Product Enhancement

Business Case

Prepared By: Technical Director

Reference: TQT4

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 Enhancement Name:
Date: Release: Draft/Final
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1 Overview ........................................................................................................................... 4
1.1 Purpose .............................................................................................................................. 4
1.2 Advice ............................................................................................................................... 4
1.3 Executive Summary .......................................................................................................... 5
1.4 Reasons ............................................................................................................................. 6
1.5 Business Options ............................................................................................................... 7
1.6 Expected Benefits.............................................................................................................. 8
1.7 Expected Dis-benefits ....................................................................................................... 9
1.8 Timescale ........................................................................................................................ 10
1.9 Costs ................................................................................................................................ 11
1.10 Investment Appraisal ...................................................................................................... 12
1.11 Major Risks ..................................................................................................................... 13
1 Overview

1.1 Purpose
A Business Case is used to document the justification for the undertaking of a major enhancement
to an existing product, based on the estimated costs (of development, implementation and
incremental ongoing operations and maintenance costs) against the anticipated benefits to be gained
and offset by any associated risks.
The outline Business Case is developed in the TQP4 Product Enhancement Request process. This
process also covers the approval and re-affirmation of the Business Case.
The Business Case is used by the Development Team for validation and subsequent acceptance or
rejection of the enhancement. Following a successful validation of the enhancement, the Technical
processes TQP1, TQP2 and TQP3 will be followed.

1.2 Advice
The following quality criteria should be observed:
 The reasons for the enhancement must be consistent with the corporate or product strategy
 The Enhancement Plan and Business Case must be aligned
 The benefits should be clearly identified and justified
 It should be clear how the benefits will be realised
 It should be clear what will define a successful outcome
 It should be clear what the preferred business option is, and why
 Where external procurement is required, it should be clear what the preferred sourcing option
is, and why
 It should be clear how any necessary funding will be obtained
 The Business Case includes non-financial, as well as financial, criteria
 The Business Case includes operations and maintenance costs and risks, as well as project costs
and risks
 The major risks faced by enhancement are explicitly stated, together with any proposed
responses.
1.3 Executive Summary
(Highlight the key points in the Business Case, which should include important benefits and the
return on investment (ROI))
1.4 Reasons
(Defines the reasons for undertaking the enhancement and explains how it will enable the
achievement of corporate strategies and objectives)
1.5 Business Options
(Analysis and reasoned recommendation for the base business options of: do nothing, do the
minimal or do something)
1.6 Expected Benefits
(The benefits that the enhancement will deliver expressed in measurable terms against the situation
as it exists prior to the enhancement. Benefits should be both qualitative and quantitative. They
should be aligned to corporate or product benefits. Tolerances should be set for each benefit and
for the aggregated benefit. Any benefits realisation requirements should be stated)
1.7 Expected Dis-benefits
(Outcomes perceived as negative by one or more stakeholders. Dis-benefits are actual consequences
of an activity whereas, by definition, a risk has some uncertainty about whether it will materialise)
1.8 Timescale
(The period over which the enhancement will run (summary of the Enhancement Plan) and the
period over which the benefits will be realised. This information is subsequently used to help
timing decisions when planning (Build Plan, Testing Plan and Release Plan))
1.9 Costs
(A summary of the project costs, the ongoing operations and maintenance costs and their funding
arrangements)
1.10 Investment Appraisal
(Compares the aggregated benefits and dis-benefits to the Enhancement costs and ongoing
incremental operations and maintenance costs. The analysis may use techniques such as cash flow
statement, ROI, net present value, internal rate of return and payback period. The objective is to be
able to define the value of a project as an investment. The investment appraisal should address how
the enhancement will be funded)
1.11 Major Risks
(Gives a summary of the key risks associated with the enhancement together with the likely impact
and plans should they occur)