What’s a Business Case?
You are embarking on a mission that is becoming increasingly critical in organizations of all kinds: to predict the results of a business decision, in terms that are clear, concrete, and credible. This is especially crucial when proposing action and you need answers to questions like these:- Will the new design software justify the investment?
- Which product should we bring to market?
- Should we lease the service vehicles or buy them?
The business case is a tool for addressing questions like these: A business case is a decision support and planning tool that projects the likely financial results and other business consequences of an action.
In many situations the need for good business case analysis is obvious and widely appreciated. Nevertheless, most business people feel challenged when they have to create or evaluate a case - even people with business degrees and backgrounds in finance and planning. They do not find many established standards for case content or structure. They discover that business case methods per se are rarely taught or explained, even in business schools or business books. They may be appalled at the lack of good business case examples in their own organization.
All of this is surprising because we know that a business case involves financial techniques that are well known and long established. Since the early 1900s, in fact, finance has developed as a discipline with methods of its own for decision support and planning. Financial metrics such as net present value (NPV) and internal rate of return (IRR), for instance, have been used for capital budgeting and asset management for many decades.
Well-known financial methods are central to a good business case but they are not the central problem in building the case. Ideally the case includes a financial model with a cash flow statement showing estimated costs and benefits for one or more scenarios. Decision makers will certainly want to see an NPV and maybe an IRR based on the cash flow summary. That much is standard finance. The central problem for case builders, however, is determining where the cost and benefit figures come from in the first place. Which cost items should be included? What kinds of benefits belong in the case? How should these be assigned financial value? And what should be done with the business impacts that cannot be weighed in monetary terms? None of those questions are answered simply by naming the business case subject. Each of those questions can be answered in different ways.
This is why the business case author has to explain the methods and rationale behind the case, argue convincingly that evidence supports conclusions, outline the methods and assumptions underlying the case, and say something useful about the uncertainties and contingencies associated with the case results. All of these latter issues are beyond the scope of traditional financial practice. Building the case involves financial methods, but case building is something more than standard finance.
The business case you deliver must score high in credibility, accuracy, and practical value. Reaching those objectives begins by understanding that numbers alone do not make the case. How you design, develop, and present the case is as important as the return on investment (ROI) and other figures you project.
Since 1994 Solution Matrix has helped thousands of individuals and organizations obtain solid, practical answers to questions like these:
- How do I build a strong business case to support my project proposal?
- Our Capital Review Committee now requires a business case with funding requests. What are they looking for?
- How do we put our product review process into a business case framework?
You may be facing such questions for the first time and have little or no background in finance and planning.
Or, you may have extensive experience in these areas, and still need to get up to speed on what makes a strong business case, how to build one, and how to package and present it with a compelling message. For your business case needs, either way, Solution Matrix offers industry leading
Business case books, templates, and tools
Step by step guidance and time-saving resources.
Whitepapers, reports, and online learningThe IT Business Case, Training ROI, and "Soft" Benefits, and "Business Case Basics"
Encyclopedia of Business Terms and MethodsClear definitions, explanations, examples, and best-practice usage for over 1,000 core business terms and methods.
Business Case Knowledge BaseSave case building time and improve the credibility and consistency of your cases by using the free Business Case Knowledge Base: business case data, standards, and examples.
Consulting Services
The Business Case Solution
Drawing on 17+ years of experience in a wide range of industries and business issues, the Solution Matrix business case framework and approach are recognized worldwide as the standard in business, governments, and other organizations. For those with specific decision support and planning needs, we offer the Business Case Solution™, a structured, collaborative, case-building project, designed to deliver the highest quality business case results in the shortest possible time.
The Business Case Solution is offered with a focus on critical issues in six areas:
Business Investment Decisions Most important business decisions are investment decisions, in one way or another.
Strategic Business Planning
Strategic planners have a special responsibility to identify risks, measure uncertainty, and show why the chosen course is best.
Alliances and Partners
Alliances usually succeed or fail depending on the partners' ability to address some hard questions before starting off together.
IT Justification
Justifying information technology (IT) actions or acquisitions in a complex business environment can be a serious challenge.
Sales and Sales Support
Major sales close, increasingly, only when customers believe they are making a good business decision.
Emerging Technologies
Emerging technologies face a host of concerns: Security. Scalability. Reliability. Not to mention this: "Why fix something that isn’t broken?"
We would be pleased to learn more about your own business case needs and objectives, and to discuss what we can accomplish together with the Business Case Solution. Please contact Solution Matrix Asia through our contact request form or contact
Suite #195, 51G Jalan USJ 10/1
Three days hands-on learning and practice with the leading source for business case training. Join more than 16,000 professionals on five continents who have successfully completed the Business Case seminars. 



