Business Case: Level I
<Insert Title of Business Case>
Contents
1Cover Sheet
2Executive Summary
3Investment/Business Case Context
3.1.1Need for the Investment
3.1.2Problem to Be Addressed
3.1.3Desired Future State & Change Drivers
3.2Current Strategic Priorities
3.2.1B.C. Government Strategic Priorities
3.2.2Ministry and/or Sector Strategic Priorities
3.2.3Information Management (IM) / Information Technology (IT) Strategic Priorities
3.3Risk of Not Pursuing the Investment
4Proposed Program
4.1Overview
4.2Proposed Program Scope & Deliverables
4.3Strategic Alignment, Benefit to Citizens of B.C. & Other Non-Financial Benefits
4.4Financial Analysis Summary
4.5Risk Summary
5Alternatives Analysis
5.1Analysis of Alternatives to IM/IT Investment
5.1.1Non-IM/IT Alternatives Identification
5.1.2Non-IM/IT Alternatives Comparison & Analysis
5.1.3Non-IM/IT Alternatives Analysis Summary
5.2Analysis of Alternatives to the Proposed IM/IT Solution
5.2.1Alternative IM/IT Solutions
5.2.2IM/IT Alternatives Comparison & Analysis
5.2.3IM/IT Alternatives Analysis Summary
5.3Contributions & Change Implications of the Recommended Option
5.3.1Detailed Financial Costs Overview
5.3.2Detailed Financial Benefits Overview
5.3.3Non-Financial Tangible Benefits
5.3.4Key Business Case Assumptions
5.3.5Organizational Change Impact
6Program Implementation Approach
6.1.1Program Milestones & Gating Summary
6.1.2High Level Delivery Approach
6.1.3Program Dependencies
6.1.4Critical Success Factors
6.2Proposed Management Team & Program Governance Structure
6.2.1Proposed Management & Governance Team
6.2.2Governance Structure (Controls)
6.3Key Risks & Proposed Response
7Appendix A: Supporting Documentation (Required)
7.1Approved Concept Case
7.2Consultations Completed
8Appendix C: Post-Approval Supporting Documentation
8.1Detailed Project Plan
8.2Detailed Vendor Management Plan
8.3Detailed Risk Management Plan
8.4Detailed Benefits Realization Plan
8.5Full Benefits Register
8.6Quality Management Plan
8.7IM/IT Operations Readiness Plan
9Appendix B: Additional Content Requirements
9.1Cross-Government, Cross-Jurisdictional & External Analysis
9.2Detailed Analytical Model
9.3Financial Sensitivity Analysis
9.4Intangible Benefits Description
9.5Change Management Objectives
9.6Project Identification & Description
9.7Staffing Approach
9.8Procurement Approach
9.9Vendor Management Approach
9.10Risk Management Approach
9.11Benefits Realization Approach
10Appendix D: Baseline Changes
1Cover Sheet
BusinessSponsor / <Business Sponsor Name & Contact Information>Lead Sector or Ministry / <Lead Sector or Ministry>
Other Contributing Sectors and/or Ministries /
- <Sector or Ministry>
- <Sector or Ministry>
- <Sector or Ministry>
Business Case Team / Name / Contact Information
- <Name>
- <Name>
- <Name>
- <Contact Information>
- <Contact Information>
- <Contact Information>
Proposed Program Name / <Name of the Proposed Program>
Investment Category / <Transformation/Upgrades & Renovations/Rehabilitation& Maintenance >
Proposed Program Management Team /
- <Proposed Program Management Team>
- <Proposed Program Management Team>
- <Proposed Program Management Team>
Approvals / Signature / Date
Executive Sponsor
Name
<Name>
Division/Branch or Agency
<Division/Branch or Agency>
Ministry/Sector
<Ministry>
Deputy Minister
Name
<Name>
Division/Branch or Agency
<Division/Branch or Agency>
Ministry/Sector
<Ministry>
Ministry/Sector EFO
Name
<Name>
Division/Branch or Agency
<Division/Branch or Agency>
Ministry/Sector
<Ministry>
Ministry/Sector CIO
Name
<Name>
Division/Branch or Agency
<Division/Branch or Agency>
Ministry/Sector
<Ministry>
2Executive Summary
The executive summary should not exceed four to five (4-5) pages. Each sub-section below states a suggested length. Please note that the actual length of each section will vary depending on the business case.
Investment Background & Proposed Program Introduction
Background
This sub-section of the executive summary will cover the following details in brief:
•Description of the need for the investment by stating the current problem, desired future state and change drivers;
•Definition of the objectives of the investment;
•Overview of B.C. Government, lead Ministry/Sector and IM/IT current strategic objectives and the alignment of the investment to specific priorities therein;
•Description of risks resulting from maintaining the status quo.
A reasonable length for this section would be approximately 1 ½ - 2 pages.
Proposed Program Introduction
This sub-section of the executive summary will cover the following details in brief:
•Name of the proposed program;
•Category of investment;
•Name of the Business Sponsor;
•Description of what the program is and its proposed scope.
A reasonable length for this section would be approximately 1 - 1 ½ pages.
Business Case Overview
Detailed Analysis & Value Contribution of the Proposed Program
This sub-section of the executive summary will cover the following details in brief:
•Alternatives to an IM/IT investment and justification for pursuing an IM/IT investment;
•IM/IT solution options that were analyzed and the results of the comparative analysis completed;
•Insertion of the proposed solution’s cost and benefit schedule, income sheet style with the NPV clearly indicated (Business case team to use thebusiness case workbook template provided);
•Statement of the total funding required and the current funding request for this gate;
•Discussion of financial and non-financial benefits.
Proposed Implementation Approach
This sub-section of the executive summary will cover the following details in brief:
•Insertion of the high-level milestone schedule that includes proposed gating, subsequent funding asks and a list of interdependencies with other programs (in-flight, approved or proposed);
•Statement of program phases;
•Name and relevant experience of the management team;
•Description of the high-level governance structure;
•Overview of the key risks and the proposed responses.
A reasonable length for this section would be approximately 2 – 2 ½ pages.
3Investment/Business Case Context
A detailed overview of the ideas presented within the concept case will be presented here. Due to the overlap between this component of the business case and the concept case, re-using content from the concept case is encouraged to reduce re-work.
3.1.1Need for the Investment
The need for the investment, commonly referred to as the ‘Case for Change’, will be discussed here. This is covered through a discussion of the problem at hand, the ideal future state and factors driving the investment’s urgency. In addition to the content covered within the concept case, the Business case will also clearly define objectives for the investment.
3.1.2Problem to Be Addressed
Unless additional information can be provided, this section can re-use the section of the same name from the concept case.
3.1.3Desired Future State & Change Drivers
Unless additional information can be provided, this section can re-use the section of the same name from the concept case.
3.1.3.1Desired Future State
Unless additional information can be provided, this section can re-use the section of the same name from the concept case.
3.1.3.2Change Drivers
Unless additional information can be provided, this section can re-use the section of the same name from the concept case.
3.1.3.3Summary of Investment Objectives
Based on the gap identified through the problem discussion and desired future state description, a set of measurable business objectives will be defined for the investment. Meeting each of these objectives through full attainment of benefits from the program’s outputs will resolve the problem stated within the business case. The U.K. Treasury’s Green Book (2014) lists the following examples of investment objectives that could be considered[1]:
•Increase revenue of an existing service or through creation of a new service.
•Reduce the cost of an existing service.
•Improve the throughput of the service whilst reducing unit costs.
•Improve the quality of the service, both in terms of its operational outputs and business outcomes. This could include meeting policy changes, and delivering new operational targets.
•Replace elements of the existing service.
•Meet some form of statutory or regulatory requirement, or organizational requirement.
3.2Current Strategic Priorities
Within this section of the investment context, an organizational overview of the current Government-wide, Ministry, Sector and IM/IT priorities will be provided. The business case will then discuss how pursuing this investment is aligned to the current strategic focus of Government.
3.2.1B.C. Government Strategic Priorities
At a high level, describe the current vision and objectives of the B.C. Government. Discuss how pursuing this investment is aligned to these areas of focus.
3.2.2Ministry and/or Sector Strategic Priorities
At a high level, describe the current vision and objectives of all Ministries or Sectors that will be deeply involved in the proposed program. Discuss how pursuing this investment is aligned to their areas of strategic focus.
3.2.3Information Management (IM) /Information Technology (IT) Strategic Priorities
At a high level, describe the current vision and objectives as articulated by the OCIO as well as any specific objectives for IM/IT within the Ministries and/or Sectors that will be deeply involved in the proposed program. Discuss how pursuing this investment is aligned to these areas of focus.
3.3Risk of Not Pursuing the Investment
The focus of this section of the investment context should clearly convey why alternatives to the status quo deserve consideration. Risks that will be introduced as a result of not pursuing this investment may closely tie to the change drivers described earlier and can also include opportunity costs.
1 / Business Case: Level I / <Insert Title of Business Case> / 12/23/20184Proposed Program
The following section will provide an overview of the program that is being proposed in response to the business problem outlined in the context section above.
4.1Overview
A description of theproposed program will be provided here. The description should indicate:
- What the solution is and how it will work.
- The impact of the proposed program on the application portfolio (i.e. Does theproposed program introduce net new technology?Expand on existing functionality? Or consolidate existing functionality?).
- The intended build approach – if relevant (e.g. Custom development, commercial off-the-shelf, SaaS / Cloud).
- The approach to sourcing (e.g. Outsourcing, alternative service delivery (ASD)[2], public-private partnership (PPP)[3]). Please consult with SPO on their deal/service inventory and highlight if there are any government sourcing or licensing agreements already in place that this option could potentially use.
- The potential for technology re-use by other Ministries/ Sectors.
4.2Proposed Program Scope & Deliverables
This section must answer must answer the following questions about the proposed program:
- What is the scope of this program?
- What outputs will be delivered?
4.3Strategic Alignment, Benefit to Citizens of B.C. & Other Non-Financial Benefits
Within the investment context section of the business case, the non-solution specific benefits of the investment were discussed. The followingsection will outline how the proposed program, specifically, is in alignment to current priorities, the non- financial benefits that it will bring to the Citizens of B.C. and any other non-financial benefits that are expected.It is not necessary to capture KPIs for benefits identified within this section of the business case as this will be thoroughly addressed during post-approval planning.
Strategic Alignment & Benefits Table
Strategic Alignment / Benefit to Citizens of B.C.B.C. Government
•
•
• / •
•
•
Ministry/Sector
•
•
•
IM/IT
•
•
•
Other Non-Financial Benefits
•
•
•
Please Note: unless sufficient government or external research has been established for the status quo, benefits that are not inherently financial in nature and are not cash releasing (revenue generating) should be listed as non-financial benefits. An attempt should not be made to financially quantify these types of benefits in the cost-benefit-analysis.For example, the financial benefit of a reduction in stress related employee resignations due to decreased workload cannot be included as a financial benefit unless a recent study and supporting financial model related to employee resignations has been completed.
4.4Financial Analysis Summary
Using the ‘CBA Summary’ tab of the business case workbook, a cost benefit analysis summary in the format belowwill be provided. The detailed cost and benefit breakdown for the proposed solution will be outlined in later sections of the business case.
Financial Analysis Summary
Cost Benefit Analysis Template Notes:
- Confidence in the financial estimates provided here must be at least +/- 35%.
- The costs and benefits reflected in the financial analysis include the costs and benefits throughout the build, implementation, operation and retirement of the proposed program.
- Due to the increasingly short lifespan of technology, the standard analysis will assume a 10 year timeline. Any change to the 10 year timeline must have assumptions that adequately support this change.
- If it is a known fact that the costs and benefits of the solution will terminate by a particular year (e.g. this is intended to be a temporary solution that will be removed completely by a certain year) then the lifespan can be adjusted accordingly.
- If it is more likely that the incremental costs and benefits of the solution will occur over a timeline in excess of 10 years but the exact date is unknown, a terminal value should be included in the NPV calculation (a template is provided to assist with this).
- The discount rate used is calculated by adding a risk premium to the risk free rate. The value of the risk premium is pre-defined based on the risk score calculated during the concept case self-assessment. The suggested risk free rate and risk premiums are already included within the business caseworkbook assumptions. When filling out the CBA spreadsheet, the risk classification is selected from a drop-down list and the discount rate is automatically calculated.
4.5Risk Summary
Within the table below, program delivery and benefits realization risks will be stated. A selection of delivery and benefits risks from Val IT [4]has been provided below as examples for consideration when completing the table.Please be advised that SPO can be consulted on historic vendor performance. The proposed response to these risks will be discussed further on in the business case.
Summary: Benefit & Delivery Risks
RisksDelivery Risks / Benefit Risks
Potential delivery risks include:
•Unproven technology
•Compliance with technology architecture and standards
•Project duration
•Level of interface required to existing systems and processes
•Key staff & skills availability
•Experience/quality of project teams
•Reliance on vendors / historic vendor performance
•Dependency on factors outside control of project teams
•Ability to provide ongoing operational support / Potential benefits realization risks include:
•Non-alignment with commercial policies or strategy
•Non-alignment with technical standards, architecture, etc.
•Compliance with security guidelines/policy
•Sensitivity of outcomes to timing or external dependencies,
including changes in the economy, market conditions or a
specific industry sector
•Extent of organizational change required (depth and breadth)
•Preparedness and capability of business to handle the change
•Quality and availability of business sponsorship
5Alternatives Analysis
5.1Analysisof Alternatives to IM/IT Investment
This section will provide a discussion on the non-IM/IT options that the business case has considered as a resolution to the stated problem and will provide justification for pursuing a technology enabled solution. In order to provide guidance on the feasibility of certain alternatives (e.g. Outsourcing) the Strategic Partnerships Office (SPO) must be consulted on the content of this section, as well as throughout the business case development process overall.
5.1.1Non-IM/IT Alternatives Identification
The following table will state the non-IM/IT alternatives that were explored during the analysis. These alternatives would have been highlighted within the concept case as well.
Alternative / DescriptionNon-IM/IT Alternative #1> / <Please describe the alternative in 2-3 sentences>
Non-IM/IT Alternative #2> / <Please describe the alternative in 2-3 sentences>
Non-IM/IT Alternative #... / <Please describe the alternative in 2-3 sentences>
5.1.2Non-IM/IT Alternatives Comparison & Analysis
The following matrix will be used to compare capital investment size, risk level and anticipated benefits of the various alternatives against each other and the proposed program. The anticipated size of the investment capital cost is indicated by the relative size of the marker. Risk profile and benefits (including strategic alignment) are indicated by movement along the ‘x’ and ‘y’ axis respectively
Non-IM/IT Investment Alternatives Comparison Matrix
5.1.3Non-IM/IT Alternatives Analysis Summary
A brief summary of the results of this analysis can be provided here. This section should not exceed more than two paragraphs.
5.2Analysis of Alternatives to the Proposed IM/IT Solution
5.2.1Alternative IM/IT Solutions
The following table will state the IM/IT alternatives that were explored during the analysis. Typically 2-3 options not including the Status Quo will be explored.
Alternative / DescriptionIM/IT Alternative #1> / <Please describe the alternative in 2-3 sentences>
IM/IT Alternative #2> / <Please describe the alternative in 2-3 sentences>
5.2.2IM/IT Alternatives Comparison & Analysis
In the table below, the alternative IM/IT solution options that were analyzed and the status quo will be ranked based on their relative ability to meet the requirements of each category. An overall ranking that considers how the solution options ranked in each category will also be highlighted within this same table.
Comparative Analysis Table
Ranking per CategoryCategory / Status Quo / Option #1 / Option #2 / Proposed IM/IT Solution
Strategic Alignment
Economic Benefit
Financial Prudence
Ease of Management
Feasibility
Overall Ranking
5.2.3IM/IT Alternatives Analysis Summary
For each individual category, please discuss the relative rankings assigned to the status quo, alternative IM/IT solution options and the proposed IM/IT solution. The discussion for each category should be no more than one paragraph in length.
5.3Contributions & Change Implications of the Recommended Option
This section takes a deeper look at the value contribution of the proposed program as well as its impact on stakeholders and technology.
Type of Funding / Estimates ($)Funding Requested at thisStage Gate / <$$$$>
Estimated Total Capital Funding
Commitment / <$$$$>
Estimated Total Cost of
Ownership[5] / <$$$$>
5.3.1Detailed Financial Costs Overview
The purpose of this section is to identify the total funding requested now, the total capital funding commitment estimated and an indication of the solution’s TCO. The detailed schedule of expected capital expenditures from the business caseworkbook is also provided.
1 / Business Case: Level I / <Insert Title of Business Case> / 12/23/2018