This is probably the most important section of document as it is probably the only section which will be read by senior management!!! This
should be the last section to be completed as it draws on the information from the rest of the business case document. There should be three
paragraphs here and these should cover:
- What the business case study was about and what the main findings were

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- 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 investment
It is really important that this section is brief and concise so as to allow management to understand the key issues involved quickly and to
understand clearly the decision they are being asked to make. )
3.0 Reasons
(This section is a more detailed description of the current situation which has given rise to the business case study. Essentially these are the
reasons why the business case has been prepared. Here you need to outline the real problems and opportunities which exist. These need to be
clearly defined and supported by data where possible such as resources being wasted. It is important that the ‘scope’ of the issues identified by
the study are relevant to the recommendations which will follow in the business case i.e. do not mention wider issues which your
recommendation will not address. This can cause frustration and may bring in non-relevant issues which delay or negatively impact management
decisions. )
4.0 Options
(This section should describe in outline the various options that have been considered to deliver the required outcome. The availability of funds
and management capacity to successfully manage change is likely to be limited; consequently a comprehensive analysis is required so that
alternatives can be assessed. The chosen option should be described in detail, together with a summary of the reasons why the recommended
option was chosen. This information provides assurances that alternatives were considered. The options for evaluation in the business case study
are 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 query
information and processing card payments by phone.

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The Advantages and Disadvantages of each option should be included in the template and the team should recommend the Web based
investment. 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 of
illustrative Advantages & Disadvantages for the Do Nothing Option. This illustrates the layout and level of detail required for the evaluation of the
various options).
Do Nothing Option
Advantages
 Customers will continue to receive a personalized service from the Service Centre Staff rather than been referred to the Web for these
services
 There will be no disruption of the customer base arising from having to register for Web based services
 More ………
Disadvantages
 Handling 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 …….

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5.0 Benefits
(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 or
SWOT 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 future
sales potential
- Increased Job Satisfaction, e.g. Better staff morale and job satisfaction leading to greater productivity
The full range of benefits associated with the project should be considered and covered. Benefits should be listed on a prioritized basis.)
6.0 Assumptions
(Where any assumptions are being made in the quantification or presentation of costs or benefits then these should be covered in this section. It
is important to specify assumptions as these can be re-visited as the business case/solution develops to see if the original assumptions still
remain sound.)

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7.0 Risk Assessment
(In this section the various risks associated with the project and recommended mitigation which importantly needs to be incorporated into the
plan as the mitigation may have an associated cost. A Probability and Impact score should attach to each risk using the Probability and Impact
Scales and Grid. Only Red and Amber Risks require mitigation actions. Additional rows may be added if required. Here are some examples of
risks which might be associated with each type of improvement option. The project type risk could apply to any improvement option.)
Risk Description Probabili
ty
Impact Recommended Mitigation
Automation Type Risk
IT solution fails to meet user
requirements
Likely Major 1. All stakeholders will
be identified and
engaged in
requirements
gathering process
2. Requirements
specification will
require approval from
Senior User
representing User
Community
3. Acceptance criteria
will be clearly defined
and agreed with user
community
4. Formal Change
Control procedures
will apply.

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Project Type Risk
Project implementation
distracts key resources from
day to day activities
Likely Moderat
e
1. Resource
requirements defined
and agreed upfront
2. Project plans to take
account of operational
‘peaks and troughs’
3. Key resource cover to
be agreed and
acknowledged in any
project
recognition/merit
awards
8.0 Estimated Costs, Tasks and Timescales
(List the high level tasks and estimated timescales for completion of the solution. The reliability of information on tasks, timeframes and costs
tend to improve as a solution progresses and more information becomes available. At the outset it may only be possible to provide high level
tasks and rough estimates of associated timeframes and costs. Tips on preparing this section are:
- Prepare a list of high level tasks
- Identify tasks which may involve a direct cost.
- Consult with Finance Department or Subject Matter Expert to get an estimate
- Estimates might be based on High/Medium/Low
- Where time permits, obtain quotations from potential suppliers
- Assign estimated times based consultation with staff that will actually be completing the work

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Most organizations tend to consider only direct costs in the financial appraisal. These are the additional spend that would be incurred. Here are
some examples of costs for illustration:
Tangible Costs – Initial Costs
Training and Re-training of Users e.g. contracted training provider for 2 weeks €3000.
Redundancy e.g. making 3 staff redundant at an average of €50k redundancy payment per employee
Tangible Costs – Ongoing
Hardware Maintenance, e.g. Costs of Annual Maintenance Contract increase from €25k p.a. to €30k p.a.
Software Support Cost, e.g. Costs of Software Support Contract increase from €100k p.a. to €125k p.a.
Costs of Additional Staff e.g. 4 extra staff required on a salary of €46k each (including benefits).
Intangible Costs
Recruitment e.g. increased recruitment associated with interviewing, reference checking and selection.
Disruption e.g. will require staff to cover for colleagues assigned to projects
9.0 Investment Appraisal
(Investment in a capital project can only be justified if the additional benefits exceed the costs of the investment. Investment appraisal can be
conducted with reference to the impact of a new project/solution on reported profits or on cash flows.
Please note that any costs already incurred (sunk costs) should be ignored when completing the appraisal. The idea is to focus on justifying
additional spend as there is nothing that can be done about the money already spent.
There are various methods used to complete a financial appraisal. The main ones are as follows:
- Benefit/Cost Ratio: Here you take the total benefits and total costs and show these as a ratio. >1 indicates a positive ratio. The period over
which benefits are calculated must be specified and consistent e.g. 1 year, 3 years. For example, if total costs are €100k and total benefits
are €125k, then the Benefit Cost Ratio is 1.25.

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- Accounting Rate of Return: This is normally calculated as the average annual profit you expect over the life of an investment project,
compared to the average amount of capital invested. For example, if a project requires an average investment of €100k and is expected to
generate an average annual profit of €15k, then the ARR would be 15%.
- Payback Period: This is a technique for calculating the period of time required for a project investment to break even i.e. at what point will
the investment start paying for itself. For example, if a project requiring an investment of €100k is expected to provide annual cashflow of
€25k, the payback period would be 4 years.
- Discounting Future Cashflow and Sensitivity Analysis not required for assignment.
- The benefits figures should be taken from the Benefits (See Section 5) and the costs from the Estimated Costs & Timescales Section (Section
8). The cost benefit should be presented in the following Table.)
Appraisal Proposed Solution
Total Costs
Total Benefits
Benefits Cost ratio
ARR (%)
Payback Period
10 Document Approvals
(Minimum required approvals for Business Case documents are: Owner and Final Approver. )

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Role Position Name of
Approver
Approval
Signature
Date
Approved
Author
(OPTIONAL) Title of “Role” “Name” MM/DD/YYYY
Owner Title of “Role” “Name” MM/DD/YYYY
Final
Approver
Department
Manager “Name” MM/DD/YYYY
9.0 Revision History
Effective
Date Document
Author
Version
Number Description of Change
MM/DD/
YYYY*
“Name” Initial Release.
(*The date listed in the first line of the Revision History table, is the date the document received its final approval. Hereafter, the date becomes
the revision date, displayed as the Effective Date on the first page header information.)
APPENDIX A
[Title of Reference]
(Attach any appendices which are considered relevant to the Business Case. This helps ensure that the body of the report is kept concise. No
need to attach Requirements Specifications for FAQ or View/Pay Bill).

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Probability Scale – TO BE USED IN ASSIGNMENT
•
•
•
•
Probability Score
Almost Certain 90%
Likely 70%
Possible 50%
Unlikely 30%
Very Unlikely 10%

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Evaluating Impacts – TO BE USED IN ASSIGNMENT
Impact Insignificant Minor Moderate Major Catastrophic
Financial < 10K 10k – 100k 100k-1ml 1ml-10ml >10ml
Customer Small impact on
customers but
no customer
complaints
Small Increase in
customer
complaints
Large scale
customer
complaints and
some losses but
not target
customers
Some loss of
target
customers
Large scale target
customer loss
Share
Price
No Impact on
share price
Potential negative
Impact on share
price in short term
Potential
negative impact
on share price in
medium term
Significant
negative effect
on share price
in short term
Significant
negative effect on
share price in
medium to long
term
Media
Coverage
No enquires
from media and
no media
coverage
Enquiries but no
media coverage
Limited print
media coverage
Limited
coverage in all
media channels
Sustained
negative media
coverage in all
channels
Regulatory No regulatory
impact
Informal
regulatory enquiry
Formal
regulatory
intervention
Sustained
regulatory
intervention
and monitoring
Formal regulatory
intervention and
potential
fines/sanctions

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Probability/Impact Grid – TO BE USED IN
ASSIGNMENT
Almost
Certain
5
Likely 4
Probability Possible 3
Unlikely 2
Very
Unlikely
1
1 2 3 4 5
Insignificant Minor Moderate Major Catastrophic

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3
Impact
Green: No action required
Yellow: Monitor risk but no mitigation plan required
Amber: Mitigation plan required and monitoring on a weekly basis
Red: Mitigation plan required and monitoring on a daily basis

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Consider The FULL Cost of Failure
•
•
•
•
•
•
•

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5
GasEl Relevant Factors
•
•
•
•
•
•
•
•
•

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Mitigating Actions – Example of Detail Required
Risk Probability Impact Proposed Mitigation
Automation – FAQ
FAQ web pages not
kept up to date
thereby reducing
customer usage.
Possible Major 1. Responsibility for updating of
FAQ data to be clearly assigned
and role to be an established part
of organization structure
2. Level of site usage and
customer satisfaction to be
monitored weekly and data
accuracy issues addressed by
Service Centre Manager
3. Customer enquiries to Service
Centre to be monitored and
FAQ updated accordingly