I got confused between Business Case vs Business Need. Can you please clarify?
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.
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
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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