A business case is the most important part when starting a new project or company.
The primary objective is the justification of a project based on revenues, costs and risks.
Drawing up a business case helps building structure within the decision-making process. It provides in the elaboration of different options guides the decision-making process. Progress of the results can constantly be monitored in proportion to the company goals. The business case can also be used to create and stimulate commitment among senior managers and stakeholders. After all, the business case plays a vital role in benefit tracking by raising a company’s revenues.
Setting about a business case is often hard and complex. Apart from specific know-how a goal orientated approach is necessary.
INPAQT possesses the demanded features and thus guaranties a first-rate business case by meeting the following demands:
· Offering a solution for the commercial needs of your organization.
· It is affordable and offers ‘value for money’.
· Risks are mapped out.
· A clear image of the best options is provided.
· Transparency in the way revenues will be realized.
· The results are feasible and within reach in accordance with the set time.
· The entire case is consistent with your organizations strategy.
The INPAQT business case program is divided into two parts:
The qualitative part (business concept)
· In which way does the new product or service fit into the current strategy?
· Description of revenues of the business case by setting up a value proposition and a competition analysis.
· The value proposition determines future market shares and current pricing. The speed of market penetration is determined on behalf of the financial part.
· Determine on which core competencies the new business is founded. Examine how those competencies can be fully utilized in relationship to building up a durable competitive advantage. This establishes development costs and to some extend to product life cycle.
· An analysis of technical, commercial, financial, legal and organizational risks and decide how you wish to deal with them. These aspects also estimate the level of possible success for the financial part of the case.
· Non financial elements like the fit with corporate identity, sustainability, legal obligations, improving your imago among stakeholders and exploring new technologies and/or new markets.
The financial part
· Expected costs and revenues for the entire product life cycle.
· Expected economic value in the form of NPV, ROI and IRR.
· Sensitivity analysis containing a list of the most critical values and cost drivers determining the business case.
On the base of these factors we can establish the turning point for success.
· A closer examination of the critical parameters in order for more reliable estimations.
· Scenario analysis in combination with a decision tree. Milestones within a project are more easily definable this way.
The Innovation Management Suite consists of all the necessary methods and tools in order to describe every single element of the business case. IMS sets up a logic order of results and presents them in a clear and understandable manner. The Business Case Management Tool is capable of processing complex calculations using various methods and models. The results are put into graphs and charts for easy reference. Any modification or addition is easily to be inserted. Your business case will continuously be up to date and acts as a compass for the future.
The time has come to build a bridge between strategy and operational activities. Clarity is needed to turn the business case into practice. This clarity is presented in the Portfolio Management Tool.