Guidelines for Developing a Business Case &
Business Case Template
The intent of this document is to provide a single source reference that contains
the combination of management, technical and resource information required to
promote a concept or investment opportunity to reality.
Before getting into the details of developing a business case, it is important to
understand what a business case is, why we prepare business cases, and how
much time should be spent on developing a business case.
What is a Business Case?
A business case is the first step in a capital planning and investment model. It
serves as the center piece in integrating IT governance, portfolio management
processes, and financial management processes. Business cases are the singlemost important document in helping leadership and management understand the
business value of an investment or business opportunity. A business case is part
sales and part marketing. But it is the “business” units’ opportunity to present an
overwhelming and compelling justification for funding an investment to achieve
organization or business unit mission, goals, and objectives.
An effective business case is a multi-purpose document that generates the
support, participation and leadership commitment required to transform an idea
into reality. A business case identifies an idea, problem, or opportunity. It
provides context and content around the problem and equally illustrates the
desired objectives and outcomes. The problem and desired outcomes are
normally defined and described in terms of the business. The business case
describes how and who will be affected. The how and who typically evolve
around individual or organization behavioral changes; also know as change
management. Change management also involves the people and process
changes that would be required. The business case will breakout specific
alternatives that were examined, their associated impacts, risks, costs, and
benefits. Alternatives focus more towards a technical component contributing to
the overall business solution.
Business case development is a collaborative effort:
 It is business driven, lead by the business or program area that is making
the proposal,
 Information technology representative(s) form the Office of Information
Services,
 Change management representative(s) from the Office of Information
Services, Business Process Engineering Unit,
 Financial analyst representative(s) from Finance Policy and Analysis,
 Any (all) stakeholders who will be impacted by the proposal, and to
ensure approval and ongoing support
 And a benefits sponsor.
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Why Prepare a Business Case?
The simple answer to the question of “why?” would be: 1. it makes sense, 2. it is
the right thing to do, and 3. business cases are recognized and accepted as a
best practice.
Those three reasons either alone or together may not appear to be compelling
enough. Below are more concrete requirements as to “why” we prepare business
cases, founded upon statute and policy.
Governor’s Priorities and Initiatives: In response to the current budget crisis and
in support of the Governor’s priorities to “Restore Confidence and Accountability
in Government” and “Make Government Live within its Means,” the Governor’s
initiative on Regulatory Streamlining, and the activities of the Governor’s
Advisory Committee on Government and Performance and Accountability, the
Department of Administrative Services (DAS) and state agencies must do what
we can to appropriately control information technology (IT) spending and stretch
limited IT dollars.
Business cases are fundamental in identifying accountable business or benefit
owner(s), high level business performance metrics, and the associated
investment cost model.
ORS 184.470-184.477 (Information Technology Portfolio Management): In
August 2001, HB 3372 (IT Portfolio Management was signed into law.
Substantive provisions of the law were included in ORS 184.470-184.477. In
short, IT Portfolio Management (i.e., IT investment management) is an integrated
approach to managing investments that provides for the continuous identification,
selection, control life-cycle management, and evaluation of investments.
Business cases are integral to the portfolio management process and to initiating
investment opportunities identified within enterprise plans.
DAS IRM 107-004-010 (IT Asset Inventory/Management Policy: State law
requires the Department of Administrative Services Information Resources
Management Division (DAS IRMD) to ensure all state-owned information
technology (IT) assets are inventoried, tracked, and managed throughout the IT
asset’s lifecycle.
Business cases are an integral component managing the IT asset portfolio
2005 Enterprise Information Resources Management (IRM) Strategy (EIRMS):
The EIRMS is a business-driven IT planning process designed to address
common business needs, specifically: support achievement of the Governor’s
Oregon Principles, support strategic business objectives of state agencies, and
provide a common vision of the planning, staffing, acquisition, management and
shared use of IT throughout Oregon government.
There are three goals and objectives that business cases are an integral
component or enabler:
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Goal 1: Establish effective business-driven Enterprise IT Governance
Objective 1.1: Implement the state’s IT Governance Policy
Goal 5: Optimize the efficiency and effectiveness of government
Objective 5.1: Establish a facts-based continuous improvement and
performance management program
Goal 6: Ensure IT investments are selected, resourced, acquired and tracked to
optimize mission accomplishment
Objective 6.1: Implement an information technology investment (portfolio)
management program as required by ORS 184.470–184.477
DHS Policy DHS-110-001, Information Technology Project Budgets: The policy
explicitly requires the development of a formal business case for any business
investment opportunity that may have an IT component and that will require
budget/limitation authority transfer to the Office of Information Services. It is also
intended that all DHS approved Policy Option Packages (POPs) will require a
completed business.
How much time to spend on developing a business case?
General Rule of thumb: Business case time = approximately 5-10% of anticipated
implementation project time. An anticipated:
 25 day project to implement the business opportunity = 2 days to put
together a complete but straightforward and simple business case
 3 month project to implement the business opportunity = 9 days to put
together an appropriately detailed business case
 1 year project to implement the business opportunity = 1 – 1.5 months to
put together a detailed business case
 3 year project to implement the business opportunity = 3 months to put
together a comprehensive business case
The Business case template is scalable to the nature and impact of the proposal.
The number of pages of a business case varies based on the subject matter of
the case. It may be a brief 2-4 page document or an extensive evaluation
consisting of 20 to100 pages. However, the length of the business case should
be kept to a minimum, ensuring it stays on topic, presents relevant information in
a clear and concise manner, and is focused on supporting management in
making decisions. The time and effort spent on a business case should be in
proportion to the scope of the problem.
The definitive answer for the amount of time allocated to develop a business
case is: It takes as long as it takes. It is a function of time, commitment,
understanding, and resources.
Within the Template
This document describes how to effectively prepare each section of a business
case. By following the guidance provided, the resulting business case will be: 1)
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in a standard format, and 2) contain the information required by a governing body
(Cabinet, Information Technology Governance Council (ITGC), Information
Systems Managers (ISMs) so that they may make their best informed decision
regarding proposed business opportunities (approve, deny, or continue business
case development efforts).
At a minimum, the business case shall include the following sections:
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Executive Summary
Introduction & Background
Problem Definition & Desired Business Goal(s) and Objectives
Alternatives
o Assumptions
o Benefits Estimates, and Benefit Metrics
o Cost Estimates
o Risk Assessment
Financial Analysis
Recommendation
Implementation Approach/Timeline
Appendices
Under each major heading, text that appears in italic is intended for
instructional purposes and should be deleted so the text of the business
case information may be entered.
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