business case
Liverpool wished to evaluate the profitability of a new business model, develop the business case allowed in a short period of time identify the business model was not as profitable as expected, and therefore it was not desirable carry it out. The business case allowed the enterprise save much money initially budgeted for the development of the proposal
Business Case.
BUSINESS CASE
The Business Case is a document that is used to evaluate or analyze the financial impact and/or economic to take action based on a proposal or alternative, as well as to document and submit a clear and specific analysis realised on the proposal. It is a methodology relatively new allows us to analyze from the point of view financial and its resources of the proposal or alternative, measuring the impact it will have on the enterprise to help find in a general manner the answer the question: What would happen both from the point of view financial as well as business (operations, administration, etc. ) if we take one desition or another one for make an action?
At any time within a enterprise come decisions that we must take to improve or correct the course and we need a form of able to know what the impact that these actions will have from the point of view economic (financial), as well as a reference framework that will enable us to clearly identify the origin of these analyzes and power through the foregoing selecting the best choices or make the best decisions. The Business Case serves to support our process of decision-making, offers us a framework and methodology to make a solid assessment on one or more alternatives and its impact on the evolution of our area, division, business or enterprise.
Opposite to what many enterprises handled as Business Case, this it goes beyond a spreadsheet, it is a document that contemplates and presents the analysis done on the proposal or alternative evaluated.
The Business Case focuses on measuring the specific impact that the proposal will take the enterprise, demonstrating with figures that what we are proposing is feasible, real and that will generate an economic impact (positive or negative). It will documenting each of the assumptions, methodologies, risks, contingencies and scope, among others that involves the implement our proposal.
It recommends developing a Business Case when you want to know if a proposal or alternative business is going to be profitable and depending on the results shall be decide implement or not.
When on the contrary, there is already the certainty that is going to be implemented the proposal regardless of the results that generates, it is recommended developing a business plan.
The Business Case is our first step toward the decision-making, once our proposal shows us positive results and is implemented, we continue with the business plan.
Examples of proposals that would justify the development of a Business Case would be:
• The incorporation of a new product or service. A construction project.
• The incursion into a new market. The restructuring of an area of the enterprise.
• The replacement of a machinery and/or equipment a training program, among others
In a enterprise or business constantly is generate new proposals or ideas of its members aimed to generate more income or reduce costs, the department of marketing may suggest implement a new strategy for a particular product,The production area can propose generate a new process to eliminate costs or the administrative area may suggest the implementation of a particular policy to reduce certain expenses, as an example; the important thing is to measure the impact of these proposals from the financial point of view (if it will help the company benefit) and that measures be taken to develop the proposal and the impact of these actions in its current operations.