Department or Program Name
[System/Application Name]
System/Application Name Business Case and Proposed Solution
Business Case
Template Guideline
Follow this template guideline when completing a Business Case document. Remove this section from your completed Business Case.
Purpose/Value Statement / A business case is a high level and persuasive document that describes why a project needs to be done. It defines an existing business need and a proposed solution to meet the defined need. The business case provides the information necessary to determine whether or not to commit the resources to launch a project. This is the first step in the project origination process.The logic of the business case is that any time resources such as money or effort are consumed; they should be in support of the business. For example, a software upgrade might improve system performance, but the "business case" is that better performance would improve customer satisfaction. The amount of detail required in the business case is based on the sponsor’s need to be convinced or compelled that resources should be expended as described to achieve the desired solution.
Ownership / Anyone in University Services can propose a project; however, the department sponsor has ownership of the business case. Typically, a project will be initiated by a Business Manager who will work with IT and a Sponsor to create the high level business case for why a project needs to be done. It is the responsibility of the person who initiates the proposal to complete the document and route for approval and review. The Business Case must be approved before funding and resources can be assigned.
When
Origination / In University Services, a business case is required for all IT projects that are classified as medium or large ($75K and above), or if a project introduces a new technology or a new vendor.
Template Completion / 1. Do not include the Template Guidelines in your final document.
2. Enter the project information under each numbered section in the business case and delete the template instructions shown in blue italic font. The purpose of the instructions is to provide guidance for completing the document or to list options that must be selected to complete the section of the business case.
3. Each numbered section in this document will be expanded on in more detail in the Project Charter or Project Plan.
4. Submit the business case for review by the U Services Program Management Office:
¨ Sign on to the PMO Web Site @ www.uservices.umn.edu/pmo
¨ Select the Project Proposals link in the lower right hand corner.
5. Click the New Item button to enter your project proposal.
6. Complete the fields on the project proposal.
7. Click the Attach File button to attach the Business Case document.
8. Click Save and Close to submit your proposal.
Review Criteria:
Business cases will be reviewed and approved at the originating department level. A Central U Services review will be required if:
· The proposed project cost estimate is greater than $250,000
· The proposed project impacts multiple RRC’s
· The proposed project needs funding assistance from University Services central budget or is the project a potential enterprise-wide solution for the University of Minnesota
· The proposed project involves a high business or technical risk (determined by an IT Technical Architecture Review Committee comprised of the U Services CIO, PMO director, appropriate IT manager, and subject matter experts as appropriate)
After review, the organization should have reasonable assurance that:
· The proposed investment has value
· The resulting project will be properly managed
· The organization has the capability to deliver the benefits
· The organization’s dedicated resources are working on the highest value opportunities
· Proposals with inter-dependencies are undertaken in the optimum sequence.
Empowerment & Scalability / This template includes the minimum basic information needed to successfully complete a Business Case document. The amount of detail included in the template will depend on the size and complexity of the proposal. Consult the USPMO with any questions via the PMO Website @ www.uservices.umn.edu/pmo
Important Notices / As this template may change, it is highly recommended that you check the PMO Website @ www.uservices.umn.edu/pmo each time you need develop a new business case.
Document Information and Approvals
Version # / Date / Revised By / Reason for change
1.0 / 9/17/09 / Bill Kanfield/Aaron Demenge/Diane Kleinman / PMO Review
2.0 / 8/4/10 / Charlie Luke / Diane Kleinman / SBR Project Recommendations
Document Approvals
Approver Name / Project Role / Signature/Electronic Approval / Date
System/Application Name Business Case and Proposed Solution
Table of Contents
1. Business Issue/Opportunity 1
2. Proposed Solution Objectives/Project Approach 1
3. Support for University Services Strategic Goals 1
4. Business Drivers 1
5. Key Goals 2
6. Anticipated Benefits 2
7. Impacted Groups 2
8. Preliminary Timeline and Effort Estimate 2
9. Funding Sources 2
10. Alternative Solutions 3
11. Risks/Assumptions/Dependencies 3
12. Impact Summary Form & Cost/Benefit Analysis 3
13. Additional Comments 3
Business Case and Proposed Solution Template
Business Case Identification:
Business Case/Proposal Name: / Date:Department/Business Area:
Sponsor: / Prepared by:
1. Business Issue/Opportunity
Describe the business need that would be addressed by this proposal and the reasoning behind recommending this as a proposed project. (Remove this comment section from the final document.)
Business issue/opportunity statement…
2. Proposed Solution Objectives/Project Approach
Provide a high-level statement that addresses the overall context for what the proposal would accomplish and the general strategy that would be used to deliver the solution. Touch on what would be expected and what should be excluded. The Project Charter will expand this section into specific activities or deliverables. (Remove this comment section from the final document.)
Project approach statement…
3. Support for University Services Strategic Goals
Select one of the University Services’ Administrative Strategic Goals that this proposal supports:
1. Provide the right services, at the right level, at the right time, at the right cost through continuous improvement and innovation.
2. Provide a well-maintained, attractive, and highly functional campus.
3. Promote and advance a safe and secure environment for the University Community.
4. Engage and partner with the units and people we serve.
5. Maximize opportunities for the people of the U to develop and contribute.
6. Foster a University Services enterprise culture.
(Remove this comment section from the final document.)
Strategic goals statement…
4. Business Drivers
List the primary business drivers of this proposed proposal. Drivers may be: Compliance, Cost/Expense Reduction, Increased Revenue, Regulatory Mandate, Risk Reduction, or Service Improvement. (Remove this comment section from the final document.)
§ List item #1
5. Key Goals
List SMART goals - Specific, Measurable, Attainable, Realistic, and Time-based – known or expected that will fulfill the proposed solution objectives. Also list any known or expected key Critical Success Factors sponsorship would expect to use to gauge success. A critical success factor is not a key performance indicator (KPI). Critical success factors are elements that are vital for a strategy to be successful. KPIs are measures that quantify objectives and enable the measurement of strategic performance. For example:
§ KPI = Cost per Incident/Event
§ CSF = To have established a process to define activity-based cost accounting to capture and summarize all costs attributable to an incident or event.
(Remove this comment section from the final document.)
§ List goals
6. Anticipated Benefits
List all known and expected benefits - both qualitative and quantitative – of the proposed solution and how it would enhance the business. (Remove this comment section from the final document.)
§ List benefits
7. Impacted Groups
Describe the organizational impact – processes or resources – of the implementation of the proposal. Include beneficiaries of the resulting product or service or subject mater expertise that would be expected to be drawn upon. (Remove this comment section from the final document).
Organization/Name / Type of Impact8. Preliminary Timeline and Effort Estimate
The anticipated duration of the proposal. (Remove this comment section from the final document.)
Deliverable/Milestone / Date/Timeline / Comment9. Funding Sources
List the funding source for this proposal (e.g., departmental funds, charge back to customers, central U of M funded, etc.) (Remove this comment section from the final document.)
% / Area or Department / Comments100%
10. Alternative Solutions
List all alternatives and explanations for why chosen or not chosen. “Do nothing” should be an alternative that would be considered. Considerations would be pros or cons that need to be understood (“Tried approach 3 years ago, and was not successful”, etc. (Remove this comment section from the final document.)
Alternative Solutions / Considerations11. Risks/Assumptions/Dependencies
Describe risks and key assumptions known or expected at this time:
A risk is an uncertain event or condition that, if it occurs, has a positive or a negative effect on a proposal project objective. A risk has a cause and, if it occurs, a consequence
An assumption is where there may be external circumstances or events that are to be considered to occur for the proposed project to be successful. If you believe these external events are likely to happen, then you have an assumption. If you have an external event that must occur, but you are uncertain that it will, it is a risk.
A dependency is a situation where some part of the proposed project requires some other event, activity, or effort to be completed before the proposed project can be successful. You may also ‘assume’ that such an event will happen, but tracking as a dependency calls out with more emphasis that the chain of events must be completed correctly.
The Risk Assessment Worksheet can be used to quantify risks or identify risk areas that will be explored during the project SDLC phases. Use R, A, or D to categorize Risk, Assumption, or Dependency. (Remove this comment section from the final document.)
R, A, D / Description / Comment12. Impact Summary Form Cost/Benefit Analysis
Reference or attach documents
13. Additional Comments
© 2012 Regents of the University of Minnesota. All rights reserved. Revised March 28, 2012 Page 2