Business cases are a decision-making tool for projects and undertakings of a unique nature and with substantial impact. Such projects may include acquisitions, divestments, market entries, outsourcing, restructuring or the relocation or closing of sites.
Scarce resources – especially capital – mean that decision alternatives have to be commercially assessed, selected and prioritised using a comprehensive simulation model. The challenge is to concentrate these scare resources on projects offering a return greater than the cost of capital. Key performance indicators such as return on investment, return on (average) capital employed or net present value therefore form a critical part of business cases. Business cases are different from other decision-making projects and tools because they are based on a distinctive quantitative core model. But business cases also take into account non-financial and qualitative information because making decisions in the business environment is complex and variable, and such information is needed to assess and weigh all impacts in a balanced fashion.
A general approach to business cases can be summarised as follows.
Core questions that need to be addressed when designing a business case include:
Using an approach tried and tested in practice, CTcon supports clients in their decision-making processes for projects and undertakings of a unique nature and with substantial impact. We work closely with our clients and accompany them throughout the process of integrative and sustainable implementation. Our work is based on broad experience in quantitative decision-support modelling, gained on numerous projects with clients from diverse industries.