Value Engineering

Business Case

A documented justification for a project that includes financial analysis, risks, and expected outcomes.

A business case is more than a spreadsheet with ROI calculations—it's a strategic document that tells the story of why an investment makes sense. In enterprise sales, the business case often becomes the internal selling document that champions use to secure budget approval.

Components of an Effective Business Case

1. Executive Summary

A one-page overview that busy executives can scan in under two minutes. Should answer: What's the investment? What's the return? Why now?

2. Current State Analysis

Document the baseline against which improvements will be measured:

  • Current costs and inefficiencies
  • Pain points and their business impact
  • Risks of maintaining status quo

3. Proposed Solution

Clear description of what's being proposed without excessive technical detail. Focus on capabilities that directly address identified pain points.

4. Financial Analysis

The quantitative heart of the business case:

  • ROI: Return on Investment percentage
  • Payback Period: Time to recover the investment
  • NPV: Net Present Value of cash flows
  • TCO: Total Cost of Ownership over the project lifecycle

5. Risk Assessment

Honest evaluation of what could go wrong and mitigation strategies. Counterintuitively, including risks builds credibility.

6. Implementation Timeline

High-level milestones showing the path from decision to value realization.

Why Business Cases Fail

  1. Too vendor-centric: Focuses on features rather than customer outcomes
  2. Unrealistic assumptions: Uses best-case scenarios that stakeholders don't believe
  3. Missing stakeholder input: Built without CFO or IT involvement
  4. No sensitivity analysis: Doesn't show range of outcomes
  5. Ignores soft benefits: Focuses only on easily quantifiable gains

Building CFO-Ready Business Cases

CFOs evaluate business cases differently than other stakeholders. They look for:

  • Conservative, defensible assumptions
  • Clear methodology for calculations
  • Sensitivity ranges showing best/worst/likely scenarios
  • Comparison against alternative uses of capital
  • Risk-adjusted returns

Put Business Case into practice

See how ValueNova helps you apply these concepts to build compelling business cases.