This article answers the top questions that we have been asked about the benefits and costs that go into a business case.
We have been in the world of business cases and value management for over 20 years. During that time we have been asked many questions about the benefits and costs that go into a business case so we thought we would share the top ones with you!
A: If your customer wants to include other disruption costs in the business case then you absolutely should!
There may be additional costs that your customer will incur by purchasing your solution that their board will want covered by the business case. Examples of this may include:
A: Yes, you absolutely should; it may still be important to the company and their Board. Example reasons for including intangible benefits include:
A: This is something that most people who are creating business cases will face at some point. Sometimes your customer may not be able to give you the same figure that is in their own accounts, however if they have given you a number that they are happy for you to include, go with that! As long as they recognise it and agree to it, it really doesn't matter if it's "right".
A: Yes! Sometimes you will be building a business case with your customer and during the conversation you discover a benefit to adopting your solution that the customer (and perhaps you) had not thought about.
They may ask you to include this benefit in the business case, but value it at zero as they can see that it may be valid but, they want the business case to work without adding a value to it.
A: Absolutely. We say this for a couple of reasons. Firstly, it's not realistic to assume that your customer will start to see the benefits of your solution from the day they generate the purchase order. You need to allow for implementation time that could include solution configuration, training etc.
Secondly, by delaying the start month of when your customer is likely to start achieving the benefit you are allowing them some breathing room, and therefore making the benefit easier for your customer to sponsor.
Don't forget, when your customer agrees to a benefit with you they are also confirming to their Board that they think this benefit is achievable so the Board will want to see these results.
A: Our recommendation for this is typically around 6-7 benefits per business case. Make sure all of the benefits are well balanced so that the business case still works if one of the benefits is removed by your customer during future reviews. In other words, don't let your business case rely on just one huge benefit!
Do you have any other questions? Contact us if you do, we are always here to help!