How-to: Write a Business Case
A business case explains why a project is needed and what it will cost and bring. When writing a businesscase as an engineer it is important to place yourself into the shoes of the client. Imagine what they’d want to gain from the projects, what data and which conclusion is most important for them.
1: Define the Problem or Opportunity
Start by stating what the problem is or what opportunity you want to take. Explain why it matters.
Example: “Our system to track inventory is slow and wrong. We often run out of stock or have too much, which wastes time and money.”
2: State the Objectives
Write down what you want to achieve with the project. These should be clear and easy to measure.
Example: “We want to set up a system that helps manage inventory better and reduces mistakes by 30% in the first year.”
3: Identify the Alternatives
List at least two options you could use instead. Explain the good and bad points of each.
Example:
- Option 1: Manual Tracking
- Good: Cheap.
- Bad: Takes a lot of time, easy to make mistakes.
- Option 2: Automated System (Our Chosen Solution)
- Good: Saves time, accurate, works well as the company grows.
- Bad: Costs more at first, training needed.
4: Analyze the Costs and Benefits
Explain how much the project will cost and what benefits it will bring. Include both money and other benefits.
Example:
- Costs:
- Software: $50,000
- Training: $10,000 a year
- Benefits:
- Saves $75,000 a year from fewer mistakes
- Better customer satisfaction
5: Risk Assessment
List any risks and how to reduce them.
Example:
- Risk: Workers might not like the change.
- Solution: Give good training and explain why it’s needed.
6: Recommend a Solution
Pick the best option. Explain why it is the best choice based on the costs, benefits, and risks.
Example: “We recommend the automated system because it will help the company more in the long term, even though it costs more at first.”
7: Conclusion
Summarize the case and remind why it is important for the company.
Example: “The new system will save time, reduce costs, and make customers happier. It is a good choice for the future.”