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Business Case vs Business Need

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seema.sonkiya
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Business Case vs Business Need

Postby seema.sonkiya Fri Sep 12, 2014 6:18 am

One of our clients asked following question:

I got confused between Business Case vs Business Need. Can you please clarify?
seema.sonkiya
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Re: Business Case vs Business Need

Postby seema.sonkiya Fri Sep 12, 2014 6:20 am

Business Need is the one of the first element that is included in Business case preparation process. Business Need is a Situation Statement and defines the situation that may trigger a Project, in case Business Case gets approved.

An approved Business Case includes many elements like, but not limited to:
1. Business Need
2. Cost Benefit Analysis
3. Impact Analysis,
4. Risk Analysis,
5. Investment Appraisal (Payback for break even, NPV, IRR)

However, Business Need and Cost Benefit analysis are the vital elements of an approved Business Case and prominently explained there.

Business Case justifies the need of a project and each of the element of Business Case justify from different perspective.
So in your case, the correct answer is Business Case.
bandarna
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Re: Business Case vs Business Need

Postby bandarna Fri Sep 12, 2014 3:05 pm

For the below questions I selected D. am I wrong?
Test result says C is correct answer

Railway Coach Manufacturing company has embarked upon a project to develop prototype for light weight steel coach. Mark is project manager and working with sponsor on project charter. Where can mark find cost benefit analysis for the project.

A. Project Statement of work
B. Business Statement of work
C. Business Need
D. Business Case

-Narsi
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Re: Business Case vs Business Need

Postby umeshbww Fri Sep 12, 2014 3:49 pm

Narsi - You selected right option. (Business need is not right)

Business need and cost benefit analysis makes business case. Normally - organizations identify business need with help of experts which is forwarded to business analyst who performs cost-benefit analysis. Based on cost-benefit analysis if it makes sense to consider this project - business case is created for upper management consideration to either initiate or reject a project.

Business need is without cost-benefit analysis - while Business case is created to support business need by including cost-benefit analysis.

"A business case captures the reasoning for initiating a project or task. It is often presented in a well-structured written document, but may also sometimes come in the form of a short verbal argument or presentation. The logic of the business case is that, whenever resources such as money or effort are consumed, they should be in support of a specific business need. Information included in a formal business case could be the background of the project, the expected business benefits, the options considered (with reasons for rejecting or carrying forward each option), the expected costs of the project, a gap analysis and the expected risks. "
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saket
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Re: Business Case vs Business Need

Postby saket Sat Sep 13, 2014 2:25 am

i agree this should be Business Case, was it from our database? if yes please share... since we need to fix it,
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Re: Business Case vs Business Need

Postby hiasad Mon Sep 15, 2014 3:23 am

I was also wondering about this question and getting a little confused. I got it today in either a quiz or the exercises for Integration Management.

Thank you for your help
bandarna
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Re: Business Case vs Business Need

Postby bandarna Mon Sep 15, 2014 4:48 am

Yes Saket, it is from the database. one of the 10 questions. I sent screen shot to support email account and seema.sonkiya should have received it.

Thanks,
-Narsi
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Re: Business Case vs Business Need

Postby saket Mon Sep 15, 2014 4:53 am

Thanks , will check
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bs_pani
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Re: Business Case vs Business Need

Postby bs_pani Fri Oct 31, 2014 4:18 am

Saket,
It seems this is not yet fixed ;) . I just encountered the same question and answer showing as Business Need NOT Business Case
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Re: Business Case vs Business Need

Postby saket Fri Oct 31, 2014 6:11 am

Fixed now.
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