BUSINESS CASE
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MEMBERS
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DATE
EXECUTIVE SUMMARY
This section should provide general information on the issues surrounding the business
problem and the proposed project or initiative created to address it. Usually, this
section is completed last after all other sections of the business case have been written.
This is because the executive summary is exactly that, a summary of the detail that is
provided in subsequent sections of the document.
1.1. Issue
This section should briefly describe the business problem that the proposed project
will address. This section should not describe how the problem will be addressed,
only what the problem is.
1.2. Anticipated Outcomes
This section should describe the anticipated outcome if the proposed project or
initiative is implemented. It should include how the project will benefit the
business and describe what the end state of the project should be.
1.3. Recommendation
This section summarises the approach for how the project will address the business
problem. This section should also describe how desirable results will be achieved by
moving forward with the project.
Many options and alternatives were explored in order to discover the best
method of using technology to improve business processes and minimise
overhead costs. The approach provided above enables us to accomplish our
company goals of constantly improving efficiency, lowering expenses, and
capitalising on technology. Payroll Management System would gradually move
the data and operations of our current mainframe system to our new web-based
platform, preserving data integrity and allowing ample time to teach all
employees and managers on their roles and administrative functions. The web-
based platform is compatible with all other current systems and will increase the
efficiency and accuracy of reporting even across companies. This technology will
achieve its goals in a variety of ways, including:
● Instead of phoning their data to their regional manager for submission into
the mainframe system, employees will be able to enter and update their
timesheet data at any time and from any location.
● payroll data will be instantly available for quality control and reporting
reasons, reducing the requirement for non-billable workers to acquire,
evaluate, and prepare data.
● Staff will be able to register for training, easing the pressure on managers
and training professionals.
1.4. Justification
This section justifies why the recommended project should be implemented and
why it was selected over other alternatives. Where applicable, quantitative support
should be provided and the impact of not implementing the project should also be
stated.
Payroll will be moved to a web-based platform, resulting in increased efficiency in
terms of company resources and business operations. Since the payroll web-based
system uses technology to improve, save time because business owners can
repeat payroll tasks in a timely manner as needed. Structure is also important in
payroll due to the legal liabilities involved with employee payroll.
● 15% reduction in overhead costs in the first 12 months
● 10% decrease in employee turnover in the first 12 months
● 50% immediate decrease in time to generate weekly and monthly financial
reports
● 25% immediate decrease in the amount of time it takes to resolve payroll issues
2. BUSINESS CASE ANALYSIS TEAM
This section describes the roles of the team members who developed the business case.
It is imperative that participants and roles are clearly defined for the business case as
well as throughout the life of the project.
The members listed below make up the business case analysis team, which is
responsible for analysing and producing the business case for the Payroll Management
System.
Role Description Name/Title
Executive Support the project's executive
Sponsor team.
Technology Assists all aspects of the
Support project's technologies.
Process Gives guidance to the team on
Improvement how to improve the process.
Manages the project team as
Project Manager
well as the business case.
Provides the project including
Software Support
all software support.
3. PROBLEM DEFINITION
3.1. Problem Statement
This section describes the business problem that this project was created to
address. The problem may be process, technology, or product/service oriented.
This section should not include any discussion related to the solution.
3.2. Organizational Impact
This section describes how the proposed project will modify or affect the
organizational processes, tools, hardware, and/or software. It should also explain
any new roles which would be created or how existing roles may change as a result
of the project.
3.3. Technology Migration
This section provides a high-level overview of how the new technology will be
implemented and how data from the legacy technology will be migrated. This
section should also explain any outstanding technical requirements and obstacles
which need to be addressed.
In order to effectively migrate existing data from our legacy platform to the new
Web-based platform, a phased approach has been developed which will result in
minimal/no disruption to day to day operations, administration, and payroll
activities. :
Phase I: Hardware/Software will be purchased and the WP system will be created
in the web-based environment and tested by the IT Professor.
Phase II: IT group will stand up a temporary legacy platform in the technology lab
to be used for day to day operations for payroll and administration activities. This
will be used as a backup system and also to archive all data from the company
mainframe.
Phase III: The web-based platform will be populated with all current payroll and
administrative data. This must be done in conjunction with the end of a pay cycle.
Phase IV: All employees will receive training on the new web-based platform.
Phase V: The web-based platform will go live and the legacy mainframe system will
be archived and stood down.
4. PROJECT OVERVIEW
This section describes high-level information about the project to include a description,
goals and objectives, performance criteria, assumptions, constraints, and milestones.
This section consolidates all project-specific information into one chapter and allows for
an easy understanding of the project since the baseline business problem, impacts, and
recommendations have already been established.
4.1. Project Description
This section describes the approach the project will use to address the business
problem(s). This includes what the project will consist of, a general description of
how it will be executed, and the purpose of it.
4.2. Goals and Objectives
This section lists the business goals and objectives which are supported by the
project and how the project will address them.
By ensuring that paychecks are issued on time and in the exact amounts each pay
period, the wp payroll systems save time and money. Many portions of the system
can be automated once it is set up, reducing errors and increasing efficiency.
Business Goal/Objective Description
Web based tool will allow real-time and accurate reporting of
Timely and accurate reporting
all payroll and administrative metrics
Fewer HR and payroll staff required for managing these
Improve staff efficiency
activities will improve efficiency
Reduce employee Greater autonomy and flexibility will address employee
turnover concerns and allow managers to focus on billable tasks
Reduce overhead costs Fewer staff required will reduce the company’s overhead
4.3. Project Performance
This section describes the measures that will be used to gauge the project’s
performance and outcomes as they relate to key resources, processes, or services.
The following table lists the key resources, processes, or services and their
anticipated business outcomes in measuring the performance of the project.
These performance measures will be quantified and further defined in the
detailed project plan.
Key
Resource/Process/Ser Performance Measure
vice
Salary Type The operating method will be improved, and there will be no
Differences issues with employee compensation.
Payments of taxes to fund social insurance systems such as Medicare and Social
and fees Security
to convert employee work time into correct paychecks in a
accurate time
seamless manner As a result, you won't be underpaying or
tracking
overpaying employees for their time on the job.
This expense underlines the need of tracking employee absences
Different types of
in order to make workplace improvements that can drastically
leaves
save costs and boost productivity.
4.4. Project Assumptions
This section lists the preliminary assumptions for the proposed project. As the
project is selected and moves into detailed project planning, the list of assumptions
will most likely grow as the project plan is developed. However, for the business
case there should be at least a preliminary list from which to build.
The following assumptions apply to the WP Project. As project planning begins
and more assumptions are identified, they will be added accordingly.
● End users should have a basic understanding of computers, and we will provide
them with software training documents and reference materials.
● An easy-to-understand interface is required.
● Ensure that every payroll schedule runs properly and promptly.
● required assistance to ensure that the project is completed successfully.
● The software requirements specifications document would be used to design,
develop, and implement the proposed system.
4.5. Project Constraints
This section lists the preliminary constraints for the proposed project. As the
project is selected and moves into detailed project planning, the list of constraints
will most likely grow as the project plan is developed. However, for the business
case there should be at least a preliminary list from which to build.
The following constraints apply to the WP Project. As project planning begins and
more constraints are identified, they will be added accordingly.
● A suggested system to which only authorised individuals have access.
This proposed system is solely applicable to and usable by any company's
management.
● There will be little assistance from hardware/software suppliers because
implementation will be done internally rather than by product developers or
vendors.
● only applies to the planned Computerised Payroll System improvement.
4.6. Major Project Milestones
This section lists the major project milestones and their target completion dates.
Since this is the business case, these milestones and target dates are general and in
no way final. It is important to note that as the project planning moves forward, a
base-lined schedule including all milestones will be completed.
The following are the major project milestones identified at this time. As the
project planning moves forward and the schedule is developed, the milestones and
their target completion dates will be modified, adjusted, and finalised as necessary
to establish the baseline schedule.
Milestones/Deliverables Target Date
Project Charter 01/01/20xx
Project Plan Review and Completion 03/01/20xx
Project Kickoff 03/10/20xx
Phase I Complete 04/15/20xx
Phase II Complete 06/15/20xx
Phase III Complete 08/15/20xx
Phase IV Complete 10/15/20xx
Phase V Complete 12/15/20xx
Closeout/Project Completion 12/31/20xx
5. STRATEGIC ALIGNMENT
All projects should support the organisation’s strategy and strategic plans in order to
add value and maintain executive and organisational support. This section provides an
overview of the organisational strategic plans that are related to the project. This
includes the strategic plan, what the plan calls for, and how the project supports the
strategic plan.
The WP Project is in direct support of several of Smith Consulting’s Strategic Plans. By
directly supporting these strategic plans, this project will improve our business and help
move the company forward to the next level of maturity.
Plan Goals/Objectives Relationship to Project
This project will allow for real-time
20xx Smith Improve record
information and data entry, increased
Consulting Strategic keeping and
information accuracy, and a consolidated
Plan for Information information
repository for all payroll and administrative
Management management
data
Utilise new
technology to
20xx Smith New technology will allow many payroll
support
Consulting Strategic and administrative functions to be
company and
Plan for Information automated reducing the levels of staff
department
Management required to manage these systems
missions more
effectively
Engage the
20xx Smith
workforce and This project allows the employee to take an
Consulting Strategic
improve active role in managing his/her payroll and
Plan for Human
employee administrative elections
Capital
retention
6. COST BENEFIT ANALYSIS
Many consider this one of the most important parts of a business case as it is often the
costs or savings a project yields which win final approval to go forward. It is important
to quantify the financial benefits of the project as much as possible in the business case.
This is usually done in the form of a cost benefit analysis. The purpose of this is to
illustrate the costs of the project and compare them with the benefits and savings to
determine if the project is worth pursuing.
The following table captures the cost and savings actions associated with the WP
Project, descriptions of these actions, and the costs or savings associated with them
through the first year. At the bottom of the chart is the net savings for the first year of
the project.
Ac Description First
ti year
on cost
Ty s (-
pe indic
Action ates
anti
cipa
ted
savi
ngs)
C $40
Purchase Web-based
os Initial investment for WP Project 0,00
product and licences
t 0.00
C Cost for IT group to install new software $10
Software installation
os and for the training group to train all 0,00
and training
t employees 0.00
Sa -
An immediate reduction in overhead
Reduce HR and payroll vi $18
equal to the annual salary of 3 HR
staff by 5 employees n 3,49
specialists and 2 payroll analysts.
gs 5.00
18 regional managers currently average
16 hours per week of non-billable time.
It is anticipated that this number will be
Managers no longer Sa -
reduced to no more than 2 hours per
required to work non- vi $47
week. At an average of $36.00 per hour
billable payroll and n 1,74
this results in ($36.00 x 14 hours/wk
administrative tasks gs 4.00
reduced non-billable time x 18
managers) $9072.00 increased revenue
per week.
System maintenance Sa Less frequent use of IT resources
-
required every 6 vi working on non-value added tasks
$42,
months instead of n results in approximately $42,000
000
monthly gs savings per year.
Sa Savings in cost to out-process existing
-
Reduce employee vi employees and recruit, hire, and train
$50,
turnover by 10% n new employees is approximately
000
gs $50,000 in the first year.
$24
Net First Year Savings 7,23
9.00
Based on the cost benefit analysis above we see that by authorising the WP Project,
Smith Consulting will save $247,239.00 in the first year alone. This represents a
significant improvement in our operating costs and is a clear indicator of the benefit this
project will have on the company.
7. ALTERNATIVES ANALYSIS
All business problems may be addressed by any number of alternative projects. While
the business case is the result of having selected one such option, a brief summary of
considered alternatives should also be included—one of which should be the status quo,
or doing nothing. The reasons for not selecting the alternatives should also be included.
The following alternative options have been considered to address the business
problem. These alternatives were not selected for a number of reasons which are also
explained below.
No Project (Status Quo) Reasons For Not Selecting Alternative
Keep the mainframe legacy system in place ● Unnecessary expenditure of funds for increased
staffing levels
● Continued occurrence of a high number of data
errors
● Poor and untimely reporting
● Lack of automation
Alternative Option Reasons For Not Selecting Alternative
Outsource the implementation of a web- ● Significantly higher cost
based platform ● Expertise already exists in house
● Vendor’s lack of familiarity with our internal
requirements
Alternative Option Reasons For Not Selecting Alternative
Develop software internally ● Lack of qualified resources
● Significant cost associated with software design
● Timeframe required is too long
8. APPROVALS
The business case is a document with which approval is granted or denied to move
forward with the creation of a project. Therefore, the document should receive
approval or disapproval from its executive review board
The signatures of the people below indicate an understanding in the purpose and
content of this document by those signing it. By signing this document, you indicate that
you approve of the proposed project outlined in this business case and that the next
steps may be taken to create a formal project in accordance with the details outlined
herein.
D
Approve a
Title Signature
r Name t
e
President and
Black, J.
COO
Brown,
Executive VP
A.
