When building a business case for HCM Cloud, there are several common questions that come up. Why do I need a business case? How do I structure a successful one? How do I build a strong financial case? Luckily, a recent presentation given to Quest users on cloud business case analysis helped answer these questions.
Here are the key takeaways:
- Business cases help sell your project against other competing business priorities.
- It is important to establish your guiding principles that will lay the foundation for your business case.
- Pitch on the numbers, close on the value.
Why do I need a business case?
While you might think your project is a no-brainer, you’re one of many competing business ideas that are being presented within your company. You have to make a strong business case that will make you stand out and help you earn a spot in your company’s budget. There are five common drivers that can help get your project approved:
- Your project addresses a legitimate business need or issue
- Your project is cost-justified
- Your project will deliver business value
- Your project needs to happen now
- Your project contains a defined plan for success
How do I structure a successful one?
A business case is broken down into four parts: an executive summary, a strategy and execution plan, a financial analysis and a case for change. Before building out these sections, it is important to establish the guiding principles that will lay the foundation for your business case. Ask yourself these questions:
- Why do anything, and why now?
- What needs to get done?
- How should you go about doing it?
- Can you do it with what you have? If not, what strategic investments are required?
- What’s the financial picture?
How do I build a strong financial case?
To build a strong financial case, you need to gather data to substantiate your case. You need to look at IT costs, business benefits and cost avoidance collectively. It’s important to show both the quantitative and qualitative business benefits, the financial impact, the rates of return and the payback period.
If you take away anything from this presentation, make it this: Pitch your project on the numbers, but close the deal on the value. While financials are a key part of your business case, it’s important to balance it out with the added value to your business and how it will make things easier on the company in the long run.
To learn more about how to structure a business case and how to make sure yours is a successful one, check out the full presentation, including sample cases, here.
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