Docstoc

Template Business Case Depreciation

Document Sample
Template Business Case Depreciation Powered By Docstoc
					                                                                                                                       Page 1 of 2



                                               Business Case

 Project Name

 Version Control           No:               Date:                                Author:

Purpose
The purpose of Project Business Case is to provide a well analysed and reasoned argument to assist with deciding whether
a project should go forward. The business case is to be used for large and capital projects.

Recommendation
Explain what you want the reader to approve in brief.



Return on investment
The return on investment (ROI) will be of high interest to the business case audience. ROI is not just about making money, it
can be concerned with efficiency, effectiveness and serviceability. Discuss benefits and disadvantages. Benefits can be
tangible (e.g. costs savings) and intangible (e.g. customer satisfaction). Benefits might accrue not just to the Department,
but also to the community. Evaluate investment potential by comparing the scale and timing of expected gains to
investment costs to assist with ROI. There may be instances where specialist or expert advice is required to provide a more
robust estimate on ROI, e.g. consultant, ABARE. Etc.



Estimated costs
Identify project related costs including employee expenses, supplier expenses, contracting expenses, training requirements,
communications (printing etc), depreciation, short and long term costs and so on.
Estimated costs are necessary to make it possible to identify return on investment and cost related and service related
benefits of the project. If the project will run for more than one financial year the cost proposal must outline the estimat ed
costs for all years within the table below.



Table 1: Estimated Costs of Proposed Project
                           2008-09         2009-10        2010-11         2011-12        2012-13         2013-14        2014-15
   Financial Year
                             $m              $m             $m              $m             $m              $m             $m
Capital expenditure
Capital expenditure
Project related expenses (add items where applicable)
Staff
Supplier


Depreciation
Depreciation expense




Template 2: Business Case
Version 1.0
Printed on 31/12/2010
                                                                                                                       Page 2 of 2



Risk analysis
Broadly identify the main risks of the proposed project and how they will be managed. Examples of possible risks to be
addressed might relate to cost overruns, delays, availability of specialised skills, technological r isk, legal challenges and
approval processes external to the organisation.


Business requirements
It is essential to identify the high level or indicative business requirements associated with the proposed project. Measures,
targets or performance indicator s to gauge whether business requirements have been met must also be identified. Early and
detailed consultation will be required to be held with the business owner to best identify the proposed project’s business
requirements.



Scope & exclusions
Define simply and clearly what is included and excluded from the proposed project. Provide a clear statement of the
boundaries of the project. The scope of the project includes target outcomes and inputs and outputs. C larify specific
exclusions which may be assumed as being a part of the proposed project; by stating what is not included in the scope of the
project you are advising the decision makers with a full picture of the scope of the project.



Relationships, dependencies & assumptions
Identify any relationships or dependencies with other projects or project teams that may have either a positive or negative
impact on the project. Consider any assumptions related to any dependencies and relationships.



‘Do nothing’ option
State what the consequences would be if the project was not undertaken.



Evaluation strategy
State how the key performance indicators specified in the business requirements section will be evaluated. Consider
whether there is a need to undertake baseline studies of the performance indicators so that the question, “What difference
has been made?” can be answered when the project is completed. The evaluation strategy may include, the timing of the
evaluation (start and end), the measures of success to be evaluated, what the scope of the evaluation is ( what is in and what
is out), to whom the evaluation will be presented. Answer s to these questions may dictate information gathering processes
conducted before, during and following the project.


Appendix
List the appendices. These should include detailed risk analysis and mitigation strategies and any other supporting
documentation that has assisted you in writing the Business Case.




Template 2: Business Case
Version 1.0
Printed on 31/12/2010

				
DOCUMENT INFO