Outline Business Case

							orcestershire

ealth

rogramme

Insert Project Title

Outline Business Case

Insert Project Title

Purpose of this document To document the justification for the undertaking of a project based on the estimated cost of development and the anticipated business benefits to be gained. The Business Case is used to say why the forecast effort and time will be worth the expenditure. The on-going viability of the project will be monitored by the Project Board against the Business Case. The document should be assessed against the following quality criteria:  can the benefits be justified?  do the cost and timescale match those in the Project Plan?  are the reasons for the project consistent with corporate or programme strategy?

Version History.
Version Issue & Circulation Date Brief Summary of Change

Worcestershire Health ICT Services Worcester Royal Hospital Charles Hastings Way Worcester WR5 1DD Date of Issue Reference

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Contents. 1. Executive Summary .................................................................................... 1 1.1 Introduction ........................................................................................... 1 1.2 Strategic Case ...................................................................................... 1 1.3 Economic Case .................................................................................... 1 1.4 Financial Case...................................................................................... 1 1.5 Commercial Case................................................................................. 2 1.6 Management Case ............................................................................... 2 1.7 Summary .............................................................................................. 2 2. Introduction .................................................................................................. 4 2.1 Overview and Purpose......................................................................... 4 2.2 Structure ............................................................................................... 4 3. Strategic Case ............................................................................................. 5 3.1 Introduction ........................................................................................... 5 3.2 National Context ................................................................................... 5 3.3 National Investment Objectives ........................................................... 5 3.4 National Scope and Phasing ............................................................... 5 3.5 Local Context ....................................................................................... 5 3.6 Existing Position and Case for Change............................................... 5 3.7 Cluster Mission ..................................................................................... 5 4. Economic Case ........................................................................................... 6 4.1 Introduction ........................................................................................... 6 4.2 NHSCRS Preferred Option .................................................................. 6 4.3 Cost Model ........................................................................................... 6 4.4 Benefits Estimation .............................................................................. 6 4.5 Risks ..................................................................................................... 6 4.6 Developing the Public Sector Comparator .......................................... 6 4.7 Economic Analysis ............................................................................... 6 4.8 Local Implementation Strategy ............................................................ 6 5. Financial Case ............................................................................................. 7 5.1 Introduction ........................................................................................... 7 5.2 Current Baseline .................................................................................. 7 5.3 New Funding Situation ......................................................................... 7 5.4 National Affordability Position .............................................................. 7 5.5 Local Affordability Position................................................................... 7 5.6 Sensitivity ............................................................................................. 7 6. Commercial Case ........................................................................................ 8 6.1 Introduction and Context ...................................................................... 8 6.2 Procurement Process – Present Position ........................................... 8 6.3 Service Provision Strategy................................................................... 8 6.4 Timetable .............................................................................................. 8 6.5 Contracting Issues ............................................................................... 8 6.6 Preferred Bidder Evaluation Criteria.................................................... 8 6.7 Local Issues ......................................................................................... 8 7. Management Case ...................................................................................... 9 7.1 Introduction ........................................................................................... 9 7.2 Governance .......................................................................................... 9 7.3 Resource Plans .................................................................................... 9 7.4 Change Management Strategy............................................................ 9 7.5 Benefits Management Strategy ........................................................... 9
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7.6 7.7 7.8 7.9

Communications Management Strategy ............................................. 9 Risk Management Strategy ................................................................. 9 Approvals Process ............................................................................... 9 Project Reviews ................................................................................... 9

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1. Executive Summary
1.1 Introduction

1.2

Strategic Case

< This aspect of the business case explains how the scope of the proposed project fits within the existing business strategies of the organisation; and the compelling case for change, in terms of the existing and future operational needs of the organisation. Minimum content needed for this section: description of the business need and its contribution to the organisation’s business strategy, objectives, why it is needed now, key benefits to be realised, key risks, critical success factors and how they will be measured; main stakeholders. Questions you must address:  How well does the proposed way of meeting the requirement support the organisation’s objectives and current priorities?  If it is a poor fit, can the scope be changed?  Is the project needed at all?  Have the stakeholders made a commitment to the project?>

1.3

Economic Case

< This aspect of the business case, in accordance with HM Treasury’s Green Book, documents the wide range of options which have been considered within the broad scope identified in response to the organisation’s existing and future business needs. It aims to arrive at the optimum balance of cost, benefit and risk. Minimum content needed for this section: high level cost/benefit analysis of (ideally) at least three options for meeting the business need (where applicable); include analysis of ‘soft’ benefits that cannot be quantified in financial terms; identify preferred option and any trade-offs. Note that options appraisal must be carried out in detail before selecting a preferred option. Questions you must address:  Has a wide range of options been explored?  Have innovative approaches been considered and/or collaboration with others?  If not, why not?  Has the optimum balance of cost, benefit and risk been identified? If not, what trade-offs need to be made eg foregoing some of the benefits in order to keep costs within budget; taking carefully considered risks to achieve more substantial benefits?>

1.4

Financial Case

<Assessment of affordability and available funding. Links proposed expenditure to available budget and existing commitments.
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Minimum content for this section: statement of available funding and broad estimates of projected whole-life cost of project, including departmental costs.(where applicable). Questions you must address:  Can the required budget be obtained to deliver the whole project?  If not, can the scope be reduced or delivered over a longer period of time?  Could funding be sought from other sources?>

1.5

Commercial Case

< Where there is an external procurement, this section outlines the potential commercial arrangement. Minimum content required for this section: proposed sourcing option, with rationale for its selection; key features of proposed commercial arrangements (eg contract terms, contract length, payment mechanisms and performance incentives); the procurement approach/strategy with supporting rationale. Questions you must address:  Can value for money be obtained from the proposed sources (eg partners, suppliers)?  If not, can the project be made attractive to a wider market?

1.6

Management Case

<This section addresses the ‘achievability’ aspects of the project. Its primary purpose is to set out the project organisation and actions which will be undertaken to support the achievement of intended outcomes including procurement activity (where applicable) or detailed study with existing providers. Minimum content for this section: high level plan for achieving the desired outcome, with key milestones and major dependencies (eg interface with other projects); key roles, with named individual as the project’s owner; outline contingency plans eg addressing failure to deliver service on time; major risks identified and outline plan for addressing them; provider’s plans for the same, as applicable, skills and experience required. Questions you must address:  Can this project be achieved with the organisation’s current capability and capacity?  If not, how can the required capability be acquired?  Can the risks be managed – eg scale, complexity, uncertainty?  Does the scope or timescale need to change?>

1.7

Summary

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2. Introduction
2.1 Overview and Purpose

2.2

Structure

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3. Strategic Case
3.1 Introduction

3.2

National Context

3.3

National Investment Objectives

3.4

National Scope and Phasing

3.5

Local Context

3.6

Existing Position and Case for Change

3.7

Cluster Mission

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4. Economic Case
4.1 Introduction

4.2

NHSCRS Preferred Option

4.3

Cost Model

4.4

Benefits Estimation

4.5

Risks

4.6

Developing the Public Sector Comparator

4.7

Economic Analysis

4.8

Local Implementation Strategy

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5. Financial Case
5.1 Introduction

5.2

Current Baseline

5.3

New Funding Situation

5.4

National Affordability Position

5.5

Local Affordability Position

5.6

Sensitivity

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6. Commercial Case
6.1 Introduction and Context

6.2

Procurement Process – Present Position

6.3

Service Provision Strategy

6.4

Timetable

6.5

Contracting Issues

6.6

Preferred Bidder Evaluation Criteria

6.7

Local Issues

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7. Management Case
7.1 Introduction

7.2

Governance

7.3

Resource Plans

7.4

Change Management Strategy

7.5

Benefits Management Strategy

7.6

Communications Management Strategy

7.7

Risk Management Strategy

7.8

Approvals Process

7.9

Project Reviews

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