14. Building a business case

Header

Building a Business Case

ND036 C1 L2 17 Business Case

Recap

A business case answers the question: “Why should the company do/invest in this?”

The goal is to convince sponsors/stakeholders to approve the project. You won’t always need to go to this level of detail for all projects, like a new feature in an existing product. For smaller projects, the PRD will likely have enough detail. But for an entirely brand new product, you will need to be able to justify the larger investment. Is it worth continuing this project?

A business case should include:

  • Business problem
  • Benefits
  • Costs
  • Risks
  • Possible solutions
  • Timeline
  • Competition

business case quiz 1

True or false: A business case describes how the product will work in detail
SOLUTION: False

business case quiz 2

True or false: Every feature must have an in depth business case.
SOLUTION: False

Summary

For new product investments it’s important to build a business case, which answers the question: “Does it make sense to build this?”

Your business case should be organized into the following sections:

Executive Summary
The Executive summary summarizes the entire document, including the recommendation. You want to make sure that it has enough detail that if it’s the only thing people read they will understand the justifications for building the product. It’s also the first thing people read and usually the last thing you will write to make sure that everything is cohesive.

Problem Statement
The Problem Statement explains the problem you are trying to solve, as well as the associated goals. It should also clearly link the problem back to the business strategy and goals.

Analysis of Product Opportunity
In the Analysis of Product Opportunity section, you discuss the merits of why solving the problem is important. You’ll usually want to touch on the cost of the problem and the size of the opportunity. Additionally, you can discuss what would happen if you didn’t solve the problem.

Possible Solutions
In the Possible Solutions section, you will describe the potential solutions to the problem. For each solution, you should discuss benefits, cost, timeline, and risks.

Recommended Approach
And finally in the Recommended Approach section, you put forward your recommendation for which solution is the best and why.

Other tips to keep in mind:

  • Tailor it to your audience
  • Shorter is better
  • Make it interesting
  • Demonstrate business value

Further Research

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