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Why?

Maximize the outcome of your efforts or investment.

How?

Analyse the most viable options or scenarios for your problem or opportunity. In doing so, calculate the ‘value’ of each scenario and define the risks involved. Identify the type of value your project will deliver (e.g. cost reduction, revenue generation, risk reduction or regulatory compliance). Take all costs and revenues into account. Some revenues or outcomes are more difficult to quantify but should also be considered. Recognise that future costs and gains may be lowered due to inflation and interest (e.g. by calculating ‘net present value’).

Ingredients

• Take all costs and revenues into account.
• Some revenues or outcomes are more difficult to quantify but should be taken into account as well.
• Take into account that costs and gains in future weight lower due to inflation and interest (e.g. by calculating net present value)
• Use a tool or template like Business Model Canvas.

In practice

Most companies only detail the one or two most viable business cases.

Phase(s) of use

In the following project phase(s) business case exploration can be used:

• Problem definition